Human Resources 101: The essentials every farm employer needs

For many farm families, human resources, or HR, used to take place around the kitchen table. Family members pitched in where needed, extra help was only a phone call away during busy seasons, and hiring employees often meant putting an ad in the local paper or asking around town

Over the past few decades, however, the nature of farm employment and the importance of HR have shifted dramatically. Today’s farm businesses are larger, more complex and more reliant on hired labour than ever before, and the role of the farm employer has changed with it.

“Farm employers are running businesses, and managing people deserves the same attention as other parts of the operation,” says Viktoria Schuler, director of products and services with the Canadian Agricultural Human Resource Council (CAHRC). “Human resources doesn’t need to be complicated, and basic HR practices can go a long way.”

As farms grow and rely more heavily on hired labour, managing employees has become just as important as managing finances, production or marketing. Whether you hire one seasonal employee or manage a larger workforce, implementing basic HR practices can save time, reduce risk and help attract and retain good people.

Why HR matters more than ever

For many farms, the biggest HR challenge isn’t paperwork; it’s attracting and retaining employees in an increasingly competitive labour market.

“Ten years ago, many farms had more family on the farm, making HR more informal and often dealt with during a conversation at the kitchen table,” says Schuler. “Now, as a larger part of the business operation, HR requires more attention than ever.”

Finding workers is only part of the challenge. Today’s farm employers must also compete harder to attract and keep them. Farmers are no longer competing only with neighbouring farms for employees. Schuler notes that in some regions across Canada, farmers are competing with trucking, construction, oil and gas, and other industries that can often offer higher wages and more flexible work hours.

“Labour shortages are already affecting productivity, business growth and succession planning,” she says, referencing the CAHRC National Labour Market Forecast (2023-2030) that estimates agriculture employers could face a labour gap of approximately 100,000 workers by 2030.

Schuler says the type of farm can also lead to employee recruitment challenges. “Farms that are labour intensive or require seasonal labour are increasingly turning to offshore labour to fill their needs,” she explains.

At the same time, younger workers are evaluating potential employers differently than previous generations. “Employees don’t just want a paycheque,” says Schuler. “They want to work someplace that aligns with their values.”

She explains that there was a time when many baby boomers prioritized long-term employment and loyalty to a single employer. Today, Gen Z and younger millennials are often looking for a workplace that fits their values, offers opportunities for growth, demonstrates strong leadership and supports work-life balance.

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The most common HR mistakes

Despite the changing labour market, Schuler says several HR mistakes continue to show up on Canadian farms.

The first is assuming new employees already know what to do. She points out that while farm owners often have years of experience operating equipment, following safety procedures and managing daily tasks, new hires don’t inherently come with the same level of knowledge and experience. “Never assume,” warns Schuler, reminding farmers that even experienced agricultural workers require a thorough workplace orientation, including equipment training, safety practices and farm-specific procedures.

Another common problem is unclear expectations. Employees need to understand their responsibilities, who they report to and how success will be measured. Schuler also points out that “clear expectations are important for employees and family members, too.”

Farm employers can also struggle with communication. She reminds farm employers that minor issues or concerns can quickly escalate if managers avoid difficult conversations or fail to conduct regular check-ins and reviews. Failing to document performance concerns or workplace issues before they become a bigger problem is another area Schuler recommends farm employers address.

“There’s also a cost to ignoring HR,” she says. Replacing an employee takes time and money, from recruiting and hiring to onboarding and training. She notes that industry research consistently demonstrates employee turnover can cost employers 30 to 150 per cent of an employee’s annual salary, depending on the position and training requirements. At the same time, farms can experience productivity loss, equipment downtime and additional stress on existing employees who may need to work longer hours to cover labour shortages.

“Replacing an employee often requires far more time and money than retaining one.”

Schuler understands it can be hard to figure out how much employee turnover can cost a business, and that’s why CAHRC offers a free online tool, the Cost of Turnover Calculator (cahrc-ccrha.ca/tools/turnover-calculator). The calculator enables farm employers to calculate the estimated financial impact of employee departure and offers insights into the value of investing in HR practices.

Three HR improvements every farm can make

If every Canadian farm employer improved just a few HR practices, Schuler says these three areas would make an immediate difference:

1. Create clear job descriptions

Every position should have a written description outlining duties, responsibilities and expectations, even if the employee is a family member. “A job description helps everyone understand their role and provides a reference point if and when questions arise,” says Schuler.

2. Build an onboarding checklist

Seasonal employees can often arrive during the busiest time of the year, when farm managers have little spare time. And that’s exactly why onboarding should be planned in advance.

“Plan ahead. Don’t wait until you’re too busy on the farm to start thinking about onboarding and training new employees,” says Schuler, who recommends creating a simple onboarding checklist to ensure every employee receives the same information and training.

3. Invest in leadership skills

Strong managers don’t automatically become strong leaders and, as Schuler points out, most farmers go into business to farm, not to become an employer. “Yet people management has become a significant part of running a modern farm business,” she says, pointing to CAHRC research that has identified supervisory and management skills among the most in-demand competencies needed to support a productive and engaged agricultural workforce.

An investment in communication, conflict resolution and employee development training can help farm owners and supervisors build stronger teams and avoid costly misunderstandings.

Start simple

The biggest misconception about HR is that it requires complex systems and extensive paperwork. In reality, many of the most effective HR practices are straightforward: clear expectations, consistent communication, proper training and good record-keeping.

“The farms that succeed in attracting and retaining employees are often the ones that treat people management as a core business function,” says Schuler.

For more HR advice, CAHRC offers a range of resources, templates and tools for farm employers. Visit cahrc-ccrha.ca for more information.

What good farm employee onboarding looks like

A positive employee experience starts on day one. A well-planned onboarding process helps new hires feel welcome, understand expectations and learn how to work safely and effectively.

Viktoria Schuler, director of products and services with the Canadian Agricultural Human Resource Council (CAHRC) suggests it can improve retention, reduce costly mistakes and help employees become productive more quickly. Here’s a look at what a successful onboarding process can look like for new farm employees.

Before the first day:

• Contact the employee with details about what to expect.
• Explain what clothing or safety equipment is required.
• Remind them what documents they need to bring, such as banking information for payroll.

On the first day:

• Assign someone to greet the employee.
• Introduce them to co-workers.
• Conduct a farm tour.
• Review workplace expectations and safety procedures.

During the first week:

• Complete required safety and equipment training.
• Schedule opportunities to shadow experienced employees.
• Review job responsibilities and answer questions.

After hiring:

• Schedule formal check-ins at 30 and 90 days.
• Discuss progress, challenges and training needs on an as-needed basis.