MANAGING ASSET – YOUR PEOPLE

Today’s labour market is challenging, making hiring and retention strategies more important than ever. The basics are still important – competitive compensation, work-life balance and employee benefits – but when it comes to attracting and retaining employees, farm employers need to step up their game.

“In order to attract, select and retain the right people, you need to be able to understand, predict and influence how your employees behave,” says Sara Mann, a professor of leadership and management at the University of Guelph and Foundations in Agricultural Management instructor. “This is not an easy task and requires a great deal of reflection to understand your own strengths and to understand how your employees are feeling and what motivates them.”

Mann says there are four categories of leadership: a directive leader (who tells people what to do directly without seeking feedback), a participative leader (who encourages employees to participate in decision-making and asks for feedback and input), an achievement-orientated leader (who motivates employees by setting goals), and an encouraging/

Mann

supportive leader (who motivates employees by providing feedback, encouragement and support).

“An effective leader will use each of these types of styles at different times with different people. Being aware of which style to use and when is the biggest strength of any leader.” opportunities on dairy farms is a growing trend. According to the Canadian Agricultural Human Resources Council (CAHRC), nearly 500 Canadian dairy farms employed foreign workers in 2017. While the dairy industry offers stable, year-round employment, finding workers with the skills and experience required is challenging. A 2017 CAHRC commodity dashboard projects Canadian dairy farmers will face a labour gap of more than 450 employees this year, and more than 1,000 by 2029.

Adding leadership training to a farm management plan can benefit the entire business. “Spend the time to invest in learning about the best way to lead and manage employees,” says Mann, who recommends using a variety of resources to learn about different approaches. She suggests starting with the AgHR toolkit (hrtoolkit.cahrc-ccrha.ca) available from the Canadian Agricultural Human Resource Council and offers resources with templates and videos to increase the validity and reliability of the human resources practices on-farm.

“People are your most valuable asset,” says Forbes, whose hiring and retention strategy encompasses prioritizing work-life balance, consistent and simple routines, setting clear expectations, defining

Resources

Canadian Association of Farm Advisors www.cafanet.ca

University of Guelph Foundations in Agricultural Management www.guelphagriculturalmanagement.com

Canadian Agricultural Human Resource Council https://cahrc-ccrha.ca

Farm Management Canada https://fmc-gac.com

Ontario Ministry of Agriculture, Food and Rural Affairs http://omafra.gov.on.ca tasks and documenting standard operating procedures. Forbes employs three full-time and four part-time staff, including three of his children. “Cows and people thrive on consistency, and we’ve learned that’s how we can excel,” explains Forbes who says he’s fortunate to have low employee turnover and credits his close proximity to Lambton College as a resource pool for new employees. His most effective hiring tool is to tour prospective employees around the farm as part of the interview process. “You can tell a lot about a person by how they interact with animals, the questions they ask and their level of engagement as you walk around.”

Managing Risk

Resiliency and managing risk round out another essential element of a farm business management plan. Sterk believes opportunities and risk go hand-in-hand on the farm, saying, “the trick is not to confuse the two. Whether you know it or not, as farmers we take risks every day; it’s just something we get used to.”

Farm Management Canada has developed an intuitive risk management assessment tool, AgriShield, to help farmers identify business risks and take action to minimize and manage them. A whole-farm risk assessment, AgriShield is an online tool that covers six key farm management areas, including people, finances, markets, business strategy, business environment and production.

“An assessment can help you determine how well prepared your farm is to face risks, such as personal injury, environmental contamination or cash flow challenges,” explains Mathieu Lipari, Program Manager with Farm Management Canada. “Farmers are often surprised by what they learn. That’s why AgriShield takes risk management planning a step further by providing an action planning tool, resources and training to help Canadian farmers prepare for whatever they may face.”

A farm business risk management plan is necessary for reducing risks and identifying new opportunities. Building a plan and taking a proactive approach, rather than an “it won’t happen to me” attitude can be the difference between a struggling and successful farm, especially in the face of unexpected adversity. A solid plan can also uncover increased efficiencies, cost savings, support transition plans and make it easier to take advantage of opportunities, such as purchasing a neighbouring farm or hiring an extra employee.

Fairly risk-adverse, Forbes admits what keeps him up at night are external factors he can’t control. “I’m constantly questioning my decisions, asking myself if the decisions I make today will be the right ones 20 years from now,” he says. Currently, the financial economy has Forbes second-guessing decisions as he navigates rising interest rates and makes financial and debt management decisions that will affect the future cash flow and financial resiliency of his farm.

Understanding your farm’s financial health can make managing current economic challenges, such as interest rate hikes, inflation and rising input costs, easier. “You can mitigate economic risks out of your control by understanding your debt service level, debt repayment options, carefully managing cash flow and prolonging asset purchases,” advises McEwan.

Forward contracting grains and locking in inputs and feed prices are other strategies Forbes takes to manage his cost of production and protect his farm from unknown economic challenges.

“Having a risk management plan has been shown to not only increase profits, but also help reduce stress and support greater peace of mind,” points out Lipari, who also recommends farmers consult farm business advisers for risk analysis and management support. “Farmers don’t have to be the best at everything on the farm. Engaging professionals can help you manage your business and keep on top of trends or expected challenges, while reducing pressure and workload.”

The hardest part of building a farm business management plan is getting started. The good news is, there are plenty of resources for producers and many of them are available conveniently available online.

“One of the most unique parts about agriculture is the importance of long-term relationships,” says McEwan. “We support each other and want everyone to succeed. Building a farm management plan, asking your peers about their plans and benchmarking numbers, and working with an advisory team of professionals, can easily make the plan come together. Just think of how rewarding a solid plan will be for the future of your farm.”