The fast-moving, day-to-day nature of fresh produce can make it difficult to plan for the next year, let alone the next generation, but recruiters are warning there can be serious consequences for companies who do not know who will succeed senior managers when they depart.
New research by Farmers’ Weekly/NFU Mutual has shown that only 40 per cent of farming families have a succession plan in place, with 46 per cent saying the conversation was “too difficult to have” with family members.
And with as many as 80 per cent of farms in the UK being family run and a new talent shortage still in evidence in the industry generally, it is clearly a problem that companies need to get to grips with.
Max MacGillivray, director at Redfox, describes succession planning as “a huge talking point in the agriculture industry”, pointing out that it is not just death or retirement of the owners, but issues such as divorce and debt that can force a sudden need for management change.
“It is an impending time bomb for a lot of companies and they need to get it sorted,” he says. “The better companies are the ones where bosses can allocate time to think about the future – perhaps 25 per cent of their time focusing on long-term projects.”
While economics plays a major part in the success of a business, longer-term planning is also critical, explains Guy Moreton, founder of MorePeople. “However, frequently the viability of a business depends on the availability of future leaders. Many owners of family-run businesses, such as farms, have a succession plan in their mind, but have failed to get it written down and shared with others in the business.
“Farmers are familiar with talking about recruitment plans over the short term, and the recruitment of seasonal workers, but longer-term plans often don’t exist. It is a very difficult subject to broach for all involved, but in my experience, the sooner it is tackled, the better to ensure the longevity of a family-run business.”
David Macaulay, managing director at Eden Search & Select, says the fact that companies have had to become “lean and mean” means they are not always able to carry the headcounts to train the next generation of staff. That makes it even more essential that they have a plan in place to deal with specialist positions in particular.
The wholesale sector has a particular problem with succession planning, according to Sydoni Dixon, director at Fresh Talent Recruitment, with young people not keen on taking on unsociable hours of working. “Traders are impossible to find, even though the money can be amazing if you work hard and you’re at the right company,” she says. “Some businesses really do look after their staff but just can’t find anyone.”
It has long been discussed, but Dixon believes the wholesale trade needs to switch to daytime working in order to ensure it has the staff to function for the future. She also believes companies should “think outside the box” and not presume they always need university graduates when it comes to bringing in new staff – professionalism and hunger for success are more important. “So many young people just want that opportunity, so you should be open-minded. It’s not just about what is on a CV – it is about getting the right fit for your team and your business,” she adds.
With fresh produce requiring some particularly individual skillsets, it is clear that waiting until the last minute to plan who is taking over is not an option. Knowing how the business will be managed in five years’ time is as important as knowing how many acres of crops you are going to plant.
Guy Moreton’s advice for successful succession planning:
Look at the existing management structure, and consider when each member may leave the business
Be realistic about when people within the family business will stop working. If key members of staff are heading towards retirement age it is really important that a succession plan is put in place as soon as possible.
How will the business look in the future?
You also need to consider how you hope the business will develop and grow over the next 10, 20 or 30 years. Your succession plan wll need to fit the model of how the business will look in the future, not as it stands right now.
Consider the roles, skills and qualities of those who you may need to replace
Perhaps you feel that a job role can be shared between existing employees and a person does not need to be replaced. Or, perhaps the role is large enough to require the recruitment of more than one person in order to cover all of their responsibilities. This may be essential if the business is to diversify and grow. Ambitions for the future should stay front of mind.
Identify the skills gaps
Consider where the skills gaps are and how these can be filled. Those with a high level of experience and expertise are hard to come by. For this reason, it is important to nurture existing staff to encourage them to be the business leaders of the future.
Create a development plan for those in the business who will eventually manage it
This should include all of the experience and skills that need developing, as well as a route to how these will be gained. Placing emphasis on training and development of those already within the business will ensure they have all of the skills necessary to take on the demands of a new role, and will also encourage staff to commit to the business for the long term.
Recruit new people into the business if necessary
Your succession plan may highlight that there are no existing employees to take on leadership positions. And – with the diversification of the business in mind – it may be time to recruit someone new in to the business with an entirely different skillset to your current team.
Write the plan down
Now that you have thought strategically about your succession plan, write the plan down, and share it with all stakeholders to ensure that everyone is aware of what will happen in the future. But remember that this is a fluid document and should continue to develop as your business grows successfully into the future.
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