The month of May appears to have been the turning point for recruitment companies as many are now reporting an upturn in business. According to prominent recruiters, the sector endured a tough end to 2008 and start to 2009, but activity has picked up over the last few months.
“There seems to be more confidence in the market in general,” says Redfox director David Macaulay. “I’d say the number of candidates looking for work has increased slightly by about five to 10 per cent and, at the current time, recruiters need to work even harder as the selection process takes longer to make the right match.”
There have been some redundancies in the fresh produce sector, but these have not been to the same extent as those experienced in other industries including banking, retail, automotive and industrial manufacturing. “Yes, the fresh produce industry is facing tough times, but many companies have slimmed down their costs and are operating on tighter margins,” says Guy Moreton, director of MorePeople. “The sector has gone through consolidation and massive price devaluation, but it is now more sustainable and is full of leaner and fitter companies.”
Moreton points out that when there is a recession, those that are employed tend to stay put if they are not particularly unhappy. “It is always a risk to join another business when the economy is shaky, so employees generally ask themselves; why take a risk to move at this juncture?”
Andy Hoggarth, managing director of Staffline, says that recruitment levels have largely been static. “There has been some movement and little pockets of ups and downs; although some companies have inevitably lost business because of the recession, others have gained and are taking on more temporary staff.”
However, he expects an upturn in activity. “People are starting to look up rather than down and there is certainly less of a feeling of impending doom,” Hoggarth tells FPJ. “We have been told by a few companies that they will be looking to take on more temporary staff in the near future.”
The food sector is generally proving to be robust and companies that focus on traditional cooking ingredients such as potatoes, carrots and onions are seeing higher levels of activity as more people stay at home and cook, rather than eat out.
Even those categories that are enduring stunted growth are still recruiting. “There are opportunities for businesses to upscale and bring people in,” Macaulay adds.
Furthermore, retailers are undoubtedly faring well during the recession. Moreton says that the multiples have been acting as consumer champions since last October and they have been rewarded with higher profits.
Some consumers are also returning to well-known food brands. “There has been no reduction for foods such as ready-washed salads and prepared coleslaw, despite the recession,” Hoggarth says.
But has the standard of candidates risen in recent months? Macaulay says that although there are some high-quality candidates around, there is still a war on talent for certain roles that are specialised. “The recent redundancies around the Evesham area have meant that there are some highly qualified candidates around that area, but less so in other spots where there haven’t been people laid off,” he says.
Moreton says that the best candidates around are those who are flexible, realistic and positive. “This applies in both good and bad times,” he adds. “We have got a situation where there are some jobs that involve having to relocate or work away from the family home during the week and candidates need to understand this.”
According to Moreton, clients have stopped recruiting extensively but not exclusively, and it is inevitable that in a market that is oversupplied, some clients will not want to pay as much.
However, he points out that high-quality candidates will always be in demand. “We have got one client who wants a particularly strong candidate and there are three to four people chasing the job,” Moreton tells FPJ. “The person who gets the job may even get a better salary, but that candidate will have to have the contacts, customer knowledge and experience.”
Many candidates are being more flexible and a recent Redfox survey conducted in August revealed that those who were looking to change jobs wanted to move in the next three months. Only five per cent would be happy to wait 12 months to change position.
More than 1,000 people were questioned for the survey and the findings also reveal that 70 per cent of candidates would happily relocate for the perfect role. “This is a marked difference to this time last year when most people with a job were happy to stay where they were,” Macaulay says. “Now, there is more stability and confidence in the property market and candidates are wanting to progress their careers and earn more, so they are more willing to move.”
Sally Jones, database manager for Grade One, agrees that companies are now beginning to take more positive steps towards building their teams and attracting fresh talent into their workforce. However, she says that many candidates are still reluctant to consider moving from their current positions and it has been a challenge to find new ways to encourage them to explore the job opportunities available. “In light of these challenges, Grade One is looking at a variety of new ways to appeal to candidates via its website and other media,” she says. “One of our main selling points has always been the strength of our relationships with clients and candidates and the level of trust and professionalism therein, and this has been invaluable in carrying us through this difficult year so far.”
As recruitment firms continue moving forward, Macaulay says that fresh produce companies remain cautious. “Many firms are still looking at ways to reduce their costs and improve margins so they are not risking taking on new candidates for the sake of it,” he says. “We are working on fewer graduate recruitment assignments this year as companies don’t have the time and/or investment - wrongly in my view - to take on new staff.”
Macaulay also points out that some workers who were looking to retire this year perhaps cannot because their pensions have been hit by the banking crisis so they are staying at work for longer. This is having a knock-on effect on the number of graduates entering the workforce.
Moreton remains frustrated that fresh produce businesses are ignoring training and development opportunities. “I can understand that there is a lack of funds available for some companies, but they are missing a trick as they need to continue training and development in bad times in order to retain staff, keep them motivated and ultimately enable them to do a better job,” he says.
MorePerformance’s Leadership and Development Programme (MLDP) was approved by sector skills council Lantra for delivery under the LandSkills programme in December 2008. This means that companies placing delegates on the MLDP will be eligible to have 50 per cent of the costs of the programme funded via LandSkills.
However, even with funding incentives, Moreton says that there are still places available.
“You make good people great by managing them properly and motivating them - courses such as MLDP and other training and development opportunities enable companies to make their staff better,” Moreton says.
Despite the challenges, both Redfox and MorePeople are confident that a number of opportunities exist in the sector.
“Redfox is still in a position to grow and strong demand for high-quality candidates remains,” says Macaulay. “Our view is that we keep doing what we do; work hard to understand our clients’ businesses, work hard to understand our candidate needs better than anyone else and offer a truly consultative approach to executive recruitment.”
Redfox also plans to launch a dedicated resource for the food manufacturing and agriculture sectors in September. “We are already doing considerable work in these sectors and the new team will be able to focus on growing our existing business,” Macaulay tells FPJ. “All the signs are that there will be excellent growth opportunities over the next 12 months.”
Moreton agrees that there is light at the end of the tunnel. “Our clients are saying that things are not getting worse and they are feeling brighter about the economy,” he says. “We are going to be there when things turn around.”
He points out that two years ago, the fresh produce sector was saying that there were not enough good people in the food industry. “It could be that when the recession is over, we will be saying the same thing again,” Moreton adds.
NEW KIDS ON THE BLOCK
Henderson Brown joined the recruitment scene last month, following the pairing of Martin Brown, former managing director of The Greenery UK, and recruitment specialist Steven Henderson.
“We have had a very positive response to the new agency - the phones are ringing and we are keen and hungry to make this work,” says Brown. “It’s good to have another recruitment firm on the scene that offers an excellent service.”
Henderson Brown is focusing on food, fresh produce and related businesses and aims to help clients fill posts in commercial, buying, technical, engineering, supply chain, quality assurance, new product development, production and operations functions, with salaries from £18,000 a year upwards.
It also plans to headhunt candidates for senior roles and one of its primary aims is to swiftly build an extensive database of jobseekers with a proven track record.
Brown says that the new agency offers a balanced wealth of experience. “We are unique in that I have had 20 years’ experience on the client side and Steven’s come in on the recruitment side, so we are approaching recruitment from different perspectives,” he tells FPJ. “This enables us to advise each other on projects and come up with the best recruitment solutions for our clients.”
Brown says the food industry is facing tough times, with foodservice, wholesale and retail sectors all facing their own challenges. “Our purpose is to help with the recruitment gaps of key businesses within the sector and, in turn, add serious commercial value that goes straight back to the bottom line of our clients,” he adds.
McCAIN FOODS AWARDS SCHOLARSHIPS
McCain Foods (GB) has awarded two scholarships to Jessica Robinson and Daniel Hird, both students at Askham Bryan College, as it attempts to encourage the next generation to pursue careers in farming, growing and food manufacturing in the UK.
McCain Foods Scholarship Endowments will provide the two recipients with a monetary award, paid work experience with McCain growers during holidays and a sandwich year placement at the company in their second year.
Given that the average age of a UK potato farmer is 55, McCain hopes that its scholarships will encourage talented younger blood to pursue a career in potato farming and anticipates the continuation of the scheme at both Askham Bryan College and the Royal Agricultural College for the foreseeable future.
McCain contributes approximately £70 million a year into its potato supply chain and is the largest single customer of British potatoes.
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