Compensate Fairly
Fairness of compensation matters more than level of compensation in building a positive
reputation as an employer. The fairness of compensation depends on both external equity
and internal equity. Farm employers and their employees measure external equity by
comparing on farm pay with what employees could be earning elsewhere in the
community given their abilities and experience. The comparisons should include other
farm jobs plus jobs outside agriculture.
Internal equity measurers how one employee compensation compares to that of others
within the farm who are doing work with similar value to the organization. Paying only
on the basis of how long a person has worked on the farm can cause the most valuable
employees to earn less than a long-term average worker.