2013
Elevating the Image of Careers in the Swine Industry
BENCHMARKING COMPENSATION: A CRITICAL COMPONENT
By Erika Osmundson and Mary Barefoot, AgCareers.com
The swine industry is plagued with a negative stereotype that job opportunities are unrewarding and labor intensive. However, as industry professionals we know that this is untrue and that careers in the industry can be gratifying and encompass much more than most think.
Changing this perception is critical to the future success of the industry. The National Pork Board enlisted AgCareers.com to assist with a research project to help dispel this myth through a targeted survey outreach. AgCareers.com conducted ‘The Compensation and HR Practices for the Swine Industry’ survey from November to December 2011.
The survey was conducted to provide an accurate reflection of compensation and human resources practices that can be used by pork producers to help recruit talent and ensure that current practices are in line with the competition.
Two customized surveys were created for two specific target audiences. For the purpose of this survey, the ‘large operations’ audience represents farms with 25,000 or more sows in production. The second audience, ‘mid-size operations,’ represents producers of a significant size that employ full-time employees other than family members. Mid-size operations are defined as those operations with less than 25,000 sows in production or over 1,000 head finishing.
The following article provides key findings from the combined analysis in regards to the compensation portion of the report. Compensation information was only one of six areas discussed within the survey. The survey covered additional questions in areas such as, benefits, human resources management, recruiting, part-time staff, and safety. For a copy of the full 50-page report, which includes combined responses as well as an analysis of the large and mid-size responses, visit the Market Research page on AgCareers.com or the National Pork Board website, or email agcareers@agcareers.com.
CONTRIBUTOR PROFILE
Two hundred and fourteen U.S. pork producer organizations/operations participated in the Compensation and HR Practices survey. The customized large operations survey was completed by 23 operations. Within the customized mid-size operations survey, 191 producers participated. It is estimated that total survey response represented 46% of U.S. pork production.
COMPENSATION
To begin to evaluate actual pay within the swine industry, participants were asked to provide a baseline benchmark for overall compensation. This was done by asking for starting compensation ranges for a stockperson position, with both no experience and with five years of swine experience.
Overall, both types of operations paid similar hourly rates for stockpersons with no swine experience as well as with 5+ years of experience. When combining responses from both audiences, the starting wage for someone with no swine experience for this role ranged greatly with respondents making selections in each range provided from $7.50 or less to $15.51 and above. Fifty-one percent of organizations pay an hourly rate of $8.51 to $10.50 for someone with no experience.
SALARY OFFERINGS BY JOB TITLE
Participants were asked to select the salary range that best described the average annual salary or wage for typical roles within the organization. Large operations provided average salary/wage information on positions within five employee categories. These categories included farm positions, program and facility manager positions, program and facility specialist positions, program support positions, and senior management. Mid-size operations provided information on two employee categories, farm positions and program support positions.
The following tables represent the most prevalent salary range/hourly wage paid to each position in position categories reported on by both large and mid-sized organizations. The percent column lists the percentage of respondents indicating that range. For a complete look at all positions reported on by each target audience, review the full report.
INCENTIVE PLANS
Beyond average salary, participants were also asked about incentive/bonus plans. Most organizations had offered a bonus or incentive plan to farm employees during the last three years. When combining the two audiences, 62% of organizations responding offered a bonus. When looking at the two audiences separately, more large operations have a bonus plan for farm employees; 87% of the large operations and 59% of the mid-sized operations – a difference of 28%. This was one area within the survey that there was a significant difference between mid-size and large operations.
Bonus (incentive) plans were primarily based on performance measures for both audiences. Of all respondents of both surveys, 51% measured on pigs weaned/sow/year and 34% on financial benchmarks – i.e. profitability, revenue. Mid-size operations alone were similar with 48% using pigs weaned/sow/year and 36% using financial benchmarks. Large operations also used these measurement criteria, but included additional measurements – 65% pigs weaned/sow/year; 40% pigs farrowed/sow/year; 40% mortality rate (death loss); 30% farrowing rate; and 25% financial benchmarks.
CONCLUSION
One way that the industry can help to develop a plentiful pipeline of talent is to pay attention and benchmark their compensation plans amongst others within the industry sector as well as competing industry sectors. Often the skill sets we seek in an employee are the same skills that someone in another area of production agriculture or outside industry is looking for. If we are not competitive in regards to compensation, those talented job seekers will seek employment in one of those competitive fields.
This report provides a resource for the swine industry to benchmark salaries within the industry. Using this information, organizations large or mid-size can identify and play to their strengths and help to elevate any short comings. Beyond the salary information provided in the full report, there are other very beneficial insights on HR management practices, benefits, recruiting, part-time staff and safety that can assist with developing a compelling recruitment story. To request a copy of the full ‘The Compensation and HR Practices for the Swine Industry’ please email agcareers@agcareers.com.
LARGE AND MID-SIZE COMBINED RESPONSE OF THE MAJORITY RANGE FOR FARM POSITIONS.
(This includes responses for only those positions that were included for both large and mid-sized operations.)
RESPONSES BY LARGE AND MID-SIZED OPERATIONS FOR FARM POSITIONS.
(Those listed as N/A were not provided that particular role to report on.)
Note: positions with an asterisk (*) indicate that a broader range was reported.
COMBINED RESPONSE OF THE MAJORITY RANGE FOR PROGRAM SUPPORT POSITIONS.
(This includes responses for only those positions that were included for both large and mid-sized operations.) For the purpose of this survey, production support positions were defined as positions within the business that involve work other than direct pig care.
RESPONSES BY LARGE AND MID-SIZED OPERATIONS FOR FARM POSITIONS.
(Those listed as N/A were not provided that particular role to report on.)
Note: positions with an asterisk (*) indicate that a broader range was reported.
*Percentages do not total 100; respondents were allowed to select multiple responses. Results are calculated dividing the number of responses by respondents.