Strategies are available to attract and retain employees

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Published: November 30, 2023

How can you attract and retain quality employees? | File photo

Lots of work to do with few to do it — it’s a common issue faced by farmers and ranchers across the Prairies.

The question becomes, how can you attract and retain quality employees? Below are a few strategies for doing just that.

One strategy is to offer unique employee benefits. There are also hiring programs and grants available to the agricultural industry.

Hiring programs

Federally, the Temporary Foreign Worker Program provides the ag industry with workers at peak times of the year to help tackle labour-intensive tasks. This program can be applied for by visiting the Government of Canada website and completing a labour market impact assessment.

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In Alberta, Agriculture for Life offers a grant called Grant Stream 1, which provides funding for farms and ranches to advertise specific job opportunities and increase the farm’s reach for employee attraction. The grant pays 80 percent of eligible expenses up to a maximum of $40,000.

In Saskatchewan, the Canada-Saskatchewan Job Grant gives assistance to employers to provide their employees with training opportunities that will benefit their future careers. The grant covers two-thirds of the costs of training new or existing employees to a maximum of $10,000 per employee.

In Manitoba, while not specific to the agricultural industry, the Canada-Manitoba Job Grant is available to assist in the costs of training new employees up to a maximum of $10,000 per trainee. Giving employees the opportunity to obtain additional skill sets while employed on your farm benefits their career and your operation.

Employee benefits

Two common employee benefits are low-rent housing and interest-free loans. These benefits are a good incentive for employees; however, they are taxable benefits. You will need to be aware of the tax requirements for calculating your employee’s payroll deductions and year end T4 filings.

Offering employees free or low-rent housing can be a necessity on a farm. However, this is considered a benefit, which is taxable to the employee. Any utilities (i.e., telephone, electricity, natural gas, water, cable or internet) paid by the farm are also considered benefits received by the employee.

The amount of the taxable benefit is calculated as the difference between the fair market value of rent that could be charged to a non-related individual and the actual amount that the employee is paying. The greater amount of rent paid by the employee, the lower the taxable benefit will be.

Another common employee benefit is to provide your employees with a low-interest or interest-free loan for the purchase of a home or a vehicle. As the loan is generally received at a lower interest rate than funds borrowed from the bank, the employee is receiving an advantage, which creates the taxable benefit.

The taxable benefit is calculated using the Canada Revenue Agency’s prescribed interest rate, which is currently set at five percent. The annual benefit is the difference between the interest paid by the employee and the amount of interest that would be paid using the prescribed interest rate.

Finally, providing your employee with an employer-owned vehicle or by giving them an allowance to use their own vehicle is another way to provide an employee benefit. There are many difficulties and complexities associated with the benefit or allowance when it comes to calculating this benefit. You will need to track the personal use regarding an employer-owned vehicle, so don’t forget to keep a log.

Employee retention and attraction can help your farm be successful. If you have any additional questions about employee attraction and retention strategies, please reach out to your trusted adviser.

Colin Miller is a chartered accountant and partner with KPMG’s tax practice in Lethbridge. Contact: colinmiller@kpmg.ca.

About the author

Colin Miller

Colin Miller is a chartered accountant and partner with KPMG’s tax practice in Lethbridge. Contact: colinmiller@kpmg.ca.

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