In the rapidly evolving landscape of dairy farming, the question arises: Are your people an expense or an investment in your business? This thought-provoking inquiry was posed by Tom Wall, better known as the Dairy Coach, during the 2024 Milk Business Conference recently held in Las Vegas, Nevada. Wall’s perspective highlights a crucial aspect of dairy management: treating employees not merely as costs but as valuable investments that influence the longevity and success of the business.
Understanding the Real Costs
Wall emphasizes that while the upfront costs of investing in long-term employees may seem substantial, the long-term savings manifest in various areas such as lowered veterinary bills, reduced equipment repairs and an overall healthier herd.
“They [long-term employees] cost more as a wage, but they cost me less when it comes to mistakes,” he says. “If you’re going to look at your real numbers, that’s what you’re going to see.”
By focusing on the real numbers, the benefits become apparent, showcasing how strategic investments in talent can enhance operational efficiency and profitability.
Building a Thriving Culture
Jared Dueppengiesser from Proterra Genetics also graced the Milk Business Conference stage, highlighting the importance of building positive culture. As the former herd manager at Rosendale Dairy, a 10,000-cow cross-vent facility part of MilkSource LLC. group in Wisconsin, he focused on creating a culture where employees thrive, which led to business success. He believes his investment in people led directly to near zero turnover, improved milk quality, and increased energy corrected milk.
Dueppengiesser advocates for conceptualizing and thinking big when it comes to business and then committing to putting time, value, and effort into growing employees. A critical part of this is making sure employees can visually see and understand the business goals.
“Let them know where you are headed and put that in front of them on a daily basis,” he says.
They achieved this at Rosendale by displaying goals on a whiteboard. Dueppengiesser emphasizes that culture is established whether you realize it or not, and a lack of effort in this area likely results in a negative culture.
“If you’re not intentionally focusing on culture, it’s going to create itself,” he says. “Cows are the easy part. I challenge you to shift that mentality from acow first to a people first mentality.”
The Choice of Talent
At the Dairy Cattle Reproduction Council (DCRC) Annual Conference in Arlington, Texas, Dr. Robert Hagevoort, an associate professor and extension dairy specialist at New Mexico State University, echoed a similar sentiment: “Talent now has a choice.” This highlights the growing reality as we move towards a workforce that values choice and empowerment, impacting the dynamics of staff retention in the dairy industry.
Maximizing Employee Potential
Another crucial concern is the optimization of employee performance. Hagevoort raises an important question about how many hours employees perform at full capacity versus at a diminished level.
“Employees tend to ‘tank’ after 6 hours of work,” he observes, suggesting that employers should consider changing routines or providing better nourishment options to keep employees energized. With many workers relying on energy drinks, there is an opportunity to improve nutrition, which could directly impact productivity and employee well-being.
The Million-Dollar Question
Dr. Hagevoort challenges producers with a critical question: “How much money is left on the table because employees’ ‘tank’ after six hours of work?”
It’s a call to action for dairy owners to rethink their management strategies and create a workplace that maximizes the return on investment by ensuring employees are contributing at their highest level.
Creating a Desirable Workplace
According to Wall, effective management practices include recognizing, communicating, connecting, and clarifying roles, all crucial for retaining good employees. He notes that motivation comes from the heart.
“Ultimately, we need to ask, ‘Why should anyone work for you?’” Wall recalls visiting a dairy that fostered a fun culture by tailgating during monthly meetings, highlighting the importance of becoming the place that everyone wants to work at. A workplace where employees bring their friends and family, and don’t worry about personal belongings getting stolen, is highly desirable.
As the dairy business continues to face challenges, the way forward suggests a shift in perception. By seeing employees as investments rather than costs, dairy business owners can propel their businesses toward sustainability and growth. This change in outlook not only fosters a more dedicated workforce but also significantly contributes to the overall health and efficiency of the dairy operation. Investing in people is not just a strategy; it is a fundamental pillar for achieving long-term success in the dairy industry.
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