Chamber survey results show businesses in ‘cautious mood’

The largest independent North East business survey’s results released today, 31 January 2022, show substantial concerns about inflation and energy prices. Over 80% of respondents were more worried about these two issues than they were three months ago. 

Organised by North East England Chamber of Commerce, the quarterly economic survey also found that North East businesses largely ended 2021 in a far better position than they started it. The proportion of businesses operating at full capacity (52.7%) was above levels recorded last quarter (44.6%) and Q4 2020 (30.8%) While domestic indicators have fallen back slightly from the third quarter, they remained in positive territory; indicating growth. 

Lesley Moody OBE, CBE Chamber President (AES Digital Solutions) said: “As we identified last quarter, the headline figures are undermined by some serious concerns on the horizon for our businesses. Export performance is worryingly flat, with firms identifying supply chain issues, increased costs and the continued disruption due to Brexit as the leading causes of this. This quarter also brings more worrying data on businesses’ cashflow. 

“There is a lot of media discussion about an impending ‘cost of living crisis’. We must not lose sight of the fact that we are also facing a ‘cost of doing business’ crisis. 

“When you add in the continuing concerns regarding staff shortages and a tight labour market, it is easy to see why businesses may be starting 2022 in a cautious mood. In the short term, business performance looks reasonably strong (especially after such a difficult couple of years) but it will not take long for challenges such as inflation to erode this performance. Policy makers must take heed of the warnings this survey provides.” 

The survey also examines the recruitment market with 59.7% of respondents saying they had attempted to recruit full-time staff in Q4, representing a slight increase on levels recorded last quarter (58%) and a substantial jump from this period last year (38.3%). 

A smaller proportion attempted to recruit part-time staff (36.6%), down slightly on last quarter (37.4%) but well above the level recorded last year (14.9%). 

Commenting on these figures James Carss, managing director of recruitment group NRG said: “The continuing rising trend in Q4 of recruiting full time staff is both unsurprising and telling on the overall high demands to attract, hire and retain staff in 2021.  We would normally (outside a pandemic) expect this to slow in the final quarter of the year, the fact that it hasn’t really demonstrates the desire of businesses to get up and running and back to normality which is of course very a very different picture from 2021. 

“In the previous year of 2020  there was far more uncertainty which was clearly determined by a lengthy lockdown. Currently it is a candidate’s marketplace with a large volume and choice of opportunities available, though undoubtedly there will be challenges for businesses in the future, having the right talent in place will be critical to achieve growth and profitability.” 

Durham University Business School is the associate sponsor of the Chamber survey. 

Download the full report here.

Finding the right executive talent

NRG’s recent feature for CONTACT Magazine

James Carss leads North East-based executive search and recruitment business NRG. Following extensive experience in the Far East and North America, James returned to his roots to help grow and develop the long established people business. Here, James talks to CONTACT about the approach, methodology and skills required to source top talent for companies and organisations.

Q: What difference do you and your team make to the executive search and selection process?

A: We work with a very specific focus to find top talent at executive level, as well as for non-executive and chair appointments.

Our approach differs from normal recruitment where people might place an advert to try and find someone, because we are not necessarily targeting people who are looking for a job.

Instead, we meet a client and spend time with them to understand their business and what they are looking for.

We then go and find the people who have the relative skillsets to fit organisations’ criteria – essentially, we want the best individuals within a specific function, industry, area or leadership.

In short, we find the right people while saving the client valuable time as we do the hard yards in terms of research, initial vetting and interviews.

Q: Which sectors do you cover?

A: We work across a number of sectors that include accountancy and finance, IT and digital, and engineering and manufacturing.

It’s important to note our flexibility – accountancy and finance, for example, covers both private and public sectors.

We have placed senior executives in health trusts and housing associations, as well as leading private and public companies.

Q: What makes your Executive Search and Selection process so valuable to clients?

A: We align ourselves with senior business leaders to understand the motivations, aspirations, culture and values of their business, working together to strengthen the leadership team – often as a result of private equity investment, significant market movements or business restructuring.

We conduct a rigorous search for every role, which involves a lot of market mapping through intelligence gathering.

Using data from our dedicated research team, we build a map, sometimes of 50 to 100 people, and then qualify and proactively target individuals, engaging with them about a particular opportunity.

I previously managed a leading global recruitment consultancy during a 12-year stint in Hong Kong, so I’d like to think NRG’s Executive Search and Selection offer provides clients with significant – and distinctive – support and reassurance.

Most of the people identified won’t be looking for a career change, so businesses need a trusted partner to sell themselves and the role.

There are many firms offering executive search support, most of which are based in London, but there are very few in the North East that are doing what we do or possess the background we have. And I’m incredibly fortunate to work alongside highly-experienced fellow consultants Scot McHarg and Ray Williamson.

One of our key differentiators is that every member of the Executive Search and Selection team has worked in the sphere for more than 15 years, and we are all experienced in working out of the region and placing multiple board level appointments globally.

We spend hours with clients before we start a search; we get close to a chief executive, or a board or chair, to understand how an organisation works from the inside out.

That helps us understand a particular role, its importance and what an organisation needs in terms of technical ability and softer skills.

Q: Are you able to provide a good example of a recent senior appointment?

A: A very relevant example of NRG’s Executive Search and Selection provision in action came recently when we worked closely with the North East England Chamber of Commerce to support the business membership organisation’s search for a new chief executive.

This is a really important role, and the Chamber needed someone they could trust.

I spent a long time with outgoing Chamber chief executive James Ramsbotham and its chair John Marshall to find out what they needed. I then put in place a rigorous structure that was fair and transparent and focused on delivering the right candidate.

As you can imagine, I’m now delighted to see John McCabe in the role and wish him the very best.

Q: Has the COVID-19 pandemic changed the game in the world of work?

A: Yes, hybrid working is here to stay, and it is interesting to see its impact on senior candidates who may need to relocate.

As a company, we have done a lot of high-profile relocations of candidates to the North East.

Some of them have been boomerangs (North East natives returning) but others have been new to the area.

One of the issues people always face is the trailing partner, and the logistics of them coming to the region and finding a job.

The pandemic has changed that to an extent, though, because now a husband or wife can go to their employer and say, ‘my other half is moving up to the North East – can I do my job remotely and visit the office once a week or fortnight?’

But relocation nevertheless remains tough; it isn’t easy for the job candidate or their family.

I’ve seen both sides, from being the person who went to Hong Kong by myself in 2004 with one suitcase, to the man who, when NRG contacted me in 2016, moved across the Atlantic with his wife and three children all aged under five.

It provides me with points of reference and allows me to speak to people with real empathy.

NRG

www.nrgplc.com

@nrgplc