Contract herdcare is a slightly different way of working compared to conventional direct employment, but the advantages can be considerable. Here, LKL regional contracts manager, James Picot, explains the benefits and answers some of the commonly asked questions posed by subcontractors considering this rewarding way of working.
LKL is not a new company. It was founded in 1951 and has, since then, been solely involved in contract herdcare on a nationwide basis. There are now over 300 self-employed herdspersons subcontracted to the company on a nationwide basis, working according to a formula that has been tried and tested for over 50 years.
Yes, and this also means that you are effectively your own boss! Taking the plunge and going self-employed is often seen as an obstacle, but it has a number of benefits that should not be overlooked. In general terms, you'll have higher levels of responsibility than you would in conventional direct employment. You also have more of an active role in the day-to-day herd management decisions and the freedom to organise your duties in the way you want to. You'll still have to fulfil the farm policy, but you'll get a lot more satisfaction if more of the decisions are yours.
It is up to each individual. Some prefer to look after their own tax affairs while others choose to use the services of an accountant. You'll have to complete an annual self assessment tax return, but so do many conventionally employed people nowadays. LKL simplifies the overall process for you with self-billing invoices. LKL can also recommend specialist accountants for you.
Most herdspeople say they earn more money on a contract than if they were in direct employment. This is achievable because there are more work-related expenses (such as all your work clothing) against which tax can be offset. A typical example for a person earning a gross salary of £22,000 per annum would be as follows:
With conventional employment, the monthly take-home pay after all deductions will be approximately £1,384. A self-employed person with the same gross income and a non-working partner will receive a monthly amount without any deductions made. After setting aside an amount for tax and national insurance, they will have the equivalent of £1,525 per month.
There are many important elements in the LKL package that support contract herdspeople:
Successfully managing a 100-cow herd is one thing, but doing the same on a 300-cow unit, with a team of three people is another. As part of LKL's package for its staff, and to help develop their careers within the industry, the company runs a 'Leadership Skills and Man Management' course.
The three-day course, which is spread over three months, is offered free of charge to any LKL herdsmen who feels they would gain from the experience. There are specific modules within it to cover some of the subject areas associated with running a larger herd and multi-man team.
For example, the leadership and motivation day looks at leadership styles, decision-making, delegating and what motivates and de-motivates people. The second day looks in depth at effective communication covering subjects such as assertiveness, your questioning and listening skills and how to engender respect in a team.
The third and final day focuses on team building and aims to equip delegates to define the kind of team they want and then to work towards achieving that by understanding the dynamics of a team, how successful teams work and how to develop trust.
LKL herdspeople who have attended the course have found it very useful for furthering their career within the industry. This is just one of the courses on offer to LKL herdspeople. Interested to find out more? Contact our regional staff, or the office in Salisbury.
Find your next farm job through LKL. Our network of field-based managers, supported by a small team of specialists based at our Salisbury headquarters, are responsible for maintaining regular contact with farm owners and managers.