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    Written by, Jason Kilbride 

    Author: Jason Kilbride

    Amidst a backdrop of slowing inflation and ongoing increases in bank interest rates, the second quarter of this year bore witness to an astonishing 7.8% surge in wages across the UK. While the influence of inflation and its subsequent economic ripples cannot be underestimated, it’s important to recognise that this remarkable upswing in wages is also being propelled by talent shortages and a growing realisation among employees about their value to organisations.

    To put it plainly, a scarcity of talent is palpable across the entire spectrum of the workforce, spanning from low-skilled positions to the C-Suite level. The battle to attract and retain talent is proving to be more challenging than ever. Companies are finding themselves compelled to pay higher wages to retain existing staff and to entice new talent, a struggle that’s exacerbating the difficulty of recruitment and ultimately leading to heightened remuneration packages. All of this is happening while companies are grappling with pressures on their bottom line from multiple directions. This presents a dilemma: should remuneration be increased, even if it adds strain to the bottom line? Is it justifiable to onboard recruits with higher salaries? Or should companies opt for leaving vacancies, thereby shifting pressure elsewhere?

    This complex situation is particularly evident in specific sectors, where wage increases are surging at a rate that often doubles or even exceeds the aforementioned 7.8%. With inflation and talent shortages as driving factors, candidates are strategically negotiating for higher compensation, capitalizing on the challenging positions that companies currently find themselves in. Essential roles that have suffered from talent shortages for years are witnessing regular wage hikes, often outpaced by competitors, and the demand for young, skilled talent is simply outstripping supply. The urgency to acquire these skills is undeniable, leading companies to opt for immediate salary increases rather than waiting to invest in training and development that would yield returns several years down the line.

    As people contend with rising utility costs (though there’s a positive trend), food prices (which might have been undervalued for years), and evolving mortgage rates, businesses have a responsibility to offer support.

    However, as the need to attract talent grows, there’s a threshold that cannot be crossed. While there’s no magical solution to the talent shortage, and inflation is here to stay for the short term, millions of individuals are yet to be affected by mortgage rate changes, and their financial strain is yet to be fully felt. In short, wage increases are likely to persist for a few more quarters, although not necessarily at the same level.

    The pivotal question emerges: What’s the remedy? Although I lack a definitive answer, I believe several strategies can contribute. Companies should consider a broader pool of candidates, potentially embracing transferable skills, less experienced individuals, or even flexibility in terms of location. These adjustments can grant access to a broader talent pool, alleviating the pressure to rely on salary increments solely. Focusing on non-monetary benefits can also prove advantageous; cultivating an environment where individuals feel valued through initiatives like summer hours, team outings, training, career development, and even schemes like electric car incentives can provide a competitive edge, reducing the sole emphasis on salary.

    While long-term solutions like apprenticeships, graduate programs, internal development plans, and engaging with younger audiences hold potential, they won’t provide an immediate fix for the current wage and talent challenges. The prospect of automation has shifted from being a long-term investment to a medium-term one, and in some cases, even a short-term solution. Despite rising interest rates affecting businesses with limited cash flow, the timeline for automation implementation has still been shortened.

    Of course, there could be many more strategies to consider, but the key is to nurture creativity. With salary increases unsustainable at their current pace, finding innovative approaches becomes imperative.

    In a landscape characterized by uncertainty, it’s essential for all stakeholders to carefully balance the equation between salary hikes and adjustments to hiring strategies. What’s clear is that the challenge posed by wage increases isn’t going away anytime soon.

    Examining Unprecedented Q2 Wage Growth: Beyond Inflation, Talent Shortages Are Creating a Significant Impact
    Darren Smith – Head of Operations at Flat Iron

    In an exclusive interview with Darren Smith, Head of Operations at Flat Iron and a specialist in the food service industry, we gain insights into the lasting impact of the COVID-19 pandemic on the sector.

    Darren shares his perspectives on various aspects, including the challenges faced, changes in consumer behaviours, technological advancements, supplier relationships, and the future outlook.

    When reflecting on the return to pre-pandemic volume and sales and whether it is back to business as usual, Darren notes, “Yes, our 12 trading sites are all located in key London transport hubs so we have luckily been quite well protected. Mondays and Fridays have changed somewhat with people working from home, but we feel the trade has just shifted around slightly rather than ‘lost’.”

    Regarding the biggest challenge posed by the pandemic, Darren emphasizes the impact on staffing, saying, “Struggling for people, for sure, finding the right ones and training them. Our workforce was decimated post-pandemic, which also limited our ability to induct and train well. Ingraining the culture of the business was difficult when 75% of the workforce has less than 3 months of tenure. I feel we are getting back to where we need to be, but it’s taken a while to get there.”

    Discussing changes in consumer behaviours, Darren highlights the influence of Gen Z and their dining preferences, stating, “Gen Z is dining (and paying) differently. They are happy to pay for a meal with PayPal/Klarna, and pay at the table has taken off industry-wide. Also, TikTok is a platform to promote our brand, when we launch new restaurants or dishes, lots of our new guests are finding out about us through TikTok rather than Facebook/Instagram.”

    Considering steps taken to prepare for future crises, Darren explains, “We were already in the process of moving our beef supply and any quirks with our supply chain to the UK, with Brexit on the horizon, it made sense. Covid just accelerated that process. I think the one great learning would be to not rush decisions.”

    While exploring opportunities for innovation and growth, Darren mentions the implementation of technology-driven solutions, saying, “QR codes and order at the table, however, most of these have now been removed and felt specific to Covid rather than permanent innovations. Specifically to us, we also brought in free ice cream for all diners, as a value proposition we saw an opportunity to add value to an experience when everyone else has been cutting back or increasing prices.”

    Flat Iron Steak House in Covent Garden

    Considering the role of technology in the sector’s response to the pandemic, Darren points out, “A lot of the tech innovations were driven by people shortages and cost savings. Some of the innovations like order screens were probably on the way in any way for QSR-style businesses. QR codes came and went just as fast, but I think businesses are coming to terms with data capture and guest feedback more than ever before.”

    Reflecting on the positive aspects learned from the pandemic and the changes it brought into the business, Darren states, “Due to the talent shortage, I think lots of progression opportunities were presented to people across the sector. I think we are all more willing to take a chance on people who display the right attitude and support them on the journey.”

    Looking ahead to the next 12 to 18 months, Darren shares Flat Iron’s business outlook, saying, “We are looking to ramp up expansion with our first sites outside London. Cambridge opens in late July, and Manchester hopefully later this year, which is exciting. We anticipate a few challenges: supply chain and translating our culture and values to a new team. I’m sure there will be a few we haven’t thought of, but we all look forward to the challenges ahead.”

    If you haven’t yet tried Flat Iron Steak in London you must!

    Unveiling the Impact of COVID-19 on Foodservice

    We interviewed John Elliott of Entpack to find out his thoughts on how packaging in the food industry is changing?

    Will reusable packaging options become more prevalent?

    It seems very likely that reusable packaging will become more common. The use of single-use non-recyclable packaging options is in rapid decline: take plastic straws for example.

    We need to clarify the interpretation of single-use. A better term would be single-use widely non-recyclable plastic materials. Not just single use. For example, HDPE milk bottles are single use but successfully recycled and from an environmental perspective better than traditional glass

    It is not just a UK consideration though; it is fast becoming a global issue. The Indian Prime minister Narendra Modi has recently announced India will eliminate all single-use plastic by 2022.

    The biggest drive will be to design packaging and systems that deal with packaging once they are no longer needed; be that recycling or secondary use.

    The focus will be on how to grow the notion of the circular economy of plastic, i.e. how to ensure that plastic is infinitely recycled.

    Will there be an even bigger shift towards using materials which are more readily recyclable?

    We have already seen the development of new materials which are easier to recycle. This refers particularly to materials which have good gas barrier properties. Traditionally, such packaging solutions were made with multi-layer laminated plastic structures which helped to increase a product’s shelf life.

    New recycling technologies are readily being commercialised that will be able to handle laminated materials that in the past were not recyclable.

    Marks and Spencer 7I6A7069

    Will supermarkets revert to the traditional means of displaying and selling food/fresh produce, loose and if so, what impact will that have on manufacturers and producers?

    Retailers have already started to do this and are trying to increase sales of loose fruit and vegetables. Logic suggests that this trend should continue to grow. The reality is, however, that consumers still prefer the convenience of pre-packaged goods; for example, people favour to buy six apples already in packaging, rather than picking up six loose apples and bagging them up themselves. It is the same amount of fresh produce, but convenience seems to always prevail.

    What is more, prewrapped goods give the impression of being more hygienic – fewer people have touched the produce, thus anxieties over cross-contamination are lessened. That being said, you should always wash your fruit and veg, prior to consumption, pre-packaged or not.

    What are the possible alternatives to plastic, particularly single-use?

    Paper packaging seems to be gathering preference over plastic – has great consumer appeal; the perception is that paper or even metal are better environmental alternatives. The truth is, however, that both are processed materials, and both can have negative impacts, and a greater environmental burden plastic.

    Will shifts in packaging strategies have an impact on quality control and preserving goods?

    No, we expect that the quality and shelf life of products to improve upon the current levels, thanks to ongoing improvements in technology, research and development.

    The food retail chain has brought back mesh bags in response to feedback from customers who want eco-friendly, plastic-free ways to carry their produce

    How does society and the media influence packaging trends?

    We would suggest there is a great deal of miseducation being presented about plastics. As a result, the public is being misinformed. The consumers which are privy to ongoing press attention, drive sales which in turn impacts on the packaging solutions required. Retailers and manufacturers, therefore, are having to react to help ensure their consumers that the packaging products they use, are sustainable and responsibly considered. Without such reassurances, the consumers will vote with their feet.

    How will producers continue to imprint their brand on to goods going forward, if loose produce becomes the norm?

    There are a few options out there, such as compostable PLU labels and these are currently used on fruit. Increasing use of technologies most smartphones van read 2D barcodes to direct to a website.

    How innovative have manufacturers and producers become in the wake of the shift in packaging demands?

    Manufacturers have been quick to respond, with the likes of Waitrose switching out black plastics in six months. The problem will not be resolved overnight though as the issue is embedded within the waste collection infrastructure in the UK. New technologies which aid in separating waste products are slowly coming into play, such as Digimarc, which is led by Proctor and Gamble an initiative from Helen Mac Arthur Foundation.

    What timescales are retailers working to?

    The government needs to act and help with the recycling of municipal waste. It is planned that by the end of 2022, there will be a packaging taxation system penalising plastics with less than 30 % (to be agreed.) This could be a big game-changer.

    One of the main issues is that plastic waste has no real value: it is far cheaper to drill for crude oil than it is to recycle used plastic using the processes available today. Legislation could change this.

    Retailers are part of the problem, but they cannot fix it in isolation. A combined effort from all stakeholders (government, retailers, packaging manufacturers, fillers and packers) is required and is in action. We expect that in approximately five years’ time, many changes in relation to packaging will be evident.

    Alas, we foresee that the problem may worsen before it improves. Currently, the UK is exporting 60% of its waste to nations overseas. Some countries have now stopped accepting waste, such as Malaysia. They have gone to such extremes that they have returned waste to Canada and have threatened the UK to do the same.

    Retailers have the ability to react quickly and very often they do so, but their reactions don’t always fix the problem and as said before, acting in isolation is not the way forward.

    Big thanks to John Elliott of Entpack for his industry insight, Henderson Brown has worked closely with John on contract assignments and his business as a packaging industry expert.

    FOOD PACKAGING – Q&A WITH A SPECIALIST

    A number of key industry speakers took to the stage on Tuesday 8th October at the Ricoh Arena for the FPJ live 2019 conference. So what were the main takeaways?

    The B-word, Brexit of course was a major point for discussion. We were also privy to talks on Fresh Produce Brands; the methods and means of producing more fresh produce; sustainability; robotic innovation; health and fresh produce benefits; food waste and climate change.

    Have a read below of our own round-ups of the talks that we attended.

    Kantar

    Joe Shaw Roberts, Insights Director for Kantar discussed sustainability in the produce sector and the ways in which meat consumption is reducing. 81% of those questioned as to why they moved towards a meat-free/reduced diet, cited health reasons as the main motive.

    Joe went on to say that some produce sectors are growing whilst others are not. Products which are going in to plant based meat free meals are rising whilst many other fresh produce items such as broccoli and potatoes are not growing as fast as they usually accompany meat as part of an entire meal.

    Trends are showing that sales of whole head produce are growing faster than pre-prepared produce with a rise in cooking from scratch due. This could be attributed to consumers wanting to reduce their packaging waste or simply because it is cheaper. Consumers are becoming more careful about what they buy and want more lbs for their pounds. That being said, further findings suggest that 44% of shoppers are now more concerned about selections on packaging too.

    Jack Ward (British Growers Association) and Hayley Campbell Gibbons (ADHB).

    In a really interesting talk and one which had everyone fully tuned into. The overarching feeling is that Brexit-systems are not in place and the government is not ready for the 31st of October when it is planned that the UK will leave the EU.

    There simply are no answers at the moment as to what will happen. However, there is optimism that a deal will be in place and that no matter what, the flow of goods will continue. Clarity from the government is fundamental in trying to get this.

    Any perceived threats and opportunities from outside of EU won’t happen day on day one of departure: the 1st November should be the same as 31st October, if not with some port border challenges.

    Going forward, DEFRA budgets will also have a focus on supporting on Automation and crop protection.

    The British Growers association remain ambitious despite the uncertainty. They have continued to grow and will continue to support the industry and growers.

    Avnish Malde (Wealmoor)

    Traditionally, Wealmoor had always been a very private, family-run business. Now though they are more in the public eye and are keen to project their values and ethos to the outside world.

    They believe that the global supply chain is important as they have many relationships worldwide. There is much going on and they are trying to further integrate and invest in their farming operations in five countries.

    Wealmoor is creating more brands, such as Herbfresh and Saxons Asparagus with the view to create a sense of provenance and owning stories about production. In time they think that they can get more brands out there on the global market, but they want to do so, cleverly, whereby the story is central to each.

    They went on to say how sustainability is of paramount importance and they are investing in communities and growers. In the likes of Kenya, they plan to attack the issues of climate change head-on for a more promising future.

    John Gray (Angus Soft Fruits)

    The berry category is booming! There is huge reported growth which is down to three factors within their business:

    1. People
    2. Their strong supply chain
    3. Being adaptable

    There are still opportunities for growth- the market has grown by just under 50% in 5 years. The 4 key berries are still growing but more steadily. John sees premium as a growth area.

    Geographically, Peru is predicted to overtake Chile in terms of the volume of berries produced this year.

    Most interestingly, the producers of British summer fruits, still are competitors but have opted to work together to drive growth.

    In terms of the marketing of products, the trend is to continue with direct contact with consumer through campaigns.

    How does geopolitics affect this sector? Gray suggested that it will be an impact no matter where anyone is in the UK, but suggests to look at it as an opportunity.

    Mark Culley (Orchard Fruit Company). 

    They have seen success after the restructure and renaming to the Orchard Fruit Company. Their focus on an overall capacity allowed them to take cost out and remain competitive. The result: new customers, which are growing in their market space.

    Under the previous name, Orchard World which is a company that has existed for 30 years and in that time frame, they have seen many changes.

    The “pile it high, sell it cheap” mantra of Tesco is now a memory and in that bygone time, you used to have lots of customers, but now all seemed to have merged. Growers have grown bigger which has allowed retailers to go directly to them . The result: retail grower partnerships and investments.

    Therefore it is not necessary for a ‘middle-man’ to connect retailers and growers – this relationship can be direct, hence lowering costs. There are now opportunities in the export market which are ripe for exploration and exports into Asia currently are growing considerably.  Can you get better returns from export? Culley suggested that some of their best return is in the export market.

    Longer-term visions for Orchard Fruit Company include continue to do what they are doing, whilst being innovative. And in terms of predictions, cherries will continue to grow significantly.

    Tom Watson, Deputy Leader of the Labour Party takes to the stage.

    Tom Watson(MP and Deputy Labour Leader)

    Tom Watson was very apologetic for the current Brexit situation and how parliament is dealing with it. He suggested that crashing out of the EU would be a huge political failure and the House of Commons with its complexities makes it very difficult to siphon out plausible solutions. Watson acknowledged how serious the situation is. He went on to say that consumers are not aware of how delicate the situation is for food and in particular produce. His view is that everyone needs to give a little to have continuity.

    He went on to say that he doesn’t think the UK will crash out on 31st of October, but he doesn’t know what the next steps are going to be.

    Overall the deputy leader of the Labour Party, much like everyone else doesn’t know what’s going on!

    Side note, he’s been on a health drive himself which has seen him lose 8 stone over the past few years! He puts it down to changing his eating habits to more fruit and veg!

     

    Vegpower – eat them to defeat them!

    VEGPOWER

    As we all know such a great success story and gave an update on the impact they have had. Eat them to defeat them! campaign was a roaring success. They have compiled a full report which is coming out in October.

    They have devised a 10-year mission, that every child, every single day, should be eating one more portion of veg. There is economic value in this plan: £90m to-fresh produce, potentially.

    To push this plan through, they have got ITV back on board and added Sky and Channel 4 advertising.

    To date, they have raised £850,000 in cash and they obtained £10m worth of free marketing for the campaign. But more needs to be done and that requires further funding.

    Take a look here to find out more: https://vegpower.org.uk/

    Hugh Pile from Blue Skies takes to the stage.

    Hugh Pile (Blue Skies)

    Blue Skies offer a unique offering in the industry, fresh-cut fruit produced at source in their factories. This leads to fresher product and creating jobs at source.

    Pile went on to discuss the methods of recruiting more people into the sector and what moves are needed to get people to join our market. Pile suggested that dipping into brands helps to attract people as it gives a sense of pride and attracts talent in. The key talent market they want to focus on is ‘GenZennials’ who are the generation of people that want to change the world and have a purpose.

     

    Mike Snell - IPL
    Mike Snell from IPL takes to the stage.

    Mike Snell- (IPL)

    It is an interesting time for retail as there is a concerted effort afoot to cut out the middle-man. But how has the model changed?

    Snell looked back to 2004 when IPL was started and to be innovative. It worked well in a monopolistic market, where suppliers are not making enough money and it was very fragmented.

    IPL buy all of Asda produce 1/3 pack 1/3 direct 1/3 sourced.IPL has grown outside of fresh successfully. The model expands cautiously and most appropriate to help Asda do what it wants to do.

    Supermarkets have now been giving longer-term contracts. Snell is a big fan of this notion, in particular those which last 2-3years as it creates stronger partnerships. The downside of longer-term contacts is that the number of people you can work with is reduced, taking massive business off some suppliers.

    Snell was asked, “Would you consider acquiring suppliers?” His answer was, yes, but they would only buy if it added value. Not just to get bigger.

    Price and quality remain the number one priority of consumers and provenance has remained further down the list of what consumers really want.

    Snell went on to say that we should always look to buy products as close to the selling point.

    Sainsbury’s Asda merger: how much of a blow to the Asda side? Snell said that they hadn’t done a great deal of planning for the future but they have improved processes and efficiencies. In effect they trained for a race that they will never run. CMA reasoning behind the block was cost would be higher for consumer. Snell went on to say that he couldn’t figure out why that was a valid reason though and felt it would bring better pricing for customers.

    On the topic of Brexit, IPL has prepared as much as they can. He predicts that the ports will cause problems, but those problems are all dependent on what type of Brexit occurs and what shortages happen off the back of whichever Brexit option materialises. What does a no-deal Brexit mean? As IPL is a budget retailer, the best value on offer has to remain. Furthermore, the reduction in plastics needs to be a consideration as it is the biggest single issue in Produce.

    Snell says that he views the wider retail market as super competitive. Consumers today have the best options available, ever. The retail winner will be the one who provides the best experience not just price and going forward he felt that shopping in ‘bricks and mortar’ stores will continue but in combination with more online activity.

    Guy Singh-Watson during the Life Stories talk and discussing Riverford Organics.

    Guy Singh Watson (Riverford Organics)

    This talk was a great insight into his life and how he has grown Riverford Organics.

    Employee ownership (which stands at 74%) is a key factor in the lifeblood of the organisation as they have a meaningful say over their future.

    A key point he made was that we need to make consumers understand the value of produce, seasonality etc. We should be driving this and not just trying to make money out of it.

    Vernon Mascarenhas (Natures Choice)

    Mascarenhas used this platform to talk about their industrial warehouses and vertical farming.

    Such methods are affordable when products are imported as the product cost comes down.

    Vertical farming is attracting interest from buyers and consumers and it is perceived that products grown in this way will be available from the end of 2020.

    Chris Hutchinson (Spitalfield Markets)

    Big changes are afoot for Spitalfield. Land near Dagenham has been purchased which will be used to become a site for selling meat, fish, fruit and veg. Something the location may be a worry due to logistical issues, but Hutchinson is hugely optimistic for such changes.

    Pierre Koffmann and Simon Martin discussing their brand and their companies.

    Simon Martin and Pierre Koffmanns (Koffmanns/Food Heroes)

    Koffmann was established due to a gap in the market. Chefs wanted to have a hold on the conditioning, quality and taste of produce they were using.

    Koffmann has a pipeline of new brands coming to the market in the next six months, including, sauces.

    In terms of next steps for the business, it is not their intention to look at retail. However, they have had conversations with various retailers as they want a point of difference.

     

    Sally Orange (Sally Orange Charity)

    This was a great talk, discussing fruit costumes running marathons and the mental health benefits which can be obtained from eating fresh produce.

    Minette Batters (NFU)

    Batters suggested that the conflicting messages, consisting of lightweight conversations with no detail, have been offered by the Government about Brexit, which is in its purest form the most extraordinary time of change. If we do leave without a deal the only three product areas without tariff protections are cereals and grains, eggs and horticulture.

    The talk then shifted in the direction of labour for farming and it was suggested that the government is not doing enough to meet the need. At present, workers (particularly those from other European nations) are being affected by the devaluation of the currency and also feel less welcome. Such ideas mean that immigration is at the front of the Brexit debate when the focus should be elsewhere because seasonal workers are not an immigration issue. The bulk of people understand this. But now, it has become political and the House of Commons out of touch with this.

    However, there is a massive possibility for fresh produce revolution as Brexit has opened the eyes of industry members. They now have a closer connection with what people are eating and Brexit will bring about collective support for buying and sales across the industry.

    Trade Deals: the battleground of Brexit. Most countries do not have the same legislation as the UK, that is obvious. Agriculture is a huge part of the US trade deal. However, the EU could put the UK on the waiting list for FTA.

    Batters went on to say that aside from Brexit, there is a massive fruit and veg drive to help bolster good health practises. This is coupled with an Environmental Agenda, particularly with regards to climate change where the net change is hoped to become fully sustainable.

    Plants and growing more of them is an effective method of CO2 removal. Going forward this relates to people wanting to know what their carbon footprint is and how they can take ownership of it to counteract any perpetuated negative impacts.

    Finally, Batters talked about Women in Farming and how there is a drive to encourage more women to get involved in the industry. Batters suggested that more universities are seeing an influx in woman enrolling on courses related to the industry so a follow-through will hopefully occur.

    A great event once again from the team at The Fresh Produce Journal, we look forward to next year!

    FPJ Live 2019

    A counter-offer is an interesting conundrum; they usually occur as soon as the resignation process starts. They are tricky to handle and work through and in instances, we have even seen counter-offer’s occur after a candidate has left and started with a new employer.

    It is important for an employer to really think carefully when making the counter-offer and for an employee to fully understand and consider when they receive one.

    One thing is for sure we have definitely seen an increase in counter-offers in the last 18 months across the FMCG sector; we believe that there are a variety of factors for this:

    • Unemployment rates in salaried manufacturing and exec roles are at the lowest they have been since the early 1970’s.
    • Skills shortages in many positions.
    • Economic vulnerability.
    • Employers job roles and responsibilities increasing.
    • Understanding the real costs associated with reemploying.
    • Vulnerability of customer business.

    The list could go on.…

    From the Employer’s Perspective:

    The first question for you as the employer is the need to really understand the motivating factors for resignation, and I’ll let you into a secret: regularly what they tell you won’t be the real reason!

    Throwing a counter-offer at an employee when the actual reason is they want to finish early on a Friday isn’t going to be effective. Yes, it might sweeten the deal, but it will come around in the future and the counter-offer you are giving is simply papering over the cracks.

    Why are you counter-offering someone who has decided their future is away from your organisation? They clearly haven’t taken the decision lightly! It takes a lot to hand that envelope over and so are you getting a committed person for the future or is it just going to be hassle recruiting a replacement? Better the devil you know than the devil you don’t, maybe?

    Think about it carefully. Is this a great opportunity to get some fresh blood into the business, new ways of thinking and experience? Yes, you are going to have to integrate and train a new team member, and possibly pay a fee for the privilege, but you are getting an employee who has made the decision to join you, not join someone else!

    And going back to the anecdote about a candidate who left and re-joined a business 3-4 weeks after starting their new role, by accepting a counter-offer: they then left their original employer within three months of re-starting! Why? Because the employee realised actually the counter-offer was the wrong move and it didn’t work for all parties.

    The Employee’s viewpoint:

    If you are an employee who has been given a counter offer, you need to be clear in your own mind why you started searching for a new role in the first place. If it was down to money, why didn’t you ask for a pay rise? And if you did ask, but the request was rejected, why did your employer change their mind after you resigned? Why are you suddenly worth £5000 more, than you were before you resigned?

    There are differing circumstances every time; we are not saying that accepting a counter-offer is wrong, nor is deciding to reject a counter-offer the correct decision either, but it is so important to be judicious when coming to a final decision.

    Regularly your recruiter is in the best position to give you advice, and if you think that a recruiter is only in it for themselves and their own self-interest, guess what you are working with the wrong recruiter!

    If they state all the facts, lay it out and let you make the decision, and most importantly, inform you impartially, they are doing their job. Inevitably, a recruiter wants to place a candidate in a role which will offer success and longevity: not a short-term placement.

    Talk openly with your recruiter: I can cite many examples where our team have picked up a call and talked things through with the candidate and their decision makes sense; sometimes they may disagree because the facts and motivators don’t point to the right decision for them. However, those are the candidates you usually find back on the market again in a matter of months.

    Counter-offers, they are all circumstantial:

    At face value, a counter-offer may seem like a very flattering proposition. Is the employer saying that they would be unable to cope without you, or are they of the opinion that it will save them a lot of time, money and effort to stick with the status quo? They’ll sweeten you up with a cursory pay rise, perhaps the offer of working from home one day a week and from their side, the problem is solved. But the cracks have merely been papered over, not filled in and fixed.

    Showing your desire to move on will mark your card potentially. If you have been tempted by an employer who offers what you perceive to be greener grass, your employer may end up simply sitting in a state of flux, waiting for you to hand over another resignation letter. Trust may be the main casualty and the paper that covered the initial cracks has now been ripped to shreds.

    Very often we see those that accept a counter-offer, to go on and leave their employer a short while later but it’s hard to put a factual figure on that. The extra pay rise soon becomes the norm and the employer hasn’t really changed!  We have seen it time and time again, that within a short period of accepting a counter-offer, the candidate starts job hunting again: motivations for wanting to leave have not just remained the same, but the reasons have in fact grown. Doing this can give you a negative reputation of being indecisive and if the counter-offer is just a pay rise, then the employer you turned down could feel cheated. Money is important; however your career is also strongly about personal and professional growth and if your paths cross in the future, you could be marked as just someone that is ‘chasing the money’.

    That being said, if you are summoned into a meeting room after handing in your notice and your current employer discusses how your position is vital to future growth and that you are going to be part of that future, such a proposition will be very tempting. If they are tangible, then it’s only natural that you should consider what they are offering. By staying you could be a lot more engaged and motivated: it’s the fresh start you wanted, but instead of new surroundings, it’s a new beginning in a place which is familiar.

    Ultimately, it is important that you do not commit immediately: go away, take your time and weigh up ALL of the options. The ball is firmly in your court, so don’t immediately decide, but take time to reflect.

    At such a juncture, going back to your recruiter is vital to get their sway on it. Furthermore, they should work on tactics and a strategy that works for you to get the best package.

    The Final Decision:

    When crunch times arrives and you have to decide to stay or go, and your decision has been made all the more difficult with a counter-offer, it is likely that you will feel very confused. Have you made the right choice?

    Right at the beginning of deciding to hand in your notice, you made the bold step to leave a company and go through the motions of finding a new role because your current employment position did not provide you with fulfilment. Why, therefore, would you really want to go back on that choice if you know deep down, that staying put will be temporary and in the long run futile?

    To quote Albert Einstein, “Insanity is doing the same thing over and over again and expecting different results.” I am by no means saying that accepting a counter-offer is an insane move, but if you stick with something that is not delivering for you, ultimately, this will remain a constant.

    Moving into relatively unknown territory in a new role can be an intimidating prospect, but so often taking a leap of faith into a new venture will deliver a great many rewards.

    Counter Offer: Take it or leave it? Offer it or let them go?

    Scottish businesses face barriers to international growth including stumping up for capital and sourcing staff.

    Less than half of Scottish businesses are looking to grow exports despite most identifying growth as a priority, a new survey has found.  

    Only 40% of those asked said they are looking to grow internationally, as Scottish local content rules and staffing remain barriers to growing business abroad. Nearly 90% of respondents aim to grow their domestic business, the survey found.

    The survey, published by the Scottish Chambers of Commerce, questioned 372 Scottish businesses in Q1 of 2014. The results will be used to look at the obstacles facing existing and potential Scottish exporters.

    “We are supporting businesses with market support and we find that businesses that internationalize usually get a return within a year, and rapidly move from passive to active internationalization,” said chief executive of Aberdeen & Grampian chamber of commerce (AGCC), Robert Collier.

    “The results of the BCC Trade Survey for Scotland confirm recent AGCC research which identifies internationalisation ambitions are often being held back.

    “In our region, we know that having to invest finance and capital upfront, dealing with local content rules and securing staff to exploit international opportunities are challenges,” he added.

    Chief executive of the Scottish chambers of commerce, Liz Cameron, said this survey has shown that Scottish businesses are facing “substantial challenges” when looking to export to international markets. “The hard work of Scottish businesses is shining through as Scotland’s economy gives us positive signals; orders are increasing, employment is on the up and overall, businesses are more optimistic about the future of their business.

    “We know that Scotland’s innovation and people are its strength so we must keep our finger on the pulse, making sure we tackle the barriers preventing us from doing business outside of Scotland,” she said.  

    Scots unable to grow exports, survey finds

    Sector saw turnover rise and created more jobs last year in spite of economic downturn

    Spain’s agrifood cooperatives have weathered one of the most challenging economic periods in the country’s history, posting an 8% increase in turnover in 2013. According to data from the Observatory of Agrifood Cooperatives (OSCAE) presented during the general assembly of Cooperativas Agro-alimentarias (Spanish Agrifood Cooperatives) turnover rose from €23.82bn to €25.69bn in the past year.

    The cooperative grouping, which represents Spain’s 3,844 cooperatives working in the agrifood sector, cited stronger prices across some of the country’s main agricultural products, including fruits and vegetables, olive oil, olives and wines, as the main reason for the improved results.

    The data shows that the cooperative sector increased its presence on international markets and now account for 27% of Spain’s total export turnover in the food industry.

    The number of workers employed by its members went over by 8.25% in the five years between 2007 and 2012, proving the important role the sector plays in job creation and growth, the group said.

    Cooperativas Agro-alimentarias held its general assembly in Madrid last week, during which Angel Villafranca was elected as the group’s new president. Villafranca, who also heads up the Agrifood Cooperatives of Castilla-La Mancha, replaces Fernando Marcén, former president of the Agrifood Cooperatives of Aragon.

    Villafranca said the new presidency would continue “with the policy of effort and integration of our food companies, carried out by Fernando Marcén with unmistakable success and by organisational expertise of the entire professional team.”

    Among the objectives set out by the new presidency, Villafranca said the focus would be on further consolidation and integration in the coming years. He said Spain’s agricultural production outside the cooperatives could not continue in their present disorganised and atomised state, and called for “an urgent restructuring process that allows us to minimise the effects of increasing external competition and highly concentrated customers, maximising the benefits from the internationalisation process, particularly in emerging markets”.

    Spanish coops ride out recession

    UK Prime Minister David Cameron to discuss the EU ban on mango imports with the newly elected Indian prime minister, to be announced May 16

    Since May 1st, the EU has blocked all imports of Indian mangoes, eggplant, taro plant and two types of gourd until December 2015. The European Commission announced the ban following authorities in Brussels found Indian shipments of fresh produce contaminated with fruit flies last year.

    British MPs including Jon Ashworth and Keith Vaz have criticised the ban for the run-on effects to local retailers, importers and distributors as well as Indian farmers. A petition with over 2000 signatures has also been circulated, opposing the ban.

    Speaking during Prime Minister’s Questions, Cameron said, “The European Union has to look on the basis of the science and the evidence and there are concerns about particular cross contamination in term of British crops and British interests.

    “But I understand how strongly [Mr Vaz] feels and how strongly the Indian community in this country feels and indeed I look forward to discussing it with the new Indian prime minister.”

    The Indian mango season lasts from mid-April to early July. With the ban coming in just as exporters were gearing up for the season, and UK imports of Indian mangoes valued at £6.3m (US$10.68m), prices of mangoes within India have now decreased significantly.

    UK PM to discuss mango ban with new Indian PM

    Growers’ group toasts a very successful 2013, but change is afoot with a new chairman set to take the helm

    Berry Gardens has recorded its highest-ever pre-tax profit return on the back of a strong turnover.

    For the 2013 financial year, group turnover was up 2.6 per cent from 2012 to £212.8 million, with pre-tax profits at £3.6m.

    As a result, Berry Gardens will be rebating some £2.8m of commissions to its members, and this figure rises to £3.8m when all other 2013 rebates to members are included.

    Speaking at the 42nd AGM of Berry Gardens Growers Limited, which was held in Edinburgh at the Dakota Hotel, chairman Paul Kelsey, said: “2013 was a challenging year with a late start to the season due to an exceptionally cold spring. However Berry Gardens rose to the challenge and, under these difficult circumstances, Berry Gardens Limited has delivered an outstanding set of results.

    “Berry Gardens has invested significantly in its packhouse over the last few years with the project complete in November 2013. The size of the site has almost doubled from 60,000 sq ft to 110,000 sq ft. In addition, we have we have also introduced significant upgrades to our internal processes and systems meaning the packhouse is now well positioned to handle the expanding counter season volumes from our partners, Driscoll’s and other growers.”

    After more than three years as chairman, Paul Kelsey will be stepping down and replaced by his vice-chairman, Alastair Brooks of Langdon Manor Farm, Kent.

    As a soft fruit grower, Brooks has been a member of Berry Gardens for 30 years and a board member since 1994.

    He said: “Berry Gardens continue to lead the industry with their knowledge, experience and access to exclusive varieties from our partnership with Driscoll’s. As a grower co-operative we work with our customers to ensure quality, efficiency and customer satisfaction.

    “The recent good weather has meant an early start to the UK season which we hope bodes well for the rest of the summer.”

    Brooks will be supported by Robin Walker as vice-chairman. Walker is currently a non-executive director of Berry Gardens with extensive experience in the food industry, most notably with Heinz.

    Record profits at Berry Gardens
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