Retention of people in dairyfarming – what is working and why? Executive Summary and Case Studies

Dr Ruth Nettle, Augusto Semmelroth, Dr Rebecca Ford (University of Melbourne)Dr Connie Zheng, Aman Ullah (Deakin University)

Gardiner Foundation

August 2011

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Executive summaryThe sustainability of dairyfarming relies on people wanting to work or invest in dairying over time. How willing people are to work or invest will change over time and depends on the relative attractiveness of dairying in terms of work and wealth creation. Dairyfarming in Australia is shifting from an equity-based industry to a labour-based industry with a trend to concentration of farm ownership on fewer and larger farms, with a reliance on a paid workforce. To maintain or grow dairying therefore requires an understanding of how well dairying attracts, retains and develops its workforce.

This research places the focus on the retention of people in the dairyfarming workforce. Once people enter into dairyfarming, how well are they retained?; what influences this and are there emerging issues for future farm workforce needs? How well people are retained contributes to business profitability (turnover is a direct cost to farm businesses); the supply of skills for current and future needs (people who are retained on farms or in the industry are gaining experience and skills for future demand); and, there is a greater return on investment from training or attraction initiatives.

Retaining people in dairy farming has received limited attention from research, particularly the link between the on-farm practices that support retention and the between-farm support mechanisms that provide career pathways in regions or in the industry.

This research sought to address some of these gaps by studying how people are retained in dairyfarming. This is an essential area of work in the people strategy for industry sustainability (Dairy Moving Forward, 2010). The research represents a small and specific study into retention and focuses on what is currently working to retain and develop people on individual farms and in the industry as well as on identifying areas for intervention and change.

The research questions guiding the study were:1. What processes are involved in aligning on-farm retention practices with employee

needs and regional initiatives? a. What value do farmers place on retaining people in their farm business?b. How do employees experience efforts to retain them on-farm or help their

career?2. How can regional dairy groups enhance the retention strategies of farmers to improve

industry workforce retention? a. What role can regional groups play in supporting retention of people in

dairying more broadly (e.g. career pathways at a regional or between-region level?)

The research involved: an analysis of industry data concerning turnover and retention on Australian dairy

farms; a literature review to establish global best-practice in retention in business and

identify effective strategies that have been used in different sectors; an analysis of employer practices and employee experiences of retention on 9 case-

study farms chosen for their reputation for retaining people in their region. Seven of the case studies explored employment-based relationships and two of the case studies explored leasing and sharefarming arrangements;

a survey of 31 employees regarding their current experiences in dairyfarming and an exploration of the main factors influencing intentions to exit employment.

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a workshop with 3 Victorian dairy regional groups to consider the research findings and develop draft plans to support retention in their regions.

Defining retention“Retention” in the context of this research is an employer-based concept and involves the systematic efforts of employers to:

create and foster an environment that encourages current employees to remain employed in their business,

avoid employee turnover and associated costs such as hiring and training expenses; productivity loss; and damaged morale among remaining members of the workforce,

reward or acknowledge talented employees and meet individual needs so they are more likely to stay and contribute to future business needs.

In this research, and with respect to retention at a sector level, an additional consideration is the reputation of a sector to provide interesting jobs and careers and how capacity and skills are built for future needs. High turnover on individual farms is considered to impact the image of dairying and reduce the impact of attraction and training efforts. The effectiveness of between-farm networks and industry-level initiatives to establish career pathways and improve attraction and training efforts are therefore important considerations. Although commonly thought of as a measure of the length of an employment relationship, retention is not defined by an “ideal” length of tenure. In this research, the contribution of retaining staff to business success, rather than length of time people stay on individual farms is the main focus. It is worth noting however that high annual turnover is the primary measure of turnover problems impacting business success in many sectors.

Research results

Retention of employees in any sector is not straight forwardThe benefits of retaining staff and the downsides of turnover are well recorded in the literature. Whereas retention of employees can lead to improved productivity and business performance, turnover has a large downside in the potential for chronic understaffing leading to employee fatigue, increased risk of injury and workplace stress and a less qualified workforce that may hinder the ability of the business to remain competitive.

Numerous studies recognise four broad factors impacting employee turnover:

1. External labour market conditions, 2. Characteristics of the individual business, 3. Characteristics of the employee, 4. Employer strategies that promote: employee commitment to the business; value/goal

congruence between employees and employers; employee engagement; employee wellbeing; job satisfaction; work motivation; achievement of work-life balance; and fulfilment of the psychological contract.

The most highly correlated factors with retention tend to be the employer strategies (4) and there are diverse views on how individuals and organisational characteristics influence retention.

There are also different measures of retention that need to be considered. The key to retention is to reduce voluntary employee turnover rate or employees leaving a business when it is preferred that they stay. Three measures of turnover are considered more relevant to dairyfarming situations. The separation rate reflects a general tendency to leave a business or sector regardless of employment status and provides the broadest indication of a turnover problem. The accession rate reflects the number of new entrants inducted into a business or

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sector (in general) because of people exiting and is considered an indicator of “churn”. The stability index provides an indication of the retention of experienced employees and is calculated as the number of employees with one year’s service or more as a percentage of the number of people employed a year ago. Increasing this index indicates the business or sector is improving retention of more experienced staff.

Retention in a sector then is not as straightforward as applying a formula of “pay and conditions”. Further, the dairy farm sector has only collected a small amount of data that provides a general indication of turnover issues. In order to monitor and track turnover and develop a greater understanding of critical issues in retention, better data and targeted data collection is necessary.

Does the Australian dairyfarm sector have a retention problem?Using industry generated survey data, it is estimated that the average turnover rate of employees in the dairy industry is 35% (measured as the number of employees who have left a farm job as a percentage of the total number of employees in farming across a year). It is estimated that the annual exit rate out of the dairy industry (measured by the % of people needed to be recruited into the industry from outside) is 15.5%. Although this is similar to recorded figures in the New Zealand dairy industry, in comparing turnover rates to other sectors in the Australian and international business sector, turnover rates are higher by over 10% with other sectors.

A global HR consulting firm recently estimated the direct costs of staff turnover to range from 50% to 150% of an employee’s annual salary depending on their role and level of seniority. Using these multipliers, turnover is conservatively estimated to have a direct cost to the dairy industry between $60 and $200M annually.

It is therefore concluded that the dairy industry does need to seriously consider retention as a factor impacting farm productivity, profitability and sustainability. Retention is costing individual farms and the industry (in terms of future skills). It is not known the extent to which there is broad awareness amongst farmers of the extent of direct and indirect costs involved in turnover nor awareness of strategies for reducing turnover.

The global agricultural retention “problem”In international studies, difficulties in retaining employees in the agricultural sector have centred on four key issues:

1. poor working conditions; 2. lack of career development and promotion opportunities; 3. neglect in occupational health and safety; and4. availability of alternative employment.

In these studies, suggested retention strategies include: setting clear HR policies; offering a competitive compensation package, not just covering wages but including benefits and bonuses or profit sharing plans; flexible schedule of working hours; training and career advancement opportunities; and regular use of less costly practices to enhance employee engagement.Further, sector-wide and long term initiatives to support improvement in retention on top of employer-driven changes have been suggested as essential for sectors that have had a prolonged reputation of minimising labour costs; have specific job demands; lack job security e.g. seasonal fluctuation in labour demands; provide limited opportunity for promotion from within; are low status or provide poor working conditions. Overall, there has been very little examination of issues of retention in dairy farming, particularly the reality of retention practices and experiences of employees of retention in dairyfarming in Victoria.

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What is working and why in retention of people in dairyfarming? The study of employment practices of 9 dairy farm businesses with a reputation for retention has revealed a diverse range of practices and strategies amongst farmers that consistently supported high levels of job satisfaction and retention of their employees. The additional survey of 31 employees confirmed the case study findings.Employees were retained because of the comprehensive employment strategies of their employers:Dairy farm employees were influenced to stay with their employer because they were promised with and experienced:

Higher than the average pay rates in industry for their role Flexible work hours Limited weekend hours and very long shifts Training and development opportunities Feedback and appreciation for a job well-done Individual attention to career development and mentoring An enjoyable work environment with good facilities Varied work

Irrespective of level of seniority, role or gender, employees rated learning and good working conditions as influential in their satisfaction with their work and in their intention to stay with their employer. Employees also believed their employer stood out from other employers in terms of what was offered to them. The employee survey findings also found a high correlation between rewards, working environment and opportunities for growth and development with dairy farm employees intention to stay with their employer. With respect to the attraction of people into dairyfarming, the indications from the employees interviewed in this research suggest that the industry is appealing to a wide range of people (age, gender, aspirations), and the variety of dairy work is attractive compared to many other roles in the regional areas covered in the study.Employers were motivated toward employment strategies that suited their own preferred working environmentCase study employers held a view that retaining people was of great benefit to their farm because employees built skills appropriate to the farm. This meant that any time spent training delivered a dividend. Employers were also able to take time-off away from the farm with confidence, the farm ran more smoothly with employees familiar with the farm, and employees developed ownership and commitment toward the goals of the farm.

However farmers did not necessarily set retention as the primary goal or purpose of their strategies, rather, retention was the consequence from putting together the work environment they themselves wanted to work under. In this way, the employer strategies were “an extension of themselves”.

Employers were driven by a strong moral obligation to look after their employees as valuable contributors to their business. They resisted consistent long working hours for their employees, they sought to individualise their employment conditions, and provided every opportunity for learning and growth. The employers actively worked on their employment situation as part of the core business of farming and consistently discussed options with employees and seeking their input in farm decisions or prompting them to take learning opportunities. Employers spoke of coming to a realisation as employers of the need to operate differently in employment if they were going to achieve their farming and business goals. This included: realising what they were currently doing in attracting and keeping people was not working;

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wanting to be an employer of choice and not having to advertise (good people coming to the door); wanting to provide a standard of living to people that they would expect themselves; seeing effective working arrangements as essential for the profitability and longevity of the farm. Employers spoke of challenges in retaining senior managers, particular those seeking entry into business ownership, yet all the employers with people seeking such roles on their farm were actively experimenting with options to retain them. In this way employers were seen to be a significant source of career development and mentoring for employees and were also instrumental in ensuring the career pathways of employees did follow a positive trajectory.

Retention was considered to extend beyond the farm gate Employers and employees saw a role for regional networks and industry in identifying

and promoting the visibility of career ladder options and better workplaces to employees.

The main impediments identified by employees to progressing in their careers were in the area of business ownership (access to finance, options for building assets).

Advisers were playing a role in supporting both employers and employees with current and future employment options.

How does retention happen in dairyfarming?Figure 5 presents a diagram of the key elements of the process of retention in dairyfarming in this study. It attempts to demonstrate the retention path and the link between employer strategies and the recruitment, management and development of engaged employees. Retention on dairy farms is suggested as an outcome from considering people and their capability and development as central to their farm business success and the development of people-focused employment strategies that are put into practice on a daily basis. These strategies simultaneously support the farm business goals, skills development on the farm and future steps for their employees and are also highly attractive to the best employees. Industry and service groups contribute to the process by providing opportunities to consider the importance of people in farm business success, in developing people-focused employment strategies for individual farms and in the sharing of strategies with other farmers. There is potential for industry to better recognise and use best-practice employers for profiling career options and funnelling training options and high potential employees into good jobs through these farms as part of attraction and development efforts. From the empirical study it is clear that effective retention on-farm is a platform for developing skills, growing people into more senior roles and making career pathways visible to employees. Knowing retention is working is also a platform for communicating industry needs and industry offerings to those outside the sector. This introduces the importance of regional plans to support retention goals.

Regional plans are an important part of improving retentionWorkshops in the three Victorian dairy regions produced draft plans for aligning current initiatives in careers, people and workforce development with greater emphasis on targeting retention of people in farming in their region.The key elements of all 3 plans involved:

Boosting efforts to improve employer practice Attention to the fate of entrants Creating networks that support farmers continue to improve practice and link up new

entrants to better-practice farms. Better monitor and track improvement in retention

Figure 5: A diagram representing what worked and why in retaining people in dairyfarming from case study farms and employee survey

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Conclusions and recommendationsDairy industry data suggests that there is a retention problem in the Australian dairy farm sector. This is a source of direct cost to farm businesses and is limiting the effectiveness of career pathways and skill development. However, the problem itself and the solutions are not straightforward. Although average turnover and industry exit rates are considered high in comparison to other sectors, there are farms that operate at a high level in terms of people management, retention and attraction of staff. Therefore it is possible that retention problems can be addressed industry-wide by good employers leading change.

The implications of retention being a valued consequence from the pursuit of broader farming goals means that an entry point for industry to improve or enhance farmer strategies in this area is to link high turnover on farms to problems in achieving common farming goals like smooth running operations, more time off, or more profitable businesses.

The extent to which turnover is concentrated and the extent to which employees have an experience of career development or turnover in finding better situations or industry exit is less well understood when considered across the industry. Industry data would suggest that for every two people new to farms in the last 12 months, 1 had come from another farm and 1 had come new into the industry, and there were close to 4 others that had remained in their job for more than 12 months. The size of the change challenge is not one solely for individual farms and clearly involves significantly more than training in HR practices. Changing retention performance of the sector involves understanding farm business values, strategies and practices concerning people, employee aspirations, regional issues and the contribution from a range of stakeholders.Further research is suggested to understand:

The concentration of turnover issues across the population of farms (including the direct and indirect costs of turnover on farms)

The different employment strategies supporting retention across different job roles Changes being made on-farm and the impact of change on business performance The link between employee engagement, skill formation, and farm business indicators.

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The process of skill formation between formal and on-the-job training to develop skill package options for businesses

The role of psychological contract fulfilment on employee retention in different job roles (i.e. milking staff vs senior managers)

How networks of employers and service providers enhance industry retention and meet skill demands in regions.

Recommendations to the dairy industry 1. Establish consistent measures and track performance in turnover at an individual, regional

and industry level (e.g. separation rate and stability index). 2. Collect data and track changes in farm working conditions offered across the industry for

different roles. This can be used to support discussion in industry on acceptable working conditions, track shifts in what is being offered and used in discussions with stakeholders on the reality of what is available in the industry:

3. Collect data and track pathways of people in dairy-farming. As a trial to establish a system, track apprentices and trainees from the training system in dairy working over 3 years.

4. Promote and support change in farm people strategies as part of better farming which include: profiling good reasons for change (i.e. the high cost of turnover, the interruptions to

farming operations, the ability to achieve time away from the farm); profiling what is important to change [i.e. expectations of dairy work, job design,

working conditions (hours and timing of work, pay, benefits, facilities, decision-making for their job role), selection of staff, communication, feedback and rewards];

Profiling how people can change (i.e. setting up attractive systems, , day-to-day efforts, setting up feedback mechanisms on-farm, examples of how different farmers have put a cohesive package together for employment that suits the farm business, how working with advisers can help).

5. Promote and support change at an industry level including: supporting advisers and service providers in assessing retention issues and supporting reflection on expectations of dairy work; support farm leaders in championing change.

6. Examine closely the high turnover amongst assistant farm hands and farm hands and explore strategies for identifying high-potential employees (e.g. through the training system) and providing “funnels” into an attractive career pathway).

7. Develop regional networks of better-practice farmers, service providers, employment and career service groups regionally to generate a retention system (discussion of working conditions, profitable options, attraction of employees, etc and aiming to have more farms providing good experiences of work and a variety of on-farm roles with an ability to link talented employees interested in career progression to farms).

8. Support regional initiatives that link employers, employees, service providers, career development toward retention outcomes.

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Case studies

Case study farm 1

Chris: becoming an employer of choiceFarm description

640 cows 210 ha Intensive pasture based system (grazing) 1.3 ton of concentrate/cow/year Herringbone dairy 2 full time employees + owner + 2 relief milkers for some weekends

Background/History Started with one farm and acquired another 400 acres. A large herd-conference presentation triggered interest in the idea of being an

“employer of choice”. Believes now in the importance of understanding employee’s preferences and being

flexible Considers people as the central part of any business.

Future Aspirations Stay working while he enjoys it, “not yet ready to let go”. Will probably consider a share farmer in the future.

Workforce StructureStaffing

Employer still has the core decision-making role Informal and general job descriptions using industry sources. Has tried advertising in the past, recently people now come to the farm seeking jobs

(reputation of good employer) Recruits on values and attitudes (i.e. honesty, integrity, work ethic) above farming

skills. Believes skills can be learned from training on and off the farm. Sees manager-level staff as more difficult to find as many people don’t want more

responsibility Sees a place in the industry for an “advanced diploma” for manager-level staff.

Pay and conditions Looks outside dairy to benchmark wages. He sees the retail sector as a benchmark for

farm-hand roles and the building industry as the benchmark for more senior roles. Employee 1 (Frank): With the farm for 12 months, from the building industry.

o Role: Assistant managero Hours: 55h/weeko Hourly wage: $24 going up to $26/27 next year. Maximum $30 (future limit).o Wage package (including benefits): $85,000 - $90,000 + superannuation.

Employee 2 (Jan): Been on the farm for 14 years.o Role: Farm hando Hours: 40h/week o Hourly wage: $22 o Wage package: $45,000 + superannuation.

Benefits: To both employees: $5,000 a year including discounted rent, milk, beef and hay.

Responsibilities

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Build up Franks confidence in decision making until he is ready to take on more responsibilities.

Managerial decisions are taken together. Tries to develop management skills in employees by helping them to understand the

financial outcomes (negative or positive) of their actions/decisions.Career Pathways

Previous employees: Some went to share farming, other agriculture roles or left dairying. Doesn’t mind that people move on, but aspires to people moving to better positions.

Believes it is hard for employees to see career paths in industry. Informal performance appraisals are completed each year with all staff. Supports employees into training

Negotiation of flexible arrangements Works with individual employees to understand their needs and preferences in hours

and timing of work Believes flexibility is important to sustain a good working environment and happy staff. Frank works 10h a day, 12 days out of 14. Jan works 7.5h a day, 11 days out of 14. On a split- shift through mutual agreement. Chris is attuned to the workplace environment and staff morale and mood and tries to

address any issues promptly.Chris believes people management is important to the business.Chris has always considered himself a good employer but believes he has improved things gradually over the years. The way he manages his employment relationships have changed, placing a stronger emphasis on the importance of meeting individual needs of people for time off, hours of work and timing of work. He believes it is important to strike a balance between the farm’s needs and employee needs. Chris offers opportunities for personal growth in the form of training.

“You need to manage people better… you’ve got to be more accommodating towards the people that are involved in your business -they’re a key part of it.”“So I reckon part of it is about understanding what they’re expectations are… Our business is open for 110 hours a week. Now I don’t expect anybody to work 110 hours a week…and the [person] that works part time in Coles gets $22 an hour. Whether we like it or not, we’ve got to be competitive with that…”

Because of the work set up on the farm, he believes he has created an attractive environment and gained a reputation as a good employer. Chris has been able to retain good staff and also attract people, without advertising.

“I put my hand up for that [to be an employer of choice] because you don’t have to go looking for people. They come here. It makes employing people really easy.”

What Chris offers to his employees To create and sustain a productive work environment, Chris has been focusing on hiring people based on their values and attitudes as well as their work ethic. His idea is that in a small scale operation, where people get exposed to each other constantly, there is a real need to keep a pleasant relationship among everyone in the business. In that sense, understanding what his employees’ expectations and aspirations about the job are, and trying to balance similar personalities and values are critical factors he considers when hiring people.

“I think you’ve got to like them… they’ve got a similar personality to you…it’s their personality and integrity and honesty and all of those sort of things that to me, they’re more important than the skills.”

Chris has in mind that money is not a key factor influencing employees’ decision to stay or leave the business but he still thinks it is necessary to have competitive wages in dairying. Following that idea, he believes that it is the combination of paying a comparative wage,

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providing flexibility and some control over decision making in their work as well as having a good work arrangements are responsible for retaining good people in his business.

“It’s very rarely money that people leave for…” Providing autonomy in workOne key part of Chris’s approach is to provide employees increasing responsibilities and participation in decision making. This is partly for peace-of-mind for times when he is away from the farm but is also because of a philosophy of wanting to see employees develop decision-making skills.

“One level I would like to get him to is that he actually understands the implications of when he does make a decision that doesn’t go well”

Another aspect of Chris’s approach is to periodically assess how well everyone is doing and what can be improved.

“They have been given informal [feedback on performance] but I’m going to formalise them a little bit more… So that will be with the staff meetings and their own appraisal.”

Providing benefitsChris believes the benefits he offers also contributes to employees satisfaction in their role. In his case, the benefit package is composed of monetary and non-monetary items. On the monetary side, Peter provides 50% discount on the house rent and free milk, beef and hay for their own livestock. On the non-monetary side, Chris does not push staff to do long hours and has a flexible work schedule arrangement to fit his employees’ expectations and lifestyle. He explains why a split-shift works for his long-standing farm-hand:

“I think that’s part of it, is about understanding what she wants out of life too… understanding what their expectations are and it’s not just about hours of work, it’s about the time of day…it suits her fine because she’s got other things that she likes to do during the day.”

Providing growth and development opportunitiesChris plays an important role in providing training opportunities on-the-job as well as paying for employees to attend courses off-farm. The development of employees’ skills and knowledge is beneficial for both parties according to Chris.

“They’re available (training). It’s probably at my discretion I suppose. I mean when Frank did the AI course, we paid for all of that.”

Chris believes he does offer a career pathway, up to a point, on the farm, particularly for someone like Frank who can develop in management skills and responsibility. However Chris is not ready to move completely outside of the business which means, in the past, some assistant-manager level employees have left the business to move up.

“I think most of the people that we’ve employed over that time in that position have been the sort of people that will move on and up.”

Chris also says he has experienced the opposite situation in which he has offered an employee a promotion opportunity which was not taken due to the persons’ lack of aspiration for a management position. Overall, he considers it is entirely the employees discretion in terms of taking up any offer:

“…she has been given the opportunity to step up, she doesn’t want to so I respect that.”

Providing an enjoyable work environmentChris places importance on a good working environment but realizes it does depend on who is on the farm and what works for everyone. A recent issue between two staff on the farm meant Chris had to be open to ideas and changes to improve the work atmosphere. A temporary measure was to ensure the employees weren’t working together all the time.

“I’m happy to change whatever we do to try to make it work better.”Employee’s view about retention and their experiencesJan and Frank have had a different career pathway in the industry and have slightly different opinions about retention. Jan has been working for over 14 years for Chris and started her

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career on the farm. Frank has only been working here for 12 months and had numerous other employment experiences in different industries. The idea of being with an employer for a long period of time is stronger in Jan and she believes this is due to the way she was brought up and her personal values. Because of his broader experience, Frank thinks there are pros and cons about long term relationships but he recognizes that people need to stay for a while on a business to have opportunities to learn, move up and make contributions.

“If you’re happy with the work you’re doing, you’ve got a good relationship with your employer; you stay there. You’ve got commitment to your job…” (Jan) “Well I suppose there’s always for and against [about long term employment relationships]. But I think by moving on all the time you don’t really get a grasp of what you’re doing.” (Frank)

Both employees believe that Chris offers good opportunities for growth and career advancement. They have the chance and are encouraged to do any kind of training that is beneficial for them and the business. Although training is available, Jan has not a great interest in participating in industry training programs. Frank on the other hand wants to get involved in training programs and see it as a way to build up his knowledge in dairy and expand his future career options.

“…if I ever wanted to go to any of them, I just put my hand up and say: Chris, I’m interested in going to this one or I’d like to get more into that and…he would allow the time to do it.” (Jan)“… we work out something and Chris will look after me with the training. They pay for any training that I need. Knowledge is a big thing. Knowledge is worth money I suppose.” (Frank)

Money is not something of a great concern for Chris’s employees, both believe they are being well remunerated for the job they do. The idea of being taken care of and rewarded not only financially by the employer is as important as money itself for them.

“I believe I’m being paid above the award rate anyway but I’m satisfied with what I’m being paid…” (Jan)“But to us what we’re earning and getting out of it [i.e. Recognition and job security] is substantial.” (Frank)

Flexibility in the employment relationship and a pleasant work environment is something that is critical for the two employees. They value and appreciate Chris’s effort in giving flexibility, being open with communication and accommodating with their needs. Jan also thinks that the fact of being outdoors and dealing with animals adds to the overall work environment quality.

“I do like the animals. He’s [Chris] open and approachable. He does his best to try and accommodate everybody’s wishes and spread the time off around. He’s genuinely a good bloke.” (Jan)

On their aspirations to stay on the farm, both employees share similar opinions. Frank recognizes that the farm gives him great opportunities to build up his knowledge and skills in dairy. Jan on the other hand wants to stay on the farm because she has a good relationship with Chris and is happy to be an employee on a dairy farm.

“I’ll probably stay with Chris for a number of years. I need the experience before I can take that step [go into share farming].” (Frank) “I’m quite happy working for somebody else. You can go home at the end of the day and leave it behind on the holidays.” (Jan)

Regarding their aspirations in dairying, Jan and Frank see themselves following a different path. Jan has been working for Chris for over 14 years and she is happy with her job and the responsibilities she has on the farm. Although Frank has a short experience in dairy, he has aspirations to quickly move up in his career through building up assets with animals and going for a share farming agreement or farm ownership.

“At one point Chris did offer me more of a management position but I was quite happy with how it was going and what I was doing, so I sort of knocked that one back.” (Jan)

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“Well the next step for us would be to be buying into a herd. Whether it’s here or to buy into a herd elsewhere to build up cow numbers gradually… Chris may plan on share farming this place out as he gets further along.” (Frank)

Other features of the employment relationship affecting retention. Chris also thinks that training is a critical issue in the industry and in his opinion most employees don’t really care or see the benefits of it.

“I just don’t think most employees see value in it. I think, I don’t know, it’s a bit like superannuation, most employees don’t see any value in that”.

In terms of the dairy career pathways, Chris believes that there is a gap to be filled to better articulate and support employees to build up their skills and develop their career in the industry. Peter makes an analogy about the dairy career pathway as being similar to a spider web, where no clear or direct pathway to achieve a desirable outcome is available.

“To me, that is the gap because it takes a fair bit to get someone from the bottom rung on the ladder to a level where they can walk on to 1000 cow and cope with it and maybe make the right decisions.” “It’s like a spider web. I reckon new entrants to the industry are all the way around the outside and there’s no direct line into the middle success. There’s no direct line in there.”

Insights from the case about retention:

For FarmersChris’s employees value the work flexibility and the sense of being ‘taken care of’. On top of that, the provision of benefits, training opportunities and recognition for their work has proved a successful retention strategy for Chris. As reported by both Chris’s employees, once pay is considered reasonable or competitive it is other things that are considered important in job satisfaction and interest in staying with an employer. Chris appears to be doing well in matching the monetary and non-monetary expectations of employees and flexibility in work hours with his business’s needs. Understanding each employee’s aspirations and expectations has been a key feature of Chris’s strategy. Being able to assess and comprehend what employees want and value has been important in designing the flexible and tailored arrangements and this has delivered to the needs of the farm. Chris’s approach should give confidence to other farmers that meeting business needs and employee needs is not only possible but also worthwhile. .

For Industry/regional actionChris’s belief that employees and some employers do not value or have an interest in training is a serious issue that the industry should consider. This lack of interest might be caused by several factors including the person’s expectations about training and what has being offered by training providers. In that sense, the industry and regional groups could work in developing ways to better deliver its courses as well as better communicating both employers and employees about the benefits of training for the business. Making people aware and informing them about the positive outcomes of training might be as important as the content of the programs themselves. Chris's criticism of the lack of a clear career pathway in dairy and a direct line to success in the industry is pertinent. Formalising different ways to inform and support employees to build up a career plan might be something to be carefully considered.

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Case study farm 2:

Bob: Achieving flexibility and mentoring employees into next career stepsFarm description

550- 600 cows Rotary dairy with automatic/computerized system. Pasture based system (grazing) + extra feed and concentrate. 3 full time employees + owner + 2 casuals ‘relief milkers’ on the weekends.

Background/history Non farming background Seeking semi-retirement in two or three years with approximate 8-year time-frame for

stepping away from the farm fully. Searching for someone to take a more managerial position among current employees,

he is unsure of their readiness. Not too worried about how long people stay on the farm as long as they are learning,

moving up or on and enjoying what they are doing. A natural “mentor” and enjoys working with the team of employees. Family always in first place. Gives flexibility to employees on everything related to family considerations

Workforce StructureStaffing

Seeks ethical, honest and reliable employees. Farming skills come second. ‘Solid/good’ people to work with. Aim to create a pleasant/good work environment.

No formal position descriptions, but standard, general job descriptions with flexible work agreements.

Payment and conditions for staff interviewed Employee 1 (Mark): Been on the farm for 6.5 years.

o Role: Senior farm hando Week hours: 45h/weeko Wage package: $55,000 + superannuation + benefits.

Employee 2 (Tim): Been on the farm for 3 years.o Role: Senior farm hand o Week hours: 45h/weeko Wage package: $55,000 + superannuation + benefits.

Benefits: Includes rent worth $10,000 (employee 1), travel allowance worth $3,000 (employee 2). Milk, beef and calves worth $500.

Responsibilities Encourages employees to make their own decisions and work independently toward

daily farm priorities. Bob still has a key managerial/leadership role in the business. Employees prefer overall leadership and guidance from employer

Career Pathways Bob encourages employees in building their skills and moving up the ladder on the

farm. When the next step is not available within the farm, Bob will ‘guide’/ ‘mentor’ them to

find a good place somewhere else. Use of networks. Bob has been central to many of his employees moving up the dairy career ladder onto

good farms over the years. He has always tried to match his employees to suitable future employers because of his networks in the district. Bob has a philosophy of wanting to see his employees succeed in life and grow as individuals.

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Bob facilitates and encourages training for his employees through understanding their interests and assessing their skill development needs.

Negotiation of flexible arrangements Bob had help from a solicitor to design current flexible arrangements. Bob has set up a three week rotating roster, that involves three different shifts: 8h,

10h and 13h with four days off at the end. This is highly valued by his employees for limiting the extent of weekend work and long hours, and providing enough flexibility for time off.

Bob is always looking at different ways of doing things and aligning changing employee’s aspirations with farm needs and business objectives. He is currently exploring different ways to remunerate employees such as cow ownership or other ways of asset/wealth creation.

Bob’s view on the importance of people in his business.Bob’s approach to employment and the retention of employees focuses on providing opportunities for personal growth and keeping them as long as they are happy with the job and constantly learning. Bob encourages and helps employees to think about their career and where they are heading and is more than happy to help them move on to other businesses if he cannot offer their next step.

“As long as they're happy - they've got to be happy - as long as they think it’s all positive and going upwards... Generally, it gets to three years and they either get a bit frustrated, and then we straighten it out and they're happy to stay on, or they get to three years and they really do want that next challenge. Then I'm happy to help them find a spot.” “When they come not knowing much…. they get to a point where they're educated within the industry, they have confidence within the industry, and they're ready to take on the next goal… We've supplied probably four or five of those people to the industry now.”

What Bob offers to his employees Bob has a clear idea on what he is looking for when he recruits people onto the farm. He focuses on people’s values and behaviors above specific farming skills. The idea of having ethical, honest and reliable employees is what he believes creates a good and productive work environment:

“…a solid person. I don't really - when I employ someone technically - most of the time I never worry about their farming skill. I want to know whether they're honest, reliable. I want to know whether they have good family values.” “If they're good, solid people then I'm happy to have them here, because I like working with good people.”“When I said skills, I meant initially they come to me as a good person. They don't necessarily have to have great or any farming skill.”

To keep employees motivated and satisfied with their jobs, Bob usually takes on entry-level people and focuses on developing their knowledge and skills that will provide benefits for the farm but also their career prospects. Bob believes the provision of benefits and a good work environment is a key factor in keeping his employees but also for the smooth running of the farm.Providing benefitsBob has always tried to be flexible and look at different ways of arranging things to best fit his and his employees’ needs. The provision of a flexible work schedule, to not overload staff and create a good work/life balance, is one way of providing benefits. Other cost of living benefits provided by him include paid training days, discounted rent worth $10,000 for Tim, travel allowance worth $3,000 for Mark, milk, beef and calves worth $500 a year. Recently, Bob is negotiating with both employees the possibility to build assets on the farm by allowing them to purchase animals from the herd.

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“I'll listen to anything… We're very into flexibility.”Providing Growth and development opportunitiesBob encourages his employees to participate in formal training, provides on-the-job training, supervision and mentoring with an overall aim of developing staff’s knowledge and skill set as well as them as a person.

“We offer plenty of short stuff. … if they want to go to calf rearing, or feeding pastures for profit… any of that short stuff I'm happy for them to go to.” “I like to see them go off to courses. I like to see them continually grow in what they know.”

Bob does struggle however to give further opportunities for employees due to the size of the operation and his managerial role on the farm. This is pertinent at this stage with two of his employees now ready for some form of next step – an issue he is having regular discussions with them about – to help them think about what that might be.

“I see that as part of my role, actually, just a bit of direction. … you know, you can make them aware of mistakes, or bad decisions, or bad choices.”

Providing an enjoyable work environmentFor Bob, to provide a good and enjoyable work environment is not just having a decent physical infrastructure and resources – but also to create a respectful and good interpersonal relationship among everyone on the farm. In that sense, the farmer has always tried to have an open two-way communication, be flexible and adaptive, and share his values such as honesty, reliability and work ethic. Employee’s view about retention and their experiencesMark and Tim have different views about retention and their willingness to stay with the same employer for a long period of time. Mark is 25 and has been working on the farm for over 6 years and values long term employment relationships while Tim, who is 35 and has more then 10 years experience outside dairying, doesn’t think long term jobs are important.

“Yes, well, see, … if you're happy you stay. I'm pretty happy with that.” (Mark)“… I worked for the builder on wages for 10 years. I worked with him for 15 years. “When you left it's just nothing really. You shouldn't set your whole life up to set them up. At the end of the day you've got to worry about yourself really…” (Tim)

Although both employees have a different view on retention, they share similar views around job commitment and their intentions to stay on the farm.

“I wouldn't go to another farm” (Mark) “I see it as really good because I want to be here. I'm not just doing it for a job. I'm not here for the money. I want to do it.” (Tim)

In terms of their experiences on the farm and the work arrangements available, Mark and Tim demonstrated a positive attitude about the conditions they have and believe they are in a better situation than most of the people working in dairy farming. Both employees value the relationship they have with Bob and his role as an employer. The current set up that includes training, growth opportunities, open two-way communication, flexible work schedule and a good work environment are seen as critical factors influencing their satisfaction with the workplace and their intentions to stay on the farm.

“You're not working 60 hour weeks…The way it's set up now is pretty good… Bob's pretty fair.” (Mark)“I think the conditions are great here. Bob being a good boss, that makes a hell of a lot of difference. He's looked after me pretty well.” (Mark)“He knows that I don’t have to be here to make a wage… He's really good at - he wants us all to move on as well; encourages us to do our own thing.” (Tim)

Mark and Tim have aspirations to move up in their careers but their next steps will follow a different pathway. While Mark sees himself being the farm manager taking on more responsibilities, Tim wants to go for land and cow ownership. Although Tim feels his next step

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would be farm and cow ownership, he sees that the high land prices and the lack of financing as hindering factors to the achievement of his aspirations.

“Management of this farm. Maybe one day a share or cows.” (Mark) “I'd love to buy a farm that's run down and work really hard for 10 years and end up with a nice farm… farm ownership is just out of the question totally because of... It's still too hard to set, with the land prices.” (Tim)

Other features of the employment relationship affecting retention. Bob, as someone not coming from a dairy background, has brought a lot of external experiences to his business with a strong focus on developing his employees, helping them succeed in their career. Because he still wants to manage his business for a period of time, employees eventually reach a point where they need to move on to move up. However, this is an area in which Bob believes that the industry should have clearer career pathways for farm employees and that’s an issue when it comes to retaining people in dairying.

“Their career pathways aren't clearly defined through the industry…it's a source of frustration.”

Insights from this case about retention: For Farmers

Bob has focused his employment strategy on a few key practices that have showed to work well in his business environment. By recruiting people based on their values, setting up an employment package geared to flexibility and trying to align his employees’ career expectations with the business’ objectives, Bob has been able to create a successful platform to sustain a pleasant work environment and provide opportunities for personal development. By providing benefits such as discounted rent, milk, lifestyle benefits and the potential of new cow ownership agreements, Bob’s system fits well with employees’ expectations for good working conditions and enjoyment of work. His strong focus on his employees’ growth and development has also had a positive impact on the employees’ intentions to stay on the farm but also see greater opportunities for themselves in dairying. Finally, the overall work environment characterized by flexibility, open communication and fair treatment is valued by the employer and employees. By setting up highly attractive systems for employees and investing in their growth and development, Bob has not only grown a productive and committed workforce for his business but has also built skills and interest for more senior dairy roles. Bob’s approach demonstrates how retention of people on individual farms can lead to greater retention in farming and industry more broadly. .

For Industry/regional actionBob operates as an informal dairyfarming career mentor and broker, actively supporting skill development on his own farm, mentoring employees to think about their career path and brokering their next steps onto other farms. Although he suggests career paths are invisible to employees, he is actively working to make them visible for his own employees. His approach retains people on his own farm – but also retains and develops people in the industry. Bob’s actions highlight the importance of employers in dairy careers. In addition, if the activities of Bob were replicated across a number of farms and employers, the career paths for employees would not only be visible, but actively supported and managed. Bob demonstrates that career paths concern not just the formal training and qualifications available for people to learn more sophisticated skills, but it relies on the lived experience of work and development on-farm. The industry could consider formally recognizing the role of people like Bob and enlist more farmers into demonstrating and brokering career steps of high potential employees. Further, the example of Bob demonstrates to industry that retaining and developing employees on individual farms is an important part of career pathways in regions and not just about reducing costs of turnover for individual farms.

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Case study farm 3:

Leigh and Sally: Profitable dairyfarming through people and working out retaining a senior manager

Farm description 450 cows Irrigation farm Flexible feeding system. Mix of pasture (grazing), in house forage production and

concentrate. Rotary dairy with automatic/computerized system. Split calving (autumn and spring). Minimal use of subcontractors. ‘Things can be done cheaper and better in house’. Workforce: Three full time equivalents (including owner).

Background/History Has a family dairy farming background and decided in early teens that he would be a

dairy farmer During last 10 years has focused on increasing herd size and continuously improving

and refining the production system. Faced some hard years with the drought. Believes retaining people is extremely important for the business as it keeps the skill

and knowledge of employees and their understanding of how the farm is run. Future Aspirations

Will pursue a share farming agreement in the future. Aims to continuously improve the farm. Trying to push the boundaries of the business for consistent profit.

Workforce StructureStaffing

Alignment of business/employer values with employees Recruitment done through different ways including Weekly Times, local papers and

others. The advisement has a job description and is designed in a professional way. Believes longer term employment relationships facilitate the work on the farm.

Employees know the ins and outs of the business and relationships among individuals are developed (trust, reliability, work ethic). Turnover is disruptive for the business operation.

Has a performance review for senior roles (annual or six monthly) based on the employment contract, performance plan and a job description.

Payment conditions Employee 1 (Mark): On the farm for 18 months.

o Role: Assistant manager (2nd in-charge) o Week hours: 50-60h/weeko 11 days per fortnighto Wage package: $75,000 + superannuation.

Employee 2 (Phil): On the farm for 4 years.o Role: Retired farmer, Farm hand roleo Week hours: 40h/week (varies the hours of work by weekdays/weekends and

time of the year)o Split shiftso Wage: $22/h + superannuation.

Benefits: Includes meat for both. Employee 1 gets paid training + $5,000 discounted rent + calves.

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Responsibilities The 2IC is highly involved in the business/operation planning together with the farmer. The other employee has less participation in the planning decision making but is

frequently exposed to the plan. Considers that senior people do need to take equity in the business over time to

support the “ownership of good outcomes” for the business.Career Pathways

Provides opportunities in house to step up until a point where the business allows. For other cases in the past he has supported them to find another place outside the farm.

Exploring possibility for current senior manager to buy some stock in the business and will think about future share farming agreements.

Considers it more difficult to train managers on the farm due to time restrictions and formal training programs not quite suitable.

Considers some younger people who are great employees with a lot of potential are not seeking or are not prepared for higher levels of commitment to a farm business due to lifestyle reasons and this restricts options for farm owners.

Negotiation of flexible arrangements Considers that flexible arrangements are important to make everyone happy. Prioritizes team-work so no one person is overloaded. Employer works longer hours to keep work done in time and to cover the time off and

public holidays for staff. Try to keep a harmonious work environment. Considers it is sometimes difficult to draw a line between the employment relationship

and employee-employer-friendship in a small work environment.Leigh and Sally’s view on the importance of people in their business.Leigh and Sally believe “You’re only as good as your people” when it comes to the running of the farm. They think that farm operations have particular features that not only involve the need for a specific skill set but also the understanding of how a farm is run. They believe that once you have good employees, and you’ve helped them to build up their knowledge and skills, and they have a good understanding of the business, the impact of losing it is too high.

“…if they’re any good they’re not easy to find someone else with that suite of skills. If they’ve been with you for a few years, they’ll understand the ins and outs of your operation… and there’s some value in that relationship side of things.” (Leigh)

Other positive outcomes derived from retention are the creation of a pleasant work environment, based on the personal relationship developed with time, an element of trust among people, shared values and a sense of continuity. In addition, Leigh and Sally think that retaining good people on the farm benefits everyone.

“Why we believe in retaining people?...There’s that familiarity with each other and I guess there’s that element of trust. So it’s just a far more harmonious work environment.” (Leigh)“If you’re changing people every 18 months too, it’s disruptive, you just don’t have the continuity.” (Sally)

What Leigh and Sally offer to employees Employers values/philosophy for focusing on peopleLeigh and Sally have managed the employment relationship with a strong interest in having an individualized approach with each one of their employees. Trying to understand their expectations and recognizing their capabilities has been a key characteristic.

“It’s about his ability to have the time to step up… Let’s not drive him to a position where he’s over fatigued.”“Mark’s been with us 18 months and we’ve been delighted with his commitment, his skills and the fact that he’s an extremely good guy to work with. He just fits in so well.”

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When it comes to recruiting and keeping employees on the farm, Leigh and Sally believe that they have been better off along the years by targeting people’s values and personality than their farming skill set. In addition, they are happy to build up knowledge and skills on their own farm. To retain employees, Leigh and Sally have implemented a holistic plan through the use of practices to keep staff satisfied, committed and willing to stay on the farm. These have included a formal recruiting process, providing flexible work schedules and a clear job description through a flexible work agreement, opportunities for learning and feedback on performance Providing autonomy in workLeigh believes that people need to feel part of the business direction and planning to be able to work effectively and productively on the farm. This is not a token effort, Leigh believes it is about developing a sense of a partnership and also about growing decision-making skills which are important when Leigh is away from the farm:

“So Mark and I regularly do the planning… I mean he genuinely changes the shape of how things happen quite regularly.”“…you’re going to have to have a pretty strong pool of people on the farm that are able to manage it in your absence. Indeed, probably the smart way to do that is for them to start to take some equity in the business”.

Leigh believes engaging employees on the farm operations decision making and providing flexibility on how the job is done also helps employee motivation and commitment to the interests of the farm.Providing feedback in work Providing feedback on performance based on a formal assessment has also been a strategy for encouraging interest in work and to support the decision making of staff:

“You sit down in a formal environment and actually work through his contract, his performance plan, his job description.”“’cause I think you can say things in conversation but they don’t actually hear them. Whereas in a performance review it’s like hell, it’s on. You’d better listen.”

Providing benefitsFree meat and milk, paid training, calves and a discounted rent for the assistant manager make up part of the benefits provided by Leigh and Sally. Although those benefits are mainly monetary, the employer believes that the provision of non-monetary benefits is also crucial to create good working conditions. A flexible work schedule and a reasonable workload are offered to keep the job more enjoyable.

“…we were pretty cognizant of well let’s make it enjoyable for him, he does a heck of a good job. Let’s not drive him to a position where he’s over fatigued… They need time to do their thing away from the business.”

Providing Growth and development opportunitiesLeigh and Sally have in mind that developing skills and providing opportunities for people to grow on the farm is part of what they believe employers should offer to employees. In terms of incentives to staff’s personal growth, they see that this can be done by providing training and promotion and advancement opportunities. They believe a successful business should be able to provide opportunities for employees to move up:

“You know….part of my definition of success as a farmer is that in five years time this person will have moved several tiers in their understanding of just what farm management entails.” “Yeah certainly you like to see that with the young guys that you have, that they actually step up. That they build on whatever you happen to show them or training they’ve had while they’ve been with you.”

Another growth opportunity they have been pursuing is to offer employees to build up assets by purchasing cows of the herd. This not only makes employees more committed with the job but also provides them chances to move up to a future share farming position on the farm.

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“…he’s buying some stock in the business, so there’s some growth platforms there. He can definitely grow into this business”

Providing an enjoyable work environmentA great effort to understand employees’ aspirations and expectations is part of what Leigh and Sally believe to be a good way to improve the work environment. They try to make employees feel part of the business and responsible for the positive outcomes. “I just think we tend to treat people like we’d want to be treated ourselves. We understand it’s not their business.”“I reckon with employees it’s really important to - they need a sense of belonging, a sense of ownership, a sense of building something. They need to enjoy it. So you’ve got to try and create that atmosphere.”

Employee’s view about retention and their experiencesMark and Phil are in a different stage of their careers in dairy. Phil has been in the industry since the early 70’s and is pretty much close to retirement. Mark on the other hand is still in his late 20’s and has aspirations to build up his career by taking a share farming position or maybe farm ownership. Because of that, they share slightly different opinions about retention. Phil believes that dairy farmers in general haven’t been providing a good work environment for employees and that has led many young people out of the industry. Mark thinks once you find a good place and get good opportunities like he has had with Leigh and Sally’s, you build some loyalty on your employers.

“…it is becoming easier for older blokes to get a job because these owner-operators realise that the young blokes aren’t going to stay.” (Phil)“I understand there’s huge training costs with people so there is… Working with certain people, like [Leigh], I’ve got a certain loyalty to them.” (Mark)

Both employees appreciate and believe that they are better off when it comes to their work environment. Phil believes that the flexible conditions, the respect among all staff and employers and the team spirit created along the years are a unique characteristic of their workplace.

“As far as conditions, well unique. I’ve worked on other dairy farms for other farmers and you’d never get conditions like this…There’s respect amongst the three blokes… we still get into a good conversation and we all listen to what each other has to say. There’s a lot of mutual respect here.” (Phil)

Mark recognizes that he has been given many opportunities to build up his career on the farm. The opportunities to purchase cows and to build assets were key factors to provide him clearer and better career pathway options.

“I can see a career path in it. It’s probably - realistically at the moment I’d struggle to go and buy my own farm. That’s probably one big advantage of starting to buy calves and stuff. I’m getting a bit of equity behind my name so I’ll be able to ponder that concept later on.” (Mark)

Because of his managerial position, Mark gets opportunities to participate on a number of training programs and he really appreciates Leigh and Sally’s effort and commitment to provide these arrangements. Having the chance to build up his skills and the feeling that Leigh and Sally are investing money and time on him makes part of what he believes is a good employment relationship.

“…I’ve gone to a few other day workshops…He realises that it’s time well-invested to try and keep my knowledge happening. He understands that I enjoy that sort of gathering of knowledge.” (Mark)

In terms of both employees’ intentions to stay on the farm and in dairy, each one has different aspirations for the future. Phil will enter retirement soon but he still enjoys working on the farm. Mark also enjoys the farm and sees opportunities to go for a share farm agreement and stay longer.

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“I’m winding down so I hope that I stay here. So I’m certainly not looking to move on.” (Phil)“I want to stay in dairy because I’m really enjoying It… this is what it’s probably ultimately working towards [share farming]…” (Mark)

Issues in growing a senior managerIt is still a balancing act for Leigh to build managerial responsibility with Mark and find time for training:.

“[I] still very much enjoy that weekly farm involvement. We still manage the business, I mean let’s be honest…but I’ve got fairly significant [off-farm] roles that I try to juggle…I don’t think too many farm managers really take the time to try and grow the assistant manager.”

To better set up his workplace conditions and contracts, providing a better value proposition to his employees in terms of more flexible arrangements and a better work environment, Leigh and Sally have made use of advisors. Leigh and Sally have used professional assistance to set up flexible work contracts but have also sought advice from other experienced farmers. Lessons from the case about retention:

For FarmersLeigh and Sally see a great benefit from retaining people on their farm especially the farm-specific skills and familiarity with the farming operation it provides. They have applied a combination of formal human resource management practices and intuitive employment values to create a stimulating work environment for themselves and their employees. By looking for people with aligned values, setting up flexible agreements to consider work-life balance issues and involving employees in decisions in running the farm, Leigh and Sally have developed an effective formula for their business and one highly alued by their employees. Mark and Phil have a high degree of satisfaction and enjoyment of their work. Leigh and Sally’s employment approach is based on the importance of farm business management and profitability. Their strategies will be of interest to farmers that are seeking ways to improve overall farm performance. In addition, the challenges of attracting and retaining senior management roles on farms are well outlined by Leigh and Sally’s current position. The commitment to finding ways to engage and encourage senior managers in a farm business and developing ways for mutual goals to be progressed does provide an example of features necessary for these more senior roles.

For Industry/regional actionLeigh believes that dairy farming in general is not well perceived in the community in terms of the intrinsic working conditions and expectations of working hours presented by dairyfarmers. To change perceptions requires broad-based change or innovation in the industry regarding work-hours expectations and examples of farm businesses that provide an alternative. Farmers like Leigh are therefore an important front-line for changing perceptions outside the industry and also exposing what is possible to those inside industry. The issue of training and developing senior managers is a double-edged sword requiring on-farm experience of decision making as well as off-farm training. Industry could invest in a senior manager development program that engages a group of farms and farmers that have senior management positions in a mix of group training, time-release and formal training to support skill development

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Case study farm 4:

Ian: managing work teams in a corporate farmFarm description

800 cows Workforce: Manager + assistant manager + 3 full time milkers + 1 casual milker. Equity partnership farm ownership model Ian is the on-site farm manager and reports to the farm owners. Prior to this position, Ian leased dairyfarms

Workforce StructureStaffing

Formal job descriptions for each position. Farm manager does all the recruiting and selection of employees.

Payment conditions Employee 1 (Kerry): On the farm for 18 months.

o Role: Farm hand (Milking)o 40-45h/weeko Split shift: Morning and afternoon milking.o Wage: $20/h o Casual employee

Employee 2 (Brett): On the farm for 3 years.o Role: Assistant managero 45h/weeko Flexible work schedule.

Responsibilities Employees are provided with responsibility for their work area and contribute to

decision making within their role. Proactive behavior is encouraged, in particular at the assistant manager level

Career Pathways There are some opportunities for growth within the farm business but is largely

dependent on people in current roles moving on. Training is available and encouraged by managers.

Negotiation of flexible arrangements Most employees do 4 days on and 2 days off. One employee has a different

arrangement to better suit his needs. Flexibility for time off is available and self-organised to ensure all shifts are covered. Managers try to be as approachable and flexible with employees to keep a good work

environment. Ian’s view on the importance of people in their businessIan, the farm manager, believes that keeping employees on the farm for a reasonable amount of time has positive outcomes for the business. When employees stay for a longer period of time, relationships are strengthened, confidence is built and they develop a better understanding of the production system. Although Ian tries to keep people for as long as possible, he doesn’t think it is a big problem when employees want to leave the farm because of personal interests or to move up as there are not that many opportunities within to do so on the farm.

“I've had some good ones leave and I just wish them well and away you go sort of thing, that's fine. We offer them all the opportunities that's available to us to offer them and if that's not enough, well there's nothing more we can do.”“...you get a lot of good ones that are still fly-by-nighters too... They're always moving on”

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Five years ago, the farm owners invested in building a new dairy and Ian believes it has been easier to retain employees on the farm since then. He believed the farm had a high turnover then because the poor farm infrastructure made for hard work and an unpleasant work environment.What the farm offers to employees Ian strongly believes meeting people’s different expectations about work needs to be taken into account in setting up working conditions like defining the roster and the working hours. Aligning the employees’ expectations with the business requirements is critical to establishing a successful relationship from Ian’s perspective. Creating a good and pleasant work environment is then next in importance. These two areas are viewed as most important in the farms employment strategy.Providing autonomy in workProviding some freedom in decision making follows from having confidence and trust in employees according to Ian. But he views this as a two-way street with benefits flowing back to the business as it means that the managers aren’t always taken up in working on minor problems. Ian can see evidence of the strong commitment milking staff have to their roles and doing a good job and he believes this has come from providing them with some control over their work.

“We had to actually stop the girls getting here so early…they get stressed if they can't get to work on time, because they're part of the whole thing and they want to make sure they're not going to let it down…”

Having employees with the farm for some time and providing some autonomy in their work has also meant that when Ian is away from the farm there is a degree of confidence that they can manage the situation:

“you…instil a sense of calm to them and confidence in the way they can handle things, so that you know that if you're not here and something goes wrong, they've got the ability or the know-how of who to ring [or what to do] to fix the problem.” “People are very proactive about things around here. Like we've got to the stage where all we do is put down things in the book there, we keep that as a daily book and we write things in there, each page, what needs to be done.”

Providing benefitsFlexible work schedule is something that was designed to enhance the quality of work and not overload employees. The farm makes use of a “4 days on 2 days off” roster that makes both employees and employers satisfied and still supports good business productivity. Ian also provides flexibility in terms of changes in the work days, where staff can switch shifts, as long as they always have enough people on the farm.

“[the 4 days on 2 days off roster]…They love it.” (Ian) “We do four-on, two-off, which is probably one of the best models for dairy farming that I've ever come across.” (Brett, assistant farm manager)

Providing Growth and development opportunitiesIan thinks that skilling up employees and encouraging them to take on training is important for the business. That gives them confidence on the job and improves the productivity and efficiency of work.

“[about promotion opportunities]…Well they can a little bit. It's not - there's not an open field of positions available.” “…there might be a mastitis course or something like that, that they feel like, if they want to do it, we'll pay for it and let them do it.”

Providing an enjoyable work environmentThe provision of a good farm infrastructure and amenities plays an important role on creating a pleasant and good work environment. Being able to have an open two way communication and provide a fair treatment is also part of the things Ian does to build up a more enjoyable environment. In addition, extra care is given to the safety issue on the workplace.

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“Well you've got to be approachable on things for a start, so as long as somebody's approachable and they can feel like they can go to them to do that sort of thing.”“We always try and make the workplace safer.”

Employee’s view about retention and their experiencesBrett is the assistant manager of the farm and has been there for over 3 years after having had a broader experience in other industries. Kerry, the farm hand, on the contrary, comes from a dairy background and has always worked in dairyfarming, having previously owned a small farm.. With different life and work experiences, both employees hold different views about retention and their willingness to stay on the farm and in dairy in general. Besides his work on the farm, Brett has a separate small IT business and he plans to leave dairy once the business reaches a more mature stage.

“I don't see myself as being on a dairy farm in the long term. In the short-term, yes. ” (Brett)

Kerry on the other hand, sees herself staying longer on the farm due the need for job security and she has no plans to leave the industry for whatever reason.

“I don't think I'll ever go away from dairy…Well my husband and I, we've just built a house. So yeah I really can't afford to move onto a smaller job, less pay.” (Kerry)

For Brett and Kerry, the work set up, the flexible scheduleand job security have been the most critical things impacting their intentions to stay on the farm. Brett also believes that people need to see a future on the farm they are in and get those opportunities.

“If you want to retain people, give them something. Don't just pay them and don't ever, ever have the mindset, I pay them enough money, they should be happy there…as long as there's always something there that they can look forward to or that’s going to happen, then they'll stay.” (Brett) “I don't really care how much I get paid, as long as I've got a job.” (Kerry)“…

Kerry, the senior milker also thinks that working on a clean and safe environment, and having helpful and approachable managers, makes things easier and more enjoyable.

“…cleanliness of a dairy is one thing. I don't like walking into a grotty [shed]... It’s more enjoyable I suppose if they're [the managers] easy going ….Good to get along with, very helpful…I'm happy just to travel to work, do my work...” (Kerry)

Both employees have not been participating on training programs. Kerry has received most of her education in dairy from her parents and doesn’t feel like getting involved in external training programs. Brett on the other hand, believes that the manager should encourage employees to do more training. In his opinion, getting training and being able to build up skills and knowledge, drives employees to stay on the farm.

“They're lacking a bit in education. You need to train - this comes back to giving people something so they can improve. They can improve eithertheir environment, their life, their intelligence, their knowledge.” (Brett)

Other features of the employment relationship affecting retention. People that had a broader experience outside dairy such as Brett, have a different view on the dairy industry outlook. Comparing dairy with other industries’ overall conditions, he thinks that dairy is lagging behind and changes are needed in order to create a more sustainable and enjoyable workplace. Things like the working hours, the overall work environment and how employees are treated are still important issues to be tackled. He adds that, to remain competitive, attract and retain good people, dairy needs to change and adapt as well as other industries have. “We get four weeks' holiday a year, but we don't get [other things]…the whole world has changed around this industry and this industry hasn't changed.” (Brett) Lessons from the case about retention

For Farmers

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The farm owners and Ian’s recognition of the importance of meeting individual needs in work hours and flexibility, maintaining good farm facilities, providing autonomy in work and a pleasant work-team environment has been a successful platform for the farm business. and are valued by employees. Ian’s ability to maintain a personalized approach within a farm team of over 6 employees will be of interest to other large farms.

For Industry/regional actionAccording to Brett dairy employees have limited or no support and are not well represented within the industry. Further, he believes the dairy industry is well behind matching the standards of working conditions of other sectors. Industry and regional groups could be more active in engaging employees in developing better practices and standards, support employee specific issues and promote training opportunities designed for employees. In regional areas, on-farm group training could be considered that engages employees with local experts and a practical approach.

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Case study Farm 5:

Craig and Claire: Making a workplace of choiceFarm description

450 cows 243ha + 81ha leased Intensive production system Rotary dairy Irrigation High genetic-merit herd, sell heifers Workforce: 2 full time employees + 1 part-time employee and farm owners

Background/History Have purchased farm from parents and bought extra land over the last 10 years. Previously the farm ran a smaller herd and was mixed farming Strong focus on building herd genetics. Craig had trained and worked as a motor mechanic prior to returning to the farm

Future Aspirations Retain herd size and improve cow performance. Plans to increase export of heifers and bulls. In the longer-term, explore succession planning options such as making the farm

attractive (infrastructure wise) for potential buyers, lessees or share farmers. Workforce set-up/StructureStaffing

Advertise jobs in newspapers, interview and select mainly on background and skills. Based on assessment of employee skills, extend responsibilities.

Payment conditions Employee 1 (Jim): On-farm for 14 months but had worked on the farm previously.

o Role: Assistant managero Week hours: 48h/week, 48 weeks/yearo Hourly wage: $25/h.o Wage package: salary + free fuel + Superannuation

Employee 2 (Michelle): Been on the farm for 5 years.o Role: Farm Hando Week hours: 40h/weeko Hourly wage: $19.75/ho Wage package: Salary + Superannuation

Benefits include Paid for training days, meat, offered rewards for good work throughout the year.Responsibilities

Offer greater responsibility to employees once they have gained some experience and have more skills and confidence.

Try to make employees conscious about the ‘financial’ impact of their actions (including mistakes) so they care more and know the outcomes from different practices on the farm.

Set goals and responsibilities for the farm that employees contribute to.Career Pathways

Encourage and help employees to move on to other places if no further options are available on the farm.

Create a pleasant and happy environment to retain people on the farm. Encourage employees into training to build up their skills and knowledge.

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Employees are encouraged to give and share their ideas about improving things on the farm.

Negotiation of flexible arrangements Milking is organized to spread the number of early morning milkings between the

owners and staff and limit the number of consecutive morning milkings of any one employee.

Flexible arrangements are a priority to keep employees happy, not overworked and to help achieve a good work/life balance for everyone on the farm.

Craig and Claire’s view on the importance of people in their business.Craig and Claire value retaining employees on their farm. They have been proactive over a number of years to ensure they attract and retain good employees and have attended numerous employer training opportunities.

“…I think [retaining employees] is really important. … we've gone off and we've done a lot of courses …I think it is important because you build up a relationship with the people that work with you..” (Craig)

Craig and Claire believe short term relationships are not productive. It takes time for people to get trained and understand the business to a point where they have the confidence to do the job when Craig and Claire aren’t there. In addition, Craig thinks that if employers are proactive in developing a good employment relationship, retention will come as an outcome of it.

“That's what I've found - when you actually lose staff,…you're six months behind what you want to do because you're training up, making sure everything's spot on.” (Claire) “I think we're more focused on what can we do to keep them here for a longer point of time, rather than say well we want this person here for two years, what do I have to do? We kind of hope that if you're proactive with it, it will just flow, and people do want to be here.” (Craig)

What farmers offer to employees Craig and Claire have put an employment system in place with the aim of encouraging employees to stay working on their farm. The central part of their approach has been to develop a pleasant and good work environment on the farm.

“We try and make the workplace as happy and as enjoyable - somewhere they actually want to come - that they're happy to stay here.” (Claire)

Craig and Claire have developed a close relationship with their employees and feel that the mutual respect and trust has a positive impact on the business.

“I think it comes back to that relationship ...they've got respect for us, we've got respect for them.” (Craig) “...It works both ways. We'd never ask them to do anything that we wouldn't do. So it all sort of works well I think.” (Claire)

In addition to creating a good work environment and developing a respectful relationship with employees, Craig and Claire have encouraged staff to have a sense of ownership of the farm and welcome their ideas for the farm:

“…like the guys have a sense of ownership of the farm. We love it when the guys go it's my farm 'cause I've done this and I've done that.” (Claire)

Craig and Claire provide extra benefits and bonuses to staff for a job well done and provide opportunities for staff to take on extra responsibilities. Providing autonomy in workCraig and Claire diversify job duties and encourage employees to participate in the operation’s decision making. They believe this is an incentive in their work and gives a lot of personal satisfaction.

“with Jim, since he's been here, we've increased his wage as he's got more experience and taken more responsibility too.” (Craig)

They also provide employees opportunities to take on different duties and responsibilities, aiming to diversify their experience and break up the job routine.

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“…to have an opportunity to do different things on the farm. Not doing the same day job all the time.” (Craig)

Getting their staff involved in the decision making process is seen as the way to bring new ideas into the system and to improve how things are done. They think that everyone should have the opportunity to bring experiences on board and one can learn things from another.

“So it's actually more ideas [from employees]. But we want them to put ideas in - not just to do the routine thing...They might see things that I haven't seen” (Craig)

Providing benefitsCraig and Claire provide a great deal of flexibility in the work schedule. They try to understand employees’ individual needs and expectations.

“…we are very flexible …as in if you want to have a day off or something comes up that yeah we say just yell out.” (Craig)

Craig and Claire have put effort into the design of flexible rosters that restrict the number of consecutive morning milkings and ensure they diversify the job experiences.

“Jim does Thursday mornings and Friday mornings. So he only had to do two early milkings. Jon does two early milkings and Michelle then does ...four early milkings.” (Craig)

Providing Growth and development opportunitiesCraig and Claire are keen to develop their employees’ skills and encourage them to undertake training courses. All training is paid including they days off work.

“If there’s any courses that I want to do, I only have to let them know and I’ll be booked straight in to do them.” (Jim) “A lot of the Target 10 I think, I've done a lot of those. Every time one of those pops up, Claire and Craig put me in it.” (Michelle)

Although any career path to outright management on the farm is restricted because of Craig and Claire’s role, they do develop some management skills in existing employees and are also happy for employees to leave their business in the pursuit of management roles.

“Earlier on we actually did have a lot of younger staff and we'd have them for five, six years. They were leaving us because they were going to manage other farms. We were encouraging it to them… we won't hold anyone back.” (Craig)

Providing an enjoyable work environment A pleasant day-to-day work environment is important to Craig and Claire and they also believe it contributes to employees enjoyment of work and willingness to stay employed with them. Craig and Claire are always open and approachable to their employees.

“…We sit around the table and have a talk. So the guys, if they want to do it they know that they can… Sometimes in a formal situation, people just…they don't feel comfortable.” (Claire)

Employee’s view about retention and their experiencesJim believes that the work environment and the relationships with employers and employees play an important role on an individual’s intention to stay on a job. In his opinion, staying with an employer is important but it is hard to say how long an employment relationship should last. He also acknowledges that, staying for a reasonable period of time with the same employer has a number of benefits. Staying longer on a farm gives you a better understanding of the business as well as the development of a sense of belonging and ownership of things.

“I wouldn’t put a time limit on it…you’ve got to be able to get on well with everyone that you’re working with…To me, the biggest aspect of staying on a farm for a reasonable amount of time, is getting to know the place...you treat it as your own...” (Jim)

Michelle, the farm hand, shares the same opinion to Jim about the importance of relationships and the overall work environment on her intentions to stay on the farm. She appreciates all the social part of the work and the employer’s commitment in continuously providing opportunities for training.

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“So If I hadn't got involved with that [the social aspect of the workplace] and enjoyed my work environment, I wouldn't have stayed there. It's lovely being out there and I almost feel like I sort of owe them something because they've given me that opportunity”. (Michelle)

Both employees value the flexibility of their work schedule and the feeling of not being overloaded on the job. .

“I’m not getting burnt out, I’m not doing the 70 plus hours a week. I’m only doing my 45, 40 hours. If I need a day off I just let Claire and Craig know and I get a day off. There’s no hassle there.” (Jim)

In addition, the both feel better off by having employers that value learning and the incentives they get to keep building their skills and knowledge. For Michelle, learning new things has a great positive impact on her job, making it more enjoyable.

“I love learning … and it helps you understand your job so much more... ” (Michelle) The employers’ effort in providing an open communication, a fair treatment and opportunities to be active on the decision making has also a great impact on the employees’ satisfaction.

“You’ve got to be comfortable with your boss to say, hang on a minute, I don’t agree with that, we should maybe do it this way.” (Jim)

Jim and Michelle have had different experiences in dairy but both agree that they are well off with their current employers.

“I'm not going to [leave the farm] - I'll feel so bad when I have to leave themI'll always have cows, I'll always be involved in dairy. I love it too much to give it up.” (Michelle) “Yeah, share farming, we’d think of that…but even management of a farm. Like, if Claire and Craig were to say, we’re going to pull the strings back and you can go ahead and run the place, well I’d be all for it.” (Jim)

Other features of the employment relationship affecting retention. Craig and Claire have been involved in training programs and conferences about the issue of employment and have made use of industry material to improve the overall working conditions and make their farm more attractive to the people involved.

“There was one [course] we did …about employing staff and …it went right into interviewing staff…”(Craig) “I've actually got a bit of stuff off The People in Dairy website, but I sort of keep up with all the other stuff with the VFF employment handbook which is - it's fantastic.” (Claire)

6. Lessons from the case about retention: For Farmers

Craig and Claire have clearly built a “workplace of choice” in their desire to create an enjoyable and rewarding farm business and working environment. The way in which Craig and Claire value retention as being essential to their farm operation and their proactive approach in matching their on-farm needs with employee needs and setting up flexible conditions, open communication, and development opportunities translate into a highly engaged workforce with a great sense of ownership of the farm goals. Although ‘employer of choice’ is a common mantra in the industry, the case of Claire and Craig would suggest that this is achieved through building a workplace of choice in the first instance.

For Industry/regional actionCraig and Claire provide evidence for the importance of employer training in changing mind-sets and supporting different practices in employment. Clear information and access to information about employment and conditions, particularly for employees is suggested by Claire, particularly access to funding, career guidance and mentoring in the industry. Further, Claire emphasizes the importance of farmers knowing more about what other farmers are doing in employment or in retaining staff and so sharing examples within the industry is important.

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Case study 6:

Harry and Barbara: Growing the farm and taking employees with youFarm description

200 ha 450 cows Dryland farm

Background/History Purchase the farm in 1982 as a beef cattle farm and started dairying soon after Bought another farm in 1991 and has had share-farming and lease agreements there. In 2006 purchased neighboring farm. Always encouraged trainees and new entrants into farming Decided that in order to achieve the lifestyle they wanted they would need to get

bigger and employ more people and be able to entrust the farm to others.Future Aspirations

Build up assets, purchase more land. Slowly transfer more and more responsibility to farm manager. Move to a share farming role over next 2 years as children don’t want to take on the

businessWorkforce set-up/StructureStaffing

Has had a number of trainees and apprentices over the years. Uses word of mouth and regional network to find employees. Has taken employees without skill and trained them up.

Payment conditions Employee 1 (Scott): Been on the farm for 13 years.

o Role: Production/Farm managero Week hours: 50-55h/week, 11 days per fortnight, 48 weeks/yearo Wage package: $60,000 + Ute + Fuel + Discounted rent + meat +

superannuation Employee 2 (Kate): Been on the farm for 1 year.

o Role: Apprenticeo Week hours: 38-40h/week, 11 days of work per fortnight, 48 weeks/yearo Hourly wage: $14/ho Wage package: Salary + 6h pay per day for training days (once a week) +

$1,000 bonus after conclusion of Cert. III Responsibilities

Employees are given freedom in their work and employer tries not to ‘micromanage’ things.

Flexibility on the work time as long as the job gets done.Career Pathways

Farm manager began on the farm as a farm hand, moved to assistant manager and finally to farm manager. With farm growth, will take on a business ownership role in next few years.

Negotiation of flexible arrangements Flexibility is offered in the form of freedom to use initiative in work and set work hours

and providing time for training, workshops and discussion groups (farm manager). Employees’ ideas around the working conditions and business are always taken in

consideration. Work schedule are always negotiable/flexible if employee needs/wants time off.

Farmers’ view on the importance of people in their business.

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Harry and Barbara have a clear idea about the importance of people and retaining good employees. Harry believes that each production system and each farm has particularities that are unique to them. To understand them and build up a good employment relationship takes time and it is not a simple thing. If people don’t stay long enough to facilitate all those interactions, no sense of continuity is developed, making the management of the farm less efficient.

“I think it’s very important [about the importance of retention]” “…it probably takes people six to 12 months to actually understand some of the intricacies or the way you work... I don’t want a situation where I turn them over every 12 months. I hate that.” (Harry)

Harry knows very well that retaining staff becomes a problem, once people want to develop their skills and knowledge if there is limited opportunity for progression.

“So I think you’ve got to recognize the fact that you’ve got people for a limited time if they’ve got capability. Unless you can offer them something – growth, which we’ve been able to do up to now.” (Harry)

What is offered to employees For Harry and Barbara, providing opportunities for employees and fair treatment are important principles in farming.

“I won’t ask them to do anything I won’t do. If there’s a shitty job to do, then I’m quite happy to do a bit of it.” (Harry)

Harry also takes personal fulfillment from seeing an employee develop: “I take pride in what he’s achieved.” (Harry)

Harry and Barbara believe they have addressed two main hurdles in their employment situation that many other farmers have been unable to. First, they try and understand employees’ expectations and aspirations for working in dairying and second, they accept that employees might not have the same interests and commitments with the business as they do:

“I think a lot of people … go out of the industry because they’ve had a bad experience with a farmer. [Some employers will say] well I work 70 hours a week, so should they and they shouldn’t get paid for it.” (Harry)

Providing autonomy in workHarry and Barbara have always encouraged Scott to participate in discussion groups to get a better understanding of the big picture and see what other farmers do. By doing that they believe Scott has the chance to see different systems and practices, and take that knowledge onto their farm. In addition, they have always involved Scott in the decision making, taking new ideas on board and letting him work to his own schedule.

“He’ll quite often come back from discussion group and say such and such is doing this, what do you reckon? So I think it’s important to get a wide view.” (Harry)

Providing benefitsThe benefits Harry and Barbara provide to Scott and Kate are not only on the financial side like providing discounted rent, fuel and meat. They give Scott the opportunity to buy calves, rear them at a real cost and then lease them off him when they calve as heifers. Further, they provide a great deal of flexibility on the job.

“He does own some of the cows in the herd, high 30s I suppose. He rears heifers out of his cows and he pays us for the rearing of those animals, then they’re his and then he leases them to us.” “If anything comes up and he says he wants to go, I just say yeah go you’re right.”

Providing Growth and development opportunitiesHarry and Barbara have always hired staff with low or entry-level skills and they like the fact that they can support them to build up their knowledge in dairy and

“So we actually never employed anyone that’s already been skilled up.” Scott therefore represents an interesting case in the dairy industry. He has been able to develop his career in line with the growth of Harry and Barbara’s farm business. Scott started

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as an apprentice and as the business grew he was given more and more responsibilities and moved up to a management role. Being there for 13 years and 7 of those as a manager, his next step is to take on a share farm role. Because the situation fits both parties, they have been thinking on how to design the agreement.

“Because of our development he’s been able to develop with us. I guess about the time we bought the other farm he was ready to make a move and that gave him an opportunity to then have a bigger role because of the size.” “We’ve come up with an arrangement with him now that if he wants to, in two year’s time, that he can take on a share farming role.”

Employee’s view about retention and their experiencesScott has been working with Harry and Barbara for over 13 years and really appreciates the opportunities he has been given. During all these years he had the opportunity to move up from an apprentice position to farm manager while building up his skills and knowledge in dairy. Because of his positive experience on the farm and the opportunity to go into a share farm agreement in the future, Scott has a strong commitment to his employers and has intentions to stay long term.

“But the opportunities that they've given us, you know, I'm happy to stay here for another 20 years or 30 years or however long I've got to be here for.” (Scott)“A lot of people say that we are a success story really in the industry because there wouldn't be anyone around that would have worked more than 10 years or 12 years for one employer.” (Scott)

Kate has been on the farm for one year and is completing her apprenticeship. She enjoys the work and the people but wouldn’t mind going somewhere else to get a different life experience while she’s still young. In addition, Kate values the learning opportunities she has been given and reckons that the farm is a great environment to build up her knowledge in dairy.

“I think here's the best one [farm], learning here's the best place.” (Kate) Both employees share similar views on the importance of pay and working conditions and the quality of the employment relationship. They believe they have a good deal on all fronts.

“Yeah, probably below what others are getting [outside of dairy] but I think just that the love for the job - just doesn't matter what you get paid, I don't think.” (Kate) “Pay wise, I get paid quite a lot. I've been offered better money. But then I looked at it and I thought, well hang on a minute. There's been three other operators through there in the last five years. I think I evaluated the job.” (Scott)

Scott believes that the opportunities he has had to learn off-farm have been a great way to prepare himself to take on more responsibility and be promoted to manager on the farm.

“I've been given the [training] opportunities by Harry too, which has been a great help for us …a lot of things that I've actually learnt have been off farm as well as on farm… to enhance my knowledge I sort of had to chase it. That's why we ended up where we are… I could see there was a future with Harry…and there was always going to be a future here in the way of share farming, moving on. So that was my ultimate goal.” (Scott)

Kate also values the flexibility she has : “So, they're really flexible, if you want a day off for anything.” (Kate)

Other features of the employment relationship affecting retention. In the past, when employees have to move on to move up in their careers, Harry believes that he can support them on that journey. He doesn’t want his employees to get burnt, so he actively supports and helps them to find a good place where they will be able to achieve their personal goals. To do that, he uses his networks and knowledge of the region and other dairy farms to find a good fit for his employees. This has also been how they source employees.

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“Yeah, if it’s locally. … I’ve got contacts around that I know …You could find out what the history is.” (Harry)“Often advertise but it usually ends up being through word of mouth...” (Barbara)

Lessons from the case about retention: For Farmers

A lot can be learnt from Harry and Barbara’s retention strategy and how they have set up the farm workplace to offer a better experience to employees and achieve their goals. Their strategy of taking people on board with entry-level skills and building them up on the farm has proven successful. The employers’ provision of on and off-farm training and career guidance is highly valued by the employees, who see it as a great opportunity to develop their careers in dairying. With a special focus on employees’ personal development, Harry and Barbara have been able to keep employees happy and committed for a long period of time, generating additional benefits for the farm in allowing time-off and continuity. Further, the mix of benefits like competitive wages and a pleasant work environment have been designed to fit employees’ expectations about the job. Although good timing might be considered the main reason for Harry and Barbara finding a match between farm growth and Scott’s career development, their case does provide insight into the possibility of taking employees with you in farm development. It also reveals how retaining good employees can increase confidence for farm business owners in being able to take the next steps in their farm business.

For Industry/regional actionWith his strategy of having apprentices and trainees on the farm, Harry believes that the entry-level courses in industry could be better set-up to improve the outcomes for farmers and employees, particularly the timing of training. Further, increased clarity of legal responsibilities for the working conditions and pay of staff in training would help employers in setting up higher quality employment contracts. There is potential for industry to better support farmers in articulating the career paths on their farm and ways to develop current employees into higher roles.

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Case study farm 7:

Steve and Kim: Achieving work-life balance through employingFarm description

270 cows 210 hectares. Intensive production system with irrigation. Two FTEs (general work) and relief milkers

Background/History Is the 4th generation of farmers in the area. Has worked in other industries in his early life Started off purchasing 70 cows in 1980. Bought another 200 cows One employee

worked on the farm between 1985 to 1997 Built a new dairy in 1998, previous employee left, hired current employee in 2001 Philosophy of providing a better work environment in all aspects (pay, conditions,

flexibility and so on) to retain good employees.Future Aspirations

Children don’t seem interested in taking over the business. Aim is to farm for another 3-4 years and may consider beef farming.

Workforce set-up/StructureStaffing

Offer good payment conditions. Uses the VFF to set up working agreements. Wages set up based on skills assessment. Doesn’t use any type of advertisement to attract people, it’s all done by word of

mouth. Payment conditions

Employee 1 (Jason): On farm for 11 years.o Role: Senior Milker/farm hand (part time)o Week hours: roughly 10h/week (40h/month), 48 weeks/yearo Wage package: $30/ho Has his own small businesso Farm owner leases his land for young stock

Employee 2 (Rebecca): On farm for 4 years.o Role: Farm hand (started as a relief milker)o Week hours: 20h/week, 48 weeks/yearo Wage package: $25/h

Benefits: Both got 3 calves that they can rear on the farm without any costs. Responsibilities

Employees are encouraged to do the job in an autonomous way and are encouraged to attend training and bring things they’ve learnt into the farm operations.

Flexibility is given to employees on the way they do the job. Employer does the assessment of employees’ strengths and coordinate work based on

that. Career Pathways

Employees see opportunities from increased responsibilities as the employer steps away from day to day responsibilities on the farm.

Training and personal development are encouraged. Employer tries to ensure variety in work and change daily routines. Encourages employees to contribute ideas Neither current employees are interested in long-term career in dairying.

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Negotiation of flexible arrangements The negotiation of pay and conditions is based on the guidelines of the VFF and that

works as a framework to provide better workplace arrangements. Has worked with an adviser to develop flexible agreements in job duties and hours and

prioritises good conditions. Farmers’ view on the importance of people in their business.Steve sees that keeping employees on the farm has several potential benefits for the business. He believes that, mature employment relationships bring stability. In his opinion, reliability and trust are other key positive outcomes of good long term relationships and are highly beneficial for the farm. In addition, people get to know how the farm is operated leading to a better and more efficient farm management.

“But I do value the reliability of labour and the long term commitment as well. I really do value the permanency of it or the reliability.”

What farmers offer to employees Acknowledging the benefits of having good people on his business, Steve has always tried to improve the farm environment and focus on the people in the business. One key characteristic of Steve’s workplace set up is his focus on interpersonal relationships and seeking people with similar values. In addition, Steve has strong principles that employees should be fairly treated and farmers should try to understand better employees’ expectation.

“We've got to get real that if you want good staff you've got to pay them well, you've got to look after them well. You've got to put yourself in their position.”

Although Steve encourages the development of a close relationship with employees, he also understands that employers need to keep things in professional and organized manner.

“We’re just fortunate that Jason’s a personal friend as well. But we’ve had to deal with the business side of it, I mean a business is a business.”

Steve has taken a proactive view on the employment relationship and aims to continuously change things for the better. Steve does assess employees’ capabilities and job aptitudes to provide a better employee/work fit.

“Rebecca is way better with calves - Rebecca and Kim. They tend to do the calves. Jason and Rebecca and Kim are way better than me at it... then I'm better at, I'm the only one that can AI.”

Providing autonomy in workSteve has always been keen in having employees participating in the operations’ decision making and always tried to provide a more diversified work for his staff. Having employees bringing new ideas on board and challenging the status quo are seen as positive outcomes in having people working on the business. “They brought stuff back [from training] that we’ve now implemented for thermodurics and just cleaning the milk part and keeping bacto counts down and that sort of thing and the reason why we do thermodurics.” “We also vary the jobs in the dairy too, like we don't all do the one job. I think that helps a lot.”

Providing benefitsProviding benefits to employees has been another feature of Steve’s retention strategy. Those benefits can be both tangible such as calves, meat and milk, and intangible such as flexibility on the work schedule and the work conditions.

“The conditions and I believe there's flexible - a flexible agreement, flexible hours… We're almost subconsciously working out new ways of doing things…”

Providing rewardsSteve recognizes that providing a competitive wage to employees is fundamental to keep them in their jobs. He understands that employees value the feeling of being fairly rewarded for the work on the farm. Based on that premise, Steve has always paid staff well above the award as

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a way to acknowledge their value for the business. Steve believes that employers should put themselves in employees’ shoes when it comes to pay and conditions:

“The money is certainly important, there's no doubt about that… They’re really happy because they’re getting paid way more than they expected they would which is always a good thing…I've also been an employee myself so I know what it's like. I think that's really important. I think you pay peanuts, you get monkeys basically.”

Providing Growth and development opportunitiesSteve has always encouraged staff to participate in training as he believes everyone gets the benefits of it.

“Both Rebecca and Jason have been off and done the milk quality production course, for a day which they said was fabulous.”“So we were totally flexible… She’s actually going to do the AI course as well but I think I might - I’ve run a few AI courses in my time, I might even teach her myself.”

Providing an enjoyable work environmentBecause of his strong and close relationship with his employees, Steve believes he has created a pleasant work environment for his staff. Being honest and having an open two way communication with people has played an important role on enhancing employees’ experiences on the farm. The employer’s effort in trying to build up a good environment is appreciated by Jason and Rebecca and they take a particular interest in the business.

“We’re very open with the way we feel. We’re very honest. We say hang on this is no good.” “It's very, very - it's pleasing for me to see how the staff do take an interest in keeping the cell counts below, you know, 250 and that sort of thing.”

Overall employee’s view about retention and their experiencesJason, the senior milker, has been on the farm for 11 years and although he only works 40 hours a month, because he has his own small business he values long term employment relationships. The sense of belonging, the understanding of the farm and the opportunities received, make up some of the main benefits of staying with the same employer for a reasonable amount of time.

It is important [staying long term]. If you chop and change too much well you're just getting into one job and you learn it and you're gone.”“So that's part of one of the good reasons that you hang around is because you're getting looked after.” (Jason)

One of the things Jason and Rebecca, the full time farm hand, value the most about their work, is the work environment and work set up. Both employees think that Steve has been great in terms of being flexible, open in communication and looking after them.

“I don’t think there’s anyone else out there more flexible than Steve and Kim …- they're just so easy to get along with. Nothing is a hassle. Anything you want is there for you, as in personal stuff.” (Jason)

Another personal characteristic of Steve that the employees appreciate is his recognition of their work and effort. Rebecca reckons that this, along with the support he gives, has been extraordinary features of the relationship.

“They're always thanking you or they're great like that. Yeah they're very appreciative... They can't help you enough which is fantastic.” (Rebecca)

Both employees believe that they are on a better off situation about their wages compared to other people in the industry. Because of that, they feel valued for what they do.

“Steve gave me a very, very good wage. I wouldn't get that off any other dairy farmer. (Jason) “I'm still on fantastic pay compared to what a lot of farm workers are on... it's a great wage.” (Rebecca)

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Rebecca is new to dairy and enjoys learning new things, and building up her knowledge. In that sense, she believes she is really fortunate to have Steve as her employer. She appreciates his commitment in training her and the provision of opportunities for personal development.

“The really good thing about Steve is he's happy to get me trained so I'm going to - I've been to one training… If I found training, he'd let me go and do it which is good… I'm really enjoying it, enjoying learning new stuff and” (Rebecca)

Other features of the employment relationship affecting retention. The success of Steve’s employment relationships is highly related to his personal view on the importance of people and a careful design of the work set up. Steve has used help from the industry and advisors to improve his farm system. The use of supporting schemes such as VFF employment handbook and farm advisors have changed his way of doing business. In addition, he believes that farmers need this kind of support as they can be really helpful tools and framework to manage things better.

“The VFF have been pretty good I think in everything, their handbook and we still have this basic in place working agreement.” “[the adviser] has been very important. That's the good thing …he can compare us to his other clients.”

Steve has plans to retire in the next few years , yet neither of the employees are seeking a dairy business ownership career. Steve doesn’t seem keen to enter into a different business arrangement with someone new and so is considering beef production.

“I don’t think we know the future. See, none of our kids want to come home on the farm at the moment... so maybe if we can get two or three years, even four years like this year and then we’ll probably pull the pin on the dairy and go into beef or something like that.”

Lessons from the case about retention: For Farmers

Although not a large farm, Steve and Kim have been able to generate work-life balance for themselves through creating an effective workplace environment for employees and developing long-term employment relationships. With a strong focus on understanding employees’ expectations, providing competitive wages and developing a pleasant work environment, the employer has provided an attractive workplace. Steve’s employees value flexibility and opportunities for personal development, something he has been able to offer and still maintain a profitable business.

For industryThe importance of short-course offerings for employees is revealed in this case study, along with the need for greater support to options for farmers to consider in retirement.

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Case study farm 8

William and Anne: Leasing the farm as a transition to retirementFarm description

William and Anne bought their farm in 1989, having leased a farm for 13 years prior to that.

William and Anne are in their 60’s and sold their cows in 2008 and have leased their farm since then. They still live on the farm and have off-farm work.

Their lease farm is 100ha The lessee has 200 cows and is planning to milk 220 this season. Intensive pasture based system. Perennial pasture with irrigation. The 2008 season was difficult for the lessee, and William and Anne helped them

through. Future Aspirations

Lessee is unsure how long they will continue leasing. Owners still have an emotional attachment with the farm. Hard to let go. However

they may sell the property.Responsibilities for the lessee

Keep the farm in good condition (maintain the assets) and pay according to the lease agreement.

Negotiation of flexible arrangements Negotiation of the lease agreement was not legally formalized but is a documented “in

principle” agreement. Owners try to understand the lessee situation and be flexible with that. They have

been lessees themselves. The lessee pays 5% of the farm’s value a year.

Lesee background Bill is 48yo. Worked as a cabinetmaker before entering dairying, completing a farm management

course and doing relief milking. Worked as a farm hand in 1994 and moved to sharefarming in 1997 for 2 years. In 2000 he leased a 120 acre farm with 70 cows and purchased another 50 cows. Since then Bill has been involved with ventures with different farmers to combine herds

and share profits as well as working in management and different sharefarming roles over the last 8 years.

Bill says he has always struggled with employment experiences as an employer and welcomed the chance to scale back and lease William and Anne’s farm in 2008.

In the medium term Bill still seeks farm ownership if a good option is available or he wouldn’t mind stepping into farm management again.

Farm owners views on the importance of people in their business.William and Anne have always enjoyed being dairy farmers and maintain an interest in keeping their farm as a dairy farm for as long as they can. After a long period of hardship and with their future aspirations of going into retirement, they decided to lease their property. The decision of leasing but maintaining it as a dairy farm seemed to be a good option to earn some cash, keep the assets and have the opportunity to sell in the future.

William and Anne had not fully considered leasing as an option for them but when Bill approached them, this sealed their their interest:

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“I didn't have any thoughts about it [leasing out the farm] but when we made our announcement [at our discussion group], we were really then approached by Bill.” (William)

In terms of their previous employment experiences before leasing the farm, William and Anne had trainees in the farm and they appreciated their contribution to the business. The drought had meant they were unable to keep people on, however they worked hard to find them another job in dairy.

“I think employing people, for us, was the hardest thing we went into...when there were difficult times, then we found that really hard to be able to manage people; it was hard.“ (Anne)“So, I managed to find him a job on a [dairy] farm down in Gippsland. (William)

What farmers offer to the lessee The lease agreement defined by William, Anne and Bill, the lessee, was very informal and most of the things were only verbally discussed. The owners believe that this kind of relationship should be based on trust and respect. In that sense, both parties agreed on conditions that would fit everyone’s interests and everything has been working fine like that.

“Whatever we've agreed to is documented but it's not in the form of a lease agreement with the solicitors, where everybody signed on that dotted line.” (William)

A great feature of their relationship is being flexible and understandable with the lessee. The owners understand that some things are outside the control of managing and this can affect the business. William and Anne believe it is part of the relationship to provide support in these circumstances. In their specific case, they provided support to Bill in the form of help with milking and feeding. To them it’s all about being supportive and show that everyone is in the same boat, they believe.

“So, we had some discussion with him; okay, things are tight. If things go belly up or you can't make it or whatever, don't worry about it....so, I think it certainly helped him get through because - he's just started out, new place and then, as I say, the budget's gotten blown to smithereens.” (William)

Particularities about the agreement William and Anne have a particular interest in keeping the farm in dairy, especially while they are still living there. A large part of their lives was spent on the farm, and because of that, they don’t want to see the farm left idle or unproductive. In addition, the farmers still have a strong sense of belonging and involvement with the dairy industry and they don’t want to lose that.

[About the importance of keeping the farm in dairy]...a bit of community spirit, I suppose... because we have put a lot of our life into this place and invested a lot of money into it as well...

To guarantee the success of the relationship, William and Anne believe owners need to understand lessees’ ways of managing the farm and let it go. Recognizing that people run farms differently and taking in consideration people’s distinctive commitments with the business is crucial. In addition, they believe owners shouldn’t get involved on the lessees’ business. It is a hard thing to do, but is the way they found to be the most positive way to deal with it. In this way it appears that the leasing step is an important part of a transition away from the farm.

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“It's ... not like he owns the assets. He's not growing an asset or developing an asset....We were doing the whole thing but he's trying to grow a business just with a mobile asset...the cows” (Anne)

“People [owners] basically can't bear to see other people getting on and getting ahead and doing it differently. I think it's to our credit that we haven't gone off our tree, it's about letting go.” (William)

The lessee’s overall view about retention in dairyfarming and his experiences

Bill is an interesting case in dairy and his career. Bill shows that even though things can be difficult at times, passion and enthusiasm can drive people to stay on top of their goals and have a path in dairy. Bill has been pro-active throughout his career having had previous jobs on different farms, two lease agreements and two share farming contracts, Bill has had a diverse exposure to dairy. With these experiences he shares the same opinion to William and Anne about the importance of trust and respect in their relationship. In that sense, the lessee was in total accordance with the way the lease agreement was set up.

“...it comes down to trust and I trust William and Anne and I hope they trust me sort of thing.”

Some of his previous business relationships were really successful but again external factors like the drought and the low milk prices have impacted him. This was the case of a share farming agreement with a neighbour on a farm he was leasing. When the prices went down during the early 2000’s, both farmers decided they would be better off going separate ways after discussing the issue with an advisor.

From Bills varied experience with leasing, sharefarming and managing, he believes the key is that both parties share common values and are able to clearly communicate their aspirations. Mutual trust creates and sustains a harmonious association.

“Whatever arrangement you’ve got there’s a certain amount of trust that’s there, or needs to be there for both parties. That’s the same I suppose with the share farmer, farmer relationship. You need communication...” (Bill)

Until this point of his career, Bill had focused on building up his herd with the intention of farm ownership, but the difficult seasons over a long period meant a need to sell cows and a shift in his ownership desires.

”Where we were heading was towards farm ownership ...basically our cows were our assets and during that drought period, ... we ended up selling 50 odd, which is a third of our assets basically gone. So we ...didn’t have enough behind us to - like I mean the banks probably would have with our record, they probably could have given it to us, ...it was probably a kick in the guts the fact that we reduced our numbers. I think it’s probably from about that point on I thought well farm ownership isn’t the way to go”. (Bill)

Bill has a house and block of land and has future aspirations to use his knowledge in dairy to pursue something different in life such as teaching or managing someone else’s farm.

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“The boys weren’t real interested in dairying and you sort of think well maybe you’re better off just leasing or share farming and using someone else’s assets to get yourself somewhere...if I do get rid of the cows, sell the cows, my chances of getting a job in the industry, whether it’s as a dairy manager or whether it’s teaching or whatever. I’m probably at that stage now.” (Bill)

However Bill does raise a particular issue he faced when seeking leasing or farm management options in recent years. He approached several farm owners who he believed were looking for options to exit or transition out of farming but many were unsure and unable to consider or work through what might be possible with Bill. He believed they were not aware of what options they had or how they could set up arrangements that could work for them.

“So in my discussions when I’d actually talked to the people I’d have these figures that say, well the bottom line may not be pretty this season, but there’s room to move. It can work.”

Bill has found in the discussion groups and the community, a great way to build up a strong network and learn from the industry. Participating in discussion groups, has allowed him to get to know other farmers and develop a better understanding of dairy farming. He also believes that the support from those discussion groups were critical to facilitate the progress of his career in dairy.

“…well to me probably having that network of the discussion group for a start, that was a huge backbone or backstop. That’s where I learnt a lot. Talking to other farmers, asking them questions I learnt a heck of a lot just by that.”

Lessons from the case about retention: For Farmer owners and lesseesThe relationship between farm owners and lessees is similar to any other employment relationship. Those elements of trust and respect between both parties, have showed to be one of the key features of this successful partnership. Being flexible and letting the new comer run the business according to his beliefsis a critical factor to create a healthy environment. In addition, good communication between parties and the understanding of each other’s expectations, make up the core fundamentals to generate and sustain a good relationship. The case of William, Anne and Bill suggests that the issue of transition out of business ownership can be an option developed from the mutual interests of both parties which indicates the need to support farm owners in finding suitable people with aligned values and not just workable ‘technical’ agreements alone. For Industry/regional actionThe farm owners have some clear ideas on what the industry can do better in terms of helping farmers to retain people in their businesses. Based on their experiences, the industry should work closely together to put up a more efficient supporting scheme to farmers and potential business entrants. Having consultants, career and business advisors, training programs, and finance providers working together on options with farmers and business entrants has great potential to improve outcomes for people exiting and entering farming. Providing many examples and options for farm employers in transitioning out of their business and developing ways to match options with interested entrants is a need within the industry.

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Case study farm 9

Wayne and Pamela: Retaining sharefarmers for returns to farm ownershipFarm description

137ha with a 36ha outblock purchased as separate blocks between 1979 – 1986 In selecting the original farm, he looked at 20 other farms to ensure good facilities and

housing Milking 350 cows under a sharefarm arrangement Owners (Wayne and Pamela) live away from the farm and are in their 70’s. 50-unit rotary built in 1992

Background Wayne and Pamela purchased the first block of 68ha in 1979 and over 7 years

purchased more blocks surrounding the first to hold 137ha and a 36ha outblock. Wayne originally contemplated farming himself as his grandparents had farming

interests but with a stable profession and rising education costs for his children, knew it wasn’t going to work for him and decided to appoint a sharefarmer.

Wayne established a 50-50 sharefarm agreement because he believed that if people have a financial interest in something they will take more interest in it compared to a manager. Also he believed leasing did not have the same tax advantages for him.

Since they purchased the farm they have had 4 sharefarmers on the property, each staying approximately 10 years before moving into farm ownership or into larger roles.

In 1992, Wayne and Pamela decided that as cow numbers expanded, the dairy needed to be upgraded and so they put in a 50 stand rotary dairy.

The current sharefarmers (Melissa and Jack) have been on the farm for one year after the previous sharefarmers moved to purchase their own farm after 10 years with Wayne and Pamela.

Future Aspirations Wayne and Pamela don’t intend to sell the farm as they value it as a particular type of

asset (like ‘dirt’ or the ‘bricks and mortar’ of real estate) and not just cash or shares. They would also like to ensure ‘good farming country’ remains in Australian hands. Their children may consider running the farm in a similar vein to Wayne and Pamela.

The Sharefarming arrangements Standard 50-50 sharefarming agreement (UDV guide is the basis of the contract) Sharefarmers own all cows, machinery and supply all labour 6-weekly farm walks with the consultant, owners and sharefarmers

Finding sharefarmersWayne uses a consultant to source sharefarmers for the farm. He has only had to do this 4 times in the last 32 years, but he looks for people with a good CV, and is keen to appoint someone who he feels he can get on with. Wayne looks for people that have the assets and experience behind them but who are looking to consolidate and grow on his farm. He also takes notice of any training they have done like a traineeship in the past. He was particularly turned off by one applicant who said “I’m only interested if there’s a dollar in it for me”.The local discussion group has been an important source of sharefarmers – and Wayne considers this a benefit because people know the farm. Wayne believes the consultant is a central figure in the relationship. Because he hasn’t farmed before and when sharefarmers first start they have less experience, he relies on the consultant to keep up with the latest and have their finger on the pulse and provide a beneficial input. He says the consultants have been useful for playing a background adjudicating role for ‘what is reasonable’ and what is ‘on the right track’ on the farm. Current Sharefarmers’ background

Melissa and Jack are 36yo

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Over the last 16 years they have moved from farm-hand roles to sharefarming with a period of time outside the dairy industry

They have had some poor experiences as employees. After taking a job in another region they only stayed 6 months after being placed on a salary package in which they calculated their hourly wage to be $7.60/hr and living in poor housing on the farm.

In hindsight they believe that if they had sought advice from their previous employer they would not have taken the job. They put this down to immaturity at age 22.

After this experience they left dairying, and with their experienced farm hand skills were able to pick up casual work in many different industries.

They moved back to dairying when they started a family, with Jack taking on an assistant manager role on an 850 cow corporate farm.

After 2 years in this role, a sharefarming role became available that did not require much capital. They felt they weren’t progressing in their assistant manager role and so decided to take this step although they were not looking to sharefarming as an option.

After 5 years of hard work on this farm they had purchased into half the herd and had 120 cows and some plant and equipment. This was after starting with no assets at all. They look back on these years as being a significant stepping stone and worthwhile.

Seeking the next step, they negotiated with a previous employer to enter into a second in-charge role and with a financial interest in the farm through a share of the milk from their 120 cows. This worked well for 12 months but the opportunity to sharefarm in their own right came along and was too good to pass up.

They began on Wayne and Pat’s farm in 2010 with about $850,000 of assets. Their goals are mainly to grow assets and improve their lifestyle. They are not pursuing farm ownership, have some off-farm assets and don’t see

themselves as dairy farming forever – but are interested in maintaining interests in farming.

Melissa and Jack are happy with what they have achieved, if not that they feel they are still working very hard at a time in life where they wouldn’t mind stepping back a little to enjoy their family life.They saw their previous decision of stepping out of sharefarming and into a 2IC role as not really the best fit for them:

“They were fantastic...it was the wrong job really – for me it was a move sideways to move forwards ...we knew we weren’t going to go forward with them and when I got to the larger farm it was a bit monotonous after running my own smaller farm for five years.”“When you’ve operated a business – it is hard to go back”

However, they still weren’t entirely sure of entering another sharefarming arrangement and were considering leasing when they heard of Wayne and Pamela’s farm becoming available for a sharefarmer. They were keen to pursue this farm because they knew the farm and the previous sharefarmers, knew that all previous sharefarmers had moved forward in their careers, and they felt that having an owner living away from the farm would give them the freedom to run the farm in their own way. They worked through the decision with the farm owners consultant as they needed to build cow numbers quickly in order to take the role. To do this they bought some cows and were able to carry over some autumn cows to achieve the target number of 300 cows when they started. Since starting they have built numbers to 350 cows and are rearing another 100 calves. Negotiating flexible agreementsWayne and Pamela have set up a flexible arrangement based on a standard 50-50 sharefarm agreement.

“We all sweat with each other...I’m now 70, I like the place performing well and looking good. I don’t do much now – provided the farm is producing the goods, we meet 6 weekly

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with the consultant, do a farm walk, everyone discusses the plans for the place and we look at shared costs – feed, fertiliser, balance it out, give and take, so not one sided.”

Wayne says that trust is the most important thing in the arrangement but he believes with sharefarming, there is that mutual interest with most sharefarmers wanting to get to a farm of their own. He believes there are enough ‘checks and balances’ in his arrangement but overall says “if I’m happy and they are, we don’t refer to it [the agreement]”.Melissa and Jack appreciate the freedom the flexibility brings:

“Making all the decisions and not having someone looking over our shoulder or needing to consult with someone daily ...we knew we needed a situation like that”. [Melissa]

Melissa and Jack believe that without hard and fast targets and rules in the agreement, it means they can aim for the best result and it benefits both the owner and themselves:

“we’re trying to get the most money anyway – to do a good job as we can. I have pride in keeping it looking good.” [Melissa]

Melissa and Jack have also appreciated how accommodating Wayne has been and believe it is an agreement based on win-wins:

“We’re both in it for the money so as long as we are all getting that. He knows our wealth sits in the cows and we want to raise more calves – and there are limits – but he has been accommodating in us rearing extra calves – to me there is a lot of give and take – those things are really important – there is lots of flexibility”.

Views on retaining sharefarmersWayne and Pamela believe it is important for sharefarmers to grow and move up in their career but he believes this is not about altruism or philanthropy – but about seeing people have an opportunity to own a farm for themselves. He believes he benefits because they fine tune their skills as they sharefarm on his farm.

“they learn in the first few years and thereafter it shows up in how the farm works and in what they can achieve.”

In 1992, Wayne and Pamela invested in a new rotary dairy for the farm. Wayne believed it was important to consider what was fair for people and to do things how you would want them to be. He believed milking 300 + cows in a 12 double-up herringbone was squeezing people too much. Sharefarmers experiences of retentionMelissa and Jack are positive about what sharefarming has been able to provide them in asset growth:

“I [used to think] as long as I did the right thing with money – it didn’t matter – so I thought we’d be large herd managers - but then the sharefarming job came up – and the opportunities you have sharefarming massively outweigh wages... I [have to] pinch myself after 8 years we now live more comfortably and have grown our net worth”.

Melissa and Jack believe the key for their career has been having owners and other people in the industry happy to help them. Jack says it is harder for them with no local family networks or help in getting into farming and so they rely on the advice, support and help offered by farm owners helping make things happen.

“I look back on our journey from a non farming background –we’ve got here without family backing we rely on our support network of owners who follow our pathway and help us decide our next move – they have turned us away from other jobs – support is critical - someone to turn too”.[Melissa]

Because of their experience as employees, Melissa and Jack are clear on what they believe needs to change in the industry, particularly the recognition of growing skills of employees and allowing people to grow in their role.

“In 3 years time a farm hand is not a farm hand – so employers must identify that their needs are changing...you can’t just pay the same and work the same – after 3 years there’s massive knowledge and they can’t be in the same position ...it’s important to

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identify where a person is at and what capabilities are and let them use that – and that things change”.

Jack also thinks things have to change in terms of pay and farmers believing no one wants to work to milk cows. Jack believes there is plenty of evidence from other industries that people will work where they are paid well and are valued. Jack sites pay rates of $30/milking as evidence for people’s lack of interest in milking cows.

“...farmers say ‘we can’t afford to pay staff’ and then whinge that they work 7 days per week”.

Wayne and Pamela believe industry discussion groups are a powerful learning tool in the industry – especially for sharefarmers. He believes with land prices escalating and the increased costs in setting up a dairy farm requires a high level of financial acumen. This is one area that he believes more could be done in the industry to support sharefarmers and other entrants. Insights into retention

For sharefarming as a business ownership optionThe principles of retention in employment appear to hold for sharefarming agreements. Providing autonomy in work, flexibility, learning and growth opportunities and a pleasant working environment along with satisfactory financial returns have contributed to the retention and development of sharefarmers into farm ownership and support to farm owner goals over a long period of time in this case. With sharefarming agreements becoming more contractual in nature, this case study can remind advisers, owners and sharefarmers of the importance of some freedom of judgement and accommodating needs and interests as an important part of the relational contract of sharefarming.

For industryThe need to develop higher level management and financial decision making in the industry has been recognized as important for the challenges of farming under more volatile conditions. Sharefarming (and other forms of business ownership) represents the entry point for practicing these skills in a whole farm context. Tailored training at this level could be developed to better support early-stage sharefarmers. Principles of the relational contract in sharefarming situations are not well articulated in industry, with more of a focus on the legal and contractual elements. Yet there are mutual benefits from retaining sharefarmers which may well be being overlooked. Developing awareness amongst farm owners of the options and potential from retaining sharefarmers would appear to be of mutual benefit in better farm performance and skill development.

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