Each year, farmers make significant investments in their operations, whether it be new equipment, new technology, or infrastructure improvements. However, to maximize the return on these investments, they must also focus on hiring and retaining skilled, engaged employees. According to Dr. Bob Milligan of Dairy Strategies, LLC, one often overlooked but essential investment farmers neglect to make is in employee development.
“Unlike physical assets, employee development doesn’t require massive capital—but it does demand a commitment to fostering growth and continuous improvement. The key is making it a priority,” Milligan says.
Milligan outlines five essential employee development tools—ranging from one-time training events to continuous improvement systems—that farmers can implement to strengthen their workforce.
1. Create a Development Plan
One way to make sure employees keep learning and growing is by having a clear plan in place. A well-structured development plan ensures employees have clear goals for professional growth.
According to Milligan, a strong development plan may include:
- On-farm training opportunities.
- Reading materials, virtual resources and webinars.
- Off-farm learning experiences such as workshops or industry conferences.
Milligan suggests that plans be reviewed and updated in late fall or early the following year, allowing owners and employees to align educational opportunities with these focus areas.
2. Develop a Performance Improvement System
Beyond individual growth plans, it’s also important to have a system in place that helps employees understand expectations and track their progress. A strong performance improvement system answers two essential employee questions:
- What is expected of me?
- How am I doing?
“While all businesses set expectations and provide feedback, an unstructured approach leaves employees uncertain, frustrated, and less effective,” Milligan adds. “Many farms rely on annual performance reviews, but research suggests they are often ineffective feedback should be timely, not delayed until year-end.”
Milligan notes that a structured performance system should include:
- Providing ongoing, informal feedback to help employees refine their skills in realtime.
- Frequent structured check-ins, ideally monthly, to review progress and reset expectations.
- An annual strategic meeting focused on future growth, replacing outdated performance review models.
3. Conduct Stay Meetings
A stay meeting is a great way to check in with employees and keep them engaged for the long haul. Instead of looking back like a traditional performance review, it focuses on the future—helping set goals and make a plan for success.
During stay meetings, Milligan highlights three key areas to focus on:
- Have a clear purpose: Work together to boost performance, job satisfaction, and keep good employees around.
- Look ahead, not back: Unlike regular reviews, stay meetings focus on growth and future goals.
- Make it a two-way conversation: Supervisors should listen, ask questions, and get input from employees.
4. Communicate
Good communication is key to keeping things running smoothly on the farm. Whether it’s working together as a team or making important decisions, strong communication makes a big difference.
“In my opinion, the keys to excellent communication are listening, asking questions, and psychological safety,” Milligan says. “Psychological safety means feeling safe to take interpersonal risks, to speak up, to disagree openly, and to surface concerns without fear of negative repercussions or pressure to sugarcoat bad news.
5. Create Career-Oriented Compensation
Keeping good employees around takes more than just keeping them happy—it takes showing them they have a future on your farm. Stay meetings help build that long-term commitment but pay and benefits play a big role too.
“Younger and often first-line employees typically focus on having cash as their compensation. As employees age, advance, and become more family-oriented, they seek benefits like excellent health insurance and a retirement program. Balancing these differing desires, especially in our difficult labor market, is a challenge,” Milligan notes.
Being flexible with pay structures and openly communicating with employees about their needs can help create a compensation plan that supports long-term retention.
Give It a Shot
At the end of the day, investing in your employees is just as important as upgrading equipment or adopting new technology. A strong, engaged team keeps the farm running smoothly, and when people feel valued and see a future with you, they’re more likely to stay. By focusing on these five steps, you won’t just build a workforce—you’ll create a team that’s in it for the long haul.
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