YourBusinesswithJamesCaanSpring2023 - 27

Interview
E
nergy is something James
Caan has no shortage of,
and he's been using it
in the past 12 months to
travel the globe - not to soak up the
sun, but to launch his recruitment
business Recruitment Entrepreneur
in more than 20 countries.
The business guru and serial entrepreneur is perhaps best known for his
appearances on the BBC's Dragons' Den. He is also the founder and CEO of
investment company Hamilton Bradshaw, and has invested in and oversees
more than 30 companies in the UK. James took time out of his hectic
schedule to talk business to Your Business editor Georgina Maric.
On the pandemic and its economic impact
Hi James. Have your businesses rallied in the last year,
since the end of the pandemic?
During the pandemic, we experienced the worst economic environment most
business entrepreneurs will have ever known in their lives. It was one of the
biggest shocks to the global economy, and we didn't know what we didn't
know. The year 2020 was unbelievable, with markets going up and down.
But when I have experienced a market recession or economic crisis, the
recovery always seems to be as aggressive as the downside, and the economy
tends to bounce. And most of us saw an incredible bounce in 2021 - it was the
best environment I've seen in my history of recruitment, and to my surprise
it continued throughout 2022.
The economy was quite strong and we were in the unusual position of
having a massive labour shortage in the UK, caused by several major factors.
The pandemic changed the global workforce as people started to reflect on
their working environment for the first time, and there were opportunities to
work from home. Then, the leisure and hospitality industry closed for years,
and thousands left the industry. Brexit meant many Eastern Europeans went
back home, which left a vacuum and an employment void. As a consequence,
the recruitment industry benefited, because there was a huge shortage, and
we've experienced two years of exceptional growth.
In 2023, the outlook is okay, but there are a number of risk factors,
including the energy crisis, the cost of living crisis and the ongoing Ukraine
war. These factors are in the background, which may or may not impact on
our industry, but I am conscious about managing through what may be
a difficult environment.
Are you still struggling to find top talent, or has this pressure
now eased somewhat?
It has been very challenging, because there's been such a movement, it's
created a vacuum. In the health service, 43,000 nurses and midwives have
left the industry, which has created a shortage, and you can't replace them
quickly because it takes time to train people
to graduate level. During that two or three
year period, there's a void. Businesses in
most sectors are struggling to find talent,
which is good for the recruitment industry.
It was reported recently that the
International Monetary Fund (IMF)
forecast says the UK economy will
fare worse than any other country.
Do you think this is going to be true?
I think the economy may be tricky, but
there are different strands of the economy.
The macro position might be difficult,
the technology sector may struggle, but
healthcare will do well. There are parts of
the economy that will still thrive so you
can't take a general view. It's not one size
fits all, but I'm not pessimistic.
Some SMEs are struggling because
of the economic downturn and the
energy crisis - what would your
advice be to those business leaders?
Some businesses have experienced difficult
times because of the energy crisis, but I
think that will resolve itself. I don't think it's
a long-term problem - oil and gas will find
its way back into the market. It's a blip, not
a trend. Q1 in 2023 has shown there seems
to be a general supply, and reserves in the
UK have gone up. It's been difficult for a lot
of businesses to cope with, because you can't
pass the cost of energy onto the consumer,
as it impacts margins and profitability. But
I think it will resolve itself this year, and that
will help the cost of living. Governments will
find alternative solutions, and there has
already been substantial progress, which
hasn't filtered through quite yet.
The concept of hybrid and flexible
working has had an impact on
businesses and employees. Do
you think this is a good model
for the future?
The new norm is a good thing, because
what has been created is optionality. Every
organisation has a variety of categories
in its workforce - different ages, different
departments - and my advice would be
to look at it from a category perspective.
People in their 20s do need to come to
work every day, as it's their opportunity
to learn and develop. Sitting at home by
themselves in a lonely flat is not the most
conducive environment to work in, from
27
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