The current outlook for hiring in Foodservice Sales and Marketing? - Nov 2020

Being a Sales and Marketing candidate as we approach the end of a year in 2020 like no other is challenging.

If you are an open to work candidate, there are those ongoing thoughts about whether roles are going to be out their in your chosen field - and the timescales for this (but take heart that many of these "Open to Work" banners are gradually disappearing).

If you are a candidate in a secure position but looking to progress - whether this is for strong salary, career options or work life balance - 2020 has probably not only made this challenging but has also led you to balance out these drivers against the security of being in a stable role.

I’ve mentioned before – it is getting better – there are bumps in the road but the trajectory in terms of Foodservice Sales and Marketing hiring is very much in the right direction.

There is no consistent strategy from companies in the sector in regards to hiring – it depends on so many variables specific to them – but below hopefully provides some insight in terms of what’s happening in November and what the outlook is currently across various areas for 2020.

Are companies still making redundancies of Foodservice Sales and marketing professionals?

The answer is “to some extent yes” – but definitely fewer and fewer as the year progresses.

May and June saw some employers taking an immediate decision to shelve Sales and Marketing personnel – even before the Furlough scheme was announced.

A larger amount took a couple of months during lockdown to really drill down into their structures and try to try to strategically guess what they needed right now, and what quieter areas they could commercially carry into 2021.

Companies took a cautious approach – as no one was expecting the levels of sales in Foodservice post lockdown or how successful the “Eat out to Help Out” scheme would be as there was, at the time, still that question on consumer confidence to venture back into hospitality outlets.

The impact at the end of furlough on redundancies hasn’t been as large as many predicted, mainly due to companies already making their decisions well in advance of this.

Has the furlough scheme served the purpose of saving Foodservice roles or enabling companies to take staff back on in Sales and Marketing roles made redundant post September 23rd?

On the whole the answer seems to have been no.

The problem with “extending” at the last minute as opposed to it being set until the end of the year (or until further notice) at the outset, is that companies have had to cut their cloth accordingly to what the facts were at the time – which was that the furlough scheme was ending at the end of October.

Although there will be a few companies who are in the position to support candidates recently or about to face redundancies – the facts are that 2020 has been massively challenging from a financial and sales perspective so companies have had to restructure to tight budgets for the rest of 2020 and until lockdown restrictions finish – with no exact timescales for this – so for many, it’s been viewed as not possible to carry the additional costs of PAYE, Pension schemes and Holiday entitlements, none of which are covered by furlough.

Essentially is appears that it’s served as a great benefit to help manage ongoing costs for man power over the quieter Winter months – but potentially not has had the desired effect the government were hoping in reversing companies decisions.

Has the pandemic driven down Salaries available to candidates in new roles?

On the whole strong employers are realistic and take a long term view on hiring – there are companies who will see this as an opportunity to attract candidates “on the cheap” – but generally salaries appear to be at the same level as pre-lockdown in terms of the core ranges for each role.

There is less incentive currently for companies to push the top end of boundaries to attract candidates, as with the volume of candidates there is more chance of attracting candidates within the desired range, but, on the whole companies are viewing hiring in the long term and are forward thinking enough to know that if you hire talent at below market value, this increases the chance of them moving on once the market picks up.

What HAS been noticeable is that companies have been able to be more specific about the background requirements than prior to the pandemic.

This is understandable as currently companies can adopt this strategy and still successfully attract talent for interview, and of course if Foodservice companies are investing in hiring during challenging trading conditions, the expectation to only bring on talent who can provide immediate impacts and returns is greater.

Conversely this is frustrating for candidates who have found themselves “on the market” and as a result being open minded

What seems to be the outlook from Foodservice Sales leaders for 2020?

Well the truth is no-one really knows for sure even what is happening in December, never mind next year, but general outlook seems to be a concern for immediate trading during the winter months but positivity that there could be strong signs of revival from March onwards, especially if a vaccine comes into play.

Social distancing seems to be here for a while, possibly the long term – but conversely consumer confidence in eating out has remained high so this aspect possibly isn’t as big a game changer as initially thought.

On the whole, Wholesale teams have been restructured to deal with the “now” and can operate potentially at these levels during the winter months – but generally a high percentage of managers are confirming that should the market pick up to anywhere near previous trading, it will be impossible to manage existing business and in particular develop new business with current numbers – so hiring will inevitably happen in 2021.

...and of course, if wholesale is thriving, then so are the Foodservice manufacturers that supply them.

What does this mean in terms of timescales for hiring within employers of Foodservice Sales and Marketing talent?

This very much depends on the level of confidence of the company.

Due to the unprecedented (don’t we all hate this word by now!) nature of this year’s effect on Foodservice companies all had different strategies in re-aligning teams, no-one knew for sure if a cautious or robust approach to Sales team numbers would pay dividends or not.

It will be exactly the same as companies exit lockdowns and build in 2021.

Some companies are already confident that trading will be up by March and therefore see the need quickly to bring talent on board and have them up and running and having the right conversation early next year to secure their positions as suppliers for 2021 – A brave approach, but one that means they are ahead of the game in March if their confidence is confirmed, and are able to not only have their teams in place and up and running for March but also to take advantage of the unusually high volume of strong candidates available to attract currently.

Others are more cautious and are going to wait until they are 100% sure Foodservice is back open, and see the numbers coming through to make their moves – a low risk approach in avoiding potentially jumping the gun in terms of adding to the cost base, but also a high risk strategy of losing out on some great Sales professionals available now, and finding themselves recruiting and pipelining talent at a time when recruitment is more “candidate driven”.

As more positive news emerges the shift in this balance is moving towards companies considering the need to hire – but given the uncertain nature of 2020 it’s understandable that this is gradual and with a certain amount of trepidation.

I envisage that what is decided at the end of November in terms of further lockdowns or the impact of any tiered system in Foodservice will be the catalyst for companies to press on in December with plans or to hold off until the New Year.

The best strategy seems to be pipelining of talent now with view to being ready to “press the button” and hire, as soon as it’s deemed the right time to do so.

Candidates are also receptive of this, as there is realism within the candidate community about the market sector still being fairly unstable right now – so are happy to follow Interview processes to advances stages, knowing that an offer may not be straight away, or timescales for start dates TBC – A situation which would be far less attractive to candidates in normal trading conditions.

What will recruitment be like from a Foodservice Sales and Marketing perspective in 2021

Prior to the pandemic – the Foodservice sector was what would be termed as “Candidate driven”, which essentially means that there were plenty of job opportunities and less available candidates.

This was compounded by the long term problem Foodservice has always had of attracting new talent to the industry sector and a general reluctance to consider (certainly at roles over 30K) candidates from other sectors with transferrable skills.

This has understandably changed, with it being “job driven” – Essentially meaning that due to redundancies combined with challenging trading conditions, less jobs available but plenty of candidates for companies to choose from.

But there is every reason to believe that by the middle of next year companies will find is as hard as previously (if not harder to find candidates)

• Many of the “Open to work” candidates will have found roles in the sector
• Many “Open to work” candidates will have found opportunities in Sales roles outside of Foodservice and stay within these new sectors
• We have had a period where many people have opted to retire, whilst at the same time very little “new blood” has came into the industry in Sales and Marketing at more entry level stage
• Candidates who are have not been redundant during the pandemic will have increased loyalty to current employers and take be more “risk averse” when considering moving employers

What this means for clients next year?

As 2021 progresses and the market regrows, it is likely recruitment in Foodservice will move back towards being “candidate driven”, the impact on companies being

• Balancing out hiring early in 2021 and having choice or waiting until later in the year and finding recruitment more challenging.
• Being in situations later as the year progresses of having to flex top ends of salary brackets to attract their desired choice of background and provide incentive to leave current employers.
• Increased consideration of hiring Sales talent from other Field Sales arenas (or possible catering/chef backgrounds) particularly at Field Sales entry level (24K-29K).

What this means for candidates with career aspirations currently in secure roles?

Potentially this could mean that if a candidate has the confidence to move and to priority career progression over stability the options will be vast.

Salaries could be competitive and also more companies will have to look at candidates “stepping up” a level to provide the incentive to move, as opposed to being able to attract from pools of experience similar to in the role they are hiring for.

This will provide opportunities both externally and possibly internally for candidates who want to re-focus on their pre 2020 career ambitions.

All in all, it will be an interesting time next to see how the Foodservice sector regrows and over which timescales.

Either way, let’s hope for the positive outcome everyone wants, which is buoyant trading conditions which in turn leads to profitability and enhanced career opportunities in the sector at all levels.