Confidence returns to recruitment sector

The UK is officially out of recession and recruitment companies are reporting a return of confidence to the market.

It may be early days, but Guy Moreton, director of MorePeople, says there is more positivity among the fresh produce industry. “May 2009 was a turning point and January this year was certainly a lot busier than the same time in 2009 - we’re hitting the ground running,” he tells FPJ. “I’m predicting 2010 will be a lot better than last year.”

David Macaulay, Redfox director, agrees that there is renewed optimism in the marketplace. “Last year was about getting your head down and grinding it out, but that mentality is definitely changing and candidates are becoming less cautious about moving,” he says. “The fear of being the last one in and the first one out has also been removed. Candidates want to progress their careers.”

In fact, confidence is rebuilding across the supply chain, and the strong performance by retailers during the recession has further boosted that confidence.

New kid on the block Henderson Brown has started “extremely well”, according to managing director Martin Brown, who is looking forward to growing the business this year, having reported increased activity. “We are busy and are starting to get recommendations from candidates who we have placed, as well as further work from those businesses we have worked with already, which is fantastic,” he says.

Brown anticipates that 2010 will be a year of two halves. “The UK is now out of recession, but there is still a huge £200 million public debt so there could be some enormous cutbacks and inevitably some redundancies in the public sector, as the country simply can’t afford to keep borrowing,” he says. “If that happens, whatever recovery we have had since last autumn could suffer, which could lead to the demand for more expensive food lines being affected and economy brands remaining as popular. However, the fresh produce industry is dynamic and adaptable and is used to reacting to vagaries - be it the weather or the economy - and I am sure it will continue to do so and rise to meet the challenge.”

The recession has claimed some casualties in the fresh produce sector, but there have not been the widespread redundancies experienced in other sectors, such as the automotive trade and manufacturing.

Moreton estimates that the recruitment market is back to where it was 12-18 months ago.

“Parts of 2009 were very quiet for the recruitment sector as companies amalgamated and consolidated roles if people left their jobs,” he explains. “Now there is more recruitment of roles that were vacant, which companies had sat on during the recession.”

Most of the jobs available are in middle and senior management, rather than at director level. The types of roles are also evolving as some companies are seeking candidates that can generate new business and explore new markets across all areas.

Moreton says that lessons are being learnt from the recession and companies want to make themselves as secure as they can for when the next economic downturn hits. “There is a more proactive response to business,” he says. “Companies are starting to think more about their customer base and are asking themselves a number of questions such as, are they the right ones? Do we have enough business? Should we diversify?”

Indeed, Macaulay thinks there has never been a better time to start encouraging individuals to work in the fresh produce sector.

“We need to make the public more aware of both the personal and professional benefits of working in the fresh produce sector, in order to attract more individuals from a wider business and foodservice environment,” he says. “By taking this approach, the volume of applicants will rise and hopefully the quality will too.”

Programmes such as Jimmy’s Global Harvest on BBC2 go a long way in educating the public on how and where food is grown and this knowledge can only help to attract more potential candidates into the food sector.

Macaulay says there needs to be a combined effort and strong representation from the governing body and individual businesses to attract people into the business. “The sector needs to work together and market appropriately,” he explains.

But even with the more rosy outlook, flexibility remains vital and some candidates will still have to move to where the job is. “Some candidates don’t want to relocate permanently, especially if they have bought their homes, but they will work away for the week and go home at the weekend,” Moreton says.

Others are renting out their home and renting another to stay on the property ladder. Moreton predicts this situation could continue until house market prices return to the previous highs of 2007.

Certainly, it is a fine balance and managing expectations will be a key theme for the forthcoming year. Macaulay points out that even though there have been redundancies, a war on talent remains for critical positions. “Candidates that have a certain skill set, such as experienced account managers with significant retail experience, are worth their weight in gold and demand for these candidates has never gone away,” he says.

And as companies start to think about the future and realise that a proportion of their workforce might be looking at retirement, succession planning is being flagged up.

Macaulay says that any investment in the fresh produce sector is heavily scrutinised and his concern is that the industry tends to look to invest in machinery and fixed assets, rather than people. However, there is a real need to focus on human resources and look at staff as an asset.

“Obviously, with the challenging climate everyone is working on tight margins, but focusing on succession planning can only be beneficial,” Macaulay says.

He argues that succession planning allows for greater continuity in the business and when individuals are taken on and valued, they tend to stay. “Hopefully, these candidates will learn about the industry, understand the company and what’s needed so then when someone leaves, they are in a strong position to know what the business requires and how they fit within it,” Macaulay says.

Moreton says that fresh produce companies are very good at the day-to-day business and thinking of their customers and products, but strategies for future planning have not taken precedence. However, times are changing as companies come through the recession and start thinking further ahead.

But a polarised attitude to succession planning remains, depending on how well an individual business is performing. “Some of the larger companies and retailers are thinking about it, while some firms that are struggling are thinking they need to get through the next 12 months first,” Moreton explains.

Brown says it is impossible to generalise about succession planning in the fresh produce sector. “Yes, some companies plan on their feet rather than look ahead, but there are also the extremely professional, innovative and progressive companies in fresh produce that have structured HR departments in place and are leading the way,” he adds.

In these times of economic uncertainty, many candidates are looking to improve their future job prospects. There are more than 20 Fresh Start Academies in the UK and the academy launched in Kent - a joint venture between Hadlow College and the Laurence Gould Partnership - has successfully developed working relationships with growers, processors and retailers in the fresh produce sector.

“It is important that the industry is aware of the initiative and that more employers are recognising the presence of Fresh Start on the CV,” says Douglas Jackson, South East co-ordinator for Fresh Start.

Over the last year, the Kent-based academy has actively recruited members from the horticulture sectors, engaged more effectively with the fruit and vegetable industries and continued to raise the profile of Fresh Start. The main highlight has been the launch of the New Entrants Academy, with more than 30 people signed up to the programme.

“The programme has been very well received with lots of interest in the practical sessions and also the sessions on career options and progression,” Jackson says.

The backgrounds of the students on the course range from farmers’ sons and daughters looking to upskill as they take on more responsibility in their businesses, farm workers looking to develop their careers and those changing direction, including property developers, lawyers, accountants and vet nurses.

The modules on tenancies, financing your business and making diversification work have proved very popular and the course programme continues evolving with the group, with the members broadly setting the agenda.

FRUIT RECRUIT MAKES MOST OF GLOBAL OPPORTUNITIES

Fruit Recruit is benefiting from the globalisation of the fresh produce sector and has recruitment activities in Europe, India and South America.

Managing director Joep Maussen says Fruit Recruit’s hiring skills are second to none as all of the company’s recruiters have a background in fresh produce and/or logistics. “UK fresh produce companies are not only very skilled in procuring the best produce on a global scale, but they are also discovering that good recruitment results are coming from Spain and other countries outside the UK,” he adds. “I normally ask new clients why they are buying produce on a global scale, but still tend to cling to local suppliers when it comes to recruitment.”

The key issue this year remains consumer spending, but Fruit Recruit is optimistic that future prospects are bright as it continues to deliver low-cost solutions, combined with expertise in fresh produce and prepared food.

Fruit Recruit is continuing to invest in online database access for its clients. “I believe this will increase customer loyalty as the search results are easier to access compared to other UK recruiters,” Maussen claims.

Fruit Recruit was established in 2008 and according to Maussen, one of its biggest achievements has been to increase its workload with the largest players in the fresh produce industry.

International Produce (IP) represents one of its largest UK clients. “The international scope of IP, combined with the structured and professional manner in which it handles succession planning, makes it a joy to work with,” Maussen says.