Let’s Measure Labor Expenses

As I gaze into the future of the agricultural workforce a few things are becoming clearer. Ag employees of all kinds are going to be harder to find and more expensive than ever before. What can ag employers do?

First things first, for too long labor has been a poorly managed expense category, especially for farms. Every year in benchmarking and other financial summaries, managers and their advisors look at labor expense, wonder why it’s so high, and move on. Why do they just move on? Because they don’t have a good way to allocate labor expense in their records so they don’t know how it was used. If you can’t measure it, you can’t manage it!

I’m working with my tech savvy clients to fix this. We’re putting human resource software in place to properly, and nearly automatically, allocate labor and management time throughout the business. We’re starting to measure and we’re going to manage better.

If you’d like to learn more and possibly collaborate…contact me:  (570) 939-5081 or RichStup@gmail.com.

© 2017 Richard Stup

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