When it comes to retaining staff the New Zealand primary sector is not as good as many other parts of the economy.
Research published by the Ministry for Primary Industries (MPI) in 2019 shows that the sector overall is below the average rate achieved by other industries.
It found that, based on the years 2016-2018, primary industries staff retention rate after one year was 48% after the first year, 35% after two years and just 29% after three years.
That compares to national averages of 56%, 42% and 34% respectively.
MPI director for investment skills and performance Cheyne Gillooly says those numbers are the most recent available, but MPI and industry are currently developing a pan-sector dataset and workforce supply and demand forecasting model.
He says once it’s completed, which is expected to be by mid-2022, the project will deepen available data on the food and fibre sector workforce.
He says no specific research has been undertaken into why the sector has a lower retention rate than the national average, although the food and fibre sector employs a large number of temporary workers due to the seasonal nature of work required at peak times for tasks such as harvesting, which is likely to affect retention rates.
That’s reflected in the MPI data on specific industries.
When broken down further, horticulture has the lowest retention rates of 29%, 18% and 14% over the three years.
The best of the bunch is the dairy sector, which runs close if not parallel to national averages at 55%, 42% and 33%.
That’s no surprise to DairyNZ lead adviser – people Jane Muir, who says there is a common misconception about staff retention in the dairy industry.
She says the dairy sector has been proactive in wanting to help create great workplaces within the industry.
However, it wants to do more.
Muir says the cost to a farming business of having to train new staff after employees leave should not only be thought of in terms of the cost and time needed to get new staff up to speed, it’s also a lost opportunity where a farmer could instead be working on their business.
She says there are two types of staff retention: keeping people in the dairy sector and keeping people in individual farming businesses.
Both are important and if individual farmers focus on the latter, it will automatically achieve the former.
Muir says each employee is unique and farmers need to try and understand what motivates their workers, including what it will take to make them stay and thrive in their business.
She says surveys have shown that employees rate communication and being able to provide feedback is one of the most appreciated qualities in a good boss.
The next is providing training and upskilling opportunities, along with being able to show a career path – but that path will vary among individual employees.
Some will want to make rapid progress up the ladder, some will be happy with a slower rate, while others will be quite happy staying in the same job as long as they can see some progression, such as being given added responsibilities.
A shortage of skilled primary industry workers means that every sector is getting more competitive about attracting those workers.
Muir says one of the reasons for that is the growing understanding that the biggest asset a business or overall sector has is the people within it and the happier those people are in their jobs, the more likely it is that they will bring success to both individual farms and the sector as a whole.
There is no single answer to keeping new staff, but Muir says getting started can be as simple as having conversations with employees about what they want to achieve and then agreeing on a plan to help them achieve that.
That will show employees their boss wants to help them with their career, which will make them feel more valued and an employee who feels appreciated will be more motivated and deliver a better performance.
Employees are more likely to leave their job during their first year, which is something for farmers to bear in mind.
It makes sense to try and make that first year as good as possible.
That might mean reinforcing the idea that early starts are compensated for by having time off later in the day.
There will be new employees who will leave because they did not really understand the job they took on.
Muir says that’s okay, but it’s for the good of the industry if they leave with having had a positive experience and with a view that dairy farmers care about not only what they do but also about future generations.
“There are no negatives in employers putting their best foot forward and being a good boss and providing a good workplace,” she said.
Staff retention rates after 1-3 years
•NZ national industry average 56%, 42% and 34%
•Primary industries overall 48%, 35% and 29%
•Dairy sector 55%, 42% and 33%
•Forestry 56%, 38% and 30%
•Other primary industries, including poultry and pig farming, 54%, 38% and 29%
•Arable 53%, 36% and 27%
•Red meat and wool 50%, 35% and 26%
•Horticulture 29%, 18% and 14%
