Managing Pay for Agricultural Employees

Can you give me some tips on managing pay for agricultural employees?

There are several approaches you could use or think about to help you manage pay rates or scales for your employees.  They are*:

1. Basis.  The use of time, output, or a combination of both to determine pay.
2. External equity.  Evaluation of pay in relationship to the local market.
3. Internal equity.  Evaluation of pay with respect to differences between jobs.
4. Individual wage determination within job.  Evaluation of pay by range or location of job.
5. Indirect compensation.  Other benefits that may be included in pay.
6. Communication of pay structure.  How pay rates or scales are communicated to employees.

Information that can be used to help or guide choices to determine pay include the following*:

1. Intuition.  Personal knowledge or insights.
2. Empiricism.  Information from observations or experience.
3. Government statistics.  State or national statistical services have information on pay structures for agricultural employees.
4. Informal surveys.  Information gathered from other farmers, or others working in agriculture.
5. Structured surveys.  Surveys that are conducted periodically by researchers and agricultural related associations.

For additional information please contact us at our local office.  Laura Tourte, County Director and Farm Advisor.

* Source: Howard Rosenberg, UC Cooperative Extension Specialist, UC Berkeley.