Redesigning Harvesting Processes andImproving Working Conditions in Agribusiness

We collaborate with a leading mushroom producer in North America to investigate the potential benefits of redesigning agribusiness operations, specifically, harvesting processes, to enhance both firm performance and working conditions of employees. We consider two harvesting protocols: The dominant status-quo practice, namely Harvest-all and an alternative, namely Selective Harvesting. In the Harvest-all protocol, workers pick all crop units in the areas assigned to them, regardless of the crops’ size and maturity, resulting in higher productivity but lower average value (quality) of the harvested produce. Workers also remain in demanding physical postures for longer periods of time, resulting in ergonomic stress. In contrast, under the Selective Harvesting protocol, workers take multiple rounds to completely harvest the assigned area, picking in each round only the select crop units that are near their peak monetary value. This results in lower productivity but higher average quality of the harvested produce and better ergonomic conditions. We develop mathematical models to analyze the two harvesting protocols, provide a complete analytical characterization of the optimal managerial decisions under each protocol, and examine how these decisions are influenced by relevant contextual factors. In addition, we characterize the performance of each harvesting protocol along three key performance metrics of interest: Firm profitability, worker monetary welfare, and worker ergonomic welfare. Using both analytical and calibrated numerical methods we show that adopting Selective Harvesting over Harvest-all can create win–win scenarios where both the firm and workers are better off. However, our analysis reveals that the firm’s and workers’ interests may not always be fully aligned. We subsequently demonstrate that the misalignment can be reduced by making adjustments to the compensation structure so that workers’ earnings match the maximum potential value while having minimal impact on firm profitability. Our models illustrate the benefits of careful process redesign in creating better working conditions for employees and advancing firms’ social responsibility practices.