Reward, Recognition & Retention

Keeping good people is far cheaper than replacing them. This page covers how to retain employees, reward and recognise their contribution — financially and otherwise — and develop their skills. 

Retention: keeping good people 

The dairy industry competes with many sectors for skilled people. When good employees leave, the farm loses knowledge, experience and time, and replacements are costly and take time to reach full performance. With no large pool of skilled people waiting to step in, it makes sense to invest in those already on the farm, including family members. A retention strategy is simply the actions taken to encourage people to stay. 

People are more likely to stay when they: 

  • find the work interesting and challenging, 
  • feel they are paid and treated fairly, 
  • respect their manager and feel supported, 
  • feel valued by the team, 
  • have a reasonable work-life balance and chances to learn, 
  • trust that problems will be dealt with quickly and fairly, 
  • feel safe, and can see a future or career path on the farm. 

Often what first attracted people to the farm is what keeps them there. Small gestures help too — celebrating milestones, giving time off for important family or community events, acknowledging special occasions, praising good work regularly, and simple social activities. When people feel appreciated, they stay longer and contribute more. 

Farm scenario

When Gerard and Michelle took over a 1,000-cow farm, staff turnover was high and systems inconsistent. They introduced weekly team meetings, involved people in writing clear operating procedures, and built predictable routines. A couple of people chose to leave, but the remaining team became more efficient and engaged — with clearer roles, shared responsibility, and milestones acknowledged, people took pride in their work and wanted to stay.

Reward and recognition

People should be rewarded fairly for their contribution, and good recognition motivates, supports retention and shows people their work matters. Rewards are not only about pay. 

Financial rewards 

Pay rises should fit the farm's budget, align with business goals, and be fair compared with similar roles. People often compare total packages — salary, superannuation, accommodation, paid leave, training support and rosters — not just wages (see Pay and Conditions). Sometimes bonuses or one-off incentives work better than permanent rises; profit-sharing, performance bonuses or heifer-share arrangements can suit when appropriate. Automatic annual rises can gradually push wages beyond what the business can afford, so consider small cost-of-living adjustments kept separate from performance reviews. 

Tip

The key question for any reward: will it genuinely motivate this person?

Non-financial rewards 

People are motivated by different things, so don't assume everyone wants money or promotion. Some want to grow and build a career; others value security, learning, teamwork, recognition, or simply meaningful work. 

Useful non-financial options include: 

  • flexible work such as part-time, job-share or adjusted hours, 
  • training and development opportunities, 
  • a special project to lead, or more autonomy in how they work, 
  • temporary or permanent promotions and new responsibilities, 
  • social activities, health and wellbeing programs, and mentoring. 
Tip

Vary job tasks to keep people motivated. Routine work like milking has no clear 'finish point', while jobs such as fencing, pasture renovation or raising young stock feel more rewarding. Rotating tasks adds variety, builds skills and lifts motivation.

Skills development

Developing people's skills builds the business and helps retain good people — they are far more likely to stay when they feel supported, capable and valued. Training is an investment: it builds the skills the business needs, lifts morale, reduces turnover, accidents and absenteeism, and creates multi-skilled teams. For individuals, it means doing the job better and more safely, more confidence and satisfaction, progression, transferable skills, and adapting to change more easily. 

The Dairy Capability Guide helps plan skills development across the team and identify priorities (see Training and Development). The performance appraisal and the position description (see Defining the role) are the natural ways to identify what each person needs. 

When identifying training needs, ask: 

  • what this person contributes now, and what they (and the farm) want them to achieve next, 
  • whether they have the technical skills required — for example feed management, mastitis control, machinery maintenance, business or computer skills, 
  • whether they hold any required certificates (for example a chemical users certificate), and
  • whether personal skills — leadership, communication, conflict management — would help.

Plan for the role pathway too (for example assistant farm hand to supervisor to manager). A simple training plan should close the gap between current and required skills, covering what needs to be learned, why it matters, who is involved, and the timeframes and costs.

Choose the right way to train:

  • On-farm (learning by doing) — best for practical skills; explain how and why, use real 'what if' scenarios, give feedback and time to practise,
  • Coaching — builds habits and confidence and encourages people to use and extend skills they already have,
  • Extension programs — field days and discussion groups keep people up to date and connected,
  • Formal training (TAFE and RTOs) — for recognised qualifications and deeper technical knowledge.

Pitch training at the right level, then check whether it worked — was it clear and relevant, can the person use the skills confidently, and did quality, mistakes or productivity improve? Build development into appraisals, resource it, and connect it to career goals, so learning becomes normal farm practice.

Exit interviews

People leave jobs for many reasons, and understanding why helps improve retention. An exit interview gives a departing employee the chance to speak honestly about their experience — what is working well and where the farm could improve. 

When someone leaves, they may ask for a simple statement of employment (role and dates) or a reference describing their skills, performance and attitude. Any reference must be honest, balanced and not misleading — a fair reference helps both the former employee and their next employer make good decisions.

Common questions

Why does retaining staff matter on a dairy farm?

Losing good people costs knowledge, experience, time and money, and replacements take time to reach full performance. Retaining people protects productivity and helps the farm run smoothly. 

Do rewards have to be financial?

No. Flexible work, training, autonomy, special projects, recognition and mentoring can matter as much as pay. The key is to match the reward to what motivates each person. 

How can a farm plan training for its team?

Identify skill gaps through performance appraisals, the position description and the Dairy Capability Guide, then design a simple plan covering what to learn, why, who is involved, and the timeframes and costs. 

What is an exit interview for?

To understand why someone is leaving and learn what the farm could improve. It is also when a statement of employment or a reference may be arranged.