How to fill your ag labor needs

Count yourself fortunate if you haven’t encountered a labor shortage at your farm, ranch or other agricultural operation.

Across rural America, a growing number of ag businesses are struggling to attract and retain employees to fill vital roles. Whether it’s to tend or harvest crops, care for livestock or operate machinery—or even to fill management roles—the industry can’t find enough people willing or able to do the job. This workforce shortage isn’t new, but I’m hearing about it more often in my meetings with clients.

A number of reasons account for the labor shortage, says Bart Nichols, a talent advisor for KCoe Isom. Among them: Fewer people are interested in working in agriculture. Rural America is losing population as people move away to larger cities. The farming population is aging, and Gen Xers and millennials don’t see agriculture as a career path.

Further, the H2-A visa program falls short every year of filling needed farm jobs. Designed to legally bring foreign-born workers to the United States to perform seasonal farm labor, it’s often considered expensive and inefficient. What’s more, ranches, dairies and hog and poultry operations aren’t legally allowed to use the H2-A program to meet year-round labor needs.

Despite these challenges, it is possible to attract and retain the right people in this competitive employment market. Here are a few pointers:

• Money counts, but benefits matter, too. Paying more is important to employees. But many are increasingly drawn to the total compensation package. That includes traditional benefits like health insurance, paid time off, 401(k) plans and bonuses. And these days, benefits might also involve providing housing, stipends for mobile phones, transportation and a greater work-life balance. Flexible working hours also help attract and retain employees.

• Recognize generational differences. When it comes to life and work, baby boomers have different perspectives from Gen Xers or millennials. More than likely, millennials—those born between 1981 and 1996—are the largest group you’ll pull from for employment. Millennials tend to be better educated than previous generations. They were raised on technology. Make it work for you.

• Keep your eyes open to possibilities. Recruiting and retaining quality employees may require you to think outside of the hiring box you’ve traditionally relied on. Ever hired an intern, for example? That can open doors for both you and the student. He or she can get experience and training, which makes them more marketable as a career develops. You have the opportunity to work with potential talent who can bring new ideas to your business. They may even become full-time employees. Look to local or regional FFA or 4-H groups to attract possible interns or employees. You might even think about establishing a scholarship program that will put your business on the radar of potential job candidates.

Another possibility for attracting or retaining qualified people is including a place for them in your business’s succession plan. It can be a strong motivator for long-term employee involvement. “If you’re thinking of transitioning your family-run operation to an incorporated business, you might look at hiring a non-family employee, such as a farm manager, to be part of your future ownership,” Nichols says.

You might also consider diversifying your business to attract employees. “I have a client who grows and harvests almonds,” says Nichols. “They have expanded into raising bees. They built an apartment building to house the bee employees. That’s given them a broader, more diversified workforce.”

• Get creative about where to find prospective employees. Be willing to expand your employee search beyond local sources. Consider colleges and universities, online employment services and even other industries.

• Share your vision. Clearly explaining your mission, expectations and employee responsibilities helps applicants and hires alike know what’s needed to achieve success for you and for them.

• Develop a culture that attracts job candidates and retains long-time employees. Make your business a rewarding place to work. Employees who are invested in their jobs and in the company are more likely to perform well and stay longer. A good workplace aligns people with the work roles they enjoy. Provide them with the resources they need to succeed. Make sure each employee is treated with courtesy and respect. Give employees the opportunity to contribute ideas. Emphasize safety and good equipment. Provide clean facilities. Highlight health and wellness. You might provide a weekly lunch or bowling night for your team. If you do, make sure your leadership attends to show the event is important. “Happy employees breed success,” Nichols says. “It’s easier to retain people than replace them.”

• Cultivate your people. Training helps grow your people and your business. There are many learning management systems, also known as LMS, specifically tailored to ag. They offeron-the-job training modules that walk employees through the steps and tasks your business requires. You can even get apps for them. In addition, create growth opportunities for promising or valuable staff. Be willing to work with employees who seem to be losing interest in a particular job. If you think they could offer value elsewhere in your operation, help them find a project or role more tailored to their interests and skills. “Employees are loyal to a company that appreciates their efforts and provides opportunities,” Nichols says.

There are many other ways to meet your labor needs. I urge you to work with specialists who understand agriculture and labor. Find someone who won’t give you cookie-cutter solutions but who will listen, assess your unique situation and develop a plan that works for your needs.

Editor’s note: Maxson Irsik, a certified public accountant, advises owners of professionally managed agribusinesses and family-owned ranches on ways to achieve their goals. Whether an owner’s goal is to expand and grow the business, discover and leverage core competencies, or protect the current owners’ legacy through careful structuring and estate planning, Max applies his experience working on and running his own family’s farm to find innovative ways to make it a reality. Contact him at [email protected]