Succession Planning: Is Dustin Prepared?

Agenda

•Employee Statistics•Position Breakdown

•Recommendations

•Retirement Eligibility

•Background

Background

• Increase in work = need for more workers

• Analysis was conducted of current workforce to determine what our needs are & will be

• Specific focus was given to retirement eligibility

• Dustin had a 12.5% increase in business over the past year

Employee Statistics-Gender

86%

14%

Male Female

Dustin currently employs 70 people

Employee Statistics-Age

•18 out 70 employees are currently retirement eligible, or will be within the next 3 to 5 years

•Dustin needs to have successors in place for the 26% of our workforce that will be exiting

Position Breakdown

23%

20%

3%6%

7%

20%

14%3% 3%

Job TitlesCarpenter Superintendent Assistant SuperintendentProject Administrator Project Manager LaborerOther Estimator Equipment Operator/Mechanic

Job Titles reflected by Other Category

1. President2. Vice President3. Controller4. Staff Accountant5. Chief Estimator6. Principal7. Marketing Coordinator8. HR Specialist9. Project Engineer10. Scheduler11. Receptionist

58% of Dustin’s jobs are filled by one person

Position Breakdown by Retirement Eligibility

Laborers

14%

Retirement Eligible

Non-Retirement Eligible

•2 people are currently retirement eligible

Superintendents

43% Retirement EligibleNon-Retirement Eli-gible

•6 people are currently retirement eligible

Carpenters

44%Retirement Eligible

Non-Retirement El-igible

•7 people are currently retirement eligible

Project Managers & Project Administrators

• No Project Managers or Project Administrators are currently retirement eligible

Executive Staff & positions with ≤ 2 employees (Represented Previously by Other Category)

18%

Retirement Eligible

Non-Retirement Eligible

•3 Employees in this category are retirement eligible

•Vice President is retirement eligible

Critical Positions• Vice President: Currently retirement eligible

• Controller: Currently retirement eligible

• Superintendents: 6 out of 14 are retirement eligible

• Carpenters: 7 out of 16 are retirement eligible

YEARS OF EMPLOYMENT

Years of Employment - Entire Staff

11%

27%

23%

13%

11%7% 7%

Less than 11 to 56 to 1011 to 1516 to 2021 to 2526 and Up

Dustin Employees Average Years of Employment

• 10.3 years is the average length employment for a Dustin employee

• 4.4 Years is the current market average length of employment

RECOMMENDATIONS

Concerns & Are We Prepared• 26% of our workforce is retirement eligible

• Unexpected tragedy

• Successors for Executive positions due to retirement or new career opportunities

• In-house advancement opportunities – What’s available?

• Competitiveness in the job market

Succession Plan – Organizational Chart

Successors – Internal CandidatesVice President: Employee 2361. Been with Dustin for 19 years2. Lead Project Manager3. Most experience with Construction Management and Design

Build jobs4. Meticulous and Detail Oriented

Controller: Employee 2421. Been with Dustin for 8 years2. Knows the company3. Performed job when Controller is out of office with flawless

performance4. Working relationships with Dustin’s financial partners

Successors – Internal Candidates

Successors – Internal CandidatesSuperintendents: Employee 215 & 2961. Working with Superintendents on regular basis2. Perform duties when Super is off site3. Knowledgeable of all rules and regulations4. Training in order to eventually be promoted to this position

Vice President:

• Design team preparation

• Writing contract packages

• Value engineering

• Guaranteed maximum proposal

Controller:

• Budget preparation

• Interest management

• Supervisory responsibilities

• Financial planning

Internal Successors - TrainingWhat do we need to do to get them ready?

Internal Successors - Training

Superintendent

• Report writing

• Schedule management

• RFI’s

• Jobsite decision making

• Supervisory responsibilities

What do we need to do to get them ready?

Plan of Action - Budget• Recruiting budget = $15,000 (ads/job fairs)

• Salary Budget: broken down by position1. Vice President $150K2. Controller $125K3. Staff Accountant $70K4. Estimator $75K5. Superintendent $70K6. Carpenter $45K

= $535,000 in total salaries if one person is added

** If we utilize internal promotions = $306,000 in total salaries

Succession Plan – External Candidates

• Carpenter

• Superintendents

• Staff Accountant

• Estimator

External Candidates - Training

• Training is dependent on candidate experience

• Evaluate resume as compared to Dustin job description

• Emphasize the “Dustin Way” during onboarding

• What can Dustin learn from the new employee?

Recruitment Strategy for External Candidates

Plan of Action - Advertising1. Washington Post • Continue to use to recruit for Project Managers,

Superintendents, Marketing Professionals, Project Administrators

• Average cost is $884 per two Sundays & 30 days on Career Builder

• Proven track record with this method

• Reaches out to job seekers in the area we work

• Allows us to reach online candidates

Plan of Action - Advertising2. Careerbuilder.com• $419 per ad (more ads placed the lower the rate per ad)• Ads last one month online• Can be much more descriptive than newspaper• Use for mid-level positions and above

3. LinkedIn• $295 per ad (more ads placed the lower the rate per ad)• Ads last 30 days• Can be much more descriptive than newspaper• Only reaches members• Use for mid-level positions and above

Plan of Action – Job Fairs1. Choice Career Fairs - $1595 each site• Two locations – DC & Baltimore• 30 days of resume access after event• Advertise multiple positions

2. Virginia Tech Engineering Expo - $1200 for 2 days• Opportunity to meet numerous engineering students • Recruit for internships and positions

Plan of Action – Colleges1. Virginia Tech• No fee job/internship postings• Recruit for engineering, marketing, and accounting• Access to student resumes• Extremely employer friendly

2. JMU• $25 per job/internship job posting• Recruit for engineering, marketing, and accounting• Job Fairs yearly for $300 per booth

Plan of Action – Colleges

3. Frederick Community College• Have a Construction Management Program• Can utilize for cross training for current employees• Seek interns and Assistant PMs/Supers• Free job/internship postings for 60 days

4. George Mason University• Marketing, accounting, and civil engineering programs• Enhances Dustin’s relationship with GMU• Career fairs for interns and job candidates