Each year, dozens of young South Australians leave school and begin their family farming careers, some excited by the prospects and others doing so as an easy option.
Most will not have had to apply for the job nor go through an interview process, so they are gifted a position and do not realise how lucky they are to step straight into employment.
Family farming is quite different to many other industries, so it is important that certain things are done at the time a son or daughter enters the business.
One of the first tasks that should be done is to draw up a job description so the new employee is very clear on their role and responsibilities from day one. At each six-monthly review, the job description is changed to allow the employee to progress in the business.
The next important task is to draw up a five-year development plan that allows everyone in the business to see where they are headed.
High on the list of priorities should be training and development - often this needs to take place off-farm.
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If certain milestones are achieved then leasing or share-farming could be considered in the back end of the first five years. The sooner the young ones have some "skin in the game", the better.
If this path is taken then some borrowing of money is involved, requiring the acquisition of some basic business management knowledge and skills. There is nothing like debt to get people out of bed in the morning.
While it cannot be part of the responsibilities of employment, discussion should take place on how the new employee will contribute to his or her community. This allows the development of social skills and having a good community around you makes for a better life.
Living and working together can test relationships and gaining space from each other should be a priority. Renting a nearby house can be a means of preserving relationships and allowing the young ones the freedom to develop their own lifestyle.
If they continue to live in the family home then some critical understanding should be mapped out.
The payment of board should be mandatory, and some contribution to domestic chores is non-negotiable in my opinion.
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The new employee should not require a wake-up call in the morning. If the young one cannot front up on their own accord, then the question should be asked, "How keen are they on the job?"
One of the biggest issues I was confronted with in my consulting career was unresolved disputes. There were many situations where parent and child should never have been allowed to work together.
The five-year plan should have a method laid out for how conflict is to be resolved.
Every time a new member enters the family business, the business balance sheet should be updated.
This will be a critical reference point when it comes to equity and fairness in future succession plans.
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