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This year we once again conducted the annual ranch hand wage survey. This information was gathered during the months of November and December. It reflects the wages paid to ranch hands, who are not family members.
There were 13 employers who completed and returned the survey. Seven of the respondents indicated they had over 1,000 head of cattle, one ran 801-1,000 head, two ran 501-800 head and two had 300-500 head. These responses represent two ranch foremen, 21 full time general ranch hands and 30 part time ranch hands.
The length of employment for full time employees averaged 3 1/2 years. The range was from 3 months to 20 years. The average hours worked per week for the full time employees was 50 hours per week with a range of 40 to 60 hours per week. The full time ranch hands wages ranged from $1,700-$3,500/month with an average monthly cash salary of $2,130. The monthly wages for one foreman was just over $3,300 and the other was $2,000. The starting wage for full time employees ranged from $900/month to $2,000/month with most respondents’ starting wages ranging from $1,800-$2,000. Eight employers said they adjust wages annually, while two said they adjust wages twice per year. Three employers said adjustments are made to pay as needed.
The part time employees’ wages were reported as hourly, daily and monthly figures. Hourly wages ranged from $8-$15/hour. Daily wages ranged from $60-100/day and monthly wages ranged from $1,000-$2000. Day workers averaged $100/day, however there were some who paid day workers from $8-$12/hour. Day workers were hired to work cattle, put up hay, help with calving, branding, feeding and fencing.
All gave some form of bonus to both full time and part time employees. The bonuses ranged from $150-$5,000/year. The average annual bonus was $1,200. Most bonuses were given after haying and calving, although some were given at Christmas or year-end. Employers said that bonuses were determined based upon some of these criteria: quality of work, amount of effort put forth by the employee, profitability of the ranch, success rate of calving and the number of days the employee was absent during the year.
Vacation days for employees averaged 10 days/year. Three respondents offered ranch hands two weeks of vacation. One specified that the vacation time was paid. Five gave employees one week of vacation and one offered 10 days of vacation time. Three indicated that vacation time was given as needed. All offered sick days with 11 indicating sick days were allowed as needed. One gave 7 days and another 6 days of sick leave. The average number of holidays on which ranch hands got time off was 5. The number ranged from 1 holiday off to 8. Two employers said they gave their employees all holidays off. One indicated that any time an employee needed to be gone was accepted. One said that the employee was given one day/month off in addition to vacation time.
Employers placed an average value of $360/month on the housing provided to employees. Housing values ranged from $200-$500/month. Twelve employers provided utilities which ranged from a low of $40/month to a high of $450/month. The high figure included: water, sewer, propane, electricity and trash. The average value of utilities was $208/month. Nine employers provided employees with beef and/or groceries. The average annual value was $1,370. The range was from $200-$2300/year. One employer provided three meals per day for two full time employees. Five employers offered other benefits. Two provided gas with one placing a value of $1,200/year on the fuel. Others pay for all horse feed, provide a vehicle, and/or pay for cell phone, internet and tv.
Four employers provided some health insurance. The range in value was from $200-$1400/month. The majority placed the value of health insurance from $450-$550/month. In one case, the employer shared the cost of insurance equally with the employee. One provided insurance other than health, but did not specify what type of insurance. The value was $300/month. Two employers offered employees a retirement plan, which one valued at $3,800/year and the other $2,400/year. One offered profit sharing at a value ranging from $600-$1,200/year.
Eight respondents allowed their employees to run cattle. The number ranged from 1 to 60 head of cows. One specified that the ranch had allowed the employee to run 60 yearlings for six months. Most allowed employees from 1-10 head, however there were those who allowed 15 head, 20 head, 30 head and 60 head. The value placed on running cows mostly ranged from $300/head/year to $435/head/year. Twelve ranchers allowed employees to run horses. The average number of horses allowed was 3 head, but the numbers ranged from 1 to 12. The average value placed on running these horses was $300/horse/year. Twelve of the respondents allow employees to have pets. Four specified that pets are not allowed in the house. Two had restrictions on dogs. Pets allowed were: dogs, cats, horses and goats.
Eleven employers ask potential employees for an average of 3 references. All said they contact the references provided. Eight said they provide references to the applicant and two said they provide references if the potential employee asks for them. Two provided written job descriptions to employees.
Respondents said they have done a variety of non-monetary things to attract or retain employees. The most commonly named items were: allowing ranch hands to run cattle and/or horses, remodeling or updating the house and offering time off. Other things mentioned were: providing tickets and lodging for employees to attend rodeos or stock shows, gas, meat, roping cattle and hunting. Also listed was flexibility, allowing ranch hands to take their kids with them on the job, giving them independence and treating the employees with respect or like family.
When asked what skills they thought were essential for an employee to have and what expectations the employer had for employees, the ranchers most often listed: willingness to work and/or go the extra mile, cattle handling skills, ability to operate and/or maintain machinery and being honest. Following behind these were: being reliable or punctual; being a self-starter and being self-motivated; knowledge of animal health and nutrition; horse handling, riding and roping skills; taking instruction and attention to detail. Other skills or expectations mentioned were: time management and organization, positive attitude, ability to work independently and think for themselves, haying, building repair, teamwork, land husbandry, communication skills, being respectful, representing the company well, accountability and loyalty.
The top challenge employers said they have is finding qualified, skilled employees. Other challenges listed were: the length of time employees stayed, a job for the spouse or keeping the spouse satisfied, living in very rural areas, cost of health insurance, proximity to school, time off, workload, overuse of cell phone on the job, trust, liability, employee’s children, offering a competitive wage, work ethic and being satisfied with the employee they hire.
We want to thank all of those who responded to our survey. For more information please contact the Sandhills Cattle Association office. |