UK Procurement and Supply Chain Recruitment Market Update, October 2022
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Amongst all the current economic and geopolitical chaos, one thing will remain consistent, the contribution of efficient supply chains and talented procurement and supply chain professionals, will be more important than ever. Clearly it is not an easy time to be making an assessment to what might happen, over the next few months, in the Procurement and Supply Chain Recruitment market. Continuing war in Europe, covid recovery, ongoing fallout from Brexit, dubious ‘mini budgets,’ the cost-of-living crisis, a falling pound, increased government debt, pressure on wages, scarcity of talent, restricted resources, and volatile supply chains; and the likelihood of a sustained recession in the UK and globally! What should we make of the next year for supply chain and procurement? Latest economic figures from S&P Global/CIPS, point to the UK economic downturn worsening in October as the service sector records it is fastest decline since January 21. The UK PMI Composite Index fell to 47.2 in October, from 49.1 in September, a 21-month low. UK private sector firms also indicated a steep fall in business expectations for the year ahead, with optimism at it is lowest since April 2020. (Source: S&P Global/CIPS Flash United Kingdom PMI, 24th October 2022) These results confirm the UK’s economic recessionary status in the last quarter of the year. Let us hope that future government’s policy starts showing greater consistency and some level- headedness; and that the Chancellor’s postponed and ‘Full Autumn Statement’ and more positive forecasts from the Office for Budget Responsibility (OBR), will calm the financial markets and move us towards an economic environment for all businesses to invest, recruit, train and flourish; in what is surely going to be a very challenging global economic environment over the coming months. ---------------------------------------------------------------------------------------------------------------------------
INTERIM MARKET ACTIVITY QTR3 IR35 regulations are changing… Oh no they are Not! Nothing better illustrates the current chaos and difficulty for our clients (and indeed recruitment agencies!) to make strategic plans, as the recent government statements re IR35 legislation. With the recent ‘mini-budget’ we had contractors and clients starting to re-assess the interim recruitment model, only to be informed three weeks later that the 2017 and 2021 IR35 Off-Payroll regulations were here to stay. There probably will not be another U-turn, but who knows in the current political climate? There is however no doubt that all businesses need policies to encourage flexibility and adaptable employment models to deal with economic uncertainty and regulatory clarity to allow them to make good recruitment decisions. Interim is still busy The Interim market is still very buoyant especially at the mid and ’doing’ levels. Rates are staying pretty level now, after a bit of an uptick earlier in the year. Most demand is focused in the usual areas: IT, Vendor Management, Risk Management and Supplier Governance We saw a 100% rise in Interim jobs over the last 3 months and we expect demand to hold steady as businesses adopt more cautious, risk averse medium-term recruitment strategies, as they deal with economic uncertainty and recession risk. (For more details on the Interim Market please see our September Bulletin)
UK Sector Activity We have seen plenty of activity in the Financial Service sector, for example we have recently placed ten people at one Financial Services FTSE Organisation in a team across Third Party Risk Management and Procurement. Pharmaceutical and Manufacturing (especially Automotive) sectors have been particularly buoyant, and the Retail sector has also seen a lot of activity European Sector Activity Our European division has been particularly busy across the Netherlands and Northern Germany supporting several Global Energy, Chemical, Automotive and Retail organisations.
Counteroffers: Businesses are becoming more aware of the challenges (and cost!) of losing their talent in a candidate short market, the Counteroffer is now the norm rather than the exception. Many candidates are receiving strong counteroffers, sufficient for them to stay put, rather than moving to the new role offered. A new interview question for all employers to their prospective employees should be” what would you think and do if you were counter offered by your current employer?” and listen carefully to the answer! (Beaumont Select is modifying its interview process to identify those candidates that are just looking for a wage increase and those really dedicated to moving for other reasons, hopefully spotting candidates that will accept counter offers early on.) The threat of recession is hitting candidate confidence; and many people are bunkering down to weather the potential downturn a “better the devil you know attitude.” This would appear to be less prevalent amongst younger applicants, maybe as they have less commitments, or more confidence, and see early career positions as learning experiences, before settling on their chosen career paths. However, whatever the level, good roles with great clients will always remain appealing. Skills Shortages requires Client Flexibility:“Our clients are still finding it hard to recruit people that tick all the boxes, some flexibility and creativity as to team skills is required if you want to fill roles” says Oliver Lewsley, Recruitment Director at Beaumont Select. For example, one of our prestigious FTSE clients has flexed on the need for specific M&A knowledge and considering people with good FS experience instead. This is not only a UK only problem. One of our German Pharmaceutical clients has decided against recruiting in Germany and the Benelux and moved the three open positions to the UK where labour is still cheaper, and they think more plentiful. Digital Transformation: The pandemic has accelerated companies’ digital transformation plans, changing the working landscape enormously in a brief time. This has speeded up existing growth in technology and has clearly influenced the categories and skills demanded throughout Procurement and Supply Chain disciplines. Inclusion & Diversity are other areas that have seen a huge increase in activity and demand for systems and people to support these, and we have seen this most significantly in increased demand for Supplier Risk, Supplier Governance and Vendor Management people. Right to Work ID verification has changed back to pre-pandemic requirements where face to face confirmation of ID is required. Interviews: Despite the end of covid restrictions and a return to normality most interviews (circa 90% of first ones) are remote with a few more later interviews being face to face. --------------------------------------------------------------------------------------------------------------------------- Specialists and Categories in Demand IT: Cyber Security, SAAS Required across most sectors, but we have seen the greatest demand within FinTech, Financial Services, Media, and Tech organisations. Digital Marketing: Required across all sectors, although changing working and customer interfacing methods in Financial Services and Retail sectors have seen the greatest demand. HR & Professional Services: Changing work pattern, recruitment methods the challenges of securing the best talent has led to an urgent increase in demand for Procurement specialists with Professional Services and HR category experience, particularly looking at Managed Service Providers and Recruitment. Vendor Management / Risk Management / Supplier Governance: Procurement specialist with solid Supplier Risk and 3rd Party Risk experience are in high demand, 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. Currently, we are seeing most demand for the mid-level (‘doer’) roles rather than at senior manager level. For detailed information on the current recruitment market, please contact the Beaumont Team on T: +44 (0)1403 248 448 E: info@beselect.co.uk --------------------------------------------------------------------------------------------------------------------------- CONCLUSIONS Overall demand for procurement and supply chain talent remains high, for both Interim and Permanent. We are seeing the first indication of slight softening in permanent demand, but the Interim market seems to be compensating for it. The need for exceptional supply chain and procurement people is as high as it has ever been, and the challenge for employers of finding and securing them remains significant, particularly as the fear of recession causes some caution amongst prospective job searchers. Companies need more than ever to nurture their own talent, whilst using innovative recruitment models, that reference changing employment demands in an uncertain economic landscape. Changes brought about by the Covid-19 Pandemic, Brexit, the environment & sustainability, corporate social governance, war in Europe, and the likelihood of UK and global 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 than most other sectors.
If you would like more information about Interim or Permanent Recruitment Solutions for Procurement, Supply Chain and Vendor Management disciplines, please call: T: +44 (0)1403 248 448 E: info@beselect.co.uk The Beaumont Select Recruitment Team
Beaumont Select Market Bulletin, October 2022 |