How can you incentivize your employees in a way that fosters relationships? Going beyond the standard bonus check is a key to increasing morale and retention.
“Incentive plans can be a great way to motivate farm employees when designed correctly,” says Jim Versweyveld, University of Wisconsin-Madison Extension farm management outreach specialist. “Incentive plans should have specific targets and metrics and should be documented in writing and communicated to team members in their preferred language. The metrics should be measurable and tied directly to clearly understood business goals.”
Show gratitude
Ad hoc or unexpected bonuses can also be an effective way to show gratitude to your team at the completion of one-off projects. If they are issued too frequently or at the same time interval, they might be viewed as an entitlement and lose their impact, Versweyveld cautions.
Uncover “hidden paychecks”
Tailoring incentives to each employee’s unique needs and goals can help foster personal relationships, but how can you scale that level of attention to the individual needs and motivations of your entire farm crew?
Versweyveld suggests one of the ways producers can be intentional in their incentive strategy is by creating a total compensation statement unique to each employee. Doing so can set expectations from the beginning and take the ambiguity out of the bonus structure.
Simply put, this document outlines an employee’s direct and indirect compensation, including the following:
- Annual pay (including overtime)
- Paid time off
- Bonuses
- Mandated Federal benefits
- Insurance plans
- Value of technology use
- Meals, drinks, and snacks
- Transportation (including personal use of farm vehicles)
- Professional development/training
- Other employee perks unique to the farm: milk, meat, produce, holiday turkeys, social events, etc.
Create a clear path to success
To take the guesswork out of earning potential, Versweyveld says to tie the incentive directly to product quality, such as facility cleanliness or an increased percentage of a saleable product.
Other examples of this might include pigs weaned per year, feed efficiency or specific financial benchmarks. Tom Farms of Indiana offers their employees a “bushel bonus” for all full-time employees of a year or more. The farm puts two cents for every bushel harvested in a “bucket” and divides it out to the team.
“This ensures we are all on the same team to get every bushel in the bins at the end of harvest,” says Kassi Rowland, assistant director of administration for Tom Farms.
Go beyond the bonus check
In addition to giving their loyal employees a bonus if they start and finish the season, Neumiller Harvesting has found value in offering other incentives.
Mychal Neumiller, part-owner of Neumiller Harvesting, recognizes the importance of mentorship and offers CDL training to “greener than grass” employees who might be turned down for other jobs due to a lack of experience. Neumiller foots the bill for the CDL training for his new hires (as well as the clutches and brake pads they burn through because they use his trucks).
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Neumiller and his wife, Kimberly, maintain a family-oriented culture providing home-cooked meals, fun activities and hands-on attention to learning. Neumiller recalls the satisfaction of watching his employees in the field and reaping the benefits of his investment in mentoring and training: “During one of our biggest days, I had goosebumps on my arm when I saw the knowledge pay off.”
Minnesota pork producer, Christensen Farms recognizes people are their most valuable resource. Through a variety of employee engagement opportunities they “strive to provide employees with an experience and total pay and benefits package that supports team members’ differing needs” says Tim Fossen, director of human resources.
Their employee engagement opportunities include:
- Employee resource groups and appreciation events including picnics, facility tours and training and development opportunities.
- Community engagement opportunities. Christensen Farms team members engage within their communities from local parades, youth sports team coaching, EMS and fire department volunteers to engaging with fairgoers at the Iowa State Fair.
- Organizational and peer recognition programs and appreciation events. Christensen Farms presents two annual awards, The Bob Christensen Award for Excellence and The Christensen Farms Award for Excellence. They also provide a variety of additional opportunities for recognition across the organization at all levels.
- Employee engagement surveys to act as a thermometer for the organization.
Christensen Farms believes there is no “one-size-fits-all” in this space and continuous evaluation of the needs and expectations of their team members is important for growth. Establishing an engaged culture for their team is about “continuously honing their skill sets and supporting their overall growth journey” according to Fossen. Valuing growth, both individual and within their role, ultimately creates a culture where employees feel supported regardless of their title, he says.
Establish a win-win mindset.
Fossen asserts the future state of a successful company rests on intangibles that demonstrate a win-win mindset, such as retention, internal promotions, enhanced efficiencies, strong project collaboration, internal moves, and generally improved engagement.
He believes “the only constant in business and life is change itself. Knowing change is inevitable, the most important objective we can focus on is people’s growth and development, which in turn helps people and businesses adapt to the changing pace around them, providing greater feelings of engagement in their work and role.”
