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Thursday, June 28, 2012

Agbusiness: Are your Employees Managing You?

With July fast approaching, I have begun to look at the evaluation papers that need to be distributed, I have been looking at some ways to improve our evaluation system.  In it's current form, the system is pretty basic, with six questions with answer options and then an explanation box where managers can rate their employees on a monthly basis.  The system isn't bad, but it could be improved a bit, to be more behaviorally based, and give a more balanced picture.

In order to improve upon what we already have, I have turned to some business standbys, because farms are small businesses, too.  In particular, I referred to Patrick Lencioni's Three Signs of a Miserable Job, a "Leadership Fable"  that tells how a manager works out a theory to motivate the people around him to care about their work.  Farmers care dearly for their businesses, but often run into a struggle because they can't lure the most desirable people with high salaries, flexible schedules, or sparkling benefits packages.  Those types of resources aren't very prevalent for our employees.  Upon reading Lencioni's book, I realized that while money is important, culture is a main factor in why successful people work in successful organizations.

When I think of farming business culture in general, I think of an older gentleman who tends to be hard working, stoic, and a bit tight lipped.  As businesspeople, we are not the best communicators.  We don't show appreciation for some of the intangibles that impact the way our businesses operate.  We tend to prepare for the worst, and show little faith in the people we surround ourselves with, except maybe a few family and friends.

What we don't realize is that we have the power to make people enjoy their work, feel challenged by it, and raise the standards of our businesses.  An article from National Hog Farmer, Engaging Your Employees, agrees that the way you handle employees determines how effective they will be in your business.  Many of the things we can do are so simple, and only cost a little extra time on the employer's end.

Get to know your employees.  Those that have a connection to the people they work with are more likely to show commitment to the business.  Know about their hobbies, kids, and family situation.  Let them know their work is relevant.  It may sound silly, but telling someone their work has made an impact on you, coworkers, customers, etc., shows that you notice and care.  It adds an extra connection to the business.  Human capital is a defining factor of business success.  Finally, give your employees tools to get feedback.  It's not just feedback on the balance sheet, or feedback from their boss, but things they can use as measures for success on a daily or weekly basis.  This gives employees control over their own performance, and increases the likelihood of retention.  On the farm we need to remember that creating these types of conversations will pay off, even though they are not on the balance sheet.

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