Purdue Pork Page Archive

Risk Awareness Checklist: Human Resources Risk

1. Do you perform background checks before hiring new employees? Yes or No

Question 1: The correct answer is Yes.
Background checks are an important part of the hiring process. Calling the listed references and prior employers of a potential employee can help you find out what kind of worker he/she will be and prevent you from making poor and costly hiring decisions.

2. Do you complete performance appraisals at regular intervals (6 mo.-1 yr)? Yes or No

Question 2: The correct answer is Yes.
Conducting performance appraisals with your employees gives you a chance to correct any poor performance on your employee's part, while complimenting good performance. It also reduces the risk of a lawsuit from terminated employees.

3. Do you offer competitive wages to your employees? Yes or No

Question 3: The correct answer is Yes.
Offering competitive wages ensures that you are drawing high-quality workers, and giving them an incentive to work hard for you.

4. Do you provide health benefits to all full-time employees? Yes or No

Question 4: The correct answer is Yes.
If you are not providing health benefits to full-time employees, you may be losing quality workers who have found jobs elsewhere that offer health insurance. In many areas, farms compete with light industry for quality employees. These other employers typically provide health benefits.

5. Do you provide retirement benefits for management? Yes or No

Question 5: The correct answer is Yes.
Providing retirement benefits to farm managers gives them incentive to stay with your farm and work hard towards their retirement.

6. Do you provide incentives for good performance? Yes or No

Question 6: The correct answer is Yes.
Providing monetary incentives for good performance inspires your employees to work harder and more efficiently, and reduces poor behavior and attitudes. Some farms have even used limited ownership in the business to instill pride and give employees an incentive to perform well.

7. Do you provide proper job training to all employees? Yes or No

Question 7: The correct answer is Yes.
If you do not properly train all employees, they may perform their new job inefficiently or incorrectly, costing you more than training would have.

8. Do you provide safety training to all employees? Yes or No

Question 8: The correct answer is Yes.
Providing safety training to all employees reduces the risk of workers compensation claims, lost working time, or a lawsuit against your farm.

9. Do you educate and include your employees in your risk management strategies? Yes or No

Question 9: The correct answer is Yes.
Educating employees in your risk management strategies will enable them to work with you toward reducing risk on your farm. Without the help of your employees, it will be difficult for you to reduce risk in some areas of the farm business.

10. Have you shared your goals with everyone involved in the business, and have they shared their goals with you? Yes or No

Question 10: The correct answer is Yes.
Goal-setting and sharing can create an atmosphere of teamwork, where everyone is working toward a common goal. Employees can also help each other work toward their individual goals. Without clear articulation of what you and your employees expect from a position, there will likely be unmet expectations that lead eventually to conflict.

11. Do you provide a safe and attractive work environment? Yes or No

Question 11: The correct answer is Yes.
If the work place is more attractive to the employees, they will enjoy their work more, and become better, more efficient workers. It is also important that they feel safe in their working environment.

12. Do you have regular staff meetings to discuss work plans and other issues? Yes or No

Question 12: The correct answer is Yes.
Holding staff meetings can improve communication between workers and managers and improve efficiency on the farm when work is planned. Such meetings may also expose problems in operations that would otherwise go unnoticed by managers.

13. Have you developed job descriptions for all full-time positions? Yes or No

Question 13: The correct answer is Yes.
Each full-time position should have a detailed job description. This defines the responsibilities of the employee and minimizes job dissatisfaction.

14. Would you work for yourself? Yes or No

Question 14: The correct answer is Yes.
If you treat your employees the way you would want to be treated, and provide them with a work environment that you would want to work in, employees will be happier, more efficient, and loyal to your business.


Production Risk | Marketing Risk | Financial Risk | Legal Risk | Human Resources Risk