Even though we have seen a slower start to the year in the FMCG sector in terms of outputs due to rising costs, ONS data shows that on average, 72% of food and drink manufacturers stated they had to absorb rising costs, there are still high levels of vacancies due to severe staffing shortages.
Here, we spoke to Sara Frith, Scantec’s Divisional Director for FMCG Manufacturing Divisions (FMCG Food, Drink, Packaging), about how her team finds the top quality candidates for their FMCG Clients, despite the tough economic climate.
Skill Shortages
Sara explains that even though engineering skills shortages have been around for years, they have multiplied since the pandemic and are now starting to appear in some of the other areas of the sector.
According to the Food & Drink Federation, severe staff shortages persist across a wide range of roles and skills, from highly skilled engineers and scientists to supply chain & technical professionals. Manufacturers reported 7.0 unfilled positions for every 100 jobs in Q4, down from 9.1 in Q3, but nearly double the UK average of 3.8.
Changes in Legislation
Sara has also found that where companies previously used interim contractors due to IR35 regulations they are a bit weary about doing that now. Instead, they are now going down an Fixed Term Contract (FTC) route. However, FTC have their own limitations because the catchment area is smaller as they have to work locally. This has compounded the situation - It's been a real challenge Sara added.
So, in these difficult market conditions what can be done to ensure your business is attractive to the best talent.
Understanding the Market
Sara explained that Scantec have undertaken a lot of work with their clients around salary benchmarking to help them understand the salary increases that have gone on in the market in the last 6-12 months.
Sometimes they just need to see it in black and white, or have a document they can take to the Finance Director to make their case.
Sara has suggested ‘sign on bonus’ and 'retention bonus’ to her clients that help them attract and keep the talent.
“When they do need good people it is making sure they can attract them and secure them - our clients have listened and implemented a lot of our suggestions”.
She went on to describe a recent project:
“I have recently completed a huge piece of work with a couple of dairy manufacturers locally. On our advice they put retention bonus in place, a sign on bonus’ and they increased their salaries in line with the salary benchmarking we provided and the three problematic vacancies that they had given to three other recruitment agencies before us, were able to be filled within three weeks.”
Staff Retention
According to Sara the range of benefits offered to employees is dependent on many factors, mainly focused around budget.
“More businesses are offering hybrid working as a prioritised benefit for their workforce, along with the likes of wellbeing support such as gym memberships, mental health support and social events to boost morale.”
Our consultants that work in Engineering and Manufacturing Sectors have found that the following benefits are the most attractive our clients can offer:
- Hybrid/flexible working
- Pension scheme
- Healthcare
- Offer contract workers the additional option to work outside of IR35
Diversity and Inclusion
In an industry that caters to all, more FMCG companies are beginning to recognise the importance of diversity. However, there is still a long way to go…
- In Stonewall’s latest ranking of the UK’s most LGBTQ+ employers, only three consumer product companies ranked among the top 100.
- Just 11.4% of FMCG board members are from ethnic minority groups.
- Female representation at board level in the food and drink industry is just 30%.
- People with disabilities are entirely unrepresented at Board Committee level in the FMCG industry.
Now is the time to think about broadening your horizons and developing a deeper pool of talent to draw from. Always looking in the same place means you're likely to always get the same result.
Prioritising workforce diversity and positioning your organisation as one that provides equal opportunities for all will not only help you access a wider array of talent, qualifications and experience but retain them too.
There is no doubt that it is tough out there at the moment, which is why it is more important than ever to partner with a recruitment agency that you can trust. You need a partner that will think outside the box on your behalf and come up with practical solutions that will drive your organisation forward. If your FMCG company is currently hiring and would like advice on how best to improve your chances of reaching a larger pool of candidates, contact Scantec’s specialist FMCG recruitment Team on +44 (0)151 666 8951 or SaraF@Scantec.co.uk
