Family Business Matters

Finding and retaining good help for today's farm and ranch is hard. Making it even harder are the challenges of rural community depopulation and a lack of amenities like schools, hospitals and entertainment. Consolidating farms and slim financial margins. Long hours, physically demanding and, at times, dangerous work in remote living conditions. It sounds like a recruiting nightmare.

However, family-owned farms and ranches can overcome these employment challenges. In fact, rural family businesses have true advantages when it comes to finding and retaining good help. Here are a few strategies you can use when seeking new team members.

USE THE RURAL NETWORK

Rural communities and regions with smaller populations have relatively strong historical and social ties. People often know each other. They interact at church or community functions, and play school sports together or against one another. They mingle at college.

While younger community members may leave for college or the big city, there are still emotional and relational connections to the small town. I know several farms and ranches tracking young people who have moved away. Those young people, as they get married and have families, may be interested in returning to small-town life to raise their kids. A conversation at the right time might result in a local family returning. Consider using social media platforms to stay in touch with people who have moved away but might make great team members in the future.

MARKET YOUR FAMILY CULTURE

Family businesses have a unique culture compared to nonfamily businesses, such as farm cooperatives, corporate businesses or government employers. A family business can often provide more flexibility in work arrangements and be more responsive to an employee's family needs. When an employee or an employee's family member has a medical challenge or family event, a family business can be more flexible with work expectations.

Family businesses often consider the operation over multiple generations, and their business decisions can reflect such long-term goals, making employment less dependent on quarterly earnings or annual budgets. I know scores of businesses in which long-term employees are thought of as family and have been part of the operation for decades. Long-term job security is rare, and family businesses are in the best position to offer it.

GET CREATIVE WITH BENEFITS

Family businesses can provide all kinds of creative options to attract and retain people. I've seen offers to help with employee land or home purchases. Some family companies let employees operate a small farm or livestock enterprise alongside their own. I know several farms that have used a remote office, located near a bigger city, to capture accounting or administrative talent. Several businesses have created methods for employees to either own a part of the business or have "phantom stock" in the company so they can build wealth. Some employers even help with child care or assist with in-state college tuition for employees' children.

Because many farms provide housing, I've seen several businesses provide a house, or payment toward a house, for an employee as a retirement benefit. I know of deferred compensation arrangements allowing an employee to receive cash, or an insurance policy with cash value, upon retirement. While you must follow applicable employment and tax laws, as a small business, you can tailor benefits to fit the unique goals of the employee.

Finding, attracting and retaining the right labor force is not easy. But, a focus on networking, promoting your family business culture and getting creative with benefits can help address the challenge.

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-- Email Lance Woodbury at lance.woodbury@pinionglobal.com

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