UK Procurement and Supply Chain Recruitment Market Update & Recruitment Tips- Spring 2022
Our latest UK Procurement and Supply Chain Recruitment Market Summary for April 2022. It provides a synopsis of what is happening in the Procurement and Supply Chain Market presently and what we think might happen over the coming months. We also offer some ideas on how organisations can help elevate their candidate attraction....
We continue to see strong demand for Procurement and Supply Chain staff as we have move towards spring. Growth remains led by permanent staffing demand, although we are seeing evidence of increased demand for Interim Procurement and Supply Chain specialists too.
Latest S&P Global / CIPS Flash United Kingdom Purchasing Managers Index (PMI) figures showed “a faster service sector growth boost in March, but prices charged inflation hit record high” and their latest survey data suggests, and slightly worryingly that “business optimism has slumped to a 17-month low”. This escalating inflationary pressures and concerns related to Russia's invasion of Ukraine leading is clearly cause for concern for all, but we are hoping the increased visibility and importance of procurement and supply chain disciplines, will mean the sector will be more resilient to any economic contraction than most.
Reporting on the latest PMI figures, Duncan Brock, Group Director at CIPS, said: "Optimism at private sector companies fell to its lowest since October 2020 with client hesitation returning as a result of businesses passing on their costs to their customers at the highest rate for more than 20 years. With the ripple effects from the Ukraine invasion likely to hit supply lines further, companies will have to get even more agile to survive this period of turbulence." According to the ONS UK Labour market overview for March 2022 (pre-Russian-Ukraine invasion) the total number of UK job vacancies in December 2021 to February 2022 rose to a new record of 1,318,000. This is an increase of 105,000 from last quarter, with half of the industry sectors showing record highs. However, the rate of growth in vacancies continued to slow down.
Latest ONS figure for lower GDP growth than expected and high inflation are significant concerns for all businesses; however intrinsic demand for effective supply chains suggests that the sector will remain buoyant, with the need for specialist Procurement & Supply Chain talent remaining strong and Permanent and Interim activity looking solid as progress through 2022.
Permanent Procurement & Supply Chain Recruitment
Permanent staffing demand remains high and specific category skill sets remain hard to find and secure. We continue to see Technology Procurement (all areas), Digital Marketing & Logistics showing very strong demand, as are specialist supply chain professionals, particularly those with Supply Chain Risk and CSR expertise. These people are usually already working in good roles on interesting projects making job attraction challenging, comprehensive industry and sector recruitment knowledge is required to reach and secure these people.
There has been no let-up in the demand for Mid-level / Category Manager / Specialist Management level roles and most recently we have seen particularly high demand for Junior and Category Manager level professionals too.
Salary rates are rising in almost all category areas and across all industries, irrespective of location, driven by talent shortages with companies competing across sectors for a decreasing talent pool. (please also see our 2022 Salary Guide for FTSE100/250 and Fortune 500 organisations for more information)
Interim Procurement & Supply Chain Recruitment
As the demand for Interim Procurement and Supply chain specialist is strengthening, following a lull at the start of the year. The volatile and uncertain economic environment is likely to fuel further Interim demand and the start of a new financial year in April should bring more activity to the interim market. Demand for pandemic related interim requirements, particularly in the public sector is softening, however across other public sector areas and the private sector we see the demand for interim specialists staying solid across all sectors, with particularly high demand for supply chain risk and CSR specialists.
With increased demand and further understanding of the IR35 regulations, we are seeing more consultants refusing to work inside IR35 regulations; organisations willing to engage interims on an outside IR35 basis will undoubtedly increase their talent pool.
We continue to see strong demand for Procurement and Supply Chain staff as we have move towards spring. Growth remains led by permanent staffing demand, although we are seeing evidence of increased demand for Interim Procurement and Supply Chain specialists too.
Latest S&P Global / CIPS Flash United Kingdom Purchasing Managers Index (PMI) figures showed “a faster service sector growth boost in March, but prices charged inflation hit record high” and their latest survey data suggests, and slightly worryingly that “business optimism has slumped to a 17-month low”. This escalating inflationary pressures and concerns related to Russia's invasion of Ukraine leading is clearly cause for concern for all, but we are hoping the increased visibility and importance of procurement and supply chain disciplines, will mean the sector will be more resilient to any economic contraction than most.
Reporting on the latest PMI figures, Duncan Brock, Group Director at CIPS, said: "Optimism at private sector companies fell to its lowest since October 2020 with client hesitation returning as a result of businesses passing on their costs to their customers at the highest rate for more than 20 years. With the ripple effects from the Ukraine invasion likely to hit supply lines further, companies will have to get even more agile to survive this period of turbulence." According to the ONS UK Labour market overview for March 2022 (pre-Russian-Ukraine invasion) the total number of UK job vacancies in December 2021 to February 2022 rose to a new record of 1,318,000. This is an increase of 105,000 from last quarter, with half of the industry sectors showing record highs. However, the rate of growth in vacancies continued to slow down.
Latest ONS figure for lower GDP growth than expected and high inflation are significant concerns for all businesses; however intrinsic demand for effective supply chains suggests that the sector will remain buoyant, with the need for specialist Procurement & Supply Chain talent remaining strong and Permanent and Interim activity looking solid as progress through 2022.
Permanent Procurement & Supply Chain Recruitment
Permanent staffing demand remains high and specific category skill sets remain hard to find and secure. We continue to see Technology Procurement (all areas), Digital Marketing & Logistics showing very strong demand, as are specialist supply chain professionals, particularly those with Supply Chain Risk and CSR expertise. These people are usually already working in good roles on interesting projects making job attraction challenging, comprehensive industry and sector recruitment knowledge is required to reach and secure these people.
There has been no let-up in the demand for Mid-level / Category Manager / Specialist Management level roles and most recently we have seen particularly high demand for Junior and Category Manager level professionals too.
Salary rates are rising in almost all category areas and across all industries, irrespective of location, driven by talent shortages with companies competing across sectors for a decreasing talent pool. (please also see our 2022 Salary Guide for FTSE100/250 and Fortune 500 organisations for more information)
Interim Procurement & Supply Chain Recruitment
As the demand for Interim Procurement and Supply chain specialist is strengthening, following a lull at the start of the year. The volatile and uncertain economic environment is likely to fuel further Interim demand and the start of a new financial year in April should bring more activity to the interim market. Demand for pandemic related interim requirements, particularly in the public sector is softening, however across other public sector areas and the private sector we see the demand for interim specialists staying solid across all sectors, with particularly high demand for supply chain risk and CSR specialists.
With increased demand and further understanding of the IR35 regulations, we are seeing more consultants refusing to work inside IR35 regulations; organisations willing to engage interims on an outside IR35 basis will undoubtedly increase their talent pool.
The Fixed Term Contract (FTC) remains unpopular with Interim specialists but popular with clients; and in many instances (particularly shorter duration contracts) the FTC doesn’t deliverer the level of candidate that is really required. However, a 12-month contract can sometimes be a good option for both parties.
April Bonuses!
April always brings some good new candidates to the market after securing and receiving their annual performance bonuses and are keen to move and secure new opportunities. With the UK pandemic effected recruitment market (hopefully) behind us and more candidates coming to market with bonuses paid out, we anticipate this will help bolster candidate availability.
Internal Recruitment Teams are under pressure!
With the high demand, staff shortages and employers looking to maximise profit in (what has been) a post Covid growth economy; many internal recruitment teams are under significant pressure. We know of at least two clients whose internal recruiters are sourcing for more than 40 vacancies each. However good and committed the internal recruiter is, it is unlikely that they will have the time, resources or specialist knowledge to find the best talent available in this candidate short market.
The most significant challenge for employers in all industry sectors, continues to be securing candidates with the specific procurement and supply chain skills required.
TIPS TO OPTIMISE TALENT ATTRACTION -
Job Descriptions should be contextual, accurate and positive:
Internal Recruitment Teams are under pressure!
With the high demand, staff shortages and employers looking to maximise profit in (what has been) a post Covid growth economy; many internal recruitment teams are under significant pressure. We know of at least two clients whose internal recruiters are sourcing for more than 40 vacancies each. However good and committed the internal recruiter is, it is unlikely that they will have the time, resources or specialist knowledge to find the best talent available in this candidate short market.
The most significant challenge for employers in all industry sectors, continues to be securing candidates with the specific procurement and supply chain skills required.
TIPS TO OPTIMISE TALENT ATTRACTION -
Job Descriptions should be contextual, accurate and positive:
Too much ‘waffle’ or reams of ‘you must have’ statements have the potential to alienate good candidates. A clear, accurate and contextual Job Description (not a Job Specification!) will help suitable candidates understand the role, culture and package on offer. Imparting details of the organisation’s, objectives, benefits, culture, CSR and opportunities for career development will attract better responses.
Speed and Professionalism throughout the recruitment process reinforces candidate ‘buy-in’:
Slow, unresponsive and sketchy interview feedback kills candidate commitment, and with good candidates usually considering multiple offers, employers run the risk of ‘losing’ candidates when their on-boarding processes are not up to scratch.
Employment Packages need to be realistic and well presented:
The most significant challenge for employers in all industry sectors, continues to be securing candidates with the specific procurement and supply chain skills required in a ‘candidate short’ market. Successful employers need to offer (verified) competitive employment packages including home/agile working options; and be willing to pay maximum market rates in a fast-changing candidate driven market. Recent studies have shown that employees are now much more concerned about the ethical and environmental reputation of any prospective employer, consideration should be given to how employers present these to candidates.
Flexible / Agile working is now a critical part of the employment package for most:
If you can provide flexibility then do so. We are seeing most candidates expecting some form of flexible working. Surveys show that 60/40 split is on average the most popular, but a policy that optimises and supports the needs of the employee and the employer will reap benefits in candidate attraction and productivity.
Your interview process should include at least one Face to Face Interview:
Your interview process should include at least one Face to Face Interview:
A face to face interview at the employer’s offices / the candidate’s prospective place of work, can be very helpful in identifying any prospective working environment and ‘cultural fit’ issues. We have seen a few unsuccessful hires where all interviews and processes were undertaken, and cultural conflicts / issues became evident post hire.
Is your multiple interview process fit for purpose?
Is your multiple interview process fit for purpose?
Studies show that (an efficient) multiple interview assessment and on-boarding process is more likely to secure hires that will be a better fit culturally and committed in the longer term. However, over complicated multiple interview processes (that require multiple separate individual interviews) can cause unreasonably long timelines, candidate pessimism and loss of candidate commitment.
What does your Interviewing and on-boarding processes say about your organisation?
What does your Interviewing and on-boarding processes say about your organisation?
Does your Interviewing and on-boarding processes accurately reflect your organisation and its cultural values. A sloppy interview or interviewer can quickly alienate a great candidate from an otherwise great employer. All people interviewing should have the necessary skills and aptitude to undertake constructive, effective and balanced interviews.
Cultural fit and adaptability:
Cultural fit is often major stumbling blocks for many hirers, when the on-paper profile looks perfect. Category skills can be trained but attitude and soft skills less so. You interview processes and onboarding need to ensure alignment of both skills and culture is met.
It is a two-way process:
It’s a candidate driven market and good candidates can choose who they work for. Good candidates have plenty of choices!
CONCLUSIONS
The need for both permanent and interim supply chain and procurement talent is as high as it has ever been as the world is faced with ever more critical supply chain challenges. Changes brought about by the Covid Pandemic, environmental, sustainability demands, corporate social governance, war in Europe, and the possibility UK and global economic retraction / recession; do nothing but fortify the importance of effective supply chain and procurement teams.
We foresee demand for procurement and supply chain professionals remaining solid and anticipate a busy procurement and supply chain recruitment market as we move through the year. Despite more candidates coming to market in April, we see the demand for procurement and supply chain talent increasing at a faster rate than the available talent pool.
Competition for good procurement and supply chain talent will remain as fierce as ever and organisations wishing to remain competitive will need to consider carefully how they retain and attract the best people to ensure competitive advantage.
In such a competitive market, finding and attracting the best talent will require employers to be flexible, ensure interviewing/on-boarding processes are fit for purpose, present solid brand value, security, opportunities for career development, as well as market competitive and comprehensive salary and benefits package.
Corporate social responsibility has become much more visible amongst the public and job seekers and a strong corporate proposition will help attract the best talent.
The Beaumont Select Recruitment Team
Beaumont Select Market Bulletin, April 2022
We foresee demand for procurement and supply chain professionals remaining solid and anticipate a busy procurement and supply chain recruitment market as we move through the year. Despite more candidates coming to market in April, we see the demand for procurement and supply chain talent increasing at a faster rate than the available talent pool.
Competition for good procurement and supply chain talent will remain as fierce as ever and organisations wishing to remain competitive will need to consider carefully how they retain and attract the best people to ensure competitive advantage.
In such a competitive market, finding and attracting the best talent will require employers to be flexible, ensure interviewing/on-boarding processes are fit for purpose, present solid brand value, security, opportunities for career development, as well as market competitive and comprehensive salary and benefits package.
Corporate social responsibility has become much more visible amongst the public and job seekers and a strong corporate proposition will help attract the best talent.
The Beaumont Select Recruitment Team
Beaumont Select Market Bulletin, April 2022