Farmers Weekly Interactive

Dairy Event 2010: Labour crucial to dairy success

Robert  Harris
Wednesday 01 September 2010 10:16

For any business, staff recruitment can be a lottery. But dairying's image of long hours, poor pay and underinvestment means finding a face that fits can be a real problem.


That image is changing as progressive, growing units seek to recruit and retain extra staff. But, for now, individuals with good stock skills and good people skills - increasingly important as units expand - are in short supply.

Spending time finding the right person is crucial, says John Allen, managing partner at Kite Consulting. "Getting the wrong person can destroy a herd. But a really good one can put 4-5p/litre onto the bottom line.

"Unfortunately, we have a legacy that's made it difficult to attract enough good people. But things are changing and skilled dairy staff now earn good money by anyone's standards."

Most farmers are not human resources experts, says Mr Allen. He advises professional help when recruiting, to look after the legal aspects, a job description and to draw up an effective advert for the farming press, a good place to find skilled staff.

Another route is to use an agency. "Buying an element of professionalism might cost a bit more, but you are avoiding the hassle of recruitment."

Local papers are fine for larger units looking for workers who can scrape, bed down and feed. Websites are also suitable for this purpose, says Tony Evans, partner at farm business consultant Andersons.

"But you are likely to attract a large proportion of overseas respondents, so beware those from the southern hemisphere looking for a European foothold.

"And, while Eastern European labour may be cheaper, there can be a big problem with languages and key skills are often lacking. If you are looking for a good herdsman or manager you will probably be better off trying elsewhere."

A good bet is to take on sandwich year students, with a view to offering them full-time employment. The other tried and tested route is the farming press.

"Keep the advert attractive, use bullet points, tell the reader what's on offer - if it's a well developed, well invested business, spell that out. Explain what opportunities the position provides - salary indications, housing, where the business is going and the part the employee will play."

A good package is a must to attract the right person, says Mr Evans. "Find out what the employee is expecting. Is his partner working? Does he have family? All this will dictate to some extent holidays and hours, but it's surprising how you can adapt the business to get the right person."

A house will normally go with a dairy manager or herdsman position, and it should be clear what's included, such as council tax and utility bills. "It must also be in good order - would you live in it?"

A monthly salary minimises administration and should be linked to the correct number of hours. Too often, employers unknowingly underpay on salaries, and that breeds contempt. "Treat your employee with respect if you want a positive response and commitment," says Mr Evans.

As a rough guide, a trainee herd manager can expect £19,000-21,000 a year plus accommodation worth £4000-5000, says Mr Allen. A second herdsman will typically earn £25,000-30,000 plus benefits of £7000-8000, and a head herdsman in charge of 250-300 cows could earn £30,000-40,000 plus benefits. A top quality dairy manager on a 500-1000-cow herd can command up to £45,000 plus benefits.

"You can't get away from the fact you have to pay to attract the right staff," he adds. "And you can't expect them to work 80 plus hours a week for it - that's no way to build a sustainable dairy force."

However good a salary might be, more than just money is needed to retain valued employees. Staff training and development is crucial to maintain a keen interest in the job.

"Good management is important," says Mr Allen. "Conducted properly, appraisals are a great way of motivating the workforce - formalise them, make time for them and carry them out biannually.

"Regular weekly meetings are a great way of getting more feedback from staff - they keep routes of communication open and can help staff feel they are making a real difference to the business.

"Finally, ensure you send staff on farm walks and training schemes where possible. Make them feel important - most herdsmen will never have their own cattle, but, treated right, they will look after them with as much passion as the farmer himself."

Training and development should go beyond foot trimming and DIY AI and into more technical and business issues, Mr Evans stresses. "If you are in a farmer discussion group, why not set up a herdsman discussion group, too? Staff will learn faster in familiar surroundings and will soon become a real asset."

Rewards and incentives should be handled with care, he adds. "Reward excellent performance, not low bactoscans or cell count - producing top quality milk should be part of the everyday job."

Progression beyond straight employment can be a powerful motivator. Low order share milking is the first stage, where the farmer pays for a 365-day contract for milking and stock work and the share milker organises his own staff and relief.

The next stage is cow ownership, where the share milker rents some or all cows to the business, receiving a return on capital and direct returns from improved replacement rates and herd performance.

The final step is equity partnership. "This can produce excellent results for minimal risk, securing a valued employee for the long term," says Mr Evans. "Everyone wins."

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