Saturday, April 27, 2024

Keep staff close

Avatar photo
October is often the point when dairy farms start reaping the cash reward of their winter work, though in 2015 the rewards are the slimmest for several years. To appease the bank balance staff remuneration may come under pressure, but remember cash in the hand is not always the most important thing for staff. With some farmers punching new notches to tighten their belts even further, here are some tips to maintain staff through the season.
Reading Time: 3 minutes

Job Security

A self-employed farmer will have enormous stress presenting a budget to the bank with a red bottom line. However, once an outcome is negotiated, it’s in the farmer’s control to make it a reality. Staff, though, could have peers who are being made redundant.

If you appreciate honesty as an employer, staff appreciate it doubly so. Take the time to assess your situation then discuss with staff the state of their positions. If they understand what the factors are, both internal and external, that will result in job security, they will have a lot less anxiety about the future and will be dedicated to ensuring that minimum KPIs are met.

Bonuses

As a dairy farmer, your income is largely dictated by factors outside your control. Staff have an even lower level of control over their income. Conditional bonuses are a good way to share the rewards of success without exposing yourself to financial risk, ie you only pay them when you can afford to pay them.

Such an option shows an acknowledgement to your staff that when times improve, you are committed to sharing the rewards with them, so they will be more motivated to get the farm through the tough times.

Flexibility

Often it isn’t the total hours of work that lead to disengagement, but the things people are prevented from doing because they are working. There are certain things that are horribly inflexible in farming, such as the cows needing to be milked at the same time every day, though in other ways there is much greater opportunity to be flexible.

Children’s sports are a great example where staff could fit their workload around being able to get to such things. Not only does this foster independence in time management, it will lead to a much more engaged workforce because they are getting more outside-of-work fulfilment. 

Non-cash Remuneration

There is a long tradition in farming that employees have access to things like home-killed meat, firewood and housing at a cheap rate. Often these rewards have a much greater benefit to the employee than cost to the employer. Some DIY upgrades to workers’ accommodation can show that you appreciate them.

Under New Zealand tax law, all non-cash remuneration must be valued and taxed accordingly, so ensure that all non-cash rewards are dealt with as to not violate this.

Time

Setting in place practices that increase productivity and time efficiency should be rewarded with extra time, rather than extra work. Staff should be encouraged that, provided quality standards are met, getting jobs done in a timely manner has benefits for them, rather than an extra 30 minutes shovelling a sand-trap.

Set clear expectations around this, with the understanding that efficiency gains from staff will lead to more free time for them. They will be more motivated and you will find yourself with more free time, reaping the efficiency gains in the future.

Another option to give staff more time is to alter the roster so they have additional rostered time off, or  additional paid days off. Four weeks annual leave is a minimum and if you can’t afford to give a cash bonus, some extra paid leave will let staff know they are appreciated.

Finally, it is important to remember when dealing with staff, you are dealing first and foremost with an individual. If you want to know what they want from their job ask them. Engage in an honest dialogue with staff about what they want and what you expect from them. You will most likely find there is an outcome that leaves both employer and employee better off. 

 

Total
0
Shares
People are also reading