Better Decisions: Five steps to a sound human resource plan

Tuesday, April 1, 2008

Take the trouble to do a needs assessment, proper job descriptions, and an employee handbook. Only then is it time to set about hiring and recruiting

by GARY MAWHINEY

A human resource plan is one of the major components of an overall business plan in today's modern farming operation.

Ask any producer what his input costs are and he or she will be quick to quote accurate figures on fertilizer, fuel and various other costs. Most farmers know that the cost of labour can be large, but few realize that labour costs can be controlled.

Large farming operations tend to have a person or department dedicated to their human resource needs. Although smaller farmers probably cannot afford to have a dedicated HR department, they can still implement a plan. As part of an annual review of your overall business plan, a human resource review will identify areas where you have a shortage or excess of staff. It will provide you with information needed to adjust your labour force and thereby add to your bottom line.

The process for creating a plan involves five steps. These steps will not create a comprehensive plan. They will provide you with the information you need in order to make informed decisions about your current and future labour needs.

Step 1. Needs assessment. Review your operation over the past season, taking into account when you required labour as well as the number of people actually hired. Try and recall any difficulties you faced and how they were resolved.

Most employers encounter problems when they do not have enough people with the necessary set of skills. It can be difficult to find the right person for the job, so this assessment will tell you when your requirements are needed. This is a good opportunity to look at potential future needs as well. You may be planning on an expansion or contraction of your business and these factors should be taken into account.

Another part of the assessment is a personal one as well. You should look at what type of employer you are, what skills you have and what your goals and vision are for your farm. The more specific you are in this section, the better you will be able to determine your needs. It is important that your labour force matches your management style and that everyone is working off the "same page."

Step 2. Job descriptions. Writing job descriptions is often regarded as unnecessary, since you will tell your staff what they have to do anyway. But writing a complete and thorough job description will give a good indication of what you should be paying, as well as the skills that are required for a particular position.

A job description is a management tool that can also be used when you do performance appraisals of your staff. It will clearly indicate whether your employees are doing what you intended and whether or not there is need for an adjustment in their duties.

A well-prepared job description will also benefit your employees. It will give them a clear sense of what is expected from them and will go a long way in heading off any misconceptions in the day-to-day operations.

Job descriptions should be written for each position and reviewed on a regular basis. In all likelihood, you will find that your needs change and these changes should be reflected in the job descriptions.

Step 3. Employee handbook. One of the most important tools any business can have is an employee handbook.

This book will spell out the "rules of the game" and give your staff a clear picture of what your expectations for the workplace entail. It should include a section on training, both work and safety-related, as well hours of work.

The job description can be included as a section of this book, as well as salary grids and any benefits provided. This handbook should be an overview of what your expectations are and it is also helpful if you have a segment on employee expectations. Giving your staff an opportunity to write down their goals and aspirations will help you to tailor and adjust your workers to the job.

Take the time to sit down with your employees immediately after you have hired them and go over this handbook. This will allow you to head off any misconceptions about pay rates, benefits and other important factors.

Step 4. Recruiting. Determining what method is best for your farm will depend on a number of factors. If you just want lots of applicants, use the Internet or newspapers. However, if you wish to have your applications pre- screened as well as reduce the numbers of applications, using a job placement agency would be the best method.

Also, remember to tell current employees that you are looking for additional staff. This not only involves your staff with the farm, it gives them as sense of participating in its management. Sometimes they may know someone that would be suitable for the position. Chances are that they will be careful who they recommend, since their credibility is on the line also.

Step 5. Hiring. Hiring staff should involve a three-step process. After recruiting an appropriate number of candidates, the next step is interviewing and a work test, followed by a reference check and finally a formal written job offer.

Each of these steps is important and you should not skip any of them. In the interview process, ask candidates to come prepared to engage in a work simulation so that you may actually see if they can do what their resume indicates. Some people tend to exaggerate their skills and qualifications. Performing a work test will drastically reduce the number of times that you hire someone without the proper skill set.

Most farmers will ask for one or two references. However, you will find that if you get two personal and at least one work reference, you have a better chance of hiring a good employee. Tell the candidate that you will be checking references and that the personal references should be someone other than a relative.

Last but not least, write out a formal job offer spelling out the position, rate of pay and benefits. You can list the benefits in general terms and, when you review the employee handbook, talk more specifically about these things.

I have written a factsheet entitled "Creating and Implementing a Human Resource Management Plan," which goes into the various topics discussed in this article in depth and provides templates to create your own plan.

It is available online by entering www.ontario.ca/agbusiness and clicking on the human resources section.

Remember, nobody plans to fail, they just fail to plan. BF

Gary Mawhiney is Human Resources Management Program Lead with the Ontario Ministry of Agriculture Food and Rural Affairs. Email: gary.mawhiney@ontario.ca