FMCG sales insight report for Q3 2011: Falling consumer confidence squeezes retail recruitment

It’s ‘back to work’ for UK PLC

Despite a summer of unprecedented social and economic unrest across continental Europe, Britain is still hiring. Such a statement appears to fly in the face of assumed wisdom and doom-laden media commentary, however the stats tell us businesses are still in the market for talented sales professionals. And, according to the Q3 BMS Sales Insight Report, year on year growth of sales vacancies is on the up.

The Report, which gathers sales recruitment data from across the UK to give an accurate picture of sales recruitment trends, shows confidence from employers in many industry sectors – with the rate of growth standing at 6.58%, up 0.9% compared to this time last year. With UK companies relying heavily on sales-figures to boost performance, the pressure is again on to recruit motivated, talented sales individuals that deliver results.

Candidate confidence remains low

Of course, the employer is only half the story. The other – around the candidate pool – is less positive. While businesses are hiring based on revenue and growth projections, often as not candidates are getting their information from the media who, of course, are not always wrong. But the aforementioned doom-mongering of many a tabloid and broadsheet has instilled something of a ‘batten-down-the-hatches’ mentality.

Despite the fact that Britain’s economy exceeded analyst predictions to grow at 0.5% in the third quarter, and we’re seeing stable levels of vacancy growth (the standout sectors in Q3 being Business Services and Construction, up nearly 6% and 4% respectively on 2010 figures), talent appears to be staying put. 

On the flip side, growth levels fell against the previous quarter’s figures in the hard hit FMCG sector, and manufacturing witnessed a normalisation after its stellar growth over the first two quarters of 2011; figures that, when taken out of context, do little to alter negative perceptions.
We discussed this issue last quarter and the trend – and its resultant challenges - continues.

New ‘coping’ strategies

This apparent disconnect is having a major impact on companies, with a massive 74% reporting they’re finding it tough to attract top sales people. In these challenging times, adapting to the new market realities means it pays to review what you do – and how you do it.

Which explains why, in a bid to increase their sphere of influence, 21% of companies now actively look outside their sector to attract talented sales people. And why, in the battle for top sales talent, 68% have changed their recruitment processes to find the best candidates.

So, despite the hype, for employers and candidates the Q3 BMS Quarterly Sales Insight Report highlights business as usual; or perhaps the continuance of the status quo. Vacancies are up, but for how long remains to be seen.

Falling consumer confidence squeezes retail recruitment

The sector most subject to the vagaries of the Consumer Price Indices, FMCG has had a torrid time of late. Whether one takes the Consumer Price Index or Retail Price Index as the true benchmark for consumer price inflation (CPI annual inflation stood at 5.2% as of September 2011, 5.6% for the RPI) the simple fact is there’s less money to spend. The knock-on effect is, of course, a tightening of corporate belts – and that means head count freezes.

But while the BMS Q3 Sales Insight Report shows a fall in the rate of growth of senior sales vacancies, brands are still looking and there remain significant opportunities for the ‘right’ candidates.

Paying for the right people

The issue facing HR departments is that, in contrast with the vast majority of industry sectors today, the candidate pool has constricted. This makes the search for top talent an ever more challenging task. The BMS Report findings say 74% of organisations surveyed are finding it either difficult or very difficult to attract top talent today.

And just as the fall in the disposable income of the UK consumer hasn’t dampened down their aspirations (according to Amanda Sourry, Unilever's chairman for the United Kingdom and Ireland in a recent speech), candidates expectations remain similarly high. This demands a certain level of flexibility from employers in terms of package and indeed working practices.