The Hidden Costs of Employee Turnover on a Dairy

Finding and keeping quality employees has become one of the greatest challenges today’s dairy operations face. As dairies continue to grow and adopt more advanced technologies, employees are no longer simply an added labor source, they are a critical component of animal care, milk quality, employee safety and overall farm profitability. While producers understand the immediate inconvenience of losing an employee, the true cost of employee turnover is often much greater than many realize. Employee turnover affects nearly every aspect of a dairy operation. The most obvious costs include time spent recruiting, hiring and training new employees. However, the hidden costs, such as reduced efficiency, inconsistent protocols, employee burnout, safety concerns and lower morale, can significantly impact long-term productivity and profitability.

Research has shown that labor management practices directly influence employee retention and overall dairy performance. A 2018 study found that employees who felt valued, properly trained and included in farm goals were more likely to remain employed and recommend the dairy as a place to work (Durst et al., 2018). Unfortunately, many dairies continue to experience high employee turnover Research has shown that labor management practices directly influence employee retention and overall dairy performance. A 2018 study found that employees who felt valued, properly trained and included in farm goals were more likely to remain employed and recommend the dairy as a place to work (Durst et al., 2018). Unfortunately, many dairies continue to experience high employee turnover.

One hidden cost of turnover is the disruption of consistency in protocols impacting animal performance. Dairy operations rely heavily on routines and adherence to farm protocols. When experienced employees leave, replacement workers often require weeks or months to become fully comfortable with milking procedures, calf feeding protocols, reproductive management and ration preparation. During this period, errors and inconsistencies are more likely to occur. Inconsistencies in milking routines can negatively affect milk quality and increase mastitis rates, while mistakes in calf care or health treatment protocols may contribute to higher morbidity and mortality.

Turnover also places additional stress on current employees and management teams. When a dairy is short-staffed, employees are often asked to work longer hours or take on additional responsibilities. Over time, this can lead to fatigue, frustration and burnout. Employees who feel overwhelmed may become disengaged or begin seeking employment elsewhere, creating a cycle of continued turnover. Another frequently overlooked consequence is workplace safety. Studies have demonstrated that inadequate training, communication barriers and lack of consistent supervision can increase the risk of workplace injuries on dairies (Moore et al., 2020). New employees unfamiliar with dairy protocols are generally at greater risk for injury, particularly if onboarding and safety training are rushed due to labor shortages.

Communication challenges can further complicate employee retention on dairies. Many large dairy operations employ a linguistically diverse workforce. Therefore, clear communication regarding expectations, protocols and goals is essential. Research evaluating employee management on large U.S. dairies found that employees often desired more feedback, clearer supervision, better recognition for their work and greater opportunities for learning (Hagevoort et al., 2013). Employees who feel disconnected from management or uncertain about expectations are less likely to remain longterm (Hagevoort et al., 2013). The financial impact of turnover can also be substantial. Beyond hiring expenses, dairies may experience reduced productivity as new employees learn systems and protocols. Human resource management research has shown that dairies implementing stronger employee management practices often achieve better productivity and profitability outcomes (Stup et al., 2006). Employees who understand farm goals, feel respected and receive consistent feedback are more likely to contribute positively to overall farm performance (Stup et al., 2006).

Fortunately, there are several practical strategies that dairies can implement to improve employee retention. One of the most effective is investing in employee training and development. Employees who receive proper onboarding, continuing education and opportunities for advancement are more likely to remain engaged in their work. Training should not only focus on technical skills, but also on communication, teamwork, safety and leadership development. Recognition also plays a major role in retention. Simple actions such as acknowledging strong performance, celebrating milestones and involving employees in problemsolving discussions can significantly improve workplace culture. Employees want to feel that their work matters and contributes to the success of the dairy. Additionally, establishing clear expectations and consistent management practices is critical. Employees perform best when protocols are standardized and supervisors communicate effectively. Providing bilingual training materials and ensuring supervisors are equipped with strong leadership skills can help bridge communication gaps and improve team unity.

As labor challenges continue across the dairy industry, retaining quality employees will become increasingly important. Employee turnover is not simply a human resources issue, it is an operational, financial and animal welfare concern. Dairies that prioritize employee engagement, communication, safety and professional development are more likely to build stable, productive teams that contribute to long-term success. Employees are one of a dairy’s most valuable assets. Investing in people is not an added expense, it is an investment in the future sustainability and profitability of the operation.

References

• Durst, P. T., Moore, S. J., Ritter, C., & Barkema, H. W. (2018). Evaluation by employees of employee management on large US dairy farms. Journal of Dairy Science, 101(8), 7450–7462.

• Moore, S. J., Durst, P. T., Ritter, C., Nobrega, D. B., & Barkema, H. W. (2020). Effects of employer management on employee recruitment, satisfaction, engagement, and retention on large US dairy farms. Journal of Dairy Science, 103(9), 8482–8493.

• Hagevoort, G. R., Douphrate, D. I., & Reynolds, S. J. (2013). A review of health and safety leadership and managerial practices on modern dairy farms. Journal of Agromedicine, 18(3), 265–273.

• Stup, R. E., Hyde, J., & Holden, L. A. (2006). Relationships between selected human resource management practices and dairy farm performance. Journal of Dairy Science, 89(3), 1116–1120.