UK Procurement and Supply Chain Recruitment - Spring 2021
In the first quarter of 2021 we have seen a slow lockdown effected market in January, improving significantly as we move through the quarter and as business confidence improves. We expect to see continued growth in the Procurement and Supply Chain Recruitment sector, as the effective UK vaccine programme continues to take effect and the UK economy opens-up. Following on from IHS MARKIT / CIPS UK Services Survey at the beginning of the year where “business expectations were most optimistic for almost six years," the latest survey for March indicates further positive signs of growth in the service sector stating “March signalling a return to growth for new orders and employment across the service economy and service providers widely commented on improving consumer confidence and signs of pent-up demands.” At Beaumont Select we have seen activity in Procurement and Supply Chain Recruitment mirroring these service sector economic indicators.
We have also seen marked changes in Recruitment Processes in the last year as organisation and candidates have had to adapt to the challenges of pandemic, lockdowns, home working and recruiting. Awareness of these issues will help attract and secure the best procurement and supply chain talent available.
INTERIM
IR35 is in!
The uncertainty about the implementation of the postponed Off-Payroll legislation into the private sector is now clear, IR35 is in! The 6th April brought new off-payroll working regulations into force and as a result, the Interim Market is in a state of flux with people transitioning to umbrella or leaving to find outside IR35 contracts. Our thoughts are that the market will start to settle in May onwards, as organisations and procurement talent start to adjust to the changes.
Cautious Approach!
Most clients, irrespective of sector are taking a very cautious approach to their off-payroll IR35 liabilities. Prevalent policy amongst our clients is a blanket inside IR35 approach, where companies are moving all their limited company contractors to umbrella payment models or fixed term contracts (FTC). Large companies’ appetite for risk is very low and many are looking at all permutations of what he can be considered risk of IR35 liabilities e.g. does someone have a company laptop or a security pass…. then should we be checking their status?
There is the suggestion amongst some seasoned Interims, that clients will ‘come around’ to maintaining their Limited Company contracts, but with organisation significant fear of falling fowl of the new legislation, this is unlikely; as these organisations implement standardised and risk averse off-payroll policies.
Interim Demand is Up!
Overall, we anticipate the demand for interim talent to increase, we have already seen a significant increase in demand for exceptional interim procurement specialists on an Umbrella or Fixed Term Contract Basis.
PERMANENT
Permanent Recruitment is becoming candidate driven again….
We have seen a significant increase in recruitment activity, particularly in the last 4 to 6 weeks. From what can only be said to be a stagnant market in 2020, we have seen steady increase in demand since the beginning of this year and although not yet at the levels seen pre-pandemic, we are confident that the market is strengthening significantly.
Clearly a lot of business’ have been in a ‘holding pattern’ during recent pandemic/lockdown cycles, looking at quick fixes to control cost and manage market volatility utilising their existing resources. With increasing business confidence, many organisations are now looking to bolster and verify their procurement functions to meet with the new challenges in an ever-faster changing and demanding ‘post pandemic’ influenced supply chain environment.
Increased Supply Chain Visibility in post pandemic environment….
As we out outlined in our market update in January, putting to rest the high visibility issues raised by ineffective supply chains during the pandemic; has increased public and business awareness for the need for effective Procurement and Supply Chains, and we continue to see this year as a great opportunity for talented Procurement Professionals to influence organisations at the highest levels. Increased awareness of procurement and supply chain at board level and the contribution that Procurement can make to some of the critical issues of our time: supply chain sustainability, carbon reduction, compliance and risk, will increase the demand for talented individuals with specialist skills in these areas.
Skills and Categories in demand….
Supply Chain Professionals who can build supply chains that minimize risk, build compliance and understand issues of demand scalability will continue to be in very high demand and experienced specialists in any of these three areas should find interesting roles. Categories we anticipate most in demand will be IT Procurement (Software, Robotic Process Automation and Cyber knowledge in particular), Logistics, Supply Chain Improvement (Risk, Compliance, Environmental) and Professional Services.
Clients that are slick in their process are getting the best people…
As we move from a client to candidate led market, the need for an effective, quick and comprehensive recruitment process has become ever more important. Organisations that don’t ensure their interview and on boarding processes present a seamless, efficient and timely recruitment picture to prospective employees, run the risk of losing the best candidates, who will often have multiple offers on the table.
Interviewing and Onboarding….
Clearly the COVID-9 Pandemic has changed the nature of work and interviewing, with almost all interviews currently undertaken on Zoom, Teams or similar. The fast adoption and familiarity of web conferencing technology across the board has allowed companies to shorten interview, assessment and on-boarding timelines; the need to get all interested parties ‘in one room’ is no longer the norm and the effective utilisation of web conferencing can speed up the recruitment process, reducing the risk of losing the talent. However, a word of caution; historically the most successful hires (in pre-pandemic days!) have usually spent time meeting stakeholders and seeing the environment they will be working in, so your remote on-boarding process still needs to also present the culture and ethos of your organisation, to avoid cultural fit ‘surprises’ later on.
Challenges for Internal Recruiters……
As the market strengthens more clients are engaging with us, their internal teams, MSPs or less specialist agencies unable to identify or secure the specialist skill sets or category knowledge required. We don’t think it is going to get any easier for internal recruiters as ever more specialist skills become harder to find and talented candidate’s choices become wider.
Defining your job brief and profile requirements accurately and early in the process and taking specialist advice on rates and strategy with a specialist agency that truly understand the market will result in a shortlist of best fit candidates quickly and the opportunity to secure a high contributing hire.
Summary
With much of Brexit uncertainty behind us and the vaccine programme taking effect, we are seeing a significant increase in market activity and demand for talented Procurement and Supply Chain specialists. We anticipate this trend continuing as the UK economy opens-up, assuming future Covid-19 Pandemic economic effects can be minimised in the longer term.
New Off-Payroll legislation changes are currently causing some uncertainty amongst seasoned interims, but we believe this will settle in a few months, with FTC Contracts becoming the norm and market rates adjusted accordingly.
On the Permanent side too, candidates with hard to find category experience and skills, will secure high rates and will be snapped up quickly; organisations recruitment and on-boarding processes need to embrace the changes in how we all work in a post-pandemic world, utilising remote interviewing and assessment methodologies while ensuring softer skills and cultural fit are not forgotten.
Oliver Lewsley,
Clients that are slick in their process are getting the best people…
As we move from a client to candidate led market, the need for an effective, quick and comprehensive recruitment process has become ever more important. Organisations that don’t ensure their interview and on boarding processes present a seamless, efficient and timely recruitment picture to prospective employees, run the risk of losing the best candidates, who will often have multiple offers on the table.
Interviewing and Onboarding….
Clearly the COVID-9 Pandemic has changed the nature of work and interviewing, with almost all interviews currently undertaken on Zoom, Teams or similar. The fast adoption and familiarity of web conferencing technology across the board has allowed companies to shorten interview, assessment and on-boarding timelines; the need to get all interested parties ‘in one room’ is no longer the norm and the effective utilisation of web conferencing can speed up the recruitment process, reducing the risk of losing the talent. However, a word of caution; historically the most successful hires (in pre-pandemic days!) have usually spent time meeting stakeholders and seeing the environment they will be working in, so your remote on-boarding process still needs to also present the culture and ethos of your organisation, to avoid cultural fit ‘surprises’ later on.
Challenges for Internal Recruiters……
As the market strengthens more clients are engaging with us, their internal teams, MSPs or less specialist agencies unable to identify or secure the specialist skill sets or category knowledge required. We don’t think it is going to get any easier for internal recruiters as ever more specialist skills become harder to find and talented candidate’s choices become wider.
Defining your job brief and profile requirements accurately and early in the process and taking specialist advice on rates and strategy with a specialist agency that truly understand the market will result in a shortlist of best fit candidates quickly and the opportunity to secure a high contributing hire.
Summary
With much of Brexit uncertainty behind us and the vaccine programme taking effect, we are seeing a significant increase in market activity and demand for talented Procurement and Supply Chain specialists. We anticipate this trend continuing as the UK economy opens-up, assuming future Covid-19 Pandemic economic effects can be minimised in the longer term.
New Off-Payroll legislation changes are currently causing some uncertainty amongst seasoned interims, but we believe this will settle in a few months, with FTC Contracts becoming the norm and market rates adjusted accordingly.
On the Permanent side too, candidates with hard to find category experience and skills, will secure high rates and will be snapped up quickly; organisations recruitment and on-boarding processes need to embrace the changes in how we all work in a post-pandemic world, utilising remote interviewing and assessment methodologies while ensuring softer skills and cultural fit are not forgotten.
Oliver Lewsley,
Beaumont Select