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Youth Employment Challenge:Youth Employment Challenge:

Opportunities for business to help Opportunities for business to help achieve full youth employmentachieve full youth employment

July 2002July 2002Jacquie SherborneJacquie Sherborne

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Brief background: Fonterra Brief background: Fonterra

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How We Are StructuredHow We Are Structured

CORPORATE CENTRE

NEW ZEALAND MILK- fast-moving consumer

goods business

NZMP- ‘cow-to-customer’global ingredients

business

FONTERRA ENTERPRISES- innovation in support of Fonterra’s core business

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Fonterra Peoplea People

• 20,000 staff across the globe

• More staff live outside NZ than inside. Global ‘er.

• People employed in over 40 countries

• Trade with over 120 countries

• Main Languages: English, Spanish, Mandarin

• 30 Manufacturing/processing sites outside NZ

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Youth Employment OpportunitiesYouth Employment Opportunities

Opportunities for youth directly as employees of FonterraOpportunities for youth directly as employees of Fonterra15-19 age group employment opportunities are mainly in the 15-19 age group employment opportunities are mainly in the manufacturing area. Fonterra provide scholarships and manufacturing area. Fonterra provide scholarships and employment opportunities for tertiary – graduates also, employment opportunities for tertiary – graduates also, however this group is outside the YE project scope.however this group is outside the YE project scope.

Indirect opportunities in on-farm employment in the dairy Indirect opportunities in on-farm employment in the dairy farming industry.farming industry.Farmers are significant employers of on-farm labour.Farmers are significant employers of on-farm labour.15,000 skilled people are employed on dairy farms. Estimated 15,000 skilled people are employed on dairy farms. Estimated this will be 25,000 within 5-10 years.this will be 25,000 within 5-10 years.

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Manufacturing (NZMP)Manufacturing (NZMP)

IssuesIssues

- Location- LocationLocation an issue for attracting younger employees.Location an issue for attracting younger employees.Manufacturing sites often in smallers rural areas that young Manufacturing sites often in smallers rural areas that young people are not generally attracted to e.g. Hawera.people are not generally attracted to e.g. Hawera.

- Retention issues around hours and rosters.- Retention issues around hours and rosters.There may have been a conscious effort to avoid the 15-18 There may have been a conscious effort to avoid the 15-18 year old age group in the past. This group has generally not year old age group in the past. This group has generally not handled the shift work and unsociable hours well. The peak of handled the shift work and unsociable hours well. The peak of our season is over the summer months, and this group doesn’t our season is over the summer months, and this group doesn’t want to work the hours at this time of year! want to work the hours at this time of year!

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Manufacturing (NZMP)Manufacturing (NZMP)

Current Initiatives.

- Gateway Programme. Driven by Training Advisor at Hawera site. Programme between schools and Skill NZ. Part of the school week, practical learning and skill development, supported by accreditation.

- Currently have 4 young people at Hawera via Gateway.

- Apprenticeships. Don’t utilise the modern apprenticeship programme as well as we could. Current area of focus and review. 16 apprentices in Manufacturing at present; trades and dairy manufacturing.

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Next steps for Manufacturing.

Take Gateway to other sites.

Need more scholarships in the Manufacturing area at school-leaver level.

Manufacturing area would benefit from employment branding targeted at youth employment market.

Pre-employment programme for youth to get a realistic job preview to address youth retention issues.

Employ more Apprentices. Have increased this year to 16 across 23 plants, but not enough.

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On Farm employmentOn Farm employment

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On farm employmentOn farm employment

Issues: Farmers as employers.

Farmers need to be better employers, they are competing for talent along with other employers. Farmers expectations of employees, particularly young people are often unrealistic. ‘Churn and burn’ mentality. Employment contracts an issue.

Youth’s awareness of farming as a valid and attractive career path.

An enthusiastic teenager who is prepared to work hard and do some study can achieve a farm-management position within five years. By age 30-35 they could own a herd, plant and machinery worth $500,000, then achieve farm ownership.

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On Farm employmentOn Farm employment

Current Initiatives:

QFENZ (Quality farm employers of NZ). Two dozen farmers who have got together and developed a benchmark for being a ‘quality farm employer’ e.g. accommodation standards, minimum leave/rostered days off per annum etc.

Reporoa School Project. First base for community model. Involves students living on a farm and doing some of the school curriculum & completing unit standards. Farmer acts as mentor. Get first level certification, become employed and then continue with next level of certification. Working well. Under review, expected to be refined & extended. Proactive schools & teachers critical.

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On Farm employmentOn Farm employment

Current initiatives:

Dexcel (established by the NZDB to improve competitiveness & profitability of NZ dairy farmers) have 4 key work streams, which includes a ‘Labour’ project. This is focused on providing farmers with HR tools to become better employers and establishing effective links with industry education providers.

Massey, Agriculture ITO, Polytechnics, Skill NZ. Also links to schools and school Careers Advisors.

Career Expos. 14 held throughout NZ. Dexcel recently exhibited at 4 of these. Need to increase coverage and work in collaboration with wool and meat industries to better leverage.

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DDemographics

Poor ethnic and gender mix on farms and in the manufacturing area of NZMP. Maori and Pacific Island people very poorly represented.

Agricultural ITO trainees – about 9% are Maori.

This decreases at the level of farm ownership and sharemilkers – about 1% are Maori.

Need to market employment opportunities to target different demographics – greater ethnic mix, immigrants and school leavers.

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On – Farm employment survey

As part of the Youth Employment Project, we have surveyed As part of the Youth Employment Project, we have surveyed farmers via the net on On-Farm employment.farmers via the net on On-Farm employment.

We had a very positive response to the survey: 228 people responded to the survey.

Survey raises some interesting issues around farmers as employers, level of awareness and perceptions of youth around farming as a career option and skills and personal attributes of youth. It is apparent that there is further work to do to bring youth and farmers together in a mutually beneficial employment relationship.

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What Farmers Want:What Farmers Want:

The Right People

With the Right Attitude

Who are properly Informed

BUT

To achieve this, farmers must adjust as employers

“School leavers need to know that farming is a professional and viable employment choice… they need to know that it requires brain power”

“Positive mental attitude, self belief, self esteem, respect some authority, respect other people’s property”

“Kids need to see there’s a future in farming. It needs to be promoted, teachers are willing to promote computers and the arts. The same problem has hit the trades, its not fashionable to be practical”

“Farmers need educating also. There are a lot of farmers who treat their labour poorly and expect more than 8 hours per day on minimal wages and minimal time off”

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Little Specialisation is Required of Farm HandsLittle Specialisation is Required of Farm Hands

83%

16%

34%

General farmhand

Milking Only

Other

Q: What type of non-casual on-farm labour do you employ?

Please note that Reponses add to more than 100% as respondents can tick more than one box

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Farmers View Attitudes and Life Skills as the Most Farmers View Attitudes and Life Skills as the Most Important AttributesImportant Attributes

4%

15%

36%

45%

Other

General farmingexperience

General dairyexperience

Attitude and lifeskills

Q: What if any particular skills , knowledge and expertise do you require when employing on-farm labour?

“Attitude not skills is important. If they want to learn, we

and the industry ITO can teach them”

“Pride in oneself and their work, a positive attitude, a desire to

succeed, basic relationship skills, THE REST CAN BE

TAUGHT!!!”

“Attitude, attitude and attitude. A

good sense of “stockmanship”. The rest we

can teach”

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On farm employment remunerationOn farm employment remuneration

Q: What remuneration and benefits do you offer farm workers?

18%

10%

13%

31%

47%

53%

69%

Other

Time off/Short shifts

Living costs

Base salary+profitshare/bonus

Base salary only

Meat and milksupplied

Accomodation

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Attracting the Right People with the Right Skills and Attracting the Right People with the Right Skills and Retaining Them is an Issue:Retaining Them is an Issue:

Q: What difficulties you experience in recruiting and retaining on-farm labour?

35%

59%

30%

34%

39%

Other

Applicants lack skills

Attracting people torural locations

People are not awareof the career options

People don't stay“Careers advisors need to be made

more aware”

“Smaller farm, good workers want

bigger jobs so they move on”

“not enough people to select from because of

location”

Please note that Reponses add to more than 100% as respondents can tick more than one box

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Schools are Seen to be Doing a Poor Job in Preparing Schools are Seen to be Doing a Poor Job in Preparing School Leavers for Farm LifeSchool Leavers for Farm Life

80%

20%

No

yes

Q: Do you believe that school leavers are equipped with relevant skills, experience and the work ethic for on-farm labour?

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The Failing is More About Instilling the Right Attitudes than The Failing is More About Instilling the Right Attitudes than the Right Skillsthe Right Skills

Q: Please outline what skills, experience and work ethic school leavers lack that required by farmers?

4%

9%

14%

18%

53%

Other

Life skills

Specific farming skillse.g. courses and work

experience

More understandingof farming as a career

The right attitudesespecially work ethic

“School leavers need to know that with dedication and

commitment that there are great opportunities to

build large amount of equity in a relatively

short time.”

“Work ethic is generally an issue. Schools don’t equip school leavers with common sense or the ability to think

laterally… “

“emphasis on agriculture, horticulture, animal

husbindary, managing finances, a feed budget, how to pasture score,

needs to be taught in rural schools in particular…”

Please note that Reponses add to more than 100% as respondents can tick more than one box

“School curriculums are too narrow, school

leavers going into rural employment lack basic

“living” skills. E.g. budgeting, cooking etc”

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……and Farmers Believe Fonterra Should Step inand Farmers Believe Fonterra Should Step in

12%

12%

86%

Other

No

yes

Q: Do you believe that Fonterra needs to develop any formal relationship with secondary schools to assist farmers to attract school leavers to on-farm employment?

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But Farmers Need to Adjust to Ensure there is A Next Farming Generation

Responses revealed that a substantial part of the youth employment problem lies in farmer’s attitudes:

“ I believe the expectations placed on school leavers are too high and farmers have to adopt a less strenuous life for new workers with regular days/weekends off throughout the year…”

“It is important for school leavers that only the ‘right’ type of employer is encouraged. Far too many farmers take school leavers and flog them with work. We have found that our young staff need plenty of time off even in the 6 week spring period… employers not prepared to do that should be employing older staff and paying accordingly. Too many people are turned off by a bad start”

“There needs to be a bench mark for employers, so they know potential employers have reached a certain degree of competency. The poor public image of dairying needs to be addressed”

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Thus, the Solution Lies in Educating Both WaysThus, the Solution Lies in Educating Both Ways

Farmers need to be educated of the needs of young people and how to be good employers:

•Becoming aware of the implications of school leavers age. E.g.:•Respecting their needs •Providing them with time off•Ensuring school leavers have a positive and educational experience

The youth and the public need to be educated about farming as an exciting and challenging career option

•Farming is BIG business•Farming requires intelligence and commercial acumen

“There is an obligation on the employer to nurture staff at this early stage of their career – it needs to be fun and a positive environment”

“Employers need to change their attitudes and be more lenient to school workers with hours worked and time off given”

“Promote farming as a great career choice”

“Career advisors need to tell children a farm is a million dollar business and to succeed you need to be be above average”

“In my opinion some of the farming advertisements leave a lot to be desired. Some of them seem to portray that farmers are obviously uneducated and a bit stupid. The opposite is more correct.”

“We need young people to work on our farms but somehow need to make it appeal to school leavers and try and get away from the image that farming is only for dummies”

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Finally, a Set of Recommendations is Made Based on the Reponses:

Fonterra, together with other Fonterra, together with other organisations should:organisations should:– Help promote dairying as a viable Help promote dairying as a viable

career optioncareer option– Help facilitate relationship with key Help facilitate relationship with key

schools to ensure the sector is schools to ensure the sector is covered wellcovered well

The industry as a whole should act The industry as a whole should act to enable:to enable:– Consolidation and standardisation Consolidation and standardisation

of courses offeredof courses offered– Establishment of employment Establishment of employment

training for farmerstraining for farmers– Setting up of a voluntary code of Setting up of a voluntary code of

practice to guide farmers and help practice to guide farmers and help boost the experience and image of boost the experience and image of dairyingdairying

“Fonterra needs to be proactive in promoting farming as a career”

“…Fonterra could do well to ‘sell’ the opportunities in farming, the lifestyle, to these young people and to set education partnerships into place with tertiary institutes that were not necessarily targeted at the top of the class lads.”

“Fonterra should be part of the promotion of dairy farming but certainly not all by itself, that cart needs to be pulled by a better-united primary education organisation”

“We strongly believe that Dexcell is the vehicle to promote this area. We don’t want duplication. Do it once and do it well”

“Training for farmers on employment issues”

“The farmers employing young staff must be vetted. Hours, conditions of work need to meet industry guidelines. Too many farmers see school leavers as cheap labour and have no real motivation to teach or treat as part of family.”

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Key next steps for Fonterra

More apprenticeships and scholarships for school leavers in manufacturing area.

Pre-employment initiative to address retention issues. Extend the Gateway programme and the Reporoa College

programmes. Increase participation in Careers Expos, via Dexcel. Labour project (one of Dexcel’s worksteams) to assist farmers

to become better employers. QFENZ – possible extension. Closer links with WINZ – educate staff on farming career paths. Employment branding – changing the perceptions of youth

towards dairying as a career path.

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Questions?Questions?