we can take IT from here Innovative ways to attract and retain young talent through innovative comp plans and quality of life considerations…

About the Speaker… Kingsgate Transportation Services, LLC West Chester, OH (Greater Cincinnati) Founded Oct 1986 Jeff Beckham, Partner Past President, Board of Directors Freight Forwarders Council of America Past President, Board of Directors Greater Cincinnati Traffic Club Speaker at NIT League, Delta Nu Alpha, TIA Greater Cincinnati is known as the “Silicon Valley” of Logistics – and the competition for talent is fierce…. So lets discuss… Innovative ways to attract and retain young talent through innovative comp plans and quality of life considerations…

What was our challenge? What got you here, won’t get you there… Marshall Goldsmith

What was our challenge? Second generation family-owned business with an inherited strategy of slow but steady growth – 5-10% annually. “Life-style business”. The current business has to retire 3 families – not one. Slow-steady growth would not support that plan. Maintaining a strategy where most of the growth came from contract freight management needed to change; both to accelerate growth, but also to shift to new market conditions where freight could be won over the phone or without the personal one-to-one sales approach. That business required a new “type” of a teammate and we needed to change our hiring strategy as well. Fast-paced, transactional business is a “younger persons” game. It was a generational shift for the company. And we’re doing this in the belly of the beast, in one of the most competitive environments for talent acquisition in the country.

Millennials in U.S. labor force – some statistics to consider we can take IT from here Millennials have surpassed Gen Xers as the largest generation in the U.S. labor force, and 86 million millennials will be in the workplace by 2020—representing a full 40% of the total working population.

“Culture eats strategy for breakfast…” Peter Drucker we can take IT from here What are Millennials looking for: 64% of them say it’s a priority for them to make the world a better place. 72% would like to be their own boss. But if they do have to work for a boss, 79% of them would want that boss to serve more as a coach or mentor. 88% prefer a collaborative work-culture rather than a competitive one. 74% want flexible work schedules. And 88% want “work-life integration,” which isn’t the same as work-life balance, since work and life now blend together inextricably.

“Culture eats strategy for breakfast…” Peter Drucker we can take IT from here What can we expect… they’ve already got one foot out the door! One in four would quit their job today for a new organization That number grows to 44% in two years By the end of 2020 two of three want to be gone… Four years of service Source: 2016 Deloitte Millennial Survey

we can take IT from here “Culture eats strategy for breakfast…” Peter Drucker Recognition, Appreciation and Purpose - Millennials seek ‘instant gratification’ – oft- referred to as the ‘trophy generation’ - such as small rewards, titles, and non-monetary rewards. They want their work to make a difference or have a purpose. Coaching – Millennials want to develop their skills and know how they’re progressing. They’ve been in school since age 5 so they are used to seeing progress reports frequently Time Off and Flexibility – Many have non-work commitments that they prioritize (sometimes higher than work) and want the time to pursue. What do Millennials Value at Work? What do Millennials ‘Need’ from Work? Fun – Millennials expect to have fun at work, since they’ll be spending the majority of their time there. It’s no longer about “becoming a partner” or “moving up the corporate ladder.” Education – Many Millennials will enter the workforce with a college degree, they’re raised to believe that education is the path to their future success. Work/Life Balance – Millennials place high value on inter-personal relationships, community involvement and travel, and will want the time to pursue outside interests. It’s not “all about work.”

we can take IT from here “Culture eats strategy for breakfast…” Peter Drucker Attracting and retaining this talented generation… What was our strategy ? Work environment – and company culture – new office space – collaborative spaces - casual dress code – sports team days on Fridays. Developed a marketing plan specific to recruiting and retention Designed and implemented an ongoing training and development program – in- between steps, training positions and team leads, etc. Hired a compensation consultant to build out a comp strategy aimed at bringing the entire team onboard with the company’s overall goals and strategy – but also to compete at the highest level for new talent. Built a strategy to merge multiple generations of our team

we can take IT from here

New digs…office space built out for the employees

we can take IT from here “Culture eats strategy for breakfast…” Peter Drucker Marketing Strategy Talent Acquisition and Development Partner – no longer “Recruiter” Marketing Intern focused on recruiting M.B.A. Capstone project – strategic plan on retention and employee development

“Culture eats strategy for breakfast…” Peter Drucker we can take IT from here Team Development More than 6 in 10 millennials believe their “leadership skills are not being fully developed”. Of all the things millennials seem to point to as the most prized reward for work is leadership. Many millennials believe businesses aren’t doing enough to bridge the gap to ensure a new generation of business leaders is being created. Remember – 72% of millennials say they want to be their own boss - use that entrepreneurial drive to the company’s benefit! In the survey, nearly 71% of those likely to leave in two years are unhappy with how their leadership skills are being developed. We struggled with this as a small business. How many “leadership” positions can one company have? Too many chiefs and not enough Indians? That isn’t really what they are speaking to. What we have found is that its their development and their view of how the employer is providing support/training to those wishing for leadership roles. That was one of our “ah-ha” moments. Source: 2016 Deloitte Millennial Survey

we can take IT from here “Culture eats strategy for breakfast…” Peter Drucker Compensation Compensation plan designed to get all members of the team aligned with both personal and company goals. We tied everyone to company success (margins) and personal performance.

we can take IT from here “Culture eats strategy for breakfast…” Peter Drucker Blending Generations and Cultures This was one of our biggest challenges. - First generation to second generation and a new culture - Blending boomers, gen xers and millennials.