UK Procurement And Supply Chain Recruitment Market Update - August 2022

Overall demand for procurement and supply chain talent remains high, and we have seen only a slight seasonal lull in activity, that is the norm as we enter the summer holiday period. The market remains very buoyant and we are confident that this will continue as we move into the last quarter of 2022.

The latest Report on Jobs from KPMG and REC (8^th July 2022) for the total jobs market, does give some cause for concern with "permanent staff appointments and temp billings expanded at the softest rate for 16 months in June.” Recruiters mentioned candidate shortages continued to limit hiring activity, but slower decision making at clients amid greater economic uncertainty also dampened growth.” Commenting on the latest figures, Neil Carberry, Chief Executive of the REC said “The labour market is still strong, with demand for new staff high. That said the data shows that we are likely to be past the peak of the post-pandemic hiring spree, The pace of growth was always going to be temporary – the big question now is the effect that inflation has on pay and consumer demand over the course of the rest of the year.”

On a more positive note, latest GDP trend data from the Office for National Statistics (ONS), show an estimated 0.5% GDP growth in May, that marks a bounce back from the preceding months figures (down by 0.3% and revised to 0.2% in the latest ONS figures) suggesting the start of a ‘defined’ UK recession (negative economic growth for 2 consecutive quarters ) might not happen.

Our thoughts are that despite a volatile and challenging economic outlook and some slightly concerning job indicators, the demand for specialist Procurement and Supply Chain people will remain solid and the sectors will remain less vulnerable to economic retraction than many others. With little sign of world ‘economic challenges’ (Russian-Ukraine conflict and energy, commodity and food price inflation; the ongoing challenges from Covid-19 and Brexit in the UK) going away any time soon, the need for effective procurement and supplychain functions remains absolutely critical.

We anticipate the demand for talented procurement and supply chain people will remain strong, with procurement and supply chain labour supply remaining significantly lower than available jobs.

IT: Cyber Security, Apps Development, Hardware, Datacentres, Infrastructure, Networks: 
Required across most sectors, but we have seen the greatest demand within FinTech, Financial Services, Media, and Tech organisations.

Digital Marketing:
Required across almost all sectors, although changing working and customer interfacing methods in Financial Services and Retail sectors have seen the greatest demand.

HR:
Changing work pattern, recruitment methods the challenges of securing the best talent has led to an urgent increase in demand for Procurement specialists with HR category experience, particularly looking at Managed Service Providers and Recruitment.

Logistics and Supply Chain:
Ongoing worldwide supply chain volatility continues to focus the necessity for effective Logistic and Supply Chain strategy management.

Vendor Management / Risk Management / Governance:
Procurement specialist with solid Supplier Risk and 3rd Party Risk experience are still very much in vogue, including looking at: Supplier Risk, Fraud, Quality, Compliance, Governance and Regulation, De-carbonisation Sustainability.

Contract and Supplier Managers:
Particularly with long term framework contracts applied in complicated cross-function environments.

Nearly 50% of our active roles, fall under Contact, Supplier Management or Risk Management, the highest we have ever seen.

 

SALARY / PACKAGE & WAGE INFLATION

As demand for very specific procurement and supply chain skills increases and underlying salary inflation rises, we are seeing significant upward pressure on permanent salaries. We would suggest that since the beginning of the year, overall average rates, have gone up circa 10%; although for particularly hard to source categories and skills, the package increase required to secure the right candidate will been significantly more, as suitable talent becomes harder to find. Candidates with more Generalists experience or less specific skill sets are less likely to secure the very highest rates.

In an employment market where wage inflation is at a recent all-time high, organisations need to consider their employment offering (salary, benefits package, where you work, brand/ethical values, career development opportunities, security etc.) more carefully than ever, before going out to market. The need for a competitive and well communicated employment package is essential to attract and secure the level of candidate employers need.

 

HOW TO RECRUIT IN THE CURRENT MARKET

The Issue of Hybrid / Flexible Working:

Recent surveys including our own of procurement and supply chain professionals, indicate that most employees prefer mixing remote working and office working; with majority preferring to work just a couple of days in the office and the rest working remotely. The pandemic and the resulting move for many to home working has shown many employees a different way of working and the lifestyle benefits associated with hybrid working. We talk to quite a few candidates that simply will not entertain a job that does not offer the opportunity to work to from home/remotely!

Some of our clients have adopted, support and manage excellent hybrid working processes, but many others, would like their employees “back in the office”. Employers need to consider carefully if their employment contracts put too much onus on an office only bias and run the risk of missing out on great talent that simply will not consider an employer that does not offer a good hybrid working environment.

Contextual, Positive and Transparent Job Descriptions:

Too much ‘waffle’ or reams of ‘you must have’ statements in your job advertising has the potential to alienate great candidates. A clear, accurate, contextual and open style of communication of the role and opportunity, through a well written Job Description (and not a Job Specification!) will help reach and secure the most suitable candidates by clearly defining the role, culture, business ethos and package on offer.

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 (and sometimes more) in a fast-changing candidate driven market.

Responsive and Transparent process reinforces ‘buy-in’:

Slow, unresponsive and sketchy interview feedback and slow/poor interview and onboarding process kills candidate commitment, with many good candidates usually considering multiple offers, employers run the risk of losing candidates when their on-boarding processes are not up to scratch.

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 professionalism and values. A sloppy interview or interviewer can quickly alienate a great candidate from an otherwise great employer. Those involved in the interviewing process should have the necessary skills and aptitude to undertake constructive, effective and balanced interviews.

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 more likely to be committed in the longer term. Over-complicated (that require multiple separate individual interviews) can mean unreasonably long timelines and risk the loss of candidate’s commitment to their prospective new employer.

Transparency, Ethics and Brand:

Company’s Recruitment Brand Value and its Ethical Proposition are becoming ever more critical, in a candidate short market where good candidates have plenty of choice who they work for. Truly understanding what candidates seek from their next job is key to optimising an organisation's talent attraction strategies and retaining top talent. A recent Gallup survey of over 13,000 U.S. employees listed their priorities as 1 - A significant increase in income or benefits (64% said "very important") 2 -  Greater work-life balance and better personal wellbeing (61%)  3 - The ability to do what they do best (58%) 4 - Greater stability and job security (53%) 5 - The organisation is diverse and inclusive of all types of people (42%). Understanding employee’s motivators and prospective employers’ expectations will help ease on-boarding, secure commitment from all. Other 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 brand, interview and onboarding processes present these cohesively.

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. Interview and onboarding processes need to ensure alignment of both skills and culture is met.

When specific Category skills are impossible to find, securing a candidate with the necessary soft skills, positive attitude and true commitment to develop their skills, learning and category portfolio, can be a good option, but your organisation must have the necessary processes and people in place to support this. This can be a significant challenge when your new staff and those that can mentor and train them are all working remotely?

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, so your employment offering needs to be their choice! 

 

 

CONCLUSIONS

Overall demand for procurement and supplychain talent remains high, and although we are expecting a small fall activity during August, but we believe this will be balanced out by stronger activity as we move through the last quarter of 2022.

The need for good supply chain and procurement people is as high as it has ever been, as the UK and World face with ever more critical supply chain challenges. Changes brought about by the Covid-19 Pandemic, the environment & sustainability, 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 and we see procurement and supply chain jobs sector being more resilient to UK and world economic challenges, then almost all other sectors.

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 attract and retain the best people to ensure competitive advantage. Salary, package, working options and organisational reputation are becoming ever more important to the ability of an organisation to secure the talent it needs. Corporate social responsibility has become much more visible amongst the public and job seekers and a strong corporate proposition will undoubtedly help attract the best talent.

In such a competitive market, finding and attracting the best people will require employers to be flexible, ensure interviewing/on-boarding processes are fit for purpose, present solid brand & ethical values, opportunities for career development, flexible working arrangements; as well as offering verified, competitive  salary and benefits packages.