Employees: An expense or an asset? – Farm Biz Marketing

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Published: November 17, 2005

In day-to-day business operations, employees must be treated and managed as an asset.

Most business owners conduct significant research before committing to an expense. Adopting this same approach when recruiting employees can be beneficial.

Daphne Taras, professor of industrial relations with the Haskayne School of Business at the University of Calgary, recommends that employers realize the limitations of job interviews.

“Research shows that interviewers tend to look for characteristics and qualities that are very similar to their own. The potential result could be that you recruit people that are not as complimentary to you as they could be.”

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Knowing what qualities you require and taking the time to recruit properly is how you can turn the expense into an asset for your business.

Taras had a tip about how to make the best use of the references that applicants provide.

“Once you commit more time and energy to the recruitment process, use references to gain additional insights into potential employees. Describe the work you need completed and ask the reference if you think the potential employee is a good match.”

It’s time to consider hiring additional help when you are not able to complete all the work in your operation.

A good first step is to inventory all human resources and expertise that exists within your business. Include obvious sources such as employees, as well as the less obvious like current suppliers, custom operators and professionals.

Consider expanding the contribution of someone already involved in the business.

For example, can your accounting firm expand its role to include bookkeeping and

payroll services?

If adding employees is the best option, thorough orientation is important.

Provide clear and concise instructions on work expectations. Ensure each employee knows who they report to, and who they

can approach for clarification and further

instruction.

Your orientation program must have an emphasis on safety. It may seem time-consuming, but consider the expense of an accident.

Above all, consider the value and trust you have in your employees.

If they are interacting with customers,

you are entrusting them with an important

asset and you need to make sure they are fully prepared.

Try to find alternative reward systems for good performance and use them to motivate employees. Where recruiting staff is competitive, some businesses are implementing a bonus system to reward employees who consistently show up for work.

Offer competitive compensation for the job but realize that money is not the only motivating factor for recruiting and maintaining productive employees.

Offer employment incentives that are meaningful. For teenagers and summer staff, work might be as much about socializing as about earning money. Try to structure work and events to provide a social element.

Morley Kjargaard is an Alberta Agriculture business management specialist.

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