< Previous30 Business Link www.blmforum.net PORTS AND LOGISTICS The hiring problem The hiring problem A study by Barclays Corporate Banking has claimed that there are over £2 billion worth of goods languishing in Yorkshire warehouses due to supply chain issues. The study went on to claim that over 66% of businesses in the region are affected, at a cost of up to £900,000 per company in some cases, with the most affected industry being food and drink. When quizzed, 86% of manufacturers in the region said their customers were being affected and facing delays. Furthermore, 60% claimed they were planning to increase prices in the new year to deal with rising costs, but 90% went on to say they expect their business to grow. This may seem a polarising message to many but is pretty much a view of the logistics industry in Yorkshire and Research shows there is over £2 billion in goods stuck in Yorkshire warehouses due to supply chain issues, and yet the sector still struggles to bring in new talent. 33 Áwww.blmforum.net Business Link 31 PORTS AND LOGISTICS © stock.adobe.com/ Jag_cz32 Business Link www.blmforum.net PORTS AND LOGISTICSwww.blmforum.net Business Link 33 PORTS AND LOGISTICS Lincolnshire right now. It is a sector with huge potential for growth, constantly increasing demand, but too few people to address it. Normally when this happens businesses grow or crop up to take their share of the profits, but that isn’t possible when new companies cannot hire enough staff to man their fleets. The skills shortage we have talked about many times continues to rear its head, and this time there are quantitative figures behind it. The simple fact is that the sector is a lucrative and successful one that – despite soaring fuel costs – has incredible potential to grow, but all the potential in the world is meaningless without employees. Brexit has closed off the ability to bring in foreign workers, and the logistics industry is one with the least uptake among younger people, who see it as uninteresting labour with minimal pay. The latter is not true in many cases, but the truth matters little if the perception is otherwise, and this only goes to show that the industry is not doing enough to reach out and change the minds of young people. Or, perhaps, that industry leaders are putting it off because they assume “someone else” will do it for them. The government will do it, or a trade body will do it, or their competitors will do it, or the teachers will do it. All of whom are busy with a thousand other things just as industry leaders are. The reality is that if you want something done you need to do it yourself, and you need to do it properly. While logistics firms are doing their best to lobby to younger audiences to try and get more people interested in the industry, it’s hard to know how effective this has been. Shocking new research published nationally suggested that 25% of young people feel they are not prepared to enter the workforce, up to and including having no idea what they want to be. While it’s naïve to say that is 25% of young people the logistics industry can be targeting, they can at least aim for a portion of that number. The fact is that school visits and talks to students won’t do anything to change minds. It didn’t when we were younger and won’t now. Children will see it as a free day from lessons and that alone. To really make a difference it may be more important to talk to people of the age of 14-16, and stress real-world things like the pay, the work, and the opportunities – and then to get them interested by offering to involve them in operations and let them see first-hand what the job will entail. All too often is “reaching out to the youth” seen as something one does maybe once per generation, standing in front of a class of distracted children and talking about things they can’t really grasp and haven’t had to think about yet. On the other hand, there is another easily accessible demographic in female workers. Women are woefully underrepresented in the logistics sector and aiming to make the workforce more inclusive for them is not just to meet goals of inclusivity, but to open up a pool of new recruits. There is obviously a lot of work to be done, but the recruits are there if people can only improve on reaching them. Perhaps what the sector means when it says, “there is no one to hire” is more “it’s harder to find the people I could hire.” © stock.adobe.com/ Gorodenkoff34 Business Link www.blmforum.net CORPORATE HOSPITALITY F ace to face could be seeing something of a resurgence as a result of AI, which seems ironic at first glance. How can a technology that promises to make us have to do things less result in an increase in people wanting to meet to do business? The answer, as always, comes from the unscrupulous and downright criminal elements, who are always some of the first to pick up on a way to make easy money by scamming people. AI has been used to target the elderly, the less educated, and more recently even politicians and business leaders. As the technology becomes more advanced, driven by investors who are engaging in an arms race with no concern for how the weapon will be used, criminals are getting access to more realistic AI voices and more realistic AI faces. In a time when we’ve gotten used to doing a lot of business online, people may soon be wondering if the person they’re talking to is real at all. This could see a return to more face-to-face meetings as a result, driven by a need to verify the integrity of a person you’re planning to do business with, and to make sure there’s a human asset on the other end of a suspiciously good telephone or zoom call. It’s unlikely, then, that the humble business conference or networking event will go the way of the dinosaurs, as there always needs AI promises to change a lot of things, but the very fact it wants to replace face-to-face meetings may, in fact, cause more of them to happen. 36 Áwww.blmforum.net Business Link 35 CORPORATE HOSPITALITY © stock.adobe.com/IBEX.Media36 Business Link www.blmforum.net CORPORATE HOSPITALITY to be someone a decision maker can talk to and trust as real. In fact, as more and more companies embrace AI, taking a more proactive approach to meeting in person could well become a competitive advantage. It goes without saying that as dependency on AI increases, skills will drop in those areas. It’s also become a very noticed and maligned thing that a lot of younger people entering the workforce struggle when it comes to social skills, be it from having to spend a long part of their developmental process indoors due to COVID, a reliance on social media, or a combination of that and many other things. So, if new recruits are lacking in social skills and never see the need to improve in it because AI fills the gap, then who can be trusted to attend events? This is a torch that may need to be passed on and taught, despite how it shouldn’t be the responsibility of business to teach young people how to act at such events. Instead of seeing the need as a burden, businesses who embrace it as an opportunity to turn malleable employees into social powerhouses could reap rewards when others fail to do so, relying on AI and email correspondence to secure business. While the days of walking into a random business, offering a firm handshake and securing a deal may be long gone, networking meetings, expos and exhibitions remain popular, so purpose-training staff to stand at those and engage with customers could reap unexpected dividends. That’s not to say AI should be demonised or avoided. While the old adage of “its not the gun but the user” may sound quaint, the laws on how AI will be used are young and inexperienced and will almost certainly change in the coming years. How AI is used, how it’s allowed to be used, and perhaps there will even be laws against allowing AI to make outbound calls, be it via telephone or over the internet. We just don’t know yet how the laws will change, and the fact this is an election year is unlikely to give us clarity anytime soon. Either way, AI is here and it is here to stay, so failing to take advantage of it would be reckless. However, placing all your eggs in one basket and giving up on corporate hospitality in favour of AI, when that might become illegal in a year or two’s time, would be even more reckless. © stock.adobe.com/be freewww.blmforum.net Business Link 37 INSURANCE A s business owners will know, there are certain insurance policies that are required to operate. Primarily, employers are obligated by law to have employers’ liability insurance, and this requirement remains unchanged in the proposed regulatory reform. This insurance policy will bear the expenses associated with work-related injuries or illnesses, encompassing both employee compensation and pertinent legal fees. Additionally, if a company utilizes motor vehicles for transportation or deliveries, it must obtain business motor insurance. The minimum coverage required is ‘third party only,’ which safeguards against damages and injuries inflicted upon third-party vehicles and drivers. It is also legally mandated to provide coverage for employees who will be operating company vehicles. But what about additional policies? Public and product liability insurance, whilst not mandatory, are standard policies taken out by a growing business. Public liability insurance is to provide financial protection to individuals or businesses if they are held liable for causing injury, property damage, or other losses to third parties. This insurance coverage is designed to cover legal costs, compensation claims, and any associated expenses that may arise from incidents occurring in public spaces or on third-party premises. Public liability insurance ensures that individuals or businesses are adequately protected against the financial risks and potential legal liabilities that may arise from accidents or incidents involving members of the public. Product liability insurance is to provide financial protection to businesses or manufacturers should their products cause harm or damage to consumers or users. This type of insurance coverage is specifically designed to cover legal costs, compensation claims, and any associated expenses that may arise from product- related incidents or defects. Product liability insurance helps safeguard Covering all angles © stock.adobe.com/ MP Studio 38 Á Business insurance is often seen as a requirement to be fulfilled as cheaply as possible, but big companies often invest in additional forms of protection, and it might be time for businesses in our region to consider the same. 38 Business Link www.blmforum.net INSURANCE businesses from potential financial losses and legal liabilities that may result from claims related to product defects, manufacturing errors, design flaws, inadequate warnings or instructions, or other product-related issues. It provides reassurance and financial security to businesses by mitigating the risks associated with potential product-related claims and ensuring they have the means to address any resulting legal or financial obligations. The downside to the above is that they would constitute two separate policies, meaning higher premium payments. Acquiring public liability insurance comes with a premium cost. The exact amount depends on various factors such as the nature of your business, coverage limits, and claims history. For some businesses, especially smaller ones with limited budgets, the cost of insurance may be perceived as a disadvantage. Furthermore, these policies are by their nature restrictive. Public liability insurance policies often have exclusions and limitations. Certain high-risk activities or types of claims may not be covered, or coverage may be limited in specific circumstances. It is crucial to thoroughly understand the policy terms and conditions to ensure that you have adequate coverage for your business needs. Public liability insurance may attract false or frivolous claims, potentially leading to increased premiums or reputational harm. While insurance providers have mechanisms to investigate and defend against fraudulent claims, the process can still be time-consuming and may impact the business’s operations. Once again, the usefulness of such policies depends on the nature of the business. Public facing businesses, particularly those that deal in advice or specialist services, may benefit from the specialist cover that public or product liability insurance provides. For businesses less prone to defamatory actions, general liability insurance will often suffice. General liability insurance is a broader term that encompasses a wider range of liabilities faced by businesses. It includes public liability coverage, but it also extends to other areas such as product liability, completed operations liability, and advertising liability. General liability insurance provides coverage for a variety of potential risks and claims, including bodily injury, property damage, personal injury, and reputational harm. It is a more comprehensive insurance policy that addresses a broader spectrum of liabilities that businesses may face. As may be expected, the more comprehensive cover of general liability insurance typically comes at a higher cost. For new businesses, reputation is worth everything. When choosing which assets to protect, opting for a more specialised cover at a lower cost may make more sense. However, if your business is in manufacturing or product sales, a more generalised policy to cover defective products is advised by experts. For company directors, it may also be prudent to consider extended coverage which reaches to defamatory claims against the person rather than exclusively against business operations. Directors and Officers Liability Insurance, often abbreviated as D&O insurance, is a type www.blmforum.net Business Link 39 of liability insurance that provides financial protection to directors and officers of companies in the event they are personally sued for alleged wrongful acts committed in their capacity as company leaders. This insurance coverage is designed to protect directors and officers from legal expenses, judgments, settlements, and other costs associated with such lawsuits. The purpose of D&O insurance is to safeguard the personal assets of directors and officers, as well as attract and retain qualified individuals for leadership roles within organizations by offering financial protection against potential lawsuits. It helps mitigate the financial risks associated with legal actions, promotes confident decision-making, and provides peace of mind to directors and officers in fulfilling their duties. It’s important to note that D&O insurance, by necessity, has specific policy terms, coverage limits, and exclusions. Finally, for businesses that trade in consulting or advice, Professional Indemnity (PI) insurance may be useful. PI insurance provides protection to professional businesses against claims made by their clients due to any harm caused by professional negligence. Obtaining this type of coverage is considered good practice for consultants, especially for national or global clients. Your contractual agreement may necessitate the acquisition of PI insurance, with the minimum amount of coverage required also being specified. One should note that those who operate as sole proprietors will likely be personally responsible for financial damages without PI insurance. © stock.adobe.com/ crizzystudioNext >