Dad and Mom want their son to return to the farm to continue the legacy. Junior and his new bride didn't seem that interested as they settled into building successful careers. It wasn't that Junior and Bride didn't like farming; they did. They would come back, help in the fall and show a general interest.

Schaefer tim
Certified Family Business Adviser / Encore Consultants

In another scenario: Junior doesn't seem to be terribly interested in farming. He shows up, does the chores and puts in his time, but there doesn't appear to be a spark of interest. It seems to be just a job.

I've seen both of these scenarios play out. In each case, it isn't always easy to understand why the next generation isn't motivated (as defined by the senior generation) or how to motivate them.

Several motivators are tried but often don't work because they fail to get to the root cause of motivation. The first one is giving ownership of farm assets and hoping that motivates the next generation. Many farms wish they had thought through giving ownership before doing it. Giving ownership without a plan and with little communication can be misconstrued as bribery or coercion to get the next generation to return.

The second motivation attempt is giving them things to entice them to return to the farm. A nice house, a new truck, etc. Money and other things are poor motivators for employees, and they often don't work with family members working in the business either. Motivation can't be bought; it runs deeper. The good news is that motivation frequently costs very little, but it does take work.

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Here is a blueprint for what to work on to motivate the next generation.

Respect for experience and innovation

The older generation brings a wealth of knowledge and a deep understanding of the business. In comparison, the younger generation can introduce new technologies and modern practices that help the business stay competitive. A balancing act takes place between the experiences of the senior generation and the innovation and new ideas that the next generation brings. Finding this balance takes respect, patience and clear boundaries. Letting the next generation experiment with some changes while not creating so much change it disrupts the business or production is key.

Clear communication

Open and transparent communication is the cornerstone of any successful family business. Trust can't be assumed just because they are family. Regular family meetings and clear channels for feedback can prevent misunderstandings and build trust.

Consistent business and family meetings also create a space where all generations get comfortable voicing their opinions and concerns. This helps align the goals and expectations of all family members and ensures everyone is on the same page.

Leadership development

Providing leadership training and development opportunities is crucial for preparing the next generation to take on responsibilities. This includes exposure to aspects of the business and mentoring from experienced family members. Sometimes, the best mentor isn't dad or mom but someone from a peer group, an uncle or someone else with experience.

Look forward to and anticipate what the business will need in the future. There may be skills that no one in the company can teach but the future will demand. For example, some farms have the next generation take vet training and even MBA classes because the business will someday need them. By investing in the development of future leaders, you ensure that the business remains in capable hands. You also ensure they feel valued as they will become the “expert in something new and needed.

Aligning values and vision

Establishing and maintaining a shared set of values and a common vision for the business helps unite family members. This shared purpose can be a powerful motivator and guide for decision-making. When everyone is working toward the same goals and adhering to the same values, it creates a sense of unity and purpose.

Autonomy in decision-making and execution

Granting family members the autonomy to decide how work gets done can significantly boost motivation and engagement. When individuals are free to approach tasks in their own way, it fosters a sense of ownership and responsibility. Sometimes, this autonomy will have unintended and undesirable consequences, but that's part of the learning process. How important is autonomy? The next generation often tells me they would rather have autonomy, something they are fully in charge of, than have ownership of the farm coupled with someone else telling them what and how to do their work.

Recognition

Let's face it, most of us could do a better job of giving positive feedback, saying thank you and recognizing a job well done to those we are the closest to – our family.

Work-life boundaries

Work-life balance is a relatively new term in the context of family businesses. Personally, I don't really think it fits. A better phrase is work-life boundaries. For many dairy farms, work and life are forever intertwined. People always have a choice to work as much as they like. However, the lack of boundaries is a big demotivator. Fewer employees, including family, do not want to always work and be on call. Some don't mind it, but the pool of family members and employees who are okay not taking a family vacation, going to a ball game or tucking their kids in bed occasionally is shrinking. Remember the first scenario of Junior and his bride not coming back? It was the lack of work and life boundaries that kept them away. Creating work and life boundaries and aligning expectations helps family dynamics at work and home.

Certainty of a transition plan

Agriculture is a long game that is played out over many years. Most family members understand this and don't expect immediate rewards for hard work and sacrifice. However, the junior generation needs to be certain that there will be a reward in the end.

Knowing there is a clear path to succession and that their hard work, even with potentially low initial rewards, will lead to future opportunities and growth can be highly motivating. This plan should outline the roles and responsibilities of each family member, the timeline for transitions and the criteria for leadership succession. Early ownership isn't as important as the certainty of a well-executed transition plan. The sooner these discussions and plans are made, the higher the motivation.

Running a multigenerational family business is no small feat. Passing on a successful operation where multiple generations are motivated to work, take risks and raise their families is yet another feat. But each is possible, even highly likely, by following this blueprint for motivating the next generation. And it doesn't cost a lot of money, just a plan with consistent execution.