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The normal and expected increase in activity in April at the start of the new Financial Year was not initially evident, and we have seen a slower UK procurement and vendor management recruitment market this year, with many organisations appearing reluctant to increase headcount while the UK economy showed minimal growth, and as political, geopolitical and economic uncertainty has persisted. Overall activity was subdued through May and early June, although in the last couple of weeks we have seen a definite up-tick in demand. This suggests that increased business confidence; shown in recent Purchasing Manager Index (PMI) survey data; is beginning to be reflected in actual recruitment activity. We are hopeful that the recent increase in new jobs secured, is the first sign that the recruitment cycle is changing direction to the positive.
RECRUITMENT CHALLENGES...
Time to hire has increased…
We have recently seen a pattern of increased recruitment timelines, reducing the chance of a positive recruitment outcome for both client and candidate. Easter, two May Bank holidays and now a general election, removed the impetus out of many firms recruiting timelines, and we have certainly seen a lack of urgency amongst some organisations, with some interviews taking 10 days to book in rather than the normal 3-5 days. It seems there is often an assumption that another great candidate will be ‘just around the corner’; unfortunately for much specialist talent, this is not always the case, and good candidates will be able to secure plenty of other employment options.
Expectation disparity between Employers and Job Seekers remains a challenge as the market changes and tries to find equilibrium. We see plenty of evidence of organisations still looking for ‘unicorn candidates’, with some exhibiting a significant mismatch between the specific skillsets required and the salary and package offered, leading to certain roles remaining unfilled for a long time. This disparity becomes an even greater challenge for those organisations that are expecting people to be back in the office four or five days a week, while most candidates’ expectation in a post covid world, is a minimum three-day home/two-day work split.
Brand Value and Recruitment Process misalignment…
We have partnered with hundreds of organisations, from global leading brands to SMEs, and on occasion we have been surprised by client processes that fail to provide realistic interview scheduling and/or provide insufficient interview feedback. Lack of consideration for the candidate experience in the interviewing process, has the potential to undermine the relationship with the talent the employer needs to attract. Unfortunately, we have seen a few instances of inefficient and unsupportive practice; that creates candidate negativity, hinders employer attraction and creates ill will amongst candidates. Where organisations focus only on cost, or simply don’t seem to care about the candidate experience, potential to secure the best talent will be significantly reduced. Even if a company is a truly great employer, having a poor experience in the recruitment process will risk driving the candidate elsewhere.
AI versus Specialist Knowledge….
There is growth of AI for review and assessment of initial candidate applications (this is mostly across junior roles but is moving into more senior hires as time goes on and technology improves). As an applicant this is particularly concerning, and for specialist procurement and vendor management jobs it is unlikely to work. There are many reasons we fully interview ALL applicants before presenting them to a client, not least, without fully assessing soft skills and team fit, hiring outcomes are unlikely to be good. Although AI can assist applicant processing and potentially help prevent bias, well trained recruiters and the application of robust policies and process, will achieve the same.
Challenges for Talent Acquisition Teams….
Low business confidence, low investment and cost challenges for some organisations, has meant that some underutilised Talent Acquisition teams have been tasked with finding highly specialist candidates across all disciplines, rather than securing external specialist suppliers to help them secure the very best talent available. Shortlists are produced for managers, but they are just not the right people. This is hardly surprising if the talent team only works on one or two procurement specialist roles a year; and again, this leads to a longer recruitment process.
Fixed Term Contracts (pro-rata salary-based roles) are still quite popular with clients but less so with candidates, sometimes restricting the ability of these employers to secure the very best talent available.
The Utilities Sector is still very busy, with the race to net zero in the energy sector and water companies needing to improve their infrastructure and services. We have seen large investment programmes across the board, which are recruiting a considerable amount of procurement and vendor management people.
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ISO 9001:2015 Quality Management System Certification…
We are delighted to announce that we have just secured our ISO 9001:2015 Quality Management System Certification renewal, achieving 100% compliance over a 2-day audit by LRQA.
GOOD RECRUITMENT requires great people, great processes and a true commitment to customer service. To support this, we are an ISO9001:2015 Quality certified organisation; helping us set the highest standards for performance and customer service, that takes us beyond the norm in our industry.
Our ISO accredited QMS helps us set out our ambitions and targets and places customer service at the forefront of our business. Above all it means we have an organisation that is best equipped to match talented procurement, vendor management and supply chain professionals with great jobs across all industry sectors.
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MARKET PREDICTIONS…
We are really hoping for some improvement in the economic environment and labour market, although recent indicators have been mixed. According to the latest ONS figures, the UK economy stalled in April, showing no growth in GDP, at 0% versus the 0.4% growth seen in March 2024, with production output falling by 0.9% and construction falling by 1.4%. Services saw nominal growth at 0.2%.
Purchasing Managers Index (PMI) indicators were more positive, and in the Services sector, the latest S&P Global UK Services PMI survey suggests that hiring activity rose, although labour market tightness remained a constraint. S&P Global PMI figures for Manufacturing suggested that the UK Manufacturing sector returned to growth in May, as output expanded at the quickest pace in over two years, and the outlook brightened as manufacturers' positive sentiment rose to its highest level since early-2022, with 63% of companies, expecting output to expand over the coming year. (Sources: S&P Global)
The KPMG and REC UK Jobs survey for May, reflects what we have seen; with another reduction in permanent placements made by UK recruitment consultants in May. Delayed decision making and a lack of demand amongst companies were reported to have weighed on recruitment activity. However, May’s fall in permanent placements was modest and eased for a second successive month to its weakest since March 2023. There was also a slower reduction in the number, of temp billings, with the decline the weakest since January, both hopefully pointing to a move towards a change in direction.
Like most, we are hoping that post General Election, we will start to see improved business confidence, in a stronger growth UK economy, and with it, increased opportunities across Procurement, Vendor Management and Supply Chain disciplines.
Procurement and Vendor Management Talent remains hard to find and secure. Employers need to ensure their brand, recruitment processes, on-boarding and specialist recruitment partners, all work seamlessly to maximise their talent attraction proposition. Organisations that get this right, will secure competitive advantage by inspiring and securing best fit people who will truly enhance the operation and efficiency of their procurement and vendor management teams.
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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
Meet Our Team of Procurement Recruitment Specialists at Beaumont Select
Beaumont Select Market Bulletin, June 2024
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