Move with the times
Time waits for no man, and in the food manufacturing industry it is no different. But how have employment and working practices changed over the last 20 years? According to a new survey by interim and project management provider Albemarle, the biggest change has been in the use of contract and interim staff.
Albemarle carried out the sector survey of over 2,000 professionals to mark its 20th anniversary, looking at trends and changes within the industry. When asked what the biggest trend in employment changes was, 89% highlighted the use of contract and interim staff. According to Nigel Hunter, md of Buckingham Foods, this is due to "declining UK unemployment and increasing expectations amongst the indigenous UK population"
The survey also found that flexible staffing has become critical to controlling one of the biggest costs, that of labour. The recession of the late 80s left many organisations with a lean management team, often resulting in the need for interim managers to boost management teams or inject expertise at a time of change, says Albemarle.
Human Resources (HR) director for the Gerber Juice Company Paul Hurst, who has 30 years' HR experience in the food sector, believes some of the changes have been driven by employment law and legislation. "Changes in maternity rights and the introduction of paternity rights and parental leave have all had an impact, as will the new Age Discrimination Act this year," he states.
"Changes in employment law have also impacted how we use seasonal staff, which were previously employed direct and are now hired via an agency. The introduction of new technology has called for a change of skills required, and the need for project managers to manage change has also grown over the last 15 years." The demand for greater flexibility had also led to an increased use of interim management, he added.
Changes in other sectors have also contributed to the increased need for interim management in the food sector, says Richard Mostyn-Jones, commercial director for First Milk. "The last twenty years has seen the industrial sectors change, with increasing technology-based organisations alongside call centres. These environments have absorbed many of those who may have previously worked in manufacturing," says Mostyn-Jones. "With this in mind, it is increasingly difficult to recruit individuals of the right calibre, be it operators or managers."
But, while it is important to operate a manufacturing facility within a stable environment, it is equally important to operate one that is efficient and can adapt its output to seasonal demands, adds Mostyn-Jones. "It is for this reason that short-term contract labour can add significant value when required."
Operating efficiencies and the increasing seasonal nature impacting food companies; coupled with access to cheaper labour from migrant workers from new EU entrants, have also increased the use of contract staff, something unheard of 20 years ago, adds Albemarle. "For many, this access to more cost-effective labour from EU countries was one of the biggest changes to impact the food and drinks sector in 20 years, filling many unskilled opportunities," it says.
But while interim managers are on the increase, respondents also noted the demise of long-term staff tenure, part of which they put down to greater accountability.
However, the survey found that over 69% of respondents saw the availability and use of migrant workers as a positive trend. Many commented on the strong work ethics of the majority of migrant workers. Deborah Pogson, HR manager at Witwood Food Products, says: "Migrant workers are extremely dedicated and hard-working. They regularly send money home to support their families and this is strong motivation." And another respondent added: "Utilising migrant labour in UK food factories is a better alternative than manufacturing UK food in central European countries, isn't it?"
Perhaps not surprisingly, the survey revealed that attracting talent at entry point remains a problem, with 77% of respondents remarking that it was difficult to attract graduates, despite the increasing numbers coming to market. But http://www.prospects.ac.uk, the official graduate website, claims that at management level, salaries in the food and drinks sector are comparable to other industries. It quotes figures for 2006, which showed the average starting salaries at Northern Foods and Unilever were £22,000 and £25,000 respectively.
So why does the industry not attract graduates? The overwhelming opinion from respondents was that manufacturing of any type, was not a glamorous or forward thinking sector, and that this had a knock-on effect to management talent. The introduction of NVQs was seen as a positive move, improving the skills base at grass-root level. However, whether this would empower workers and produce new management talent remains to be seen.
The survey claims that increased automation over the last 20 years has resulted in both the reduction of unskilled labour and the increase in skilled labour to handle machinery.
On the flip side, the need for effective supply chains and professionals with this expertise has become evident, says Albemarle. "New roles in this discipline, which covers the full production life-cycle from purchasing raw materials to product delivery, have been top of many clients' recruitment lists and equally reflected in the interim market in the set up and review of these functions." FM
