The end of the year means it might be a good time to review and perhaps update the employee management plan. Effective employee management is as important to the success of a ranch as understanding markets and production strategies. While it is becoming increasingly difficult and expensive to find, develop and retain qualified ranch employees, managers can positively influence job satisfaction and consequently retention by implementing a few key practices. Since employee management is so critical to our bottom line, here are a couple of considerations to help set us up for success.
1. Consider increasing employee understanding of job purpose: Defining the job and developing a good job description is the first step. Sounds easy, but this may be the most difficult task for any manager. Many factors can influence a job description (i.e., varied skills required, level of complexity, level of responsibility, etc.).
Start by identifying the job-based, team-based and ranch-based competencies needed for success. A good job description is specific and highlights expectations, essential functions and compensation ranges. Once developed, it can serve multiple functions (i.e., training, evaluation, and rewarding). Always make available the tools and training necessary for employees to do the job (i.e., workshops, orientation and mentoring).
2. Consider clarifying how performance is measured: To perform well, employees need to understand what is expected of them. Unrealistic expectations often contribute to the lack of success between the ranch and employee.
Clear expectations provide the manager with a foundation for communicating feedback about expected versus actual performance. Structured performance reviews should be scheduled at least once per year to open communication lines. Providing frequent, meaningful feedback is key. Positive feedback should occur five times more often than negative to build trust and confidence.
3. Consider rewarding performance based on job description: Correctly incentivizing employees is an important aspect of management to improve ranch performance. Develop a written plan with the employee to ensure performance goals are clear and provide ownership in the process.
An effective incentive plan will factor in bonuses based on personal achievement (i.e., weaning percent, accidents, workshops attended, etc.) and rewards tied to overall ranch goals. Consider implementing a financial reward large enough to motivate improved performance (i.e., 10 to 20 percent of annual salary).
The goal of improving employee retention is the common link among each consideration. Overcoming the challenges associated with employee management requires increased effort and planning. However, engaged employees lead to increased ranch productivity and profitability.
