To Hire or Not to Hire – That is the Question 

To Hire or Not to Hire – That is the Question 

Hiring new employees can have both a positive impact and a negative impact on small  businesses such as farming operations. The timing and need of the new hire must  match the direction the farm business is going. If an employee is hired too early, cash  flow could be impacted, and profits can dip. If an employee is hired too late, current  employees could suffer in accomplishing tasks with potential duties outpacing  operational capacity.  

 

Several key indicators can signify to a farm operator when there is a need to hire a new  employee. If output and production is suffering, evaluate why this is the case.  Insufficient farm labor has been a major issue for farm operations nationwide but has  been exacerbated by the Covid 19 pandemic (Gutierrez, 2023). If the operation is  having a difficult time finishing key production tasks, insufficient farm labor could be the  culprit. Another indicator that a new hire is needed is if current employees are struggling  to keep up with the current demands of their jobs. Some signs of an overloaded  workload are lack of attention to detail, increased stress, and illness. Lastly, consider  the current situation of the operation. If time is consistently being spent on tasks that do  not contribute to generating revenue such as administrative or mechanical duties,  consider why this is the current situation. Part time assistance to manage these aspects  of the operation may be warranted. Insufficient workforces can limit a farm’s ability to  generate sustainable revenues. 

 

Considerations: 

✓ Make sure to determine if the operation can financially sustain a new hire.  Examine how revenue is derived on the business and when an additional hire is  most needed in procuring revenue effectively.  

✓ Farming can be a highly seasonal business depending on the type of operation  and what is grown. Make sure to determine when additional help is in the highest  demand.  

✓ Calculate how an additional employee will impact the operations production  budget and cashflow; what will be the FICO and tax implications? 

✓ Consider hidden costs of hiring within the operational budget and if the new  employee must possess certain skillsets. Examples of hidden costs are health  insurance, retirement savings, educational programs, training, and benefits to  assist with retention, etc. Benefits will be discussed in more detail later.  

✓ Consider the needed skillsets such as the ability to weld, mechanical inclination,  commodity production experience or even a commercial driver’s license (CDL). 

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Action Steps/Questions to Consider: 

Are you or your employees overworked, stressed or not keeping up with operational  tasks?

 

What tasks need to get done that aren’t being completed?  

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What tasks can be given over to someone else to complete?

 

What skills are needed  for this task? 

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How many hours would be needed to complete the tasks you’d like to turn over to  someone else?

 

What is the going wage rate in your area for the tasks you’d like someone else to do?

 

  Do a quick calculation of how much it would cost to hire an employee.  Hours ________________ x _____________ wage/hour = $____________ 

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What are the next steps?

 

Additional Resources: 

Gutierrez 2023 https://cals.ncsu.edu/psi/news/the-hands-that-feed-us/ 

O’Rourke 2023 https://www.extension.iastate.edu/agdm/wholefarm/html/c1-70.html 

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O’Rourke, M. (2023) article entitled Farm Employee Management: Get the Right Start in Hiring  Employees. Found at the link above.

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