Why investing in an HR plan for your farm is good for your business

3 min read

People are an important asset – and often the biggest expense of a farm business. Yet many farms lack the conviction that investing in HR practices is worthwhile, says an industry expert.There’s no question that investing in hiring, attracting, selecting and retaining the best employees will result in an improvement in profitability.

Dr. Sara Mann of the University of Guelph says research shows that spending money and devoting resources to HR will result in more motivated, committed workers, who perform better on the job and are more apt to stay with their employer.

Finding the right people for the job can mean higher productivity and improved efficiency, while a strong reputation as a good employer also helps farm businesses recruit the best people.

Think about HR strategically

Depending on the job on the farm, some producers may need and want the farm to be known in the community as one with a strong human resource plan.

“If you are the type of company where attracting and selecting the best employee really would make the difference - if you have a very specific skillset you’re looking for, a very skilled job you’re looking to fill - then you need to brand yourself as an employer that devotes money and resources to HR to try and attract and retain the best people," Mann says.

If the positions to be filled are unskilled and don’t require much training, it may not make sense to put a lot of farm money and resources into HR.

Plan ahead

Jennifer Wright, of the Canadian Agricultural Human Resource Council, says investing in the creation of an HR plan is important business planning. The HR planning process helps producers understand their job vacancies, needed skills and training requirements on the farm. “It will help you select the right people and keep them happier in their jobs,” Wright says.

An HR plan encompasses all activities associated with managing the people side of a business, including recruitment, orientation, training, compensation, performance management, retention and health and safety. It’s a pillar of the farm business.

The advantages of an HR plan don’t stop there. Easier recruiting, more defined hiring processes, improved orientation and training, a more engaged workforce, higher retention and lower employee turnover are just some of the benefits, says Michelle Painchaud, a human resource consultant.

Writing the plan

Creating an HR plan can be daunting, so breaking the process into steps can make it more manageable. Do these in order, as each builds on the one that comes before it.

1. Strategic planning

Determine what you want for the future of your farm business. What are your business goals? What types of resources do you need to create a workplace that supports these goals?

2. Workforce analysis

Consider the type of people and support you need. What types of workers do you need to meet your goals? What types of workers do you have today? What are the gaps between the workers you have today and what’s needed to achieve your goals?

3. Strategic development

Build the skills and capacity of your farm to meet your goals. What HR practices, such as hiring, training and management, do you have in place? How do HR practices help you to fill the skills gaps or build workforce capacity?

4. Evaluation

The plan should include an evaluation process, even if it’s just tracking checkmarks for completed elements, to measure the plan's effectiveness in helping the business meet its goals.

Motivation goes beyond monetary

Mann says employee retention, satisfaction and performance don’t always come down to dollars and cents.

“There are a lot of other things you can do, aside from offering a high wage, that will motivate and encourage your employee to perform more highly on the job,” she says.

Feedback that tells people they’re doing a good job and instills a sense of accomplishment can be highly valued. And while there’s no cost, managers and producers may need to learn how to provide this feedback, and that it’s important to some employees.

Investing in staff and creating an HR plan are vital parts of business planning and key to success for any farm business.

“Successfully executing a business plan can only be done if you have the right people in place,” Wright says. “And you can only have the right people in place if you take time to plan.”

Article by: Helen Lammers-Helps

Recruiting & hiring Leading employees