the impact of labour variability on ontario swine farms · the report “the impact of labour...

The Impact of Labour Variability on Ontario Swine Farms

Prepared For:

Ontario Pork

Prepared By:

Lynn MarchandKen McEwan

Ridgetown College, University of Guelph

November 2004

ACKNOWLEDGMENTS

The report “The Impact of Labour Variability on Ontario Swine Farms” was made possible throughthe very generous financial support of Ontario Pork. Special thanks are extended to the employersand employees who took the time to complete all or part of the survey. By participating, theseindividuals have helped to provide a better understanding of the human resource issues on swinefarms from both the employer and employee perspectives. Thanks are also extended to Randy Duffywho contributed to the statistical analysis portion of the study. Finally, appreciation is extended toany others who may have assisted with this project in some way.

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Table of Contents (cont’d)

Ridgetown College, University of Guelph i

Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

1.0 Study Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2.0 Other Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 Other Forms of Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3 Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.4 Ontario Employment Standards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.5 Recent Human Resource Management Articles . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.0 Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.1 Employer Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.2 Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153.3 Average Wage Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163.4 Comparison by Farm Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.0 Employee Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214.1 Comparison by Age of Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234.2 Comparison by Education Level of Employees . . . . . . . . . . . . . . . . . . . . . . . . . 264.3 Comparison by Employee Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284.4 Comparison by Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.5 Future Employment Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

5.0 Combined Employee and Employer Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345.1 Employee Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

6.0 Cost of Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

7.0 Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427.1 Linear Regression With One or More Independent Variables . . . . . . . . . . . . . . . 427.2 Wage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427.3 Employee Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447.4 Number of Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45


Ridgetown College, University of Guelph ii

8.0 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488.2 Survey Results and Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

9.0 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

List of Appendices

Appendix A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Appendix B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Appendix C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

List of Tables

Table 1 Compensation Information by Employee Category . . . . . . . . . . . . . . . . . . . . . . . vTable 1.1 Employee Survey Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Table 2.1 Average Hourly Wage Rate, Full-time Employees, Ontario . . . . . . . . . . . . . . . . . 4Table 2.2 Average Hourly Wages, Full-time Employees, Ontario . . . . . . . . . . . . . . . . . . . . 5Table 2.3 2002 U.S. Farm Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Table 2.4 Comparison of Farm Employee Wages in Ontario and the U.S. . . . . . . . . . . . . . 7Table 2.5 Average Hours Worked, Full-time Employees, Ontario . . . . . . . . . . . . . . . . . . . . 8Table 2.6 Comparison of Agriculture and Non-Agriculture Employees . . . . . . . . . . . . . . . 9Table 3.1 Survey Distribution and Replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Table 3.2 Age of Employer vs. Average Employee Turnover . . . . . . . . . . . . . . . . . . . . . . 14Table 3.3 Summary of Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Table 3.4 Average Current Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Table 3.5 Additional Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Table 3.6 Total Compensation Per Hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Table 3.7 Incentive Plan Response Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Table 3.8 Additional Compensation Benefits vs. Farm Size . . . . . . . . . . . . . . . . . . . . . . . 19Table 3.9 Hours of Work Per Week vs. Farm Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Table 4.1 Descriptive Statistics by Age Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Table 4.2 Employee Background and Hours Worked by Age Category . . . . . . . . . . . . . . . 24Table 4.3 Future Plans by Age Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Table 4.4 Level of Education and Hours of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Table 4.5 Ranking of Appealing Job Attributes by Level of Education . . . . . . . . . . . . . . . 27Table 4.6 Age Distribution by Employee Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Table 4.7 Education Level by Employee Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Table 4.8 Age of Employee by Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Table 4.9 Job Characteristics by Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31


Ridgetown College, University of Guelph iii

Table 4.10 Future Employment Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Table 4.11 Reasons to Leave Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Table 5.1 Ranking of Job Attributes by Both Employers and Employees . . . . . . . . . . . . . 34Table 5.2 Job Characteristics vs. Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Table 5.3 Hours of Work vs. Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Table 5.4 Wage Comparison Between Low and High Turnover Farms . . . . . . . . . . . . . . . 38Table 5.5 Ranking of Improvements in Current Job by Employees and Employers . . . . . 39Table 6.1 Cost of Turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Table 7.1 Wage Regression Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Table 7.2 Turnover Regression Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Table 7.3 Number of Employees Regression Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

List of Figures

Figure 3.1 Employer Interview Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Figure 3.2 Methods of Advertising Job Openings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Figure 3.3 Wages by Size of Farm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Figure 4.1 Total Years Working on Swine Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Figure 4.2 Employee Perspective on Interview Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Figure 4.3 Ranking of Improvements in Current Job From Employee Perspective . . . . . . . 22Figure 4.4 Reasons to Leave the Swine Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Figure 4.5 Ranking of Improvements in Current Job by Age Category . . . . . . . . . . . . . . . . 24Figure 4.6 Ranking of Improvements in Current Job by Level of Education . . . . . . . . . . . 27Figure 4.7 Plans For Next 5 Years vs. Employee Background . . . . . . . . . . . . . . . . . . . . . . 29Figure 4.8 Education Comparison by Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Figure 5.1 Employer Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Figure 5.2 Employee Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Ridgetown College, University of Guelph iv

EXECUTIVE SUMMARY

This study was undertaken to provide insight into human resource management issues onOntario swine farms. As farms have grown in size over time, the hiring of full-time non-family labour has become necessary. There has been concern that it is increasingly difficultto find individuals who want to work in pig production. This situation is not unique toOntario pig producers. It is a common concern in agriculture in Ontario, other parts ofCanada and the United States as well. Part of this may be attributed to the general perceptionthat the agriculture industry is low paying, requires long hours of work, has poor workingconditions (i.e. dust, smell) and so on. Determining what it takes to attract, motivate andkeep employees on swine farms in Ontario is beneficial to the industry.

Some of the highlights of the study are provided below.

1) Statistics

According to Labour Force Survey data from Statistics Canada farm workers receive lowerwages than jobs in other industries that might require similar skills. Construction tradeshelpers received $17.26/hour in 2003 which is approximately $6.50/hour more than whatgeneral farm workers received. Similarly, truck drivers received $17.23/hour or $2/hourmore than farm managers who received an average of $15.27/hour. Farm workers reportedworking approximately 46.5 hours/week and this is more than jobs in other industries (i.e.construction trades helpers worked 41.8 hours/week).

2) Survey Results

i) Hours of Work and Compensation - Swine farm employees reported that theywork 51.3 hours/week. This is higher than jobs in some other industries. Forexample, this is 9.5 hours/week more than what construction trades helpers work.

Compensation was found to be the key area that employees would like to seeimproved in their current job. They also indicated appreciation for work done andnumber of hours worked as areas for improvement. Compensation was cited as themain reason employees would consider leaving the industry in the next 5 years.

Results from the employer survey showed that the average current wage rate forgeneral labourers on swine farms was $10.93/hour and supervisor/manageremployees received $18.65/hour. These values are shown in Table 1. The cash wageprovided to these employees is less than what employees with similar skills in otherindustries would receive. Data from Statistics Canada showed that constructiontrades helpers in 2003 received approximately $17.26/hour. This is considerablymore than the wage reported in the employer survey for general and skilled labour

Executive Summary (cont’d)

Ridgetown College, University of Guelph v

(i.e. $10.93/hour and $15/hour respectively). Some farms provided additionalbenefits (i.e. medical and dental coverage, disability insurance, housing, paid utilities,food, etc.).

Table 1. Compensation Information by Employee CategoryGeneral Labour Skilled Labour Supervisor/Manager

Cash Wage ($/hr) 10.93 15.00 18.65

Additional Benefits ($/hr) 0.80 1.92 2.85

Total Compensation ($/hr) 11.73 16.92 21.50

ii) Age of Employee - Employees more than 39 years old worked 5 hours less per weekthan younger employees. Pay was rated as the main reason employees aged 30 andolder would consider leaving the industry. Employees in their twenties indicatedweekends off as the leading reason for them to leave the industry.

iii) Education Level of Employee - As the education level of employees increased, thehours worked per week decreased. Employees who had completed college/universityworked 48.8 hours/week compared to employees with up to grade 10 education whoworked 52.2 hours/week. Compensation was found to be the most important area forimprovement for employees who completed grade 11 or higher. Employees with lesseducation reported the most important area for improvement was appreciation forwork done.

iv) Employee Background - Almost three-quarters of all employees surveyed reportedthat they had worked on swine farms for more than 5 years. Employees from a farmbackground more frequently obtained higher education and were more likely toconsider leaving the swine industry in the future. 40% of all employees expect thatthey will be in the same position in 5 years.

v) Gender Comparison - Most employees surveyed were male. The male employeesworked 8 hours more each week than the female employees (i.e. male employeesworked 52.8 hours/week compared to 44.4 hours/week for female employees). It wasfound that female employees were more likely to have completed higher education.

vi) Farm Size Comparison - In the analysis of farm size small farms were consideredto be those with sales between $500,000 and $2 million and they tended to pay higherwages (i.e. up to $1.40/hour more). Average turnover on small farms was 52%compared to 76% on the large farms.


Ridgetown College, University of Guelph vi

vii) Importance of Job Attributes - Employers and employees from the same farmbelieved that compensation, appreciation for work done, and having a job that isinteresting and satisfying were attributes that make a job appealing. There were somedifferences when the two groups were asked where improvements could presently bemade. One-quarter of employees felt that compensation should be improved.Employers believed showing appreciation for work done was the main area theyshould improve in.

viii) Employee Turnover Rate - Farms with low employee turnover (0% turnover in last2 years) and farms with high turnover (more than 70% turnover in last 2 years) wereanalysed. Employees on low turnover farms received higher wages, worked fewerhours and received more time off than employees on high turnover farms. Employersof low turnover farms were more likely to use word of mouth advertising to findpotential employees and they more often checked references than employers on highturnover farms.

ix) Cost of Employee Turnover - The average cost of employee turnover was valuedat $8,409. This includes such things as advertising, salaries of interviewers and on-the-job coaches who train the new employee, materials, workshops, and etc. It takesapproximately 52 days for a new employee to become fully productive. The averagestarting salary was reported to be $26,653.

x) Statistical Analysis - Three regression models were tested. The first model usedwages as the dependent variable. Employee turnover, performance review and farmsales had the most significant effect on wages. Nine variables were included in theregression and together they explained 60% of the variation in wages. The secondmodel used employee turnover as the dependent variable. 24% of the variability inturnover was explained by the 6 independent factors. The results did show that as thenumber of hours worked increases, so does employee turnover. The third model usednumber of employees as the dependent variable. Only 4% of the variation in numberof employees is determined by factors such as job description, job title andperformance review. These are thought to be tools that are typically used bybusinesses having many employees, however, no statistically significant relationshipwas found to exist between them and number of employees.

3) Recommendations

The evidence from the survey results shows that employees appear to want jobs where theyare fairly compensated, their work is appreciated and the hours of work are reasonable. Withthis in mind, here are some human resource management recommendations that could beused in any industry.


Ridgetown College, University of Guelph vii

i) Hours of work - Provide employees with information regarding hours of work attime of hire and indicate whether these hours may change at certain times of the year(i.e. planting or harvesting). If possible offer flexible hours to accommodate personalobligations.

ii) Compensation - Employees should be compensated fairly. This includes fair wagesfor work done. The total compensation package can also include:

a) Overtime pay - Some industries offer overtime pay for hours worked abovea pre-set number of hours. When employees are asked to work additionalhours providing an incentive such as increased wages or paid time off onanother day could result in the employee seeing a direct benefit from theadditional work.

b) Benefits - Employees may appreciate the value of benefits such as life ordisability insurance, medical or dental coverage, contribution to their RRSP,provision of pork or other food, providing housing, paying a portion ofutilities and so on.

c) Bonus - A bonus can be seen as a reward if the bonus system is properlyestablished and the criteria is attainable. Bonuses such as staying a certainlength of time with an employer, having a period of time with no injuries ora perfect attendance record are all within the employee’s control.

iii) Employee Interaction - Take note of individual employee strengths and weaknesseswhen assigning employees to work together. Most employees enjoy someinteraction with other employees and supervisors/managers. Employees should betold if they are doing a good job or if there is room for improvement. Encouragingemployees to share ideas on where improvements could be made in the farmoperation may result in additional progress on the farm. Treat employees withrespect and care.

iv) Statutory holidays and Weekends- Establishing with employees a mutuallyagreeable schedule for statutory holidays and weekends in advance showsconsideration for employees. Providing additional money for working a statutoryholiday can make an employee feel that his or her time is valued.

v) Vacation Time - Providing paid vacation time off gives employees an opportunityto refresh themselves and they will come back to work more enthusiastic.


Ridgetown College, University of Guelph viii

vi) Make the Job Interesting - Match an employee with the right job(s). Consider whatan employee is good at and what they like to do.

vii) Job Description - Provide a written job description to all employees. This shouldoutline what is expected in terms of duties to be performed, hours of work,responsibilities, rate of pay, benefits, vacation time, training, promotion, etc. Itshould also detail what may cause termination of employment.

viii) Training opportunities - Encourage employees to improve their skills. This willbring knowledge back to the farm business.

ix) Promotion - Providing employees with a promotion or simply assigning increasedresponsibilities can be viewed as a reward by employees.


1 Swine Enterprise Budgets - June 2004, (John Bancroft, OMAF)

Ridgetown College, University of Guelph 1

1.0 STUDY OVERVIEW

1.1 Introduction

The practice of raising pigs in Ontario has undergone tremendous change in recent years assome farms have exited the business and others have grown. This increase in size haspresented many opportunities (i.e. in terms of achieving economies of scale) and somechallenges. One of these challenges is with respect to labour. Historically many farms reliedon family members to meet additional labour requirements on the farm. Today some farmsare a size that exceeds what family members can provide or perhaps family members havechosen to pursue off-farm careers. As a result, many farms now employ non-family labourin their farming operation.

Human Resource Management (HRM) has become an increasing concern on many hogfarms. Labour typically represents approximately 10%1 of the total costs of raising pigs andtherefore having reliable, productive labour is important. Some producers indicate that noone wants to work on pig farms. Others say that they can’t keep employees because theyaren’t paying enough or the current employees just don’t work hard enough. This situationis not unique to hog farmers in Ontario or Canada. It is occurring in many agriculturalsectors and the United States as well. The agriculture industry in general has the perceptionof long hours, low pay, few vacation days and poor working conditions (i.e. smell, dust, etc).This will not be the case on every farm, however, it is the general perception.

It is important to understand what it takes to attract, motivate and keep employees in theindustry. Understanding these motivating factors can be crucial to the productivity ofemployees, their commitment to the organization and the overall profitability of the business.

1.2 Objectives

The specific objectives of this project are to determine:

1. The compensation employees are currently receiving on swine farms in terms ofsalary, benefits, perquisites, and bonuses and compare this compensation with non-agricultural compensation.

2. The socio-economic characteristics of labour currently employed on Ontario farmsi.e. age, education, work experience, marital status, career plans, personality traits,and job attitudes.


2 Benchmarking Descriptives, (Lynn Marchand and Ken McEwan, Ridgetown College, University of Guelph), Fall1999


3. The types and extent of relationships between job satisfaction, management style (i.e.how employers supervise labour), compensation, employee numbers attracted, staffturnover, and labour performance.

4. Specific recommendations to enhance HRM on Ontario swine farms.

1.3 Methodology

To determine current HRM issues on Ontario swine farms two survey instruments weredesigned. One was for owners/managers of hog farms that employ full-time non-familylabour and the other was for the employees of these farms. It was anticipated that havingboth employers and employees complete the surveys would provide a better perspective onthe human resource management issues within the Ontario swine industry. A copy of thesurvey forms (including response rates for each question) is included in Appendix A.

To construct the mailing list the names, addresses, and etc. from a previous study2 were used.A group of farms (i.e. 361) thought to be the larger producers was extracted from this file.This group of potential employers was sent an introductory letter explaining the intent of thestudy and survey form along with a return envelope. Each employer also received a numberof “employee packages” which contained a letter, survey form to be completed by theemployee and return envelope. The employer was asked to forward these packages to theirfull-time non-family employees. It was not possible to know how many employee surveypackages to send to each potential employer as there was no labour information available.The information available from the Benchmark database was analysed and the methodologypresented in Table 1.1 was used to determine how many employee packages to send to eachproducer.

Table 1.1. Employee Survey Distribution

Farms with.. # EmployeePackages

Farms with no sows but who.. # EmployeePackages

More than 500 sows 5 Market more than 4,000 hogs 5

201 to 500 sows 3 Market 2,000 to 4,000 hogs 3

100 to 200 sows 2 Market approximately 2,000 hogs 2

A follow-up letter was sent to encourage participation in the study.



1.4 Limitations

There were several limitations to this study. One relates to the number of farms that employfull-time non-family labour. The data-set that was used was somewhat dated and does notcontain the names of all producers. Also, it was unknown at the time of mailing how manyof the 361 employers actually employed full-time non-family labour.

It was hoped that each survey that was returned would be completely filled out however thatis an unrealistic expectation. Some survey forms were more complete than others and a fewparticipants may have misunderstood some of the questions. As a result, the response ratevaried from question to question.

The amount of information pertaining to human resource management in agriculture,particularly the swine industry, is somewhat limited. This is another limitation as there arenot many resources to compare these survey results with.

It is possible that employers and employees who are unhappy with their current situation maybe more likely to respond to the survey than those who are content. As well, it is possiblethat managers or owners who believe their employees are not happy may not forward theemployee survey packages to those individuals.

Some questions asked for dollar amounts i.e. wages, value of additional benefits, and etc.These amounts may have been over- or under-stated by the respondents however the averageof the responses should be a fair representation.



2.0 OTHER RESOURCES

It is important to consider information pertaining to human resource management that isavailable from other sources. This can provide perspective when analyzing wages, hoursworked and other factors in one region and comparing them to those in another region or tocompare different industries.

2.1 Wages

Wages are often considered to be one of the most important variables with respect toemployment. As stated previously, jobs in the swine industry and agriculture in general,have long been considered low paying. With that in mind it is useful to compare jobs in theswine industry with jobs in other industries that might require similar types of skills. Thismeans that swine industry employees might have skills that could easily be adapted to suitskills needed in another industry.

Table 2.1 provides wage information from the Statistics Canada Labour Force Survey forOntario. This information is for different industries and not actual jobs. These industrieswere identified because they have jobs which would require similar skill sets. The numbersreported in Table 2.1 are averages and the actual wage per hour will vary depending on thejob. Table 2.1 shows that there is a $6/hr difference between agriculture and the categorytrade, while there is more than $9/hr difference between agriculture and the constructioncategory. Agriculture is the only industry in Table 2.1 that did not see the average wage rateincrease much in the four years reported with the exception of 2001 after which the wagereturned to 2000 levels. Comparing the 2000 average wage rates to 2003 shows that the tradeindustry increased by 8.8% compared to agriculture which increased by about 1% over thistime period.

Table 2.1. Average Hourly Wage Rate, Full-time Employees, Ontario ($/hr)

2000 2001 2002 2003

Construction 20.11 20.83 21.41 21.39

Manufacturing 19.38 19.92 20.15 20.82

Trade 16.75 17.22 17.74 18.22

Transportation and Warehousing 18.39 19.27 19.10 19.24

Agriculture 12.13 13.16 12.10 12.24Source: Labour Force Survey, Statistics Canada, CANSIM II Table Number 2820072*The wage rates are for both sexes 25 to 54 years old.


3 Rural America, (Jack L. Runyan, USDA, ERS), Volume 17, Issue 3/Fall 2002, p. 66


Table 2.2 shows the average 2003 hourly wages for full-time Ontario employees in severaldifferent occupations. This data is sourced from the Statistics Canada Labour Force Survey.These occupations were selected because they are considered somewhat similar in skillsneeded. Unfortunately, due to confidentiality concerns the average hourly wage for farmsupervisors and specialized livestock workers is not available although it is possible tospeculate that these workers would receive a wage between the farmers and farm managersand general farm workers listed below. There is evidence that employees in agriculture arepaid less relative to the other occupations listed. In fact, data in Table 2.2 suggests that theaverage farm manager receives $2/hr less than truck drivers and construction trades helpers.If a comparison is made between general farm workers and construction trades helpers thedifference is $6.47/hr.

Table 2.2. Average Hourly Wages, Full-time Employees, OntarioSOC Code Average $/hr

H015 Contractors and Supervisors, Carpentry Trades 22.03

H121 Carpenters 18.10

H131 Bricklayers 24.24

H711 Truck Drivers 17.23

H821 Construction Trades Helpers and Labourers 17.26

I011 Farmers and Farm Managers 15.27

I013 Farm Supervisors and Specialized Livestock Workers NA

I021 General Farm Workers 10.79Source: Statistics Canada, Labour Force Survey 2003, Special Request, Program = A060401SOC Code = Standard Occupational Classification (SOC) 1991; Wage/salary reported is before taxes and otherdeductions but includes tips, commissions and bonuses.NA = data suppressed due to confidentiality concerns

The Economic Research Service (ERS), a department within the USDA, published dataregarding hired farm labour for 20013. The basis of the article supports the evidence shownin Table 2.2 that hired agricultural labour is paid less than other occupations. The author,Jack Runyan, stated that “hired farmworkers earn about the lowest earnings and familyincomes”3. Runyan indicated that while earnings increased from the previous year theseemployees still received less than most of the population. For example, he showed that hiredfarmworkers received US$345/wk. This was the second lowest of 14 occupation groups


4 Rural America, (Jack L. Runyan, USDA, ERS), Volume 17, Issue 3/Fall 2002, p. 68


reported. For comparison purposes, operators, assemblers and inspectors earned US$454/wkand transportation and material moving occupations earned US$576/wk4.

Information regarding wages for jobs in the U.S. was found. Using statistics from theDepartment of Labor Occupational Employment Statistics survey wage estimates for avariety of occupations were determined. 2002 data for jobs similar to those found on Ontarioswine farms are shown in Table 2.3. The median is the mid-point of the data-set wherebyone-half of the workers earn less than the amount shown and one-half earn more. Asexpected the wage increases with increasing responsibility.

Table 2.3. 2002 U.S. Farm WagesOccupation Median ($USD/hr) Median ($USD/yr)

Farmworkers, Farm & Ranch Animals 8.22 17,100

Animal Breeders 12.06 25,100

First-Line Supervisors/Managers of Farming,Fishing & Forestry Workers

16.43 34,200

Farm or Other Agricultural Managers 21.03 43,700Source: http://online.onetcenter.org

A comparison of Ontario and U.S. swine farm jobs is provided in Table 2.4 to provideperspective on wages in different regions. Data is compiled from Table 2.2 and Table 2.3and similar occupations are listed across from each other. All U.S. wage rates have beenconverted to Canadian dollars using a factor of 1.3. Table 2.4 shows that general farmworkers in Ontario and the U.S. receive similar wages but supervisors and managers in theU.S. receive considerably higher wages (assuming that supervisors on Ontario farms receivea wage between general farm workers and farmers and farm managers). In fact, this datasuggests that a significant wage gap exists i.e. $12.07/hour between Ontario farm managersand similar managers in the U.S. Even between Ontario farm managers and first-linesupervisors in the U.S. there is more than $6/hour difference.


5 National Hog Farmer, (Hurley, Kliebenstein, Orazem, Miller), June 15, 2000, p. E10


Table 2.4. Comparison of Farm Employee Wages in Ontario and the U.S. U.S. Occupation $/hr CDN* Ontario Occupation $/hr CDN

Farmworkers, Farm & Ranch Animals 10.69 General Farm Workers 10.79

First-Line Supervisors/Managers ofFarming, Fishing & Forestory Workers 21.36 Farm Supervisors &

Specialized Livestock Workers NA

Farm or Other Agricultural Managers 27.34 Farmers and Farm Managers 15.27* U.S. wages have been converted to Canadian using an exchange rate of 1.3.

The National Hog Farmer magazine dated June 15, 2000 published results of an extensivesurvey of U.S. pork producers and their employees. It included wage comparisons based ongender, education, production and title. This research found that wages for individualsworking in the pork industry were similar to the average wage rate for “civilian workers” (i.e.$US29,726 for people in the pork industry versus $US30,617 for the average civilianworker5). The National Hog Farmer survey was the third in 10 years and showed that thewages for people in the pork industry had increased considerably between 1990 and 2000.This seems surprising because low wages are a typical complaint voiced by hog farmemployees. It is also surprising given the data and trends presented above that indicatedagriculture employees are likely to be paid lower wages than employees in other industriesboth in Ontario and the United States.

2.2 Other Forms of Compensation

Beyond wages and noncompensation rewards there is a vast array of other benefits thatemployers can offer employees. These may be considered as rewards, incentives or simplypart of their compensation for work done. These additional benefits may include thefollowing: medical or dental benefits, life insurance, disability insurance, housing, a companyvehicle, food, paid utilities, and etc.

If there is a reward or incentive system it is important to clearly establish the criteria requiredto obtain the reward. This can be difficult because what the employer perceives to be areward may not be what the employee wishes to receive. It is also difficult to design asystem of rewards because each employee has different wants and needs based on theirindividual situation (i.e. age, marital status, gender, and etc.) and these wants and needs arelikely to change frequently depending on what is going on in their lives at any time. Whendesigning a system it is important to consider what is achievable so that employees do notget frustrated trying to reach the impossible.



2.3 Hours of Work

Hours of work is another aspect of human resource management. As stated previously, theagriculture industry has often been identified as one that requires employees to work longhours. With this in mind it is useful to compare hours of work in different industries. Table2.5 shows the average weekly hours of work for full-time Ontario employees in variousoccupations for 2003, obtained from the Statistics Canada Labour Force Survey data. Theseoccupations were used because they may require skills similar to those needed in the swineindustry. It is important to notice that the weekly hours of work for farmers and farmmanagers and general farm workers are higher than all other occupations listed. Truckdrivers are the closest at 45.9 hours/week compared to 46.9 hours/week for general farmworkers and 46.4 hours/week for farm managers. This information supports the theory thatproduction agriculture employees work longer hours than employees in some otherindustries.

Table 2.5. Average Hours Worked, Full-time Employees, OntarioSOC Code Average Hours/wk

H015 Contractors and Supervisors, Carpentry Trades 43.7

H121 Carpenters 41.9

H131 Bricklayers 40.4

H711 Truck Drivers 45.9

H821 Construction Trades Helpers and Labourers 41.8

I011 Farmers and Farm Managers 46.4

I013 Farm Supervisors and Specialized Livestock Workers NA

I021 General Farm Workers 46.9Source: Statistics Canada, Labour Force Survey 2003, Special Request, Program = A060401SOC Code = Standard Occupational Classification (SOC) 1991; Wage/salary reported is before taxes and otherdeductions but includes tips, commissions and bonuses.NA - data suppressed due to confidentiality parameters

The National Hog Farmer survey referred to previously in Section 2.1 also reported theaverage number of hours worked per week. For producers the average was 46.5 andemployees averaged 49 hours/week. These results are close to the average hours of workreported in Table 2.5 above for agricultural workers.


6 Compensation Management, Rewarding Performance, (Richard Henderson), p. 8-12


2.4 Ontario Employment Standards Act

The Employment Standards Act 2000 provides regulations regarding labour and employmentissues in Ontario. It governs areas such as hours of work, minimum wage rates, overtimepay, vacation, public holidays, etc. While this Act protects most employees with respect tothese issues there are some industries and jobs that are exempt from certain sections of theAct. For example, individuals working in primary production agriculture (i.e. production ofpigs, milk, cattle, and etc.) are exempt from some of the regulations. Table 2.6 provides acomparison for a typical employee working either in or out of production agriculture.

Table 2.6. Comparison of Agriculture and Non-Agriculture EmployeesEmployee Not in Agriculture Employee in Agriculture

Minimum wage $7.15/hr Exempt

Maximum hours ofwork

8 hrs/day or 48 hrs/week Exempt

Overtime pay After 44 hours worked Exempt

Statutory holidays There are 8 of these that employees cantake with pay if they qualify

Exempt

Paid vacation 2 weeks vacation time or minimumvacation pay of at least 4% of gross wages

Exempt

Source: Ministry of Labour website, http://www.gov.on.ca/lab/english/es/Note: Certain exemptions or conditions exist for some other occupations as well i.e. police, medical, and etc.

Table 2.6 shows that production agriculture is not required to provide some of the basicemployment standards that much of society takes for granted. This likely contributes to thegeneral perception of low wages, long hours and no vacation time associated with productionagriculture.

2.5 Recent Human Resource Management Articles

Many employers believe that money is the only form of reward or compensation that isimportant to an employee. There are, however, ways to reward employees which may notcost much money but can be equally important to morale and therefore productivity. Thisis termed the “noncompensation system” which is described by Richard Henderson in thebook Compensation Management, Rewarding Performance. His system involves 7 elementswhich are presented below6.


7 Creative Compensation, (Sarah L. Fogleman, Kansas State University),http://www.agmanager.info/hr/compensation/default.asp


1. Enhance dignity and satisfaction from work performed - Let an employee know thatthey are valued and that the work they do is appreciated.

2. Enhance physiological health, intellectual growth and emotional maturity - Supportemployees by providing safe working conditions and providing training that will helpthem to do their job better or to further develop their skills.

3. Promote constructive social relationships with co-workers - Most employees benefitfrom social interaction in their workplace not just with their peers but also withsupervisors, managers and subordinates.

4. Design jobs that require adequate attention and effort - Provide guidance for the jobsbut let employees do what is required on their own.

5. Allocate sufficient resources to perform work assignments - Provide the right workenvironment (i.e. tools, training, time, support) for employees to do their jobs.

6. Grant sufficient control over the job to meet personal demands - If possible,encourage employees to offer their input into decisions that affect the farm operation.Allowing employees to have some influence in their work schedule can also bebeneficial.

7. Offer supportive leadership and management - Offer guidance and support toemployees by coaching and praising them. There may be times when some flexibilityin the rules is required.

The 7 variables above give managers other ideas on how to reward employees aside fromtheir wages. These points all help to show employees that they are valued, trusted to performtheir jobs and encouraged to grow and develop as individuals.

Research from Kansas State University indicates that it is the total compensation packagethat can ultimately win over a potential employee7. This package includes a combination ofdirect, indirect and non-monetary compensation. Direct compensation refers to the salaryor wage paid to the employee. Indirect compensation can be mandatory programs such asemployment insurance but also retirement plans, paid leave for holidays and sickness,housing, and etc. Non-monetary compensation is praise for work done, flexible workinghours and job security.


8 Creative Compensation, (Sarah L. Fogleman, Kansas State University),http://www.agmanager.info/hr/compensation/default.asp

9 Dollars to Donuts: How to Compete for Agricultural Labor, (Sarah L. Fogleman, Kansas State University),http://www.agmanager.info/hr/compensation/default.asp

10 Feedstuffs magazine, (Rod Smith), April 19, 2004 p. 8

11 Meat & Poultry magazine, (Carrie Cooper), January 2001, p. 26


The compensation package is really a signal of how employees are valued in the farmbusiness8. For example, if bonuses are provided at certain intervals of employment thisshows that the employer values those who stay with the business. Talking to employeesabout their compensation needs can provide insight for the employer in structuring thecompensation package because each employee will have different needs depending on theirindividual situation.

In some areas farmers will be competing not only against other farmers for labour but alsoother industries. It is possible to become the “employer of choice” by having a reputationin the community by not just paying more but by also communicating with employees,providing job descriptions, hiring the right people for the right jobs, providing propertraining, setting rules and expectations for both the employer and employees so that bothsides understand what is acceptable and meeting employees needs i.e. in terms of thecompensation package (direct, indirect and non-monetary compensation)9.

The April 2004 edition of Feedstuffs magazine10 reported on human resource managementin the beef industry. While the study participants were feedlots, much of what was said canbe applied to other sectors. For example, it indicated that replacing an employee costs twicethe salary of that individual because there are costs associated with the recruiting and trainingof a new employee and the mistakes this person is likely to make as they learn the job. Thiscost means it is important to understand what is needed to retain valuable employees.Emphasized in the article were the 3 “Rs” of retention6: respect, recognition and reward.Respect involves being fair and appreciating the employee. This is similar to what wasdescribed previously. Recognition is the matching of abilities and responsibilities andpraising workers when they do a job right. The reward may not just be an hourly wage butmay also include benefits (i.e. health, dental, life insurance, and etc.) or other extras such asvacation time off with pay.

Another article, in the Meat & Poultry magazine, January 2001 discussed recruiting andretention in the meatpacking industry. In it was “Gallup’s top 12 criteria for a greatworkplace”11. The points did not include wages but instead focused on other factors such as



encouraging employee recognition and development. This is similar to other points coveredin this section.

In summary, Ontario swine farm workers receive lower wages and work longer hours thansimilar skilled employees in other industries. Ontario farm managers also receive lowerwages than their counterparts in the U.S.. Total compensation includes not only the wagebut also benefits such as paid leave, medical, dental and housing and also non-monetaryrewards such as flexible hours, job security, praise and recognition.



3.0 RESULTS

Table 3.1 shows the number of surveys distributed and the number that replied. A total of126 employer surveys were returned. This is a response rate of 34.9%. Of the 126 employersurveys that were returned 43% (or 54 surveys) were from farms that employ full-time non-family labour. The remainder of the returned surveys were from farms that indicated theydo not have this type of labour or they no longer have pigs. There were 77 employee surveysthat were returned. Table 3.1 shows the survey distribution and reply statistics.

Table 3.1. Survey Distribution and RepliesTotal

MailedTotal Number That

RepliedNumber Used With Non-family Labour

NumberUnuseable

Employer Survey 361 126 54 72

Employee Survey 1,346* 77 NA NANA - Not Applicable. *A total of 1,346 “Employee Packages” were sent to potential farms but it was not known how many full-timenon-family employees there were.

Only select variables will be discussed in detail in the following sections. Complete resultsare provided in Appendix A. In each analysis it is important to note that not all surveyparticipants responded to each question. Therefore, the results presented are only for thoseresponses received for each question. Only group averages and results will be discussed toensure individual confidentiality.

3.1 Employer Results

Results from the employer survey showed that 62% completed post-secondary education and27% completed grade 11 or 12. The employers tended to be between the ages of 40 and 59years of age. In fact, 43% were in their forties and 28% were in their fifties. Each employerwas asked about the employee turnover on the farm in the last 2 years. The results in Table3.2 show the average staff turnover for each employer age range. Notice the much higheraverage rate of employee turnover for employers in their thirties. These results show that asthe employer gains experience in human resource management the rate of employee turnovertends to decrease.



Table 3.2. Age of Employer vs. Average Employee TurnoverEmployer Age Range Average Employee Turnover

20 to 29 years of age 45%




Greater than 60 years old 77%

Figure 3.1 shows that almost all(92%) employer participantsreported that they conducted aninterview for the last full-timejob vacancy. The averageinterview lasted 46 minutes.Approximately three-quarters ofthe respondents (73%) reportedthat they always ask forreferences but only 48%reported that they always checkreferences. The employersurvey asked whether employeesare given written jobdescriptions which outline theirduties. Figure 3.1 shows that 37% of the respondents indicated that they do this. As well,employers were asked if they give their employees titles. 22% indicated that all of theiremployees have titles while 47% said none of the employees have titles. The remainder saidthat some of their employees have titles. The employer survey also asked if performancereviews were conducted with employees to discuss what the employees are doing well andwhat they could improve upon. 73% of respondents for this question indicated that this wasdone.

0% 20% 40% 60% 80% 100%

Give written job description

Conduct performance reviews

All employees have titles

Conducted interview

Always ask for references

Always check references

Figure 3.1. Employer Interview Preferences



When asked what methods are usedto advertise job openings, 41% saidword of mouth and 40% of responsesindicated newspaper advertising.This is shown in Figure 3.2. Morethan one-half (i.e. 59%) indicated thatthey believed word of mouthadvertising was the most useful. It isnot known whether this wasinterpreted as the source that yieldedthe most responses to a job vacancyor the source that yielded the bestcandidates.

In summary, the employer respondents tend to be between 40 and 59 years of age and morethan one-half have completed post-secondary education. Nearly all of these participantsconducted an interview for the last full-time job vacancy. Approximately three-quarters ofthem always ask for references but less than one-half always check references. Few of themgive all employees job titles or written job descriptions but three-quarters of them conductperformance reviews with their employees.

3.2 Hours of Work

Employers were asked to categorize their employees. The following definitions wereprovided:

• General Labourer - Is able to do a variety of jobs i.e. moving and feeding livestock.May require instruction/supervision in terms of jobs to be completed and how to dothem.

• Skilled Labourer - Requires little supervision. Is able to undertake specialized tasksi.e. breeding, farrowing, and etc.

• Supervisor/Manager - Has thorough understanding of all aspects of farm operation.Supervises employees, and solves complex problems.

Table 3.3 shows the average hours of work and time off as reported by the employers foreach employee category. As expected, the hours of work increased with the level ofresponsibility from 45 hrs/wk for general labour to 48 hrs/wk for supervisors. Weekendwork is required on most farms and the results show that employees would typically haveapproximately 2 ½ weekends off each month. Some farms provide employees with paid

Newspaper ad, 40%

High school placement, 2%

Word of mouth, 41%

University placement, 3%

Other, 9%

College placement, 5%

Figure 3.2. Methods of Advertising Job Openings



vacation time off. This policy varied from no vacation days to 25 days and the average ofthose that provide paid vacation days was 11 to 13 depending on the employee category.

Table 3.3. Summary of Hours of WorkGeneral Labour Skilled Labour Supervisor/Manager

Avg # hrs/week 44.8 47.0 48.2

Avg # weekends off/month 2.5 2.2 2.2

Avg # paid vacation days* 10.9 12.7 12.9* Only those farms that provide paid days off were included in the average.

The hours of work reported in Table 3.3 for skilled labour and supervisor/manageremployees are higher than occupations in the industries listed in Table 2.5 previously. Thegeneral labour category identified in Table 3.3 above is slightly lower than the truck driversin Table 2.5 (i.e. at 45.9 hours/week) but higher than all other occupations outsideagriculture.

In summary, it appears that swine farm employees that participated in the survey work morehours than some occupations in other industries that might require a similar level of skills.

3.3 Average Wage Rate

The average wages per hour currently paid by the employers for each employee category areshown in Table 3.4. To determine total yearly wages the average number of hours workedper week (established in Table 3.3 previously) were used.

Table 3.4. Average Current WagesCurrent Wage $/hr Avg hrs/wk Avg Annual Wage* $

General Labour 10.93 44.8 25,463

Skilled Labour 15.00 47.0 36,660

Supervisor/Manager 18.65 48.2 46,719Note: This table uses information from those farms that provided data for hours of work per week, wages anda value for additional benefits.*Avg Annual Wage = Current wage $/hr x avg hrs/wk x 52 wks/yr

The average current hourly wages are higher than the wages reported for farm workers inSection 2.1. In fact, the supervisor/manager employees in this study received approximately$3.38/hour more than the farmers and managers in Table 2.2. The level for general swinefarm labour is very close to the general farm worker wages reported in Table 2.2. However,



assuming that supervisors/managers might have similar skill sets to contractors in carpentrytrades would indicate that these employees receive a lower hourly wage than individuals withcomparable talents (i.e. $3.38/hour less). Also, when general labourers are compared toconstruction trades helpers (from Table 2.2) they receive considerably less on a per hourbasis (i.e. $6.33/hour less).

Other components of the compensation package could include medical, dental, disability andlife insurance. Providing a house or housing allowance, paying for utilities, providing avehicle or food (i.e. pork) can also be considered as further compensation. The employersurvey asked participants to indicate what, if any, additional benefits their employees mightreceive as well as to indicate the value of these benefits. The most commonly reportedbenefits were pork (or other food), medical insurance, housing, life insurance, paid utilitiesand disability insurance. The additional benefits do not include items such as CanadaPension Plan contributions, Employer Health Tax, Employment Insurance, and etc., thatemployers are legally obligated to pay.

The values ranged considerably from farms that provide no additional benefits to farms thatprovide several thousand dollars worth of benefits to each employee. The average for thosethat provide these types of benefits (and who supplied a value) are shown in Table 3.5. Thisnumber was then broken down to a dollar per hour value using the number of hours workedper year.

Table 3.5. Additional BenefitsAverage $/employee Avg hrs/year* Additional Benefits $/hr

General Labour 1,903 2,381 0.80

Skilled Labour 3,568 2,379 1.92

Supervisor/Manager 7,111 2,497 2.85Note: This table uses information from those farms that provided data for hours of work per week, wages anda value for additional benefits. Additional benefits do not include the employer’s share of Canada Pension Plan,Employer Health Tax, Employment Insurance, and etc. *Avg hrs/year = average hours/wk from Table 3.3 x 52 weeks

The additional compensation measures can improve the overall attractiveness of a job andeffectively increase the total compensation an employee receives. This is shown in Table3.6. This additional compensation will bring the supervisor/manager and skilled labouremployees closer in line with the average hourly wages shown for other occupations in Table2.2, however those employees are also likely to receive additional benefits which have notbeen accounted for. It is highly probable that there is still a gap between average wagesreceived by swine farm employees and average wages received by employees in occupations



requiring similar talents. It should be noted that while this may be true for the average farm,there are exceptions to this generalization.

Table 3.6. Total Compensation Per Hour ($/hr) General Labour Skilled Labour Supervisor/Manager

Cash wage 10.93 15.00 18.65

Additional benefits 0.80 1.92 2.85

Total compensation 11.73 16.92 21.50Note: This table uses information from those farms that provided data for hours of work per week, wages anda value for additional benefits.

One other compensation option is to offer incentive plans. This was not done by many ofthe survey participants as shown in Table 3.7. The highest frequency of using incentive planswas for supervisor/managers. Of the 26 farms that answered the question for this group ofemployees 38% indicated that they offer incentive plans.

Table 3.7. Incentive Plan Response Rates (% of Responses)

General Labour Skilled Labour Supervisor/Manager

Do offer incentive plan 9 27 38

Number of respondents 32 45 26

In summary, it appears that the average cash wage received by all three employee groups isless than what is received by employees in other industries.

3.4 Comparison by Farm Size

Farm size was determined by gross farm sales. For the purpose of this analysis “large farms”were those with annual sales greater than $2 million. “Small farms” were those with annualsales between $500,000 and $2 million. There were many differences between small andlarge farms. Employee turnover was one notable variable. The small farms reported anaverage of 52% turnover of full-time non-family employees in the past 2 years compared to76% on the large farms.



The small farms tended to payhigher wages to the supervisorsand skilled labourers than thelarge farms. This is shown inFigure 3.3. There is adifference of approximately$1.40/hour. The wages forgeneral labour were similar.

The large farms may have compensated for some of the dollar per hour difference byproviding larger amounts of additional benefits i.e. health, disability, housing, and etc. Thelarge farms did tend to be more generous with these benefits providing an average of up to$4,000/employee more for their skilled labour as shown in Table 3.8.

Table 3.8. Additional Compensation Benefits vs. Farm Size ($/employee) Smaller Farms Large Farms

General Labour 1,371 3,300

Skilled Labour 3,282 7,329

Supervisor/Manager 4,250 7,320Note: The numbers reported above represent the average of all values reported regardless of whether the farmsreported wage or hours of work data.

The hours of work are somewhat different for the supervisor/manager group of employeesas displayed in Table 3.9. These particular employees on large farms are expected to workan average of 49.8 hours/week compared to 47 hours/week for comparable employees onsmall farms. This is a difference of 2.8 hours/week. Hours of work for the 2 remainingemployee groups are similar with less than 1 hour/week difference reported between thesmall farms and large farms.

Table 3.9. Hours of Work Per Week vs. Farm Size (hrs/wk) General Labour Skilled Labour Supervisor/Manager

Small Farms 44.8 47.6 47.0

Large Farms 45.4 47.3 49.8

$0 $5 $10 $15 $20

General Labour

Skilled Labour

Supervisor/M anager

Small Farms Large Farms

Figure 3.3. Wages by Size of Farm



Paid vacation time off was somewhat similar (i.e. less than 1 day difference) for thesupervisors and general labourers on both farm sizes. The skilled labourers on the smallerfarms did receive an average of 2.3 more paid vacation days per year (i.e. 12.6 days vs. 10.3days for employees on large farms). Large farms provided approximately 6.3 statutoryholidays off compared to about 5.5 statutory holidays off on small farms.

All of the large farms conducted interviews for their last full-time job opening and most ofthem asked for, and checked, references. The smaller farms were less likely to ask for andcheck references yet their employee turnover was lower (52% turnover on small farms vs.76% on large farms).

In summary, supervisor/manager employees on smaller farms worked 2.8 hours/week lessand received $1.40/hour more in wages than similar employees on large farms. Employeeson large farms received more benefits (i.e. health, dental, housing, etc.) and more statutoryholidays off.



4.0 Employee Results

This section presents the results of analysis done for the employee participants. Recall fromSection 3.0 that there were 77 employees that participated in the survey. Complete resultsfrom each of the following analyses are presented in Appendix A.

Nearly two-thirds of the employees (i.e. 63%) that responded were between the ages of 20and 39. Most of the respondents(i.e. 82%) were male. There were72% of all respondents whoindicated that they have workedon swine farms for more than 5years in total and one-quarter saidthey had worked on them formore than 15 years. This isshown in Figure 4.1. 27% hadbeen working for their currentemployers for 3 to 5 years andanother 27% had been with theircurrent employers for 6 to 10years.

The average number of hours worked each week was reported to be 51.3 (average 9hours/day x average 5.7days/week). This is higher thanwhat the employers indicated inTable 3.2 and higher than whatwas reported in Table 2.3 forjobs in other industries. In fact,it is 10.9 hours more per weekthat what full-time bricklayerswork (i.e. 40.4 hrs/wk) and 9.5hours more than constructiontrades helpers (i.e. 41.8hrs/wk). One-half of therespondents indicated theyreceive 2 weekends off eachmonth. Figure 4.2 shows theemployee perspective with regard to the interview process. 24% of the employees reportedthat they received a written job description, 57% indicated that they were given a job title and72% reported that they had an interview which lasted an average of 56 minutes. The length

0%

5%

10%

15%

20%

25%

30%

< 1 yr 1 - 2 yrs 3 - 5 yrs 6 - 10 yrs 11 - 15 yrs > 15 yrs

Figure 4.1. Total Years Working On Swine Farms

0% 20% 40% 60% 80%

Job title

Job description

Meetings w ith employer

Had interview

Duties w ell described

Figure 4.2. Employee Perspective on Interview Process



of the employee interviews ranged from a few minutes to more than 2 hours. 53% reportedthat they believed the position/duties were well described to them before they accepted thejob and 69% said they have meetings with their employer to talk about what they are doingwell and what could be improved.

When asked what makes a job appealing 24% of responses were for compensation followedby appreciation for work done and having a job that is interesting. Each of these received15% of responses .Employees were also askedwhat could be improved intheir current job. Againcompensation was rankedthe highest with 22% ofresponses followed byappreciation for work doneand number of hoursworked each receiving14% of responses. Theseresults are shown in Figure4.3. It is interesting to notethat employees indicatedthat compensation wassomething that they look for in a prospective job yet this was also the highest ranked attributewhere they would like to see improvements made in their current job.

Slightly more than one-half (i.e.54%) of the employee respondentsdecided to work on a swine farmbecause they like working withpigs or other animals. In 5 years,40% believe they will be in thesame position and 15% hope toreceive a promotion. Figure 4.4shows the main reasons whyemployees are planning to leavethe industry in the next 5 years.These include pay (24% ofresponses), want weekends off(20% of responses) and “other” which includes such things as health concerns, they want totry something different or a combination of several factors. Some of the respondents for thisquestion are not necessarily planning to leave the industry in 5 years but offered their view

0% 5% 10% 15% 20% 25%

Working conditions

Appreciation

Compensation

Feel invo lved

Job security

Job that is interesting

Training opportunities

Number o f hours

Other

Figure 4.3. Ranking of Improvements in Current Job fromEmployee Perspective

0%10%20%30%40%50%60%

Pay is not fair Long hours Wantweekends off

Negativepublic

perception

Other

Figure 4.4. Reasons to Leave the Swine Industry



as to what would be the most likely reason for them to leave. They have been included inthese results.

Some employees offered additional comments. Several employees indicated that theyenjoyed their work and employers. Some reported that they had a better understanding of therisk and commitment involved in hog farming. Others indicated that the work was“satisfying”. Many had concerns, however, regarding the Agricultural Labour Laws withrespect to the number of hours they worked, the rate of pay, and the lack of benefits andovertime pay. A few stated that they would like their employer to offer a pension plan or tooffer a bonus when a job was well done.

In summary, the majority of employee respondents were male. 72% of the employees hadbeen working on swine farms for more than 5 years. On average, the employees worked 51.3hours/week. Improvements that they would like to see made in their current jobs includedcompensation followed by appreciation for work done and the number of hours worked.When asked what would cause them to leave the industry the most common reason wascompensation.

4.1 Comparison by Age of Employee

A comparison was undertaken to analyse whether differences existed that might be linkedto the age of the employee. For the purposes of this discussion three categories were usedand they are: 20 to 29 years; 30 to 39 years; and greater than 39 years of age. Thesecategories captured 97% of the employees surveyed.

87% of the age categories 20 to 29 years and 30 to 39 years were male employees while 69%of the employees greater than 39 years of age were male. With respect to education, closeto one-third or more of all employee ages had completed college or university. In fact, 40%of employees in their thirties had completed this level of education as shown in Table 4.1.

Table 4.1. Descriptive Statistics by Age Category (% of Responses)

20 - 29 Years Old 30 - 39 Years Old > 39 Years Old

Education* Up to grade 10 21 16 19

Up to grade 12 48 36 38

College/university 31 40 31* Does not include education listed as “other”

About two-thirds of employees greater than 39 years of age had grown up on a farm. This isshown in Table 4.2. It was surprising to find differences in the number of weekends off by



age category. For example, 29% of employees in their thirties reported that they had fewerthan 2 weekends off each month compared to approximately 12% for the other two agecategories. Employees greater than 39 years of age worked about 4 1/2 hours less each weekthan the other employees.

Table 4.2. Employee Background and Hours Worked by Age Category20 - 29 Years Old 30 - 39 Years Old > 39 Years Old

Employee Background (% of Responses)

Farm background 50 52 68

Rural background 18 28 4

Town/city background 32 20 24

Weekends Off (% of Responses)

< 2 weekends off 13 29 12

2 weekends off 61 38 58

> 2 weekends off 26 25 29

Hours of Work (hrs/wk)

Hours worked/week 52.8 53.0 48.4

When employees reportedon improvements that theywould like to see made intheir current jobs onedifference emerged inparticular. This is shownin Figure 4.5. About one-third of employees in theirthirties ranked pay as themain attribute they wouldlike to see improved. Thiswas much higher than forthe other two age groups.Examples of “other” for allthree age categoriesinclude ability to advance in farm operation, employees can give input, job that is interesting,relationship with manager, and etc.

0% 5% 10% 15% 20% 25% 30% 35%

Appreciation for work done

Number of hours worked

Pay

Working conditions


Relationship with other employees

Other

20 - 29 yrs 30 - 39 yrs > 39 yrs

Figure 4.5. Ranking of Improvements in Current Job by AgeCategory



When asked what employees believed they would be doing in the next 5 years there was awide variety of responses. The results are shown in Table 4.3. Approximately one-half ofall employees aged 30 and older believe they will be in the same position in 5 years. 30%of employees in their twenties believe they will be in the same position and another 26%hope to receive a promotion from their current employer.

Table 4.3. Future Plans by Age Category (% of Responses)

20 - 29 Years Old 30 - 39 Years Old > 39 Years Old

Be in same position 30 50 42

Hope to receive promotion 26 13 8

Own my own farm 17 4 4

Look for job in other part of swineindustry

4 0 4

Look for job in another industry 13 17 17

Retire 0 0 17

Other 10 16 8Note: Other includes look for similar job with different operation, get a job with another operation that would be apromotion, other reasons as offered by participants.

Employees that are considering leaving the industry were asked to provide their reasons asto what would cause them to leave. Pay is considered to be the main reason to leave foremployees aged 30 and over. In fact, 33% of employees in their thirties and 27% of thoseolder than 39 indicated they would consider leaving the industry because they believe the payis not fair. 29% of employees in their twenties indicated that they might leave the industryaltogether because they want weekends off. There were few participants that indicated longhours of work as the main reason to leave the industry.

In summary, employees greater than 39 years of age worked on average 4 ½ hours less eachweek than younger employees. Pay was cited as the main job characteristic that could beimproved. Pay was also rated as the main reason employees would consider leaving theindustry for employees aged 30 or older. Employees in their twenties indicated wantingweekends off as the leading reason for them to leave the industry.



4.2 Comparison by Education Level of Employees

Employees were asked to report the highest level of education that they completed. Threecategories of employees will be used for this discussion. They are those that completed upto grade 10, those that completed up to grade 12 (i.e. completed grade 11 or grade 12) andthose that completed college or university.

Approximately three-quarters (i.e. 76%) of the employees who had completed college oruniversity were from a farm. This compares to 64% of those that had completed grade 10and 39% of those that completed grade 12.

The number of hours worked for each education group is displayed in Table 4.4. It showsthat all groups worked between 49 and 52 hours each week. The college/university graduatesworked the fewest number of hours (i.e. about 49 hrs/wk). This table also shows thatcollege/university educated employees may have slightly more weekends off with 37%reporting that they have more than 2 weekends off each month. This compares to 20% of theemployees with grade 10 and 28% of the employees with grade 12 education.

Table 4.4. Level of Education and Hours of WorkUp to Grade 10

CompletedUp to Grade 12

CompletedCollege/University

Completed

Hours/day 9.0 8.9 9.2

Days/week 5.8 5.7 5.3

Hours/week* 52.2 50.7 48.8

Weekends off (% of Responses)

< 2 weekends off 21 20 21

2 weekends off 57 52 42

> 2 weekends off 20 28 37*Calculated number - hours/day x days/week

The results also showed that as the education level increased employees were less likely tobe given job titles, receive written job descriptions and were less likely to have meetings withemployers to discuss their work than those with less education.

With respect to what makes a job appealing the results are shown in Table 4.5. Pay ranks thehighest for all three groups with about one-quarter of responses. For the second mostimportant factors, 23% of responses for college/university graduates indicated that they lookfor a job that is satisfying or interesting. 19% of answers from employees with grade 12 were



for good working conditions and 18% of responses from employees with grade 10 found thatthe relationship with the owner/manager were the second most important factors.

Table 4.5. Ranking of Appealing Job Attributes by Level of Education (% of Responses)Up to Grade 10 Up to Grade 12 College/University

Good Working Conditions 5 19 2

Appreciation for Work Done 14 7 21

Pay 23 25 23

Feel Involved in Operation 13 11 15

Job Security 13 10 8

A Job That is Interesting 5 12 23

Relationship with Manager 18 4 0

Relationship with Other Employees 9 7 4

Other 0 5 4

When asked aboutimprovements that couldbe made in their jobs,approximately 25% of theg r a d e 1 2 a n dcollege/university educatedemployees reported pay.This is shown in Figure4.6 Pay received only 5%of responses from thegrade 10 grads. Notice thevast difference in theranking of pay. Thosewho lack formal educationseem to be relativelypleased with their pay.Appreciation for work done and hours of work were other areas where improvement couldbe made.

In summary, it appears that as the education level of the employee increased the number ofhours worked each week decreased from an average of 52.2 hours for employees with up to

0% 5% 10% 15% 20% 25% 30%

Appreciation for work done


Pay

Working conditions

Ability to advance in farm operation

Job security


Job that is interesting

Relationship with other employees

Other

Up to grade 10 Up to grade 12 College/University

Figure 4.6. Ranking of Improvements in Current Job by Level of Education



grade 10 completed to 48.8 hours for those employees that had completed college oruniversity. Employees who completed college/university were more likely to have greaterthan 2 weekends off each month.

4.3 Comparison by Employee Background

The employee survey asked participants to indicate whether they grew up on a farm, in arural area but not on a farm or in a town/city environment. Using these definitions, theresults are grouped as farm background, rural background and town/city backgroundrespectively.

As stated in Section 4.0, many of the employees were in their twenties or thirties and inseveral age categories the farm and town/city age distributions are similar. One-half of theemployee participants from a rural background were between 30 and 39 years of age. Thisis shown in Table 4.6.

Table 4.6. Age Distribution by Employee Background (% of Responses)

Farm Background

Rural Background

Town/CityBackground

< 20 years old 2 7 0

20 - 29 years old 26 29 39

30 - 39 years old 31 50 28

40 - 49 years old 24 7 22

50 - 59 years old 17 7 11

The highest level of education completed by the employee participants is somewhat differentdepending on where they were raised. For example, two-thirds of the employees from thetown/city had completed grade 11 or 12 (i.e. noted as “up to grade 12 completed” in thesurvey). This is shown in Table 4.7. One-half of the employees raised in a rural, non-farmarea had also completed up to grade 12. The farm-raised employees were more likely to seekfurther education with 45% completing college or university. This compares to 21% foremployees raised in a rural setting and 17% for those raised in a town or city. These resultswere surprising as it was expected that there would be similar education levels between thethree groups.



Table 4.7. Education Level by Employee Background (% of Responses)

Farm Background

Rural Background

Town/CityBackground

Up to Grade 8 14 0 0

Up to Grade 10 7 21 11

Up to Grade 12 29 50 67

College/University 45 21 17

Other 5 7 6

Employees were asked to report on the total number of years they had worked on swinefarms. It was expected that employees with a farm background would work on swine farmslonger. The results support this somewhat because 34% had worked for more than 15 yearson swine farms. 14% of employees from a rural background and 17% of employees from atown/city had also worked for more than 15 years on these farms. 50% of the employeesfrom a town/city background had been working on swine farms for 6 to 10 years.

Employees were asked what they plan on doing in the next 5 years. As stated in Section 4.0,40% of all employees expect that they will be in the same position. However, 21% ofemployees that wereraised on a farm planto look for a job in adifferent industryentirely. On theother hand, 35% ofemployees raised ina town/city hope toreceive a promotionwith their currentemployer. It wasthought that thesestatistics might bereversed and thatemployees from a farm background would be less likely to leave the industry than those froma town/city background. Approximately one quarter of employees in all three groups whoare considering leaving the industry said it is because the pay is unfair. As well, another 29%of the employees from a rural background indicated they want weekends off and theyreported this as the main reason to leave the industry.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Same position

Hope for promotion

Similar job, different operation

Job on another operation, promo

Own my own farm

Job in other part of swine industry

Job in another industry

Will retire

Other

From farm Rural Town/city

Figure 4.7. Plans For Next 5 Years vs. Employee Background



In summary, it appeared that employees who were raised on a farm were more likely toobtain higher education and 21% plan to leave the swine industry altogether in the next 5years. 35% of employees raised in a town or city were hoping to receive a promotion fromtheir current employer in the near future.

4.4 Comparison by Gender

As indicated earlier in Section 4.0, 82% of the employee respondents were male. Table 4.8shows that the group of males tended to be younger with 70% reporting they are youngerthan 40 years of age compared to 42% of females being in this age category.

Table 4.8. Age of Employee by Gender (% of Respondents)

Males Females

< 20 years old 3 0

20 - 29 years old 32 21

30 - 39 years old 35 21

40 - 49 years old 18 36

50 - 59 years old 11 21

Figure 4.8 depicts the highestlevel of education completed bygender. The female group tendedto have higher education with50% of them reporting completionof more than grade 12 comparedto 37% for the males. Only 14%of the females reported workingfor their current employer formore than 5 years whereas 51% ofthe males had worked for theircurrent employer for more than 5years. With respect to working on swine farms in total, 75% of males and 64% of femaleshad worked for swine farms for more than 5 years.

The hours of work differed between these two groups. The males worked an average of 52.8hours/week compared to the females who worked an average of 44.4 hours/week. The maleswere more likely to have received a written job description and more likely to have regularmeetings with their supervisors regarding their work. This is shown in Table 4.9. A higher

0%

20%

40%

60%

Up to grade10 complete

Up to grade12 complete

Collegediploma

complete

Universitydegree

complete

Other

Females Males

Figure 4.8. Education Comparison by Gender



percentage of females had job interviews (i.e. 85% vs 69% for males) however, the interviewlength was shorter for females at 42 minutes compared to 60 minutes on average for males.Approximately one-half of the males and the females believed that the job position andduties had been explained well before they agreed to the job. Many of the employees in bothgroups decided to work on swine farms because they liked pigs. In fact, 50% of males and69% of females said this was the main reason.

Table 4.9. Job Characteristics by GenderMales Females

Hours worked per week 52.8 44.4

% of Responses

Received an interview 69 85

Duties well described 54 46

Received written job description 27 14

Have regular meetings with employer 73 50

In summary, the male employees tended to be younger and worked approximately 8 hoursmore each week compared to the female employees. A larger percentage of femaleemployees had completed college/university education and they were more likely to have hadan interview than male employees. The length of the interview was about 18 minutes shorterfor females than for males.

4.5 Future Employment Plans

As stated in previous sections employees were asked to indicate what they believe they aremost likely to be doing in 5 years. The results are presented in Table 4.10.



Table 4.10. Future Employment PlansFuture Plans % of Responses

I will be in the same position. 40

I hope to receive a promotion with my current employer. 15

I will look for a similar job with another swine operation. 3

I will look for a job with another swine operation that would be a promotion. 1

I will own my own farm. 8

I will look for a job in another part of the swine industry (e.g. work for feedcompany).

3

I will look for a job in a totally different industry. 15

I will retire. 5

Other* 10(Response rate: 73)*An example of “other” included “want to further my education”.

40% of the respondents believe they will be in the same position. For the 15% of employeeswho plan to leave the industry there may be many reasons. The survey asked respondents toreport what the main cause would be. It was expected that only those individuals who planto leave the industry would respond to this question. There were, however, manyparticipants that answered this question stating that although they do not plan to leave theindustry there are some reasons that might cause them to leave during this time. The resultsshown in Table 4.11 are for all that responded to this question.

Table 4.11. Reasons to Leave IndustryReason to Leave Industry % of Responses

The pay (wages plus benefits) is not fair. 24

I work long hours. 4

I want weekends off. 20

The public has a negative perception of the industry. 2

Other* 50(Response rate: 46)*Examples of “other” included: “health”, “want to further my education”, “want to try something different”,“all of the above”.



Pay (wages plus benefits) ranked high as a reason to leave. This is consistent with resultspresented earlier that showed many participants wanting to see the compensation packageimproved in their job. Having weekends off is not surprising since many occupations outsideof agriculture do not require weekend work. One-half of respondents indicated “other”.Examples of “other” included all of the above (i.e. all of the reasons indicated in the survey),health issues, some wanted to further their education and others wanted to try somethingdifferent. It was surprising that only 4% indicated the long hours of work as a reason thatmight cause them to leave. It was thought at the outset of the study that this would be aleading reason why employees would leave the industry.

In summary, 40% of employees believe they will be in the same position in 5 years and 15%of respondents indicated that they plan to look for a job in another industry. The main reasonemployees were considering leaving the industry was because they felt the compensationpackage was not fair.



5.0 Combined Employee and Employer Results

The survey instruments asked all participants to indicate the name of the farm theyowned/operated or worked for. This provided an opportunity to match results fromemployers with results from employees that responded. There were 33 farms that respondedto the survey and who also had employees that completed the employee survey form. Thesefarms indicated they had approximately 159 full-time, non-family employee positions. Therewere 57 employees from these farms that completed the survey for a response rate of 36%.The following discussion will be based on responses from these two groups.

Table 5.1 shows attributes that make a job appealing and reports only the top 4 factors rankedby both employers and employees. There is considerable consistency between the two groupswith compensation and appreciation for work done being 2 of the top 4 ranked factors. Theemployers believed that being able to provide input into the operation was equally important.The employee group also thought this was important but felt that having a job that wasinteresting and satisfying was just as critical.

Table 5.1. Ranking of Job Attributes by Both Employers and EmployeesEmployer Response Employee Response

% %

1. Appreciation or recognition for work done 19 16

2. Compensation (salary plus benefits) 19 25

3. Feel involved in operation, can give input 19 14

4. A job that is interesting or satisfying 12 14

Response rate 64 101

Further, each employer and employee was asked to rank the top 2 areas where improvementscould be made. Figure 5.1 shows the employer responses. For instance, 29% of responsesfrom employers indicated they thought they could improve most by showing appreciation forwork done and another 13% of responses were with respect to compensation and providinga job that is interesting or satisfying. Figure 5.2 shows that employees indicatedcompensation package the most frequently followed by number of hours worked and thenappreciation for work done.



Figure 5.2. Employee Responses

In summary, when job attributes were ranked in terms of importance by both employees andemployers, recognition for work done and compensation received the highest ratings. Withrespect to areas for improvement, employers thought appreciation for work done andcompensation were most important. Employees felt compensation and number of hoursworked were the most important areas for improvement.

5.1 Employee Turnover Rate

Employers were asked information pertaining to the number of employees that had quit orwere fired in the last two years. This data along with the number of full-time, non-familypositions was used to determine the turnover rate for each farm (i.e. number of employeesthat quit or were fired divided by the number of positions). The average turnover for allparticipants was 67.9%. A comparison of those farms that reported 0% turnover and thosethat reported 70% or higher is provided. They will be referred to as the low and high turnoverfarms respectively.

Both groups conducted interviews lasting approximately 45 to 50 minutes in length for theirlast job opening. However, there were some differences in job characteristics between lowand high turnover farms and this is shown in Table 5.2. For example, the high turnoverfarms were more likely to give employees a written job description outlining their duties (i.e.55% vs 36% for low turnover farms) and were more likely to give all employees job titles(i.e. 40% vs 10% for low turnover farms). Most of this group (i.e. 82%) said that theyconduct regular performance reviews with their employees. These statistics were surprisingbecause it was thought that providing employees with written job descriptions, job titles andhaving regular performance reviews would result in lower turnover. Two-thirds of the lowturnover group believed that word of mouth was the most useful tool in advertising job

Appreciation29%


11%

Compensation13%

Ability to promote8%

Job that is interesting13%

Relationship with employees

8%

Other18%

Figure 5.1. Employer Responses



openings and 55% indicated that they always check references. The high turnover groupreported that they believed newspaper advertising was the most useful tool in finding jobcandidates and 40% said that they always check references. These results appear to show theimportance of talking with others in the industry about labour requirements and the need tocheck references before offering employment.

Table 5.2. Job Characteristics vs. Turnover (% of Responses)

Low Turnover Farms High Turnover Farms

Give written job description 36 55

Give all employees titles 10 40

Regular performance reviews 55 82

Always ask for references 82 70

Always check references 55 40

Table 5.3 shows some statistics regarding hours of work for both groups as reported by theemployers. There are some key indicators of possible reasons for one group of farms toexperience 0% turnover and the other group to have high turnover. This relates to thenumber of hours worked. In nearly every employee category the low turnover group reportedthat their employees worked fewer hours each week than employees working for the highturnover farms. In fact, skilled labour on low turnover farms worked 44.8 hours. This was6.8 hours/wk less than comparable employees on high turnover farms. In addition, lowturnover farms tended to provide more paid vacation time and slightly more weekends off.



Table 5.3. Hours of Work vs. Turnover Low Turnover High Turnover

i) General Labour

Average hours/week* 45.7 44.7

# weekends off/month 3.2 2.0

# statutory holidays off/yr 7.3 6.5

# paid vacation days/yr 12.5 9.3

ii) Skilled Labour




# paid vacation days/yr 13.5 10.1

iii) Supervisor/Manager




# paid vacation days/yr 11.3 10.2* Calculated number = average # hours/day x average # days/week

A comparison of current wages between the groups is shown in Table 5.4. The low turnovergroup of farms paid their skilled labourers an average of $15.21/hour or 60¢/hour more thanthe high turnover farms. The supervisor/managers were paid $18.25/hour which was$1.50/hour more than for similar employees on high turnover farms. For general labourersthe average wage was the same for both groups. There was not sufficient data from the lowturnover farms with respect to additional benefits (i.e. dental and medical benefits, disabilityinsurance, housing, etc.) for general labourers and supervisors. The skilled labour on lowand high turnover farms received similar amounts for additional benefits. This data indicatesthat the difference in wages may contribute to the rate of turnover on some farms.



Table 5.4. Wage Comparison Between Low and High Turnover FarmsLow Turnover High Turnover

i) General Labourers

Wages - $/hr 10.10 10.08

Additional benefits* - $/employee NA 2,625

ii) Skilled Labourers

Wages - $/hr 15.21 14.61

Additional benefits* - $/employee 4,025 4,067

iii) Supervisor/Manager

Wages - $/hr 18.25 16.75

Additional benefits* - $/employee NA 4,200NA - not sufficient data to report*Average of those that provided values for additional benefits only.

When asked what they thought they could improve upon in terms of managing personnel,29% of the responses from the low turnover farms stated (1) showing appreciation for workdone followed by (2) compensation (i.e. 17% of responses). The employees from the lowturnover farms also rated these two variables the highest with 24% of the responses for eachof them. This is shown in Table 5.5. On the high turnover farms, the employers believednumber of hours worked and appreciation for work done were the top two areas whereimprovement could be made. Employees on these farms believed that compensation was inneed of improvement (38% of responses) followed by number of hours worked (23% ofresponses). It is noteworthy that the employers on high turnover farms did not feel asstrongly that compensation was an issue because only 11% of the responses were recordedfor this variable.



Table 5.5. Ranking of Improvements in Current Job by Employees and EmployersLow Turnover Farms High Turnover Farms

Employees Employers Employees Employers

% % % %

Appreciation for work done 24 29 12 22

Number of hours worked 17 8 23 28

Pay 24 17 38 11

Working conditions 10 4 4 11

Job security 0 0 8 0

Training opportunities 10 0 8 6

Ability to promote employees NA 13 NA 6

Job that is interesting 0 17 0 6

Relationship with manager oremployee

7 8 0 10

Other 8 4 7 0NA - not applicable

In summary, there are several points that were highlighted from this particular analysis. Itappears that the amount of time off (i.e. vacation, weekends off, statutory holidays) andwages may contribute to employee turnover. Employees on low turnover farms workedfewer hours per week and received more weekends off, more paid vacation time and higherwages than employees on high turnover farms. Using word of mouth advertising andmaintaining a policy of checking references were methods used by low turnover farms toattract and select the most suitable candidates.



6.0 Cost of Turnover

There are many costs associated with employee turnover. Some of these include; advertising,the cost of salaries of interviewers, new employee information (i.e. booklets, manuals),training seminars, cost of new employee and an existing employee who will assist/train thenew employee and who is not fully productive, and etc. The employer survey askedrespondents to consider these costs and provide a value for these variables. The average ofthe results is presented in the table below.

Table 6.1. Cost of TurnoverSeparation Costs $

a) Exit interview = salary and benefits of the interviewer and departingemployee during the exit interview 157

b) Cost of administrative or record keeping actions as a result of employee exit 94

Replacement Costs

c) Advertising for job opening 169

d) Pre-employment administrative functions and record keeping 110

e) Selection interviews = salaries and benefits of managers and otherinterviewers while interviewing 287

f) Pre-employment tests or work simulations 191

g) Salaries and benefits of all involved in meetings to discuss candidates 284

h) Time (salaries and benefits) spent notifying unsuccessful candidates 97

Training Costs - getting the new employee “up to par”

i) Cost of booklets, manuals, reports 154

j) Cost of educational seminars, workshops attended for training purposes 256

k) New employee’s salary while attending training workshops 284

l) Salaries and benefits of both a new employee and an existing employeecoach who is not fully productive while training a new employee 1,455

m) Salary and benefits of new employee until they are fully productive 4,869

Total Cost of Turnover 8,408(n= 24) Only those farms that provided sufficient information regarding the cost of turnover were included.



Given the above numbers, the average cost of turnover was $8,408. The average beginningsalary and benefits of a new employee was reported to be $26,653 although this woulddepend on the position. The average length of time for a new employee to become fullyproductive was reported at 52 days.

There are other variables to consider with respect to turnover in a business. Some of theseare related to the stress the employer feels when confronted with an employee leaving. Manyindividuals dislike releasing an employee, even if the employee is a poor worker. Regardlessof whether an employee is let go by the employer or leaves on his or her own, the jobs theyhad done must then be absorbed by the remaining employees. Distribution of the workloadamong current employees is not a long-term solution given the average number of hoursalready worked by these individuals. Burn-out and resentment would be likely results unlessa new recruit is brought in quickly. Dismissal of an employee can be upsetting to existingemployees because they may be fearful that the same could happen to them or they could beafraid they will be expected to take on additional duties, and therefore productivity maysuffer. On the other hand, if the employee that left was disruptive to the other employeesthen their leaving could actually boost morale and therefore improve productivity of theremaining employees.



7.0 STATISTICAL ANALYSIS

The previous sections have suggested that there have been some variables that appear to bedetermined by other variables (i.e. Section 3.4 indicated that higher wages were received byemployees of small farms). This has been interesting but it has been descriptive only anddoes not provide any proof of the statistical significance of some of these variables. Forexample, is the wage/hour always higher on small farms? Does the size of the farm play arole in how long an employee stays with that employer? These are just some examples.

7.1 Linear Regressions With One or More Independent Variables

Regression analysis was done to determine whether there were relationships betweenparticular variables. Many regressions were done however only the best results are discussedhere. For further results please refer to Appendix B.

Linear regression analysis uses the "least squares" method to fit a line through a set ofobservations. It is used to analyze how a single dependent variable is affected by the valuesof one or more independent variables. For the regressions discussed in this section there arethree models. One is based on “Wage” as the dependent variable. The other two use“Turnover” and “Number of Full-time Employees” as the dependent variables.

7.2 Wage

The results for the “Wage” model are presented in Table 7.1. Several independent variableswere used and they account for 60% of the variability in wage. It seemed logical to use hoursworked/week and paid vacation days. Increasing hours of work is often associated withincreasing responsibility and therefore, higher wages. Similar to this, an increasing numberof paid vacation days usually reflects seniority. The results show that there is a positiverelationship between hours worked, number of paid vacation days and wages although theyare not statistically significant.

Length of the interview was added because it was thought that a longer interview wouldresult in a better understanding of the job and the opportunity for the employee to negotiatea higher wage. The results support this theory but this was not statistically significant. Wagewas expected to increase as turnover decreased because pay was reported in the surveyresults as a reason for employees to consider leaving. This variable did show that there isstatistical significance (at 90% confidence level) between turnover and wage and that aswages increase turnover is likely to decrease.

Performance review is an indication of whether the owners have regular meetings with theiremployees to discuss what they are doing well and what could be improved upon. Having



this type of communication was thought to increase wages as it provided an opportunity toreward employees. The results in Table 7.1 do not support this relationship. In fact, theopposite was true. The results show a statistically significant inverse relationship (i.e. at 99%confidence interval) between performance review and wages. This was not expected.Perhaps once a particular wage level is attained there is less desire on behalf of the employerto continue these regular meetings if they feel pressured to increase the wage each time.Similar unexpected results were found with respect to farm sales. As sales increased it wasanticipated that wages would decrease given the results in Section 3.4. An inverserelationship was found between wage and all sales categories except farm sales between$500,000 and $1 million. Farm sales less than $500,000 were negatively statisticallysignificant at the 99% confidence level although this should be used with some caution asthere was only one farm in this category. Farm sales categories greater than $2 million alsodisplayed a negative statistical significance.

Table 7.1. Wage Regression ResultsDependent Variable: Wage ($/hr) for Skilled Labour

Independent Variable Coefficient Standard Error

Constant 13.52 3.62

Hours/week worked 0.06 0.06

Number paid vacation days 0.15 0.11

Length of interview 0.01 0.01

Turnover rate -1.02* 0.57

Performance review -2.67**** 0.89

Farm sales < $500,000 -7.17**** 2.03

Farm sales $500,000 - $1 million 1.59 1.08

Farm sales $2 million - $3 million -2.62* 1.36

Farms sales > $3 million -1.38* 0.78

**** significance level at 1%, * significance level at 10%Adjusted R2 = 0.60 Number of Observations = 24

Adding age of employer or education of employer to the mix of variables in Table 7.1 didnot produce better results. The adjusted R2 actually decreased which indicates that addingthese variables does not assist in predicting wages.



7.3 Employee Turnover

Staff turnover is a serious concern on many farms. The rate of turnover varied from farm tofarm in the employer survey. Determining what factors actually affect the rate of turnoveris desirable especially for farms that have high turnover rates.

Table 7.2 shows the results from the regression using turnover as the dependent variable.The ten independent variables account for only 24% of the variability in turnover. This lowvalue was unexpected because evidence presented in Section 5 suggested that there was arelationship between these independent variables and turnover. There was a negativerelationship shown to exist between turnover and wage which makes sense. This means thatas the wage increases the rate of turnover decreases. This makes sense because if peoplebelieve they are rewarded fairly for work done they are less likely to leave their job.Although there is a negative relationship shown to exist between Turnover and wage it wasnot statistically significant.

Hours worked was anticipated to have a positive relationship with turnover meaning that asthe number of hours worked increased turnover was also likely to increase. This wassupported in the results and was shown to be statistically significant at the 90% level. Withrespect to the number of paid vacation days it was expected that as this number increased (i.e.more vacation days) then turnover would decrease. This type of inverse relationship wasshown in Table 7.2 but it was not statistically significant.

The length of the interview had basically no bearing on turnover in this analysis. A lengthyinterview would typically be expected to decrease turnover because this would permit theemployer and potential employee time to discuss the job and responsibilities. It would alsoprovide a glimpse of each personality.

Age of the employer and farm size (measured in sales) had an inverse relationship withturnover, except for farm sales $500,000 to $1 million. The negative relationship betweenturnover and age suggests that as the employer ages the rate of turnover would decrease.These seems logical because the employer would have gained more experience over time inhuman resource management than someone younger. As for farm size it was thought thatas the farm sales increased, turnover would increase because there would be morespecialization of labour and therefore, less opportunity to work closely with other employeesor the owners. The results in Table 7.2 do not support this and it is unknown why thisinverse relationship exists.



Table 7.2. Turnover Regression ResultsDependent Variable: Turnover


Constant 1.10 1.67

Wages/hour for skilled labour -0.10 0.08

Hours/week worked 0.05* 0.02

Number paid vacation days -0.02 0.05

Interview length -0.001 0.00

Age 40 - 49 years -1.03* 0.55

Age 50 - 59 years -0.84 0.57

Sales < $500,000 -0.88 0.88

Sales $500,000 - $1 million 0.19 0.45

Sales $2 million - $3 million -0.56 0.58

Sales > $3 million -0.54 0.31

* significance level at 10%Adjusted R2 = 0.24 Number of Observations = 24

The results ultimately show that although several variables, thought likely to influenceturnover, were used in the analysis, they do not explain turnover well. It is likely thatdifferent reasons for turnover will exist on every farm and possibly for every individualsituation.

7.4 Number of Employees

A large business with several employees is presumed to be more “professional” than asmaller business. This means that professional businesses would give employees job titles,job descriptions, conduct regular performance reviews, and they have been hiring employeesfor a longer period of time. On the other hand, the large professional businesses may pay lessbecause wages are an area where management can try to cut costs and this could ultimatelyaffect turnover in these businesses.

Table 7.3 shows the results of the analysis using number of employees as the dependentvariable. What was surprising about this analysis was that the variables used in thisregression accounted for only 4% of the variability in the number of employees. As expectedhowever, there is a positive correlation between hiring time and number of employees. This



means that a business that has been hiring employees for a longer period of time will havemore employees. This is likely because these businesses will be larger. There is actually apositively statistically significant relationship at the 98% confidence level between these twovariables.

Job description has a positive relationship with number of employees as does job title. Thisvalidates the thinking that professional businesses (i.e. those with more employees) will usethese business tools while small businesses are not likely to. It was unexpected thatperformance review would not have a positive relationship with the number of employees,because this tool is associated with professional businesses or those businesses that havemore employees.

The results for wages show that as wages increase the number of employees decrease. Thissuggests that wages may be higher in small farm businesses (those with few employees)versus large farm businesses (those with many employees). This is also consistent with datain Section 3.4 that showed that small farms pay higher wages than large farms.

Turnover rate has a positive relationship with number of employees. This indicates that asthe turnover rate increases so does the number of employees. Perhaps there is more turnoverin large businesses because people do not have a sense of belonging/appreciation. It is alsopossible that other factors such as potentially lower wages in large companies will influencethe rate of staff turnover.

Table 7.3. Number of Employees Regression ResultsDependent Variable: Number of Employees


Constant 4.62 5.36

Hiring time 0.19*** 0.07

Job description 1.14 1.41

Job title 0.07 1.85

Performance review -1.08 1.65

Wages/hour for skilled labour -0.22 0.32

Turnover rate 0.23 0.57

*** significance level at 2%Adjusted R2 = 0.04 Number of Observations = 35



In summary, three regression models were used. The first model used wage as the dependentvariable. The results showed that 60% of the variability in wage can be attributed to ninevariables. In particular, as employee turnover increases wages are likely to decrease andthose businesses that conduct regular performance reviews will pay less than those who donot. The second model used employee turnover as the dependent variable. The results forthis model determined that 24% of the variability in turnover could be explained by the sixvariables included in the regression. It was shown that as the number of hours workedincreased employee turnover would also increase. It is likely that the reasons for turnoverwill change depending on the business and each individual situation. The third model usednumber of employees as the dependent variable. Only 4% of the variation in number ofemployees was explained by the six independent variables. It was thought that larger, moreprofessional businesses who typically provide job descriptions, job titles, conductperformance reviews and so on would have more employees however, this was not provento be significant.



8.0 SUMMARY

8.1 Overview

Ontario’s swine industry has been changing in recent years. Many farms have increased insize in order to take advantage of economies of scale. For some farms this has also providedan opportunity to bring a family member into the business. For others the increased size hasmeant a need to hire non-family labour. It has been an ongoing challenge to attract, motivateand keep good labour when agriculture has historically been viewed as an industry with longhours, low pay, few if any vacation days, and etc. These characteristics are not attractivewhen compared to other industries that require employees with similar skills.

A mail survey of 54 employers that hire full-time, non-family labour was undertaken. Aswell, 77 employees participated in the survey.

8.2 Survey Results and Discussion

i) Hours of Work and Compensation - Employees reported working an average of51.3 hours/week. This is higher than occupations in other industries that wouldrequire similar skills. For example, this is 9.5 hours per week more than forconstruction trades helpers.

Compensation was the key area that employees would like to see improved in theircurrent job followed by appreciation for work done and the hours worked.Compensation was also listed as the main reason employees would consider leavingthe industry.

Average wage rates reported for swine farm employees are lower than those reportedfor occupations in other industries. For example, the average current wage rate forsupervisor/manager employees was $18.65/hr compared to contractors andsupervisors in carpentry trades who earned $22.03/hr in 2003. General labourers onswine farms received an average of $10.93/hr compared to construction tradeshelpers who received $17.26/hr in 2003. Some farms provide additional benefits (i.e.medical and dental coverage, disability insurance, housing, paid utilities, food, andetc.) as well as paid vacation days.

ii) Age of Employee - Older employees (i.e. those older than 39) worked on average 48hours per week. This is 5 hours less than younger employees. Pay was rated as themain reason employees would consider leaving the industry for those employees aged30 or older. Employees in their twenties indicated that they wanted weekends off andthis would be a leading reason for them to leave the industry.



iii) Education Level of Employee - As the education level of employees increased thehours worked per week decreased. For example, employees who had completedcollege or university worked 48.8 hours/week compared to 52.2 hours worked byemployees who had completed up to grade 10. For employees who completed grade12 or higher pay was cited as the most important improvement they would like to seemade in their current job. For employees who completed up to grade 10 the mostimportant improvement they would like to see made was appreciation for work done.

iv) Employee Background - 72% of all employees had worked on swine farms for morethan 5 years. Employees from a farm background more frequently obtained highereducation and were more likely to consider leaving the swine industry in the future.35% of employees who were from a town/city background were hoping to receive apromotion from their current employer in the next 5 years. 40% of all employeesbelieve they will be in the same position in 5 years.

v) Gender Comparison - The majority of the employees surveyed were male. The maleemployees worked 8 hours more each week than the female employees (i.e. 52.8hours/week for males vs 44.4 hours/week for females) . Female employees weremore likely to have completed higher education.

vi) Farm Size Comparison - Small farms paid higher wages (i.e. $1.40/hour more) andrequired fewer hours of work for supervisor/manager employees compared to largefarms. Skilled labour on small farms also received higher wages and 2.3 morevacation days than similar employees on large farms. Turnover on small farms was52% compared to 76% on the large farms.

vii) Importance of Job Attributes - There was a general consensus between whatemployers and employees from the same farm believed make a job appealing. Themain characteristics were compensation, appreciation for work done, employees cangive input into the operation and having a job that is interesting and satisfying. Thetwo groups were asked where improvements could presently be made. Employersbelieved they could improve most by showing appreciation for work done.Compensation was the attribute employees ranked the highest.

viii) Employee Turnover Rate - Low turnover farms (0% turnover in last 2 years) andhigh turnover farms (more than 70% turnover in last 2 years) were compared.Employees on low turnover farms worked fewer hours and received more time off(i.e. more weekends off, statutory holidays, vacation days) than employees on highturnover farms. Employees on low turnover farms also received higher wages.Employers of low turnover farms more frequently used word of mouth advertising



to find potential employees and they more often checked references than employersof high turnover farms.

ix) Cost of Employee Turnover - The cost of turnover was valued at $8,409. Thisnumber will vary depending on the situation and the length of time it takes to fill thevacancy. It takes about 52 days for a new employee to become fully productive andthe average starting salary was reported to be $26,653.

x) Statistical Analysis - Three regression models were tested. The first model usedwages as the dependent variable. Employee turnover, performance review and farmsales had the most significant effect on wages. Nine variables were included in theregression and together they explained 60% of the variation in wages. The secondmodel used employee turnover as the dependent variable. 24% of the variability inturnover was explained by the 6 independent factors. The results did show that as thenumber of hours worked increases, so does employee turnover. The third model usednumber of employees as the dependent variable. Only 4% of the variation in numberof employees is determined by factors such as job description, job title andperformance review. These are thought to be tools that are typically used bybusinesses having many employees, however, no statistically significant relationshipwas found to exist between them and number of employees.



9.0 RECOMMENDATIONS

The survey results indicate that employees want jobs where they receive fair compensation,work a reasonable number of hours and their work is appreciated. With that in mind, thefollowing points are some human resource management guidelines that can be used in anyindustry.

i) Hours of work - Stating at the time of hiring the hours of work expected each weekand whether certain times of the year may result in more or less hours can provide theemployee with a good idea of the commitment involved. If possible, flexible hourscan be viewed as a positive job quality by some employees. These employees maybe early risers who would like to start work early and finish early or others who mayneed flexible hours to accommodate family needs.

ii) Compensation - Wages should be fair for the work done and the hours of workexpected. Recall that employees have many options available to them and they willhave an idea of what other industries pay their employees.

There are additional ways to compensate employees. These include the following:

a) Overtime pay - Many industries offer overtime pay for hours worked abovea pre-set number. There may be some times during the year (i.e. planting orharvesting) when employees may be asked to work additional hours.Providing an incentive such as increased wages or paid time off on anotherday could be rewarding to an employee and result in that employeebenefitting from the additional work.

b) Benefits - There are many benefits that employers can offer. Examples ofbenefits include the following: life or disability insurance, medical or dentalcoverage, contribution to their RRSP, provision of pork or other food,providing housing, paying a portion of utilities and so on.

c) Bonus - A bonus can be seen as a reward if the bonus system is properlyestablished and the criteria is attainable. It is possible to offer bonuses basedon production although the employee has control of only part of theproduction process. Bonuses such as staying a certain length of time with anemployer, having a period of time with no injuries or a perfect attendancerecord are all within the employee’s control.



iii) Employee Interaction - Having employees with similar personalities workingtogether may result in fewer conflicts. Provide employees with the opportunity tohave social interaction with other employees and supervisors/managers. Treatemployees with respect and care. Tell employees if they are doing a good job or ifthere is room for improvement. Encourage two-way communication. Employeeswho feel comfortable talking with their employer may have ideas on how to improvecertain aspects of the operation.

iv) Statutory Holidays and Weekends- Establishing with employees a mutuallyagreeable schedule for statutory holidays and weekends in advance showsconsideration for employees. Providing additional money for working a statutoryholiday can also make an employee feel that his or her time is valued.

v) Vacation Time - Paid vacation time is often viewed as a particularly desirablebenefit. Employees that come back after being on paid vacation leave are rested andenthusiastic about their jobs.

vi) Make the Job Interesting - Match an employee with the right job(s). Consider whatan employee is good at and what they like to do.

vii) Job Description - Provide a written job description to all employees. This shouldoutline what is expected in terms of duties to be performed, hours of work,responsibilities, problem solving, rate of pay, additional benefits, bonus system ifapplicable, how weekend and statutory holidays are provided for, vacation time,training, promotion, and etc. It should also detail what may cause termination ofemployment.

viii) Training opportunities - Employees who are encouraged to improve theirknowledge or skills through training will be enthusiastic about using their new talentsin their jobs which will bring positive results to the farm operation.

ix) Promotion - It is difficult, especially in small farm businesses, to “promote”employees however it may be possible to give employees increased responsibilitieswhich can be viewed as a promotion.

x) Other - Anything as simple as supplying snacks for an occasional break or givingtickets to a local event can be seen as a token of appreciation.

There are many ways that employers can show employees that they are valued and respected.Employees who are rewarded fairly and feel that they belong will become valuable assets ofthe farm operation.



APPENDIX A

RESULTS OF EMPLOYER AND EMPLOYEE SURVEYS

AND INDIVIDUAL VARIABLE ANALYSIS


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Employer Survey

To be completed by main decision maker.

This survey is designed to identify strengths and areas for improvement in human resource managementon swine farms. All information you provide will be kept confidential and only group results will be reported.Please return the completed survey by Thursday, April 8, 2004 in the envelope provided. If you have anyquestions regarding this survey, please contact Ken McEwan at (519) 674-1531.

Please print clearly.

Name _______________________ Job Title/Position Farm Name _______________________ County _______________________Address _______________________ Phone _______________________Town _______________________ Fax _______________________Postal Code _______________________ Email _______________________

Section A: Background Information**Some numbers may not add to 100% due to rounding.

1. What is your age?

Less than 20 yrs old 0% 30 - 39 yrs old 19% 50 - 59 yrs old 28%

20 - 29 yrs old 4% 40 - 49 yrs old 43% 60 years or older 7%(Response Rate: 54)

2. What is the highest level of education that you completed?

Up to grade 8 completed 4% College diploma completed 33%

Up to grade 10 completed 2% University degree completed 29%

Up to grade 12 completed 27% Other 6%(Response Rate: 52)

3. What is the main owned production type (based on gross farm sales) in this farmingoperation? Please take into account all production sites associated with this operation. Please check one only.

69% Farrow to finish total # of sows 20% Farrow to early wean total # of sows 4% Nursery total # of pig spaces 8% Finishing total # of pig spaces

(Response Rate: 51)


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4. What business arrangement does your farm operate as?

Sole Proprietorship 0% Business Corporation 37%

Partnership 10% Other 0%

Family Corporation 54%(Response Rate: 52)

5. What is the size of your farming operation in terms of annual gross receipts (i.e. totalsales)?

Less than $499,999 4% $2,000,000 - $2,999,999 14%

$500,000 - $999,999 18% $3,000,000 or greater 22%

$1,000,000 - $1,999,999 43%(Response Rate: 51)

Section B: Full-time Non-Family Employees

6. For how many years has the farm been hiring full-time employees? Avg 15.3 years(Response Rate: 52)

7. In the last 2 years, how many full-time non-family positions have you had in your farmoperation? Avg 4 (Response Rate: 50)(Please include any vacant positions but do not include positions normally held by family members.)

8. In the last 2 years, how many full-time employees have quit? Avg 2.1 (Response Rate: 53)

9. In the last 2 years, how many full-time employees have you fired? Avg 0.6 (Response Rate: 53)

For the purposes of this survey three full-time employee categories are provided and they are:

General Labourer - Is able to do a variety of jobs i.e. moving, feeding livestock. May requireinstruction/supervision in terms of jobs to be completed and how to do them.

Skilled Labourer - Requires little supervision. Is able to undertake specialized tasks i.e. breeding,farrowing, etc.

Section B seeks information regarding full-time, non-family employees working on your farm. Full-time employees are defined as those employees working 30 hours or more per week year-round. Ifyou do not have full-time, non-family employees, thanks for completing the survey and return.


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Supervisor/Manager - Has thorough understanding of all aspects of farm operation. Supervisesemployees, solves complex problems.

GeneralLabourer

SkilledLabourer

Supervisor/Manager

10. Please indicate the wages received by theseemployees.

i) Average starting wage rate. Please indicate in $per hour. $ 9.72 /hr $12.59 /hr $16.42 /hr

ii) On average, how many days do employees ineach group work before receiving their first payraise?

165 days 182 days 213 days

iii) What is the average wage rate currently? $ 10.82 /hr $14.68 /hr $18.64 /hr

GeneralLabourer

SkilledLabourer

Supervisor/Manager

11. Please state the hours worked, sick days,etc. for each employee category.

i) Average # of hours worked per day 8.3 hrs/day 8.4 hrs/day 8.6 hrs/day

ii) Average # of days worked per week 5.4 days/wk 5.6 days/wk 5.6 days/wk

iii) Average # of weekends off per month 2.5 2.2 2.2

iv) Average # of statutory holidays they have offeach year (Christmas Day, Boxing Day, NewYear’s Day, Good Friday, Victoria Day, CanadaDay, Civic Holiday, Labour Day, Thanksgiving)

6.0 days/yr 5.5 days/yr 5.7 days/yr

v) Do you have an agreed upon plan for sick leave? 13% Yes 87% No

15% Yes 85% No

24% Yes 76% No

If yes, up to how many sick days are paid foreach year?

2.7 days/yr 3.3 days/yr NA

vi) On average, how many paid vacation days (otherthan Statutory days) do employees receive eachyear?

10.9 days/yr 12.7 days/yr 12.9 days/yr

GeneralLabourer

SkilledLabourer

Supervisor/Manager

12. Please check off which additional benefitseach employee category may be entitled toreceive.


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i) Medical 15% 11% 11%

ii) Dental 10% 7% 6%

iii) Disability insurance 14% 9% 9%

iv) Life insurance 11% 9% 10%

vii) Housing is provided 11% 14% 15%

viii) Paid utilities (i.e. hydro, heating) 6% 8% 13%

ix) Vehicle is provided 4% 9% 10%

x) Pork (or other food) 22% 26% 19%

xi) Other (specify) 7% 8% 6%

xii) Please indicate the dollar amount these benefitsequate to per employee for each category annually. $1,904 (n=14) $4,060 (n=22) $7,360 (n=10)

13. Do you offer an incentive plan? 9% Yes 91% No

27% Yes 73% No

38% Yes 62% No

14. Turnover CostsThe cost associated with the departure of an employee can be significant. Please indicate your estimated costsfor each of the following points which apply to your farm operation.Note: data was used from those farms that provided turnover cost information for most/all of the variables below.

Separation Costs

a) Exit interview = salary and benefits of the interviewer and departing employee during the exitinterview $157

b) Cost of administrative or record keeping actions as a result of employee exit $94

Replacement Costs

c) Advertising for job opening $169

d) Pre-employment administrative functions and record keeping $110

e) Selection interviews = salaries and benefits of managers and other interviewers while interviewing$287

f) Pre-employment tests or work simulations $191

g) Salaries and benefits of all involved in meetings to discuss candidates $284

h) Time (salaries and benefits) spent notifying unsuccessful candidates $97

Training Costs - getting the new employee “up to par”

i) Cost of booklets, manuals, reports $154

j) Cost of educational seminars, workshops attended for training purposes $256

k) New employee’s salary while attending training workshops $284


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l) Salaries and benefits of both a new employee and an existing employee coach who is not fullyproductive while training a new employee $1,455

m) Average beginning salary and benefits of new employee $26,653

n) Number of days it should take a new employee to become fully productive 52 days

Section C: General Questions

15. Do your employees receive a written job description outlining their duties? 37% Yes 63% No(Response Rate: 51)

16. Do you give your employees job titles?

Yes, all have titles 22% None have titles 47% Some have titles 31%(Response Rate: 51)

17. Do you conduct performance reviews with employees to discuss what they do well and what could beimproved? 73% Yes 27% No (Response Rate: 52)

18. From the list below what are the top 2 areas you feel you could improve upon in terms of managingpersonnel? Please rank them with 1 being most important. 1 = Most Important 2 = Next Important

Appreciation or recognition for work done 27% Job security - employees may be unsurehow long they will have a job

2%

Number of hours worked 8% Training opportunities 13%

Compensation (salary plus benefits) 14% Job that is interesting and satisfying 13%

Working conditions (i.e. health and safety) 4% Relationship with employees 8%

Ability to promote employees in farm operation 6% Other 0%

Allowing employees to provide input into farmoperation

4%

(Response Rate: 99)

19. From the list below, what do you believe helps the most in making a job appealing? Please rank the 2most important points. 1 = Most important 2 = Next Important

Working conditions (i.e. health and safety) 6% Job security - employees know they will have ajob as long as they do their jobs well

7%

Appreciation or recognition for work done 16% A job that is interesting or satisfying 17%

Compensation (salary plus benefits) 17% Training opportunities 0%

Feel involved in operation, can give input 19% Relationship with manager/supervisor 11%

Number of hours worked 1% Relationship with other employees 6%


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Room for advancement or promotion in farmoperation

0% Other 0%

(Response Rate: 103)

20. What methods do you use to “advertise” job openings? Please check all that apply.

Newspaper advertisement 40% College placement 5%

Word of mouth 41% University placement 3%

High school placement 2% Other 9%(Response Rate: 104)

Of these methods, which one do you find most useful?

Newspaper advertisement 22% College placement 0%

Word of mouth 59% University placement 0%

High school placement 0% Other* 19%(Response Rate: 27)*An example of “other” was the HRDC website.

21. Please indicate the importance of family and non-family labour sources for each type ofemployee position below. e.g. Is family an important source of labour? 1=Very important 2=Not important

Family Non-Family

1 2 1 2

Full-time (30 hours or more per week year-round) 61% 39% 91% 9%

Part-time (less than 30 hours per week year-round) 50% 50% 76% 24%

Other (i.e. seasonal) 33% 67% 53% 47%

22. For your most recent attempt to fill a full-time job vacancy, how many applications in total did youreceive? Avg 10 (Response Rate: 42)How many were from “qualified” applicants? Avg 3 (Response Rate: 39)

23. When filling your last full-time job vacancy did you conduct an interview? 92% Yes 8% No(Response Rate: 49)If yes, approximately how long did the interview last? Avg 46 minutes (Response Rate: 45)

24. How well do you feel you explained the position and duties to the applicant during the interview?

Well 77% Okay 21% Not Well 2%(Response Rate: 48)

25. How many weeks did it take to fill the last full-time position? Avg 3.3 (Response Rate: 47)


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26. Do you ask for references?

Yes, always 73% No, never 12% Sometimes 15%(Response Rate: 48)

27. Do you check references?

Yes, always 48% No, never 15% Sometimes 37%(Response Rate: 48)

28. How many family members work on the farm including yourself?Full-time Avg 1.9 (Response Rate: 38) Part-time Avg 1.7 (Response Rate: 34)

29. Would you like to receive a summary of the results? 98% Yes 2% No(Response Rate: 51)

If you would like to include any additional comments which you think would be helpful please do so in the spaceprovided below.

Thank you very much for participating in the survey.Please return the completed survey in the envelope provided.


61

Full-time Employee Survey

The goal of this survey is to identify strengths and areas for improvement in managing labour on swinefarms. All information you provide will be kept confidential and only group averages will be reported.Please return the completed survey by Thursday, April 8, 2004 in the envelope provided. If you have anyquestions regarding the survey, please contact Ken McEwan at (519) 674-1531.

Please print clearly.

Your Name Job Title/Position Name of Farm Business You Work For Address of Farm Postal Code Phone Number for Farm

Section A: Background Information**Some numbers may not add to 100% due to rounding.

1. What is your age?

Less than 20 yrs old 3% 40 to 49 yrs old 21%

20 to 29 yrs old 30% 50 to 59 yrs old 13%

30 to 39 yrs old 33% 60 years or older 0%(Response rate: 76)

2. What is the highest level of education that you completed?

Up to grade 8 completed 8% College diploma completed 22%

Up to grade 10 completed 11% University degree completed 11%

Up to grade 12 completed 42% Other 7%(Response rate: 76)

3. Are you: 82% Male? 18% Female? (Response rate: 76)

4. How many people are you supporting, if any? (Include spouse, children, parents, etc.) Avg 2.7 (Response rate: 63)

5. Where did you grow up? 57% On a farm 19% Rural non-farm 24% Town/City(Response rate: 74)


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6. What type of pig production best describes the farm location you work at?

Farrow to finish 48% Nursery 0%

Farrow to early wean 48% Finishing 4%(Response rate: 69)

7. How long have you worked for this farm operation?

Less than 1 year 18% 6 to 10 years 27%

1 to 2 years 12% 11 to 15 years 9%

3 to 5 years 27% More than 15 years 7%(Response rate: 74)

8. How long have you worked on swine farms in total?

Less than 1 year 1% 6 to 10 years 28%

1 to 2 years 13% 11 to 15 years 19%

3 to 5 years 13% More than 15 years 25%(Response rate: 75)

9. How many other swine farms have you worked for? Do not include your present employerin this number. Avg 1.5 (Response rate: 75)

Section B: Hours of Work

10. How many hours a day do you usually work? Avg 9 (Response rate: 74; Range 5-14hrs/day)

11. How many days per week do you normally work? Avg 5.7 (Response rate: 69; Range 3-7)

12. How many weeks per year do you work? Avg 50.5 (Response rate: 73; Range 46-52)

13. How many weekends do you have off per month?

I work every weekend 8% 3 weekends off per month 22%

1 weekend off per month 11% I have every weekend off 7%

2 weekends off per month 52%(Response rate: 73)

14. Does your employer offer an incentive plan? 38% Yes 62% No (Response rate: 71)If yes, are you satisfied with the incentive plan? 80% Yes 20% No (Response rate: 25)


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If no, please check off below why not. Check the most important 1 only.

It is not a realistic expectation. 0% The requirements change frequently. 75%

It is not rewarding enough. 0% Other 25%

I don’t clearly understand what is expected. 0%(Response rate: 4)

Section C: Job Characteristics

15. Do you have a job title? 57% Yes 43% No (Response rate: 72)

If yes, what is it?

16. Did you receive a written outline of what your job duties are? 24% Yes 76% No (Response rate: 74)

17. Do you have meetings with your employer to discuss what you are doing well and whatcould be improved? 69% Yes 31% No (Response rate: 72)

18. What do you believe helps in making any job appealing? Please rank the 2 most importantpoints. 1 = Most Important 2 = Next Important

Good working conditions (i.e. health and

safety)

10% Job security - knowing that I will have a job

as long as I do my job well

10%

Appreciation or recognition for work done 15% A job that is interesting or satisfying 15%

Pay (salary plus benefits) 24% Training opportunities 1%

Feel involved in operation, can give input 12% Relationship with manager/supervisor 4%

Number of hours worked 2% Relationship with other employees 6%

Room for advancement or promotion 1% Other 0%

(Response rate: 135)

19. What would you like to see improved in your job? Please rank your top 2 responses. 1 = Most Important 2 = Next Important

Appreciation or recognition for work done 14% Job security - I don’t know how long I will

have a job even though I do my job well

4%

Number of hours worked 14% Training opportunities 11%

Pay (salary plus benefits) 22% Job that is interesting and satisfying 5%


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Working conditions (i.e. health and

safety)

11% Relationship with manager/supervisor 2%

Ability to advance in farm operation 5% Relationship with other employees 5%

Allowing employees to provide input into

farm operation

2% Other 4%

(Response rate: 131)

Section D: Before You Started This Job

20. How did you first learn about the job opening for the position you currently have? Checkall that may apply.

Newspaper advertisement 26% Someone told me about it 39%

High school placement 0% Other 34%

College or University placement 1%

(Response rate: 77)

21. Once you applied for the position, did you have an interview? 72% Yes 28% No (Response rate: 74)

If yes, about how long did the interview last? Avg 56 minutes (Response rate:53; Range 5-150 mins )

22. How well were the position and duties described to you before you accepted the job? 53% Well 39% Okay 8% Not well (Response rate: 74)

23. Why did you decide to work on a swine farm? Please indicate the 1 main reason.

I like working with pigs or other animals. 54% The pay is good. 7%

It was all that I could find. 10% It has flexible hours. 4%

I want to gain experience so I can have my own farm. 3% Other 20%*

I want to gain experience so I can work in another

part of the industry.

3%

(Response rate: 71)

*Examples of “other” included the following: “it was the right place at the right time”, “had experience in swine”, “wanted to try

something different”


65

Section E: The Future

24. In 5 years what do you feel you are most likely to be doing? Check 1 only.

I will be in the same position. 40% I will look for a job in another part of the swine

industry (e.g. work for a feed company).

3%

I hope to receive a promotion with my

current employer.

15% I will look for a job in a totally different

industry.

15%

I will look for a similar job with another

swine operation.

3% I will retire. 5%

I will look for a job with another swine

operation that would be a promotion.

1% Other* 10%

I will own my own farm. 8%

(Response rate: 73)

*An example of “other” included “want to further my education”

25. If you plan to leave the swine industry to work in another industry within the next 5 years,what is the main reason for leaving? Check 1 only.

Note: Responses below are shown for those individuals who plan to leave the industry within 5 years and those who aren’t

planning to leave but who indicated reasons regarding what might cause them to leave.

The pay (wages plus benefits) is not fair. 24% The public has a negative perception of

the industry.

2%

I work long hours. 4% Other* 50%

I want weekends off. 20%

(Response rate: 46)

*Examples of “other” included: “health”, “want to further my education”, “want to try something different”, “all of the above”

If you would like to include any comments which you think would be helpful please do so below.

Thank you very much for participating in the survey.Please return the completed survey in the envelope provided.

Analysis: Age of Employee 20 to 29 years old1. Age 15. Have job title?

< 20 yrs 0% Yes 68%20-29 yrs 100% No 32%30-39 yrs 0% Response rate: 2240-49 yrs 0%50-59 yrs 0% 16. Receive written outline of job duties?60 yrs and older 0% Yes 30%

Response rate: 23 No 70%Response rate: 23

2. EducationUp to gr. 8 complete 4% 17. Have meetings with employer to discuss work?Up to gr. 10 complete 17% Yes 78%Up to gr. 12 complete 48% No 22%College diploma complete 22% Response rate: 23University degree complete 9%Other 0% 18. What helps in making any job appealing?

Response rate: 23 Good working conditions 14%Appreciation for work done 10%

3. Gender Pay 24%Male 87% Feel involved in operation 14%Female 13% Number of hours worked 2%

Response rate: 23 Room for advancement 0%Job security 7%

4. # of people supported A job that is interesting 17%Average 1.9 Training opportunities 0%

Response rate: 17 Relationship with manager/supervisor 7%Relationship with other employees 5%

5. Where grew up Other 0%On a farm 50% Response rate: 42Rural non-farm 18%Town/city 32% 19. What improvements could be made in job?

Response rate: 22 Appreciation for work done 14%Number of hours worked 16%

6. Pig production at farm location Pay 16%Farrow to finish 48% Working conditions 7%Farrow to early wean 48% Ability to advance in farm operation 5%Nursery 0% Employees can give input 0%Finishing 4% Job security 2%Other 0% Training opportunities 14%

Response rate: 23 Job that is interesting 5%Relationship with manager/supervisor 5%

7. How long worked for this farm? Relationship with other employees 7%<1 yr 19% Other 9%1-2 years 14% Response rate: 433-5 years 24%6-10 years 38% 20. How learned about job opening?11-15 years 5% Newspaper advertisement 28%>15 years 0% High school placement 0%

Response rate: 21 College or University placement 4%Someone told me about it 44%

8. How long worked on swine farms in total? Other 24%<1 yr 5% Response rate: 251-2 years 18%3-5 years 14% 21. Did you have an interview?6-10 years 45% Yes 65%11-15 years 18% No 35%>15 years 0% Response rate: 23

Response rate: 22 If yes, how long did it last?Average 48.5

9. How many other swine farms have you worked for? Response rate: 15Average 1.4

Response rate: 22 22. How well were position/duties described?Well 70%

10. How many hours worked per day? Okay 22%Average 9.1 Not well 9%

Response rate: 23 Response rate: 23

11. How many days worked per week? 23. Why decide to work on swine farm?Average 5.8 Like working with pigs/animals 50%

Response rate: 22 Was all that could be found 9%Want to gain experience to have own farm 5%

12. How many weeks worked per year? Want to gain experience to work in industry 5%Average 50.8 Pay is good 5%

Response rate: 22 Flexible hours 0%Other 27%

13. How many weekends off per month? Response rate: 22Work every weekend 9%1 weekend off 4% 24. In 5 years, what will you be doing?2 weekends off 61% Be in same position 30%3 weekends off 17% Hope to receive promotion 26%Have every weekend off 9% Look for similar job with different operation 4%

Response rate: 23 Look for job with another operation that would be a promotion 0%

14. Does employer have incentive plan? Own my own farm 17%Yes 43% Look for job in other part of swine industry 4%No 57% Look for job in another industry 13%

Response rate: 23 Will retire 0%If yes, are you satisfied with incentive plan? Other 4%Yes 90% Response rate: 23No 10%

Response rate: 10 25. If plan to leave industry, what is main reason?If no, why not? Pay is not fair 18%Not realistic expectation 0% Long hours of work 0%Not rewarding enough 0% Want weekends off 29%Don't understand what is expected 0% Public has negative perception of industry 0%Requirements change frequently 100% Other 53%Other 0% Response rate: 17

Response rate: 1

Analysis: Age of Employee 30 to 39 years old1. Age 15. Have job title?






























Response rate: 1

Analysis: Age of Employee greater than 39 years old1. Age 15. Have job title?






























Response rate: 1

Analysis: Employee Education - up to grade 10 completed1. Age 15. Have job title?






























Response rate: 1

Analysis: Employee Education - up to grade 12 completed1. Age 15. Have job title?






























Response rate: 2

Analysis: Employee Education - college or university completed1. Age 15. Have job title?





























Response rate: 7 25. If plan to leave industry, what is main reason?If no, why not? Pay is not fair 36%Not realistic expectation #DIV/0! Long hours of work 7%Not rewarding enough #DIV/0! Want weekends off 14%Don't understand what is expected #DIV/0! Public has negative perception of industry 0%Requirements change frequently #DIV/0! Other 43%Other #DIV/0! Response rate: 14

Response rate: 0

Analysis: Employee From Farm Background1. Age 15. Have job title?






























Response rate: 3

Analysis: Employee From Rural Background1. Age 15. Have job title?






























Response rate: 1

Analysis: Employee From Town/City Background1. Age 15. Have job title?



2. EducationUp to gr. 8 complete 0% 17. Have meetings with employer to discuss work?Up to gr. 10 complete 11% Yes 80%Up to gr. 12 complete 67% No 20%College diploma complete 6% Response rate: 15University degree complete 11%Other 6% 18. W hat helps in making any job appealing?






5. Where grew up Other 0%On a farm 0% Response rate: 28Rural non-farm 0%Town/city 100% 19. W hat improvements could be made in job?


6. Pig production at farm location Pay 26%Farrow to finish 44% W orking conditions 7%Farrow to early wean 50% Ability to advance in farm operation 7%Nursery 0% Employees can give input 7%Finishing 6% Job security 0%Other 0% Training opportunities 15%







Response rate: 18 22. How well were position/duties described?W ell 38%












Response rate: 0

Analysis: Male Employees1. Age 15. Have job title?









5. W here grew up Other 0%On a farm 58% Response rate: 109Rural non-farm 18%Town/city 23% 19. What improvements could be made in job?




















Response rate: 22 25. If plan to leave industry, what is main reason?If no, why not? Pay is not fair 21%Not realistic expectation 0 Long hours of work 3%Not rewarding enough 0 Want weekends off 24%Don't understand what is expected 0 Public has negative perception of industry 3%Requirements change frequently 0.75 Other 50%Other 0.25 Response rate: 38

Response rate: 4

Analysis: Female Employees1. Age 15. Have job title?






























Response rate: 0

Analysis: Farm sales $500,000 to $1,999,9991. Age 12. Additional benefits General LabourSkilled LabourSupervisor

< 20 yrs 0% i) Medical 14% 7% 11%20-29 yrs 6% ii) Dental 7% 2% 12%30-39 yrs 19% iii) Disability insurance 10% 5% 11%40-49 yrs 42% iv) Life insurance 10% 7% 16%50-59 yrs 23% v) Housing provided 14% 17% 11%60 yrs and older 10% vi) Paid utilities (i.e hydro) 3% 10% 11%

Response rate: 31 vii) Vehicle provided 7% 12% 11%viii) Pork (or other food) 28% 29% 21%

2. Education Up to gr. 8 complete 3% ix) Other 7% 10% 11%Up to gr. 10 complete 3% Response rate: 29 41 19Uo to gr. 12 complete 40% x) Average $ amount/employee $1,371 $3,282 $4,250College diploma complete 17% Response rate: 7 11 4University degree complete 30%Other 7% 13. Do you offer an incentive plan? Yes 12% 33% 45%

Response rate: 30 No 88% 67% 55%Response rate: 17 24 11

3. Production TypeFarrow to finish 75% 14. Turnover $ Average Response rateFarrow to early wean 18% a) Exit interview 157 10Nursery 0% b) Record keeping due to employee exit 108 11Finishing 7% c) Advertising job opening 150 13

Response rate: 28 d) Pre-employment record keeping 127 12e) Selection interview 261 11

4. Business Arrangement f) Pre-employment tests 179 7Sole Proprietorship 0% g) Meetings to discuss candidates 290 12Partnership 10% h) Time spent notifying unsucessful candidates 109 14Family Corporation 53% i) Cost of booklets, manuals 167 10Business Corporation 37% j) Educational seminars, workshops 243 11Other 0% k) New employee's salary while at workshops 310 10

Response rate: 30 l) Salaries of new hire and trainer while training 1,388 13m) Average beginning salary 26,208 11

5. Sales <$499,999 0% n) Average # days to become fully productive 70 20$500,000 - $999,999 29%$1 million - $1,999,999 71%$2 million - $2,999,999 0% 15. Do you give a written job description? Yes 33%$3,000,000 and more 0% No 67%


6. Average # years hiring full-time 13.7 16. Do you give employees job titles? Yes, all have titles 14%Response rate: 30 None have titles 59%

Some have titles 28%7. Average # full-time positions 2.2 Response rate: 29

Response rate: 3017. Do you conduct performance reviews? Yes 73%

8. Average # employees quit 0.9 No 27%Response rate: 30 Response rate: 30

9. Average # employees fired 0.4 18. Areas that you could improve upon. % ResponsesResponse rate: 30 i) Appreciation for work done 28%

ii) Number of hours worked 10%General LabourSkilled LabourSupervisor iii) Compensation (salary, benefits) 16%

10 i) Average starting wage rate 9.98 12.90 16.00 iv) Working conditions (health, safety) 3%Response rate: 22 25 11 v) Ability to promote employees in farm op'n 3%

vi) Allowing employees to provide input 2%10 ii) Average days to first pay raise 150 186 194 vii) Job security 2%

Response rate: 18 20 8 viii) Training opportunities 12%ix) Job that is interesting/satisfying 12%

10 iii) Average current wage rate 10.76 15.27 19.31 x) Relationship with employees 12%Response rate: 19 22 9 xi) Other 0%

Response rate: 5811 i) Average # hrs/day 8.3 8.5 8.4

Response rate: 17 25 11 19. What makes a job appealing. % Responsesi) Working conditions 7%

11 ii) Average # days/wk 5.4 5.6 5.6 ii) Appreciation for work done 14%Response rate: 18 25 11 iii) Compensation (salary, benefits) 19%

iv) Feel involved in operation, can give input 20%11 iii) Average # weekends off/month 2.4 2.1 2.0 v) Number of hours worked 0%

Response rate: 16 22 10 vi) Room for promotion in farm operation 0%vii) Job security 5%

11 iv) Average # statutory holidays off 5.8 5.3 5.5 viii) A job that is interesting/satisfying 17%Response rate: 17 23 11 ix) Training opportunities 0%

x) Relationship with manager/supervisor 12%11 v) Is there a plan for sick leave? xi) Relationship with other employees 7%

Yes 6% 8% 9% xii) Other 0%No 94% 92% 91% Response rate: 59

Response rate: 18 25 11If yes, average # paid 0 2.5 #DIV/0!

Response rate: 1 2 0

11vi) Average # paid vacation days 10.5 12.6 12.7Response rate: 10 17 9

20. Methods used to advertise job openings. % Responses

Newspaper advertisment 44%Word of mouth 48%

High school placement 0%College placement 0%

University placement 0%Other 8%

Response rate: 50Of the methods, which is most useful? % Responses

Newspaper advertisment 25%Word of mouth 56%

High school placement 0%College placement 0%

University placement 0%Other 19%

Response rate: 16

21. Importance of family and non-family labour sources.Full-time Part-time Other

Family Very important 55% 57% 38%Not important 45% 43% 62%

Response rate: 20 23 13Non-family Very important 89% 67% 44%

Not important 11% 33% 56%Response rate: 27 21 9

22. Average # applications received for last vacancy 9.6Response rate: 25

Average # from qualified applicants 2.3Response rate: 22

23. Did you conduct an interview?Yes 86%No 14%

Response rate: 28If yes, average length of interview 48.3

Response rate: 24

24. How well did you explain position and duties?W ell 81%Okay 15%Not well 4%

Response rate: 27

25. Average # weeks to fill last full-time position 3.0Response rate: 27

26. Do you ask for references?Yes, always 78%No, never 15%Sometimes 7%

Response rate: 27

27. Do you check references?Yes, always 44%No, never 15%Sometimes 41%

Response rate: 27

28. Average # of family members working on farmFull-time 1.7

Response rate: 20Part-time 1.6

Response rate: 21

29. Would like to receive results?Yes 97%No 3%

Response rate: 29

Analysis: Farm sales $2 million +1. Age 12. Additional benefits General LabourSkilled LabourSupervisor

< 20 yrs 0% i) Medical 17% 13% 11%20-29 yrs 0% ii) Dental 12% 9% 12%30-39 yrs 6% iii) Disability insurance 14% 11% 9%40-49 yrs 56% iv) Life insurance 12% 9% 7%50-59 yrs 33% v) Housing provided 10% 13% 16%60 yrs and older 6% vi) Paid utilities (i.e hydro) 7% 7% 13%

Response rate: 18 vii) Vehicle provided 2% 7% 11%viii) Pork (or other food) 17% 20% 18%

2. Education Up to gr. 8 complete 6% ix) Other 7% 7% 5%Up to gr. 10 complete 0% Response rate: 42 54 55Uo to gr. 12 complete 6% x) Average $ amount/employee $3,300 $7,329 $7,320College diploma complete 59% Response rate: 5 7 5University degree complete 24%Other 6% 13. Do you offer an incentive plan? Yes 8% 25% 36%





Response rate: 17 l) Salaries of new hire and trainer while training 1,410 5m) Average beginning salary 27,891 4

5. Sales <$499,999 0% n) Average # days to become fully productive 70 11$500,000 - $999,999 0%$1 million - $1,999,999 0%$2 million - $2,999,999 39% 15. Do you give a written job description? Yes 47%$3,000,000 and more 61% No 53%


6. Average # years hiring full-time 19.0Response rate: 18 16. Do you give employees job titles? Yes, all have titles 35%

None have titles 24%7. Average # full-time positions 7.8 Some have titles 41%


8. Average # employees quit 4.8 17. Do you conduct performance reviews? Yes 82%Response rate: 16 No 18%

Response rate: 179. Average # employees fired 0.8

Response rate: 16 18. Areas that you could improve upon. % Responsesi) Appreciation for work done 31%

General LabourSkilled LabourSupervisor ii) Number of hours worked 6%10 i) Average starting wage rate 9.62 12.56 16.84 iii) Compensation (salary, benefits) 9%

Response rate: 14 18 12 iv) Working conditions (health, safety) 6%v) Ability to promote employees in farm op'n 13%

10 ii) Average days to first pay raise 102 112 149 vi) Allowing employees to provide input 9%Response rate: 12 13 10 vii) Job security 0%

viii) Training opportunities 13%10 iii) Average current wage rate 10.99 13.94 17.87 ix) Job that is interesting/satisfying 13%

Response rate: 10 15 11 x) Relationship with employees 0%xi) Other 0%

11 i) Average # hrs/day 8.4 8.3 8.9 Response rate: 32Response rate: 9 14 10

19. What makes a job appealing. % Responses11 ii) Average # days/wk 5.4 5.7 5.6 i) Working conditions 3%

Response rate: 9 14 9 ii) Appreciation for work done 21%iii) Compensation (salary, benefits) 15%

11 iii) Average # weekends off/month 2.6 2.4 2.3 iv) Feel involved in operation, can give input 18%Response rate: 12 16 12 v) Number of hours worked 3%

vi) Room for promotion in farm operation 0%11 iv) Average # statutory holidays off 6.2 6.6 6.1 vii) Job security 9%

Response rate: 11 14 11 viii) A job that is interesting/satisfying 15%ix) Training opportunities 0%

11 v) Is there a plan for sick leave? x) Relationship with manager/supervisor 9%Yes 27% 28% 38% xi) Relationship with other employees 6%No 73% 72% 62% xii) Other 3%

Response rate: 11 18 13 Response rate: 34If yes, average # paid 4 3.75 4



20. Methods used to advertise job openings. % ResponsesNewspaper advertisment 36%

W ord of mouth 36%High school placement 4%

College placement 9%University placement 7%

Other 9%Response rate: 45

Of the methods, which is most useful? % ResponsesNewspaper advertisment 25%












Response rate: 16


Response rate: 16



Response rate: 16


Response rate: 16



Response rate: 8

29. W ould like to receive results?Yes 100%No 0%

Response rate: 14

Analysis: Turnover 0% and employee responses received - Employer Survey Results1. Age < 20 yrs 0% 12. Additional benefits General Labour Skilled Labour Supervisor

20-29 yrs 0% i) Medical 25% 6% 10%30-39 yrs 25% ii) Dental 13% 3% 11%40-49 yrs 33% iii) Disability insurance 13% 6% 10%50-59 yrs 42% iv) Life insurance 13% 6% 20%60 yrs and older 0% v) Housing provided 13% 13% 10%

Response rate: 12 vi) Paid utilities (i.e hydro) 0% 16% 10%vii) Vehicle provided 0% 13% 10%

2. Education viii) Pork (or other food) 25% 29% 30%Up to gr. 8 complete 8% ix) Other 0% 6% 0%Up to gr. 10 complete 0% Response rate: 8 31 10Uo to gr. 12 complete 25% x) Average $ amount/employee $1,000 $4,025 $100College diploma complete 33% Response rate: 2 8 1University degree complete 17%Other 17% 13. Do you offer an incentive plan? Yes 0% 27% 0%


3. Production TypeFarrow to finish 73% 14. Turnover $ Average ResponsesFarrow to early wean 9% a) Exit interview 75 2Nursery 0% b) Record keeping due to employee exit 75 2Finishing 18% c) Advertising job opening 117 3



Response rate: 12 l) Salaries of new hire and trainer while training 800 3m) Average beginning salary 25,000 1

5. Sales <$499,999 0% n) Average # days to become fully productive 60 3$500,000 - $999,999 25%$1 million - $1,999,999 42% 15. Do you give a written job description? Yes 36%$2 million - $2,999,999 25% No 64%$3,000,000 and more 8% Response rate: 11

Response rate: 1216. Do you give employees job titles? Yes, all have titles 10%

6. Average # years hiring full-time 14.0 None have titles 60%Response rate: 11 Some have titles 30%

Response rate: 107. Average # full-time positions 3.1

Response rate: 12 17. Do you conduct performance reviews? Yes 55%No 45%

8. Average # employees quit 0.0 Response rate: 11Response rate: 12

18. Areas that you could improve upon. % Responses9. Average # employees fired 0.0 i) Appreciation for work done 29%

Response rate: 12 ii) Number of hours worked 8%iii) Compensation (salary, benefits) 17%

General Labour Skilled Labour Supervisor iv) Working conditions (health, safety) 4%10 i) Average starting wage rate 8.86 12.41 15.67 v) Ability to promote employees in farm op'n 13%

Response rate: 7 11 3 vi) Allowing employees to provide input 4%vii) Job security 0%

10 ii) Average days to first pay raise 100 207 135 viii) Training opportunities 0%Response rate: 6 7 2 ix) Job that is interesting/satisfying 17%

x) Relationship with employees 8%10 iii) Average current wage rate 10.10 15.21 18.25 xi) Other 0%

Response rate: 5 9 4 Response rate: 24

11 i) Average # hrs/day 8.3 8.3 8.4 19. What makes a job appealing. % ResponsesResponse rate: 4 11 4 i) Working conditions 0%

ii) Appreciation for work done 25%11 ii) Average # days/wk 5.5 5.4 5.6 iii) Compensation (salary, benefits) 17%

Response rate: 4 11 4 iv) Feel involved in operation, can give input 13%v) Number of hours worked 0%

11 iii) Average # weekends off/month 3.2 2.2 2.5 vi) Room for promotion in farm operation 0%Response rate: 3 10 4 vii) Job security 13%

viii) A job that is interesting/satisfying 13%11 iv) Average # statutory holidays off 7.3 6.3 4.3 ix) Training opportunities 0%

Response rate: 4 10 4 x) Relationship with manager/supervisor 13%xi) Relationship with other employees 4%

11 v) Is there a plan for sick leave? xii) Other 4%Yes 0% 18% 0% Response rate: 24No 100% 82% 100%

Response rate: 4 11 4If yes, average # paid #DIV/0! 2.5 #DIV/0!



















Response rate: 10


Response rate: 11



Response rate: 11


Response rate: 11



Response rate: 6


Response rate: 12

Analysis: Turnover >70% and employee responses received - Employer Survey Results1. Age < 20 yrs 0% 12. Additional benefits General Labour Skilled Labour Supervisor

20-29 yrs 0% i) Medical 19% 15% 16%30-39 yrs 9% ii) Dental 14% 12% 19%40-49 yrs 64% iii) Disability insurance 14% 12% 16%50-59 yrs 18% iv) Life insurance 19% 15% 16%60 yrs and older 9% v) Housing provided 10% 12% 5%

Response rate: 11 vi) Paid utilities (i.e hydro) 5% 4% 11%vii) Vehicle provided 0% 8% 5%

2. Education viii) Pork (or other food) 10% 12% 5%Up to gr. 8 complete 0% ix) Other 5% 8% 11%Up to gr. 10 complete 0% Response rate: 21 26 19Uo to gr. 12 complete 30% x) Average $ amount/employee $2,625 $4,067 $4,200College diploma complete 40% Response rate: 4 6 3University degree complete 20%Other 10% 13. Do you offer an incentive plan? Yes 0% 30% 20%





Response rate: 10 l) Salaries of new hire and trainer while training 819 7m) Average beginning salary 29,000 2

5. Sales <$499,999 9% n) Average # days to become fully productive 79 11$500,000 - $999,999 9%$1 million - $1,999,999 45% 15. Do you give a written job description? Yes 55%$2 million - $2,999,999 18% No 45%$3,000,000 and more 18% Response rate: 11

Response rate: 1116. Do you give employees job titles? Yes, all have titles 40%

6. Average # years hiring full-time 13.0 None have titles 40%Response rate: 10 Some have titles 20%

Response rate: 107. Average # full-time positions 4.3

Response rate: 10 17. Do you conduct performance reviews? Yes 82%No 18%

8. Average # employees quit 6.5 Response rate: 11Response rate: 10

18. Areas that you could improve upon. % Responses9. Average # employees fired 1.5 i) Appreciation for work done 22%

Response rate: 10 ii) Number of hours worked 28%iii) Compensation (salary, benefits) 11%

General Labour Skilled Labour Supervisor iv) Working conditions (health, safety) 11%10 i) Average starting wage rate 9.64 13.11 17.19 v) Ability to promote employees in farm op'n 6%

Response rate: 7 10 5 vi) Allowing employees to provide input 0%vii) Job security 0%

10 ii) Average days to first pay raise 122 115 117 viii) Training opportunities 6%Response rate: 7 10 5 ix) Job that is interesting/satisfying 6%

x) Relationship with employees 11%10 iii) Average current wage rate 10.08 14.61 16.75 xi) Other 0%

Response rate: 6 8 4 Response rate: 18

11 i) Average # hrs/day 8.6 8.6 8.5 19. What makes a job appealing. % ResponsesResponse rate: 4 8 3 i) Working conditions 10%

ii) Appreciation for work done 15%11 ii) Average # days/wk 5.2 6.0 5.8 iii) Compensation (salary, benefits) 20%

Response rate: 5 8 3 iv) Feel involved in operation, can give input 25%v) Number of hours worked 5%

11 iii) Average # weekends off/month 2.0 2.1 2.0 vi) Room for promotion in farm operation 0%Response rate: 7 10 5 vii) Job security 10%

viii) A job that is interesting/satisfying 5%11 iv) Average # statutory holidays off 6.5 5.3 6.8 ix) Training opportunities 0%

Response rate: 6 9 5 x) Relationship with manager/supervisor 10%xi) Relationship with other employees 0%

11 v) Is there a plan for sick leave? xii) Other 0%Yes 43% 27% 40% Response rate: 20No 57% 73% 60%

Response rate: 7 11 5If yes, average # paid 3 3 6




Word of mouth 38%High school placement 4%




Word of mouth 0%High school placement 0%











Response rate: 10

24. How well did you explain position and duties?Well 100%Okay 0%Not well 0%

Response rate: 10



Response rate: 10


Response rate: 10



Response rate: 8


Response rate: 9

Analysis: Turnover 0% and employer responses received - Employee Survey Results1. Age 15. Have job title?






























Response rate: 4

Analysis: Turnover >70% and employer responses received - Employee Survey Results1. Age 15. Have job title?




















Response rate: 16 Response rate: 1711. How many days worked per week? 23. Why decide to work on swine farm?

Average 5.6 Like working with pigs/animals 47%Response rate: 15 Was all that could be found 18%

Want to gain experience to have own farm 6%12. How many weeks worked per year? Want to gain experience to work in industry 0%

Average 50.6 Pay is good 6%Response rate: 15 Flexible hours 6%

Other 18%13. How many weekends off per month? Response rate: 17

Work every weekend 6%1 weekend off 18% 24. In 5 years, what will you be doing?2 weekends off 47% Be in same position 50%3 weekends off 18% Hope to receive promotion 6%Have every weekend off 12% Look for similar job with different operation 0%





Response rate: 0



APPENDIX B

RESULTS OF STATISTICAL ANALYSIS



Statistical AnalysisDescriptive Statistics

Variable n Min Max

Mean

(Average)

Standard

Deviation

Years hiring non-family labour 52 0.5 45 15.32 10.11

Number of full-time non-family positions 50 1 18 4.00 3.97

General labour - average wage 31 $8 $14 $10.82 $1.56

- hours/day 28 6.6 9.5 8.31 1.69

- days/week 29 3 6 5.39 1.13

- statutory holidays off 30 0 9 6.03 3.01

- paid vacation days off 22 5 15 10.91 3.57

- value of benefits 14 $100 $7,700 $1,904 $2,025

Skilled labour - average wage 40 $10.50 $20 $14.68 $2.18

- hours/day 44 6 10.5 8.43 1.57

- days/week 44 4 7 5.55 0.96




Supervisor/Manager - average wage 21 $13 $30 $18.64 $3.46

- hours/day 22 7.5 10 8.59 1.86

- days/week 21 5 6 5.57 1.22






Regression B1

Dependent Variable: Wage ($/hr) for Skilled Labour


Constant 13.35 3.91




Turnover rate -1.04* 0.60

Performance review -2.66**** 0.93

Length of time to fill position 0.01 0.06

Sales < $500,000 -7.14**** 2.12

Sales $500,000 - $1 million 1.62 1.14

Sales $2 million - $3 million -2.61* 1.42


**** significance level at 1%, * significance level at 10%Adjusted R2 = 0.57 Number of Observations = 24

Regression B2



Constant 14.39 4.79




Turnover rate 0.06 0.98

Performance review -2.65*** 1.04



Sales < $500,000 -6.75*** 2.41

Sales $500,000 - $1 million 1.71 1.26


Sales > $3 million -1.86* 1.00

Education up to grade 8 0.83 1.78

Education college completed 1.36 1.58

Education university completed 0.53 1.21

Education other 0.78 1.71

*** significance level at 2%; * significance level at 10%Adjusted R2 = 0.50 Number of Observations = 23

Regression B3



Constant 14.66 3.96



Interview length 0.01 0.01

Turnover rate -0.58 0.71

Performance review -2.69*** 1.02

Sales < $500,000 -7.23**** 2.09

Sales $500,000 - $1 million 1.36 1.13

Sales $2 million - $3 million -2.72* 1.41


Age 50 to 59 years -0.15 0.95

Age 60 and older -1.77 1.59



**** significance level at 1%; *** significance level at 2%; * significance level at 10%Adjusted R2 = 0.58 Number of Observations = 24

Regression B4

Dependent Variable: Turnover


Constant -0.09 2.30

Wage ($/hr) for skilled labour -0.09 0.11

Hours/week worked 0.05* 0.03

Number paid vacation days -0.02 0.05

Interview length -0.001 0.005

Performance review 0.06 0.51

Sales < $500,000 -0.79 1.15

Sales $500,000 - $1 million 0.19 0.47



Age 50 to 59 years 0.21 0.37

Age 60 and older 1.05* 0.59

* significance level at 10%Adjusted R2 = 0.18 Number of Observations = 24



APPENDIX C

REFERENCES



REFERENCES

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the impact of labour variability on ontario swine farms · the report “the impact of labour...

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