The most common and most likely answer to this crossword clue is the 7 letter word COWHAND
I've seen this crossword clue in The Daily Telegraph
C
O
W
H
A
N
D
Buddy explains!
The straight part
We know that "Ranch employee" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case ranch employee = cowhand.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does COWHAND mean?
COWHAND noun- One who tends free-range cattle, especially in the American West.