Procurement and Vendor Management Recruitment Bulletin February 2025

The first few weeks of 2025 has been busy; however, we frequently find January is our busiest month. We are cautiously optimistic that the procurement jobs market will pick up after a very subdued and lacklustre 2024; but we will have a better idea come March as to what the year is going to look like.

We are seeing plenty of recruitment challenges amongst our clients; continued economic and geopolitical uncertainty, new trade tariffs; and increased cost and risk of taking on new people, have certainly dampened UK firms’ appetite to recruit, most notably we saw this in the 3^rd and 4^th quarters of 2024, since the UK General Election and Autumn budget. We have just seen our first client announce a recruitment freeze due to upcoming NI increases (this is a company with 20,000 UK employees). Our thoughts are that NI increases and new ‘day one worker's rights’ are likely to suppress the lower-level jobs market; it remains to be seen if mid and senior level roles will be affected too.

On the positive, since mid-January, we have seen a considerable uptick in business across permanent and interim, with some sectors showing a marked pickup. The Utilities sector has now been buoyant for 6 months plus and roles that were put on hold at the back end of 2024 are back with a new urgency to fill. We are currently running at double the number of vacancies than at the end of 2024.

The strategic importance of procurement and supply chain people in senior and board level roles is more important than ever. Organisations need to maintain effective supply chain strategies in a fast-changing environment, as ‘historical’ global trading mechanisms adapt, to new technologies, AI, and as trading relationships become more uncertain. Increased geopolitical and economic uncertainty leading to increased global supply chain volatility, including US President Trumps’ recent tariff policies, will all cement the need to secure truly talented procurement and supply chain people in your organisation’s strategic team.

• Procurement and Vendor Management Recruitment has fared better than most other areas, with good mid-level procurement and supply chain candidates still able to secure multiple offers.

• Like many commentators, we think that new ‘day one’ workers’ rights legislation is likely to subdue the recruitment of junior roles, especially within SMEs.

• Continued dichotomy between many organisations demanding their staff ‘back in the office’ and employees seeking good hybrid working options, means that some employers are not securing the best talent available. Employers wishing to secure the best people, should carefully consider their employment package, including hybrid working options attractive to prospective employers.

• Great Candidates ~ We are finding a lot of good candidates not active in the market, but happy to receive ideas, they are looking for very specific roles. They are using specialist agencies like us to keep them aware of possibilities. So far this year, we have seen some good senior roles for Commercial Managers and Head of Category.

• Busiest Sectors: Utilities, FS Fintech, Pharmaceuticals

• We are seeing some improvement in temporary staffing (Interim) demand as we have progressed through January and February, business uncertainty normally leads to increase Interim demand as firms try to minimise their recruitment risk in an uncertain economic landscape. With many firms holding fire in 2024, waiting for things to improve, it would seem there are many critical projects that cannot be held off any longer, and with new budgets for 2025, we believe demand for talented interim professionals will increase as the year progresses.

• IR35, Off-Payroll Regulations remain a stumbling block for many employers, who are reluctant to contend with the burden (and reputational risk) of falling foul of the IR35, Off-Payroll Regulations. Inside IR35 contracts will become even less attractive, as NI increases hit in April (umbrella companies will be taking another 1.2% and the threshold is reducing).

• Most roles (circa 85%) remain outside IR35 off-payroll working regulations. Fixed term contracts are now much more prevalent, popular with employers, but much less so with seasoned interim professionals.

• Bucking the trend, Interim demand in the Defence and Utilities sectors have seen above average growth, partly led by continued volatility and uncertainty in the global geopolitical landscape.

• Having worked with many career interims recently, the consensus is that rates are static…..in fact overall they have not really changed much in the last 10 years!

Please also see our latest Salary Guide.

If you would like more information about Interim or Permanent Recruitment Solutions for Procurement, Supply Chain and Vendor Management disciplines please get in touch: