Deciding on Terms and Conditions

It is important to define the terms and conditions for the role. These include pay rates and rosters:

Pay Rates

A question that often gets asked is “What should I be paying for this job?” It’s a complex question and depends on factors such as:

• The requirements of the job
• The value of the job to the business
• The remuneration policy of the farm
• Other benefits that offset remuneration, e.g. training
• Current market rates as a result of the supply and demand of staff.

Job sizing is the process that determines the value of a job by comparing it to other jobs on farms and other similar jobs. Unfortunately this sort of information can be hard to find as people do not readily share wage or salary details. Some employment agencies can provide this information, for a fee, due to the number of staff they deal with.

Other ways to get a feel for the market value of a role include:

• Join Federated Farmers of New Zealand which has an annual wages survey it makes available to its members.
• Call other employers about similar roles.
• Ask employers about their expectations as they will have a reasonable idea of the market.

Total package values

Both employers and employees must understand exactly what value the remuneration package holds, otherwise additional value above cash salary is not recognised and is unappreciated. For this reason, it is useful to talk in terms of total package values (TPV). This is the total value of the remuneration package when all components are taken into consideration, including housing and other taxable allowances.

Using TPV will also help employers meet their legal obligations in terms of taxing employees correctly for perks and bonuses associated with their remuneration package.

• For more information:  Fact Sheet: Remuneration Strategies  View PDF (51kb)

Rosters

Rosters are typically used for two purposes – scheduling time off for staff and employers; scheduling work tasks for individual staff members. Good rosters are planned in advance so staff can plan time off, are simple, easy to follow and also have flexibility to support the people involved in the business.

The question of what is a standard roster is also frequently asked. Evidence suggests that 80% of the industry is providing at least every second weekend off for staff with 40% of employers providing better than this.

To be competitive you have to be providing AT LEAST every second weekend off!

• For more information:  Fact Sheet: Rostering Systems View PDF (51kb)