ti.l'iJo*' r "j'z jirr - ., ». t c. J A3Mwemtr Fanning, Saturday, October 22, 1968 F A R MANAGEMENT BY ALAN STROCK Farm Management Agent How To Keep Excellent Employees As we all know, finding and keeping good farm em- ployces is ex tremely difficult. With the unem- ployment rate j| dcJow 4% m man} counties, ~nd most workers lacking the desire to work long hours at physically demanding jobs, it is hard to find and keep that special person to work. One possible way, among many others, to keep your better employees is to offer job perfor mance incentives. But first, before offering incentives as a form of profit sharing, the farmer must be getting an adequate return on his investment, and his time. WHAT FIRST First bonuses should hinge on “profit” because the farmer deserves to be paid first. Remem ber the bonus will lower the far mer’s profit and the farmer should first receive a reasonable return: for his labor, any unpaid family labor, and their investment, before a distributable profit can be calcu Cozy Cowmat & Happy Moomat lated and distributed to the employee(s). Incentives should be offered only after the employee is already receiving a fair wage, one that can adequately provide food, shelter, clothing and some extras for the employee and his family. Use With A Formal Job Description Document Thcsc ’nccnuves should best he used in conjunction with a ionru) mt description document whii.i -ie ,I’ployce .mi empioyei ha'e a ecu, upon All payments should be above the regular salary, and not to be thought of as part of the base sal ary. The bonuses are for work and interest above and beyond the call of duty. Be sure to target all your incentives to your specific farm problems and profit leaks. The employee MUST be in complete control of that function, and all the inputs into that function. They should be organized by different aspects of the farm such as: feed ing, breeding, young stock raising, herd health, livestock or milk pro duction, labor efficiency, or crop efficiency and yields, etc. Use Inrentives To Make The Farm More Efficient .ncentives need to be constantly changing as one phase of the farm is improved die owncr/manager should initiate new incentives in the least profitable phase. The owner is using the incentives as a variation of a profit sharing plan, but care must be taken to tie diffe rent economic performances together. A milk production bonus for a herd milk production increase of 250 lbs ./cow would be inappro priate if total feed costs rose from $6.00/cwt to $B.OO/cwt. Explain The Rules To The Employee All the rules and regulations such as: bonus amounts, time dura tion, time period of payment, exact method of calculation, etc., should be written down and thoroughly understood by the employee and employer. Bonuses may also take a form other than cash such as: extra vacation, paid health insurance, Lie insurance, a side of beef, extra !iou«mg allowance, additional j'vs ito the herd or the like. How To Beam Whc: inc-cru c plans keep the time period as snort as possible, maybe even a month in some cases, so that the employee can receive a quick reward for his extra effort. To balance that, the time frame must be long enough so that the desired goal is not reached merely because of normal seasonal changes, especially in regard to milk production, butterfat test, conception rate, litter size, wean ing weights, or feed efficiency. Keep the calculations in determin ing the bonus as simple as possible so there is little room for debate in determining whether the employee qualifies for the appropriate bonus payment. Practical Suggestions After having reviewed and analyzed these suggestions, then is Over and ummer Winter Coming Why not make your cows NATURALLY COMFORTABLE this Winter 100% PURE RUBBER TEXTURED NON-SUP SURFACE Reduces the risk of cuts and bruises to legs and joints. GROOVED UNDERSIDE For moisture elimination and aeration. ♦ - .. - L IS * you are ready to develop your own incentive program to meet the needs of your farm. Here are incentive examples for the dairy fanner and their herd manager, milking manager, and calf and heifer raising manager. Her Manager Incentives Here are eight suggested incen tive ideas for dairy herd managers along with an example that you could adapt to your operation. (1). For an increase in rolling herd average or increase in pounds of milk sold above the same month or quarter the prior year, offer a $ 100 quarterly bonus for every 500 pound increase in rolling herd average above present level of pro duction (OR) $lOO quarterly bonus, if milk sold per cow is 250 pounds per cow higher than it was the prior quarter or that same quar ter the prior year. (2.) For an increase in butterfat lest (with the dairy not DHIAh provide a S5O oiurlcrlv bonus for c\cry c o increment increase in culler fat from present test, OR from prior year's test for that quar ter, OR above the 3.5% test. (3.) For decreasing the veterin ary bill while at least maintaining present herd health and conception rate offer a $4O monthly bonus for every $l2O saved on average monthly vet bill due to the mana ger’s own treatment for milk fever, ketosis, mastitis, or other diseases. This is very simple and would need more checks and balances attached to this bonus. (4.) For increasing the percen tage of heifers that calve at 24 months of age or before provide a $5O monthly bonus every month that at lease 5 heifers freshen and, if 80% or more of those heifers freshen at 24 months of age or before. Vanco For More Information, Write or Call: R.D. 4, Box 300 Carlisle, Pa. 17013 PH: 717-776-3494 * X (5) For decreasing the services per conception rate for heifers and mature cows offer $25 monthly bonus every month dial at least IS different breeding animals are bred if the services per conception are below 1.5. (6) For an increase in farm sales output per employee, provide a $5OO annual bonus for every $5,000 increase in total farm pro duction per employee (that ij 3,000 hours per year). This must be carefully reviewed to sure the increased employee pro ductivity was the reason for the extra gross income. (7.) For decreasing the DHIA calving interval provide a $250 semiannual bonus if calving inter val is reduced .5 months compared to the prior six months calving interval.l (8.) For a total farm profitability increase provide a set percentage of the mcrease in net farm profit above the prior year’s profit. This could be presented as a bonus or lust a set percentage of the net farm profit, or net cash farm income prorated upon the employee’s job performance evaluation. Make sure the added profit was at least partially due to increased employee productivity, and just not market changes and other factors beyond the managers scope of influence. Milking Manager Incentives Here are four possible incentive plans for employees responsible for the milking program. These arc all very simple and you should make sure the goal is not reached just because of normal seasonal fluctuations. (1.) For a decrease in the soma tic cell count from a specified level # * * THE RUBBER MAT SPECIALIST TT (Turn to Page A3l)
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