Things to consider when recruiting in AgriTech

Sam Clayton, Managing Director and Recruiter at AgRecruit shares his views

Running an AgriTech specific recruitment business means that I spend my time working with companies in the AgriFood domain when it comes to recruiting for roles that are non-traditional for the sector. This sees me working on roles in Software Engineering, AI & Robotics, Data and various Engineering disciplines, as well as commercially oriented roles focused on a tech service.

For start-ups, or perhaps more established entities delving into the tech market for the first time, recruitment can mean stepping outside of the Agri world and into a wild-west where you’ll be fighting tooth and nail for the in-demand talent you need, against companies across the likes of Banking, Retail, Energy, Healthcare and any other sector you can think of.

This post focuses on elements that need consideration before you even dip your toe into the water and start engaging with candidates. Some may seem obvious, but hopefully there’ll be one or two you hadn’t thought of which will help you on your way…

Does what you’re looking for exist?

You may have 3-4 business needs that require addressing, varying from Sales through to Software Development – but, if you’re expecting one miracle worker to solve all of these, you might have to think again. With the odd exception, generally people will specialise in one discipline; so you need to decide which of these is the most pressing, or work out if you can recruit for more than one post.

How challenging is the role to fill?

You’ve decided that your requirements are feasible and it’s all systems go. Will it be straightforward though? Software Engineers and Data Scientists, for example, are established role types – but are still notoriously hard to find and attract. Are you looking for a skillset that is abundantly available, or is this a highly specialist role that could prove challenging?

Can you make life easier for yourself?

If, based on the above point, you’ve deduced that this could be challenging, can you take measures to open up the pool of viable candidates? Some flexibility on aspects such as remote working or the role requirements (could elements be learned on the job?) can significantly facilitate your journey.

What do you have to offer?

What is standout or unique about you and your proposition that will be enough to not only convince somebody that the upheaval of changing jobs is worthwhile, but also that you should be their first choice versus the other parties vying for their attention? How are you making your ‘USPs’ (Unique Selling Points) apparent to candidates?

Do you have an interview & selection plan?

What type of interview(s) do you want to carry out and across how many stages? Are all decision makers agreed on what is needed and reading from the same hymn-sheet? Will your process give people a chance? Of course, the barrier for entry can’t be set too low… but, on the other hand, a process that is overly arduous or drawn out may result in great candidates being ruled out for minor imperfections or becoming disengaged.

Do you have the time?

You doubtless have other tasks and responsibilities that require attention; do you have the time to make this a priority right now? Can you review CVs in good time? Do you have time to vet candidates on the basics (e.g. salary expectations, are they serious about looking or just ‘window shopping’, etc) before committing to interview? Are you and all other decisions makers available to move through the interview process at sufficient rapidity?

Will you need help?

If you’ve exhausted your own network and your job ad isn’t yielding results, you may need to enlist help and look at going down the Recruitment Agency route. It will need to be a sufficiently attractive proposition for an agency to invest time & resources into. Surprisingly to many, the fee % you’re willing to pay is not the most important thing here; experienced Recruiters are more likely to prioritise the prospect of a healthy working relationship and partnership. To aid this, consider whether you’d be happy to work with one agency exclusively, or will there likely be further assignments to come should they deliver for you?

All the above points could lead to a blog post on their own, but hopefully this is enough to help make your life easier and start to maximise your chances of success. We are passionate about building further relationships in the AgriTech space and lending a helping hand where possible to growing companies in this domain, so will always be happy to provide advice and guidance for free on the topics mentioned here. Happy hunting!

Contact Sam Clayton at AgRecruit for help on anything covered in this post, or any other recruitment related enquiries:
(+44) 01908 035950
sam.clayton@agrecruit-ltd.com

Ticking the patent box – can patents reduce your tax bill?

The UK patent box is a tax break designed to encourage R&D to start and stay in the UK. It offers a reduction in corporation tax on the profits derived from patented products and processes. Corporation tax can be reduced to 10% on these profits, although as with all things tax related, it’s not that simple.

How patent box works

The calculation can be quite complex, but the headlines are:

  • You need to own or exclusively licence a granted patent;
  • Your company must have undertaken qualifying development, and made a significant contribution to the creation of the invention or to a product containing the invention.

The patent box claim can be made any time, and can be claimed up to 2 years after the end of the relevant financial year.

The key thing to understand is that the patent must be granted. UK patents can take 3-4 years to be granted, and European patents longer. Therefore, if you plan to start selling the product earlier than this it creates a bit of a problem. No granted patent = no patent box tax relief.

Fortunately there are some strategies that can help.

Fast grant

Although the default option in the UK is 3-4 years, this is not the only option. There are various mechanisms available which can speed up the patent process. These are:

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  • Combining search and examination. Usually two stages of the process, these can be combined into one.
  • Requesting early publication. Patent applications are usually published at 18 months, and won’t be granted until a minimum of three months after publication. If we ask, the UKIPO will publish the application early, meaning that the three month period will be brought forward allowing for faster grant.
  • Requesting acceleration. We can ask the UKIPO to speed things up. A reason is required, and unfortunately ‘tax relief’ is not accepted! That said, a commercial reason such as ‘fear of infringers coming on the market’ or ‘grant would aid in licence negotiations’ are usually good enough.
  • Entering the green channel. This accelerated treatment is available to ‘green’ inventions. Therefore if the invention has environmental benefits, this route should be requested if it has not automatically been entered.

According to the UKIPO, these tricks can get you a granted patent in as little as 9 months.

The smart approach

Although fast grant sounds great, it does have some side effects. One is that often a pending application is a little more scary to would be infringers than a granted patent. The scope of a granted patent is set in stone. Therefore third parties know exactly what they need to do to ‘design around’ the patent and avoid infringement. Therefore fast grant is not always the best commercial decision.

Also, generally patents will get to grant faster if we accept narrower protection. To understand this, consider the difference between broad and narrow patents:

  • A broad patent covers the core product and as many variations of it as we can protect;
  • A narrow patent focuses on the core product alone. It may be easy to design around.

So the former is better commercially, but is not great for our fast grant strategy as it usually involves a bit more of a protracted examination. Also, keeping the application pending longer is usually more commercially desirable to keep would-be infringers guessing.

So what can we do?

Best of both worlds

The good news is that we can have both. It’s possible to have a fast, narrow patent for patent box and a slower, broader patent for better commercial protection. It uses a technique called ‘dividing’ the patent application or ‘filing a divisional’. This allows the patent application to be cloned. The original application can form the patent box patent, and the ‘divisional’ used to take things slower and pursue a broader patent:

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The economics – what do patents cost?

Ultimately most clients want to know (i) what they can save in tax and (ii) what the patent costs to get granted. Question (i) is for the accountants, but in terms of (ii) a fast, narrow UK patent for a mechanical type invention can cost as little as £3500 (ex VAT) from filing to grant. This is very much at the low end of the spectrum, and the average is probably more like £5000 – £6000 (ex VAT), but all the same it is easy to see how this cost can be easily offset by the tax relief. If the product lifespan is only 5 years (patents last way longer than this- up to 20 years from filing) then it only takes £700 to £1200 of tax saving a year for the patent costs to be covered.

Everything after that is on the bottom line.

Vault IP

Vault IP is a Midlands-based, boutique intellectual property law firm, created to be an antidote to the traditional IP practice. If you would like to understand more about the patents process or require assistance with any aspect of IP protection please drop Phil Sanger a note at phil@vault-ip.com or via any of the contact details below.

+44 (0) 121 296 9164

hello@vault-ip.com

www.vault-ip.com