Reward, Recognition and Retention

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Retention strategies

Retention: keeping good people

The dairy industry competes with many other sectors for skilled workers. When good employees leave, farms lose knowledge, experience and time. Recruiting and training replacements is costly, and new staff take time to reach full performance.

Because there is not always a large pool of skilled dairy workers ready to step in, it makes sense to invest in the people you already have, including family members working on the farm. A retention strategy is simply the actions you take to encourage people to stay.

What helps people stay

Most people stay in jobs where they feel challenged, valued and safe, and where work fits reasonably with life outside the farm. They are more likely to leave when they are unhappy with conditions, pay, workload, relationships or career prospects.

Think about what first attracted people to your farm. Often those same things will help keep them there.

People are more likely to stay on a farm when they:

  • find the work interesting and challenging
  • feel they are paid fairly and treated fairly
  • respect their manager and feel supported
  • feel valued by the team
  • have a reasonable work life balance
  • have opportunities to learn and build skills
  • trust that problems will be dealt with quickly and fairly
  • feel safe at work
  • can see a future or career path on the farm

Retaining good people protects productivity, saves money and helps the farm run smoothly.

Simple ways to show people they matter

  • celebrate team and farm milestones
  • give time off for important family or community events
  • acknowledge special occasions
  • praise good work regularly
  • create simple social or team-building activities

Small gestures go a long way. When people feel appreciated, they stay longer and contribute more.

The rewards of a supportive workplace

Alan and Bev have kept great staff for decades. Their two long term employees, Rick and John, both started as apprentices and have stayed because they feel trusted, valued and supported.

Rick was encouraged to build skills in areas he loved, eventually taking full responsibility for herd management. John focused on machinery and feeding and now manages those areas with confidence.

Both men have family-friendly rosters, time off when needed, on-farm housing, and regular input into decisions through weekly meetings.

The result: loyal staff, strong performance, and a workplace people want to stay in.

Turning around high staff turnover

When Gerard and Michelle took over a 1000-cow farm, staff turnover was high and systems were inconsistent. Their goal was to build a simple, supportive, team-focused workplace.

They introduced weekly team meetings, involved staff in writing clear operating procedures, and created predictable routines. Over time, it became clear who could adapt to the new culture. A couple of staff chose to leave, but the remaining team became more efficient, confident and engaged.

With clearer roles and more shared responsibility, people felt valued and took pride in their work. Social catch ups and acknowledging milestones also helped build connection.

The result: better teamwork, stronger performance, and a workplace where people wanted to stay.

Reward and recognition

People should be rewarded fairly for the contribution they make. Good recognition motivates, supports retention, and shows people their work matters.

Rewards are not only about pay. Many forms of appreciation can make people feel valued.

Financial rewards

Pay rises are one way to recognise performance, but they should always:

  • fit within the farm’s budget
  • align with business goals
  • be fair compared to similar roles

Remember, people often compare total packages, not just wages. Consider:

  • salary
  • super
  • accommodation
  • paid leave
  • training support
  • roster arrangements

Sometimes bonuses or once-off incentives are better than permanent wage increases.
Profit sharing, performance bonuses or heifer-share arrangements can also work well when appropriate.

Automatic pay rises every year can gradually push wages beyond what the business can afford. If you want to support retention without overcommitting, consider small cost-of-living adjustments that are separate from performance reviews.

Performance-based one-off rewards are often easier to manage. Examples include:

  • bonuses instead of permanent pay increases
  • sharing a portion of profits
  • offering a share of heifer calves in good seasons

Whatever approach you use, make sure the reward feels meaningful to the person. Take time to understand what motivates them and match rewards to their needs and goals.

The key question: Will this reward genuinely motivate the person?

Incentives that support good milk quality

Alf runs a 260-cow herd that calves in autumn and winter. After completing a milk quality course, he set a clear goal: keep the bulk milk cell count below 200,000 for the year.

He worked with his two employees to make small but important changes. Together they:

  • checked teat spray coverage more carefully
  • changed how cups were removed
  • paid closer attention to early signs of mastitis

To keep everyone motivated, Alf added a simple incentive.
Whenever the herd’s cell count was ranked in the top 10 percent for the factory, the staff received a ticket to the football or another local event.

The result? Staff stayed engaged, took pride in the results, and the herd met its cell count target for the full 12 months.

People are motivated by different things.

Don’t assume everyone is motivated by money or promotion.

Take the time to understand what each person enjoys about their job and build your rewards and opportunities around that.

Some want to grow, take on more responsibility, and build a career. Others value security, learning opportunities, teamwork, recognition, or simply doing meaningful work.

That means rewards don’t always need to be financial. Useful non-financial options include:

  • flexible work options such as part time, job share, or adjusted hours
  • training and development opportunities
  • giving someone a special project to lead
  • more autonomy in how they do their work
  • temporary or permanent promotions and new responsibilities
  • social activities that build team connection
  • programs that support health and wellbeing
  • mentoring or opportunities to contribute more broadly

The key is to match the reward to the person. When rewards fit individual motivations, people feel valued, perform better, and are more likely to stay.

Vary job tasks to keep staff motivated

Routine dairy work can feel never-ending, especially jobs like milking that don’t have a clear “finish point.” Tasks such as fencing, pasture renovation or raising young stock often feel more rewarding because people can see the result. Consider rotating tasks or occasionally changing roles. It gives staff variety, helps them build skills, and keeps motivation high.

Skills development

Building skills to build your business

Developing the skills and technical competence of people on the farm is essential for business success, regional prosperity and long-term industry sustainability. It also plays a major role in retaining good staff. People are far more likely to stay when they feel supported, capable and valued.

Training and development should be seen as an investment, because they:

  • build the management and technical skills needed for the business to grow
  • show employees they are valued, which lifts morale and motivation
  • reduce turnover, accidents and absenteeism
  • create multi skilled teams so more than one person can do key jobs

The benefits for individuals are just as strong. Ongoing development helps people:

  • do their jobs better and more safely
  • feel more confident and satisfied at work
  • progress toward promotion or new responsibilities
  • transfer skills across roles or workplaces
  • adapt to change more easily

The Dairy Capability Guide is a helpful tool for planning skills development across the team and identifying training priorities.

The basic steps in putting together a training program for an individual are:

Determine what skills and training are needed

The performance appraisal process is a great way to identify future training needs. It helps pinpoint skills that will benefit the individual, align with their role, and support the farm’s needs moving forward.

 

Make use of the position description

The skills an employee needs should be clearly outlined in their position description. Use it as a guide when planning training, mentoring or development so people build the capabilities their role actually requires.

Identifying and building the right skills

Good training starts with understanding what skills people have – and what they still need. The Dairy Capability Guide is a great tool to help identify those gaps and plan development in a structured way. Ask questions like:

  • What does this person contribute now?
  • What do we want them to achieve next — and what do they want to achieve?
  • Do they have the technical skills required?
    Examples: feed management, mastitis control, business skills, machinery maintenance, computer skills.
  • Do they hold required certificates?
    Example: Chemical Users Certificate.
  • Would personal skills help them succeed?
    Examples: leadership, communication, conflict management.

Think about both current and future skills. People may move through roles over time (Assistant Farm Hand → Supervisor → Manager), so training should support that pathway.

Training needs should not be ignored. Farms change, technology improves, and expectations rise – people need the skills to keep up. Training does not always mean expensive courses. Much of the best learning happens on farm, alongside good guidance.

 

Designing a simple training plan

A training plan should close the gap between current skills and required skills.
It should include:

  • what needs to be learned
  • why it matters
  • who is involved
  • timeframes and costs

A simple action plan for training

As Joan and Robert’s farm grew, Robert found it difficult to manage day to day work and still do the business planning the farm needed. A skills audit showed the next priority was developing a clear strategic plan, but Robert had never done one before.

They created a simple training plan: Robert would complete a unit in Strategic Business Planning. The goal was clearer direction for the business and better conversations with advisers. Because they are joint owners, they decided both would attend.

The only real costs were the course fees and their time — but the value to the business was significant.

Choosing the right way to train

On-farm (learning by doing) – Best for practical skills and when procedures are documented. Works well when someone experienced can teach and explain not only how, but why. Tips for good on-farm training:

  • be clear about the skill being learned
  • explain reasons, not just instructions
  • use real “what if” scenarios
  • give regular feedback
  • provide time to practice

Coaching – Coaching helps people build habits and confidence. It encourages them to use skills they already have, try new approaches, and meet farm standards.

Extension programs – Field days and discussion groups keep people up to date with new ideas and technology and help them stay connected socially.

Formal training (TAFE/RTOs) – Useful when recognised qualifications or deeper technical knowledge are needed. Highly motivating and widely recognised by other workplaces.

Planning training at the right level – Simple skills may need just one short session. More complex knowledge might need training in stages, with time to practice in between.

Check if the training worked

After training, ask: Did it help? Was it clear and relevant? Did the person actually learn new skills? Can they use those skills confidently on farm? Did results improve?

  • better quality
  • fewer mistakes
  • improved productivity

Make skills development part of the job

Training shouldn’t be “optional.” Build it into performance appraisals, set time frames, resource it, and connect it to career goals. When learning becomes normal farm practice, people grow  and so does the business.

Exit interviews

People leave jobs for many reasons. Understanding why they leave helps improve retention. Exit interviews give departing employees a chance to speak honestly about their experience. They can highlight what is working well and where the farm can improve.

Providing references: When someone leaves, they may ask for:

  • a simple statement of employment (role and dates), or
  • a written or verbal reference describing their skills, performance and attitude.

If you agree to be a referee, a future employer may contact you to confirm details.

Be fair and accurate. A reference should be honest, balanced and not misleading. It helps both the former employee and the new employer make good decisions.

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