Tag Archives: procurement recruitment

Three Secrets of Procurement Talent Magnets

Why is it that some organisations consistently attract the best and brightest talent in the profession, while others miss out? ISM CEO Tom Derry tells Procurious that it’s not just about salaries…

Tom Derry will present his Big Ideas on the essential attributes required by the Digital CPO at Procurious’ Big Ideas Summit in Chicago. Register now as a digital delegate

In the sports world, there’s a tradition known as coaching trees. This occurs in teams where an inspirational coach is known for developing others who have gone on to be successful coaches in their own right, and in turn pass on the knowledge, skills and philosophy of that lineage.

From his vantage point as CEO of ISM, Tom Derry has seen evidence of coaching trees in the procurement and supply management profession. “Sometimes it’s companies, sometimes it’s individuals”, he says. “Certain CPOs have gained a reputation for coaching and developing people who have subsequently left, and gone on to make their mark.” Their organisations benefit by being seen as an employer of choice for top procurement talent, and the CPOs themselves benefit from the dynamism and vitality of a team made up of the brightest the profession has to offer. Like the legendary NFL coach Vince Lombardi (pictured), CPOs are elevated by the success of the talent they’ve managed to attract.

But where do you start if you want to become a talent magnet in procurement and supply management?

  1. Build a reputation

“It’s important to create a reputation for yourself as an organisation that coaches and develops great talent”, says Derry. “To do this, you need to commit to the development of your team members. The secret to retaining talent isn’t about paying them more, or promoting them before they’re ready – it’s about investing in their skills and providing the opportunity for them to do more and give more.

“Stop worrying about losing people. Focus instead on developing talent, and you’ll build a tremendous reputation”

  1. Shift your style

For some of the old-school CPOs who are accustomed to leading through command and control, it’s time to shift to a more collaborative approach, particularly if you’re interested in attracting millennial and Gen Z talent. “You need to become more comfortable with being vulnerable”, says Derry. “Team members are more aware of where you are and what you’re doing, so be prepared to receive feedback from all directions, in real-time. It’s about being receptive to this feedback, but also being adroit and knowing when to wrap up the conversation and move on.”

  1. Embrace diversity

Derry says that cultural inclusiveness is no longer an idea but an expectation. “Your team needs to be diverse – in fact, you’ll look impoverished if you don’t have that. The benefits include being able to tap into a diversity of experience and opinion to solve challenges. This creates a truly attractive environment for top talent.”

Live From The Big Ideas Summit

On 28th September, Procurious is bringing The Big Ideas Summit to Chicago. Register now (it’s free!) as a digital delegate to gain access to all of the day’s action.

Personal Development: You Da Brand!

So you’ve decided you need to take your procurement career to hand by proactively managing your personal development? Here’s how to set yourself up for success.

 

 

 

 

 

 

 

 

 

 

Career Boot Camp 2017 launches on 4th September, featuring podcasts  with 5 global CPOs. Sign up here (It’s FREE!)

What are the attributes of top talent within procurement?

Are there any common themes among successful leaders?

Where should I focus to ensure my career continues to progress?

These are but a few of the many questions you’ll have asked at different stages in your career.  But I’d like to make the assumption that a focus on personal development is the area that suffers above all else. Workload, pressures of a role, delivery objectives and even personal life challenges  means we are constantly investing in the here and now, and not on our longer-term aspirations.

Personal development is a topic we are enormously passionate about at Michael Page. Not just for our own employees, but also through the conversations we have with candidates and clients every day. A lack of development is often cited as a main reason to change roles, with development and progression opportunities both being a compelling sell for a new employer.

It’s a wonderful thing to be inspired to take control of your career development. But it’s also easier said than done, particularly when it comes to kickstarting your journey. Here are my four key building blocks to help you set yourself up for great success!

1. What does good look like?

When thinking about your own personal development, a great place to start is to gain an appreciation of what good looks like, think of someone you have worked with that has stood out from the crowd and use that as your inspiration.

2. Using failure to progress

The starting point for me when thinking about individual procurement and supply chain leaders who stand out from the crowd is often bravery. Having the confidence and foresight to try something different. This approach requires a corporate culture and environment that encourages ideas and isn’t restrictive. On a personal level, having a growth mindset is critical for framing outcomes as a development of one’s own capability. Failure should help move you forward as much as success would.

3. Nature or nurture?

One of the questions you should ask yourself is how much your culture, environment and leader, enables you to show this type of bravery. The strongest leaders will encourage you to think differently, whilst also allowing a sufficient degree of autonomy to do so. More importantly, they’ll provide cover for you internally should things not work out as desired. It is important to work for these types of individuals for your own growth and development as a leader but the type of organisation you’re in is also critical. It needs to be one that has a clear focus on development and a path for progression.

4. You’re the brand!

Think of yourself as a product. You can only take a highly effective product so far without the right marketing and brand behind it. Equally, a product with strong marketing backing and investment that doesn’t deliver what the customer wants will ultimately fail. As an individual, you have to develop your procurement toolkit, your softer skills and general competence. But you also have to build a strong personal brand. Think about the CPO’s that you aspire to be like.  Your reasons are informed through a mix of their achievements and career highlights, but also the personal brand that they have created.

Be bold, be forward thinking and creative, find an environment that enables you to do these things. Above all, live your own personal values and beliefs then create a personal brand that is true to who you want to aspire to be.

Michael Page Procurement and Supply Chain have partnered with Procurious to bring you a series of podcasts from some of procurement’s leading lights.

Throughout this podcast series, five global CPOs will talk about their career journeys and the skills required to become tomorrow’s CPO. We hope this will provide you with the chance to reflect and positively affect your own development and longer-term career aspirations.

Career Boot Camp 2017 launches on 4th September, featuring podcasts  with 5 global CPOs. Sign up here (It’s FREE!)

5 Ways Employers Can Appeal To Talent On Career Breaks

Prospective employees returning from career breaks have a pretty good idea of  their priorities. Want your organisation to appeal to them? Follow these steps…

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm on 10th August 2017. Register your attendence for FREE here. 

When I returned from maternity leave I realised just how important it is to have policies and benefits in place to support people returning to work after a career break. Although mat leave for female talent is not the only type of career break businesses should consider, women returning to the workforce offer a valuable resource to employers, plugging skills gaps and boosting diversity.

So what do they look for when re-entering the workplace, and how can your company catch their eye?

After surveying 1,000 female professionals, the Robert Walters Group discovered that a strong salary and company benefits (90 per cent), career progression (88 per cent) and well-being initiatives (82 per cent) are top of women’s priority lists when returning to the workplace.

Flexibility (79 per cent) is also a main preference, with over half of respondents keen to move into a more family-friendly sector once their career break comes to an end.

However, there seems to be a disparity between the attitudes of employees and employers towards flexible working. While 84 per cent of female professionals want the option to work from home, it’s offered by just 39 per cent of employers. And although two-thirds of women would welcome the chance to work part-time, only 35 per cent of businesses provide this opportunity.

With all this in mind, it seems employers will only attract the brightest talent if they’re open to the idea of flexible working.

Top 5 tips when recruiting those on a career break

Of course, flexible working isn’t the only thing your business needs to consider when recruiting people after a career break. The following points are also key:

1. Understand what women want from their jobs

Flexibility, competitive salaries and career progression all remain important issues. Since only 24% of female professionals go back to their previous employer after a career break, it’s worth delving deeper to understand what they’re after.

2. Don’t make your recruitment messages too restrictive

Many women returning to work are looking to move into a new area within their sector, or to embark on a career that’s connected with, but different from, what they did before. So ensure your job ads and interviewing make it clear that you’re open to good people with transferable skill-sets and experience.

3. Learn more about flexible working

As we’ve mentioned, try to embrace flexible working – but avoid a one-size-fits-all approach. Flexible working covers everything from job sharing and home-working through to part-time work. Further information is available from the Government

4. Provide childcare support

Half of professionals consider financial support for childcare to be important. This gives employers the chance to stand out from the crowd by offering family-friendly policies.

5. Make it easy for women to come back

Avoid the loss of talented staff members by keeping in touch with them during career breaks. Office visits, newsletters and social channels can all help. Some 79% of women say they’d find a mentor helpful during their transition back to working life. Mentoring schemes could ultimately give women a better idea of their future career options.

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm on 10th August 2017. Register your attendence for FREE here. 

This article, by Deborah Keogh, was originally published on LinkedIn. Deborah is Associate Director – Strategic Client Development at Resource Solutions.

Buzzwords, Jargon and other LinkedIn Problems

One person’s Head of Procurement is another person’s Procurement Executive and another person’s Vice President of Procurement and Supply Chain. How do you ensure your LinkedIn profile isn’t confusing employers and holding back your career?

LinkedIn currently boasts over 460 million users and two new signups per second. If that makes you feel like a very tiny fish in a very large pond, don’t worry, you’re not alone! But that doesn’t mean you can’t find ways to stand out from the crowd.

Some members are scouting for jobs, others are scouting for new hires, and some would like to consider themselves passive users, not placing much importance in their online CV. But, whatever your motivations or opinions, a vast amount of people will have their LinkedIn profile vetted by a prospective employer; it could be the make or break to getting that job. So you really ought to get it right!

How are people finding me on LinkedIn? 

Recruiters, headhunters and employers will visit your profile for a number of reasons. You might have been recommended or referred to them by a colleague or friend. Perhaps they searched for someone with your skillset or career history and stumbled across you by chance or maybe you’ve already applied for a role and they’re performing a final suitability check.

Whether you’re looking for a new role today or in five years time you need a LinkedIn profile that’s ready to go. Don’t take the risk of missing out on a dream role you didn’t know you wanted because a recruiter landed on your empty shell of profile.

Here are my top tips for making your profile shine.

Profile Summary

The latest LinkedIn update gives a huge amount of weighting to the top 2 lines in the summary field of your profile. This is the first thing anyone will see when they view a preview of your profile, which makes them the most critical. Keep it as engaging and informative as possible.

Keywords

LinkedIn searches work by users highlighting keywords. If you want to be found by the relevant people, you need to use the right buzzwords. Do some research into the market you want to be employed in; what sort of job titles and job descriptions are used? Which key words are used over and over again? What words would your dream employer use to try and find someone like you?

Job Title/Headline

Job Titles are an independently searchable field. You have 100 characters, make sure you use them wisely.

What would someone searching for you look for? Somewhere, somehow that’s what your job title needs to have in it.

Instead of having one searchable string, you can have more than one title in your profile:

The second example would result in the profile coming up in significantly more searches.

Company

It might sound obvious but make sure you are listed as working for the right company. Your company might have 30 or 40 subsidiaries, countries, brands associated with it. GSK, for example, has 514 results (and that’s ignoring GlaxoSmithKline which has another 350)!

But again, this is a searchable field so make sure you are on the one with the largest population or the most obvious one.

If you are a recruiter searching for a specific brand you might not take the time to make sure you’ve got exactly the right company. Don’t take the risk – get yourself on the biggest and the best (or most relevant).

Role

If you’ve been promoted within a business make sure you represent that explicitly on your profile. Adding a new position gives you the opportunity to tick the majority of these boxes again:

  • Successful
  • New summary box: more keywords and success
  • New job title: more job title keywords

Jargon

If keywords are the No.1 thing you are searching for, jargon is exactly the opposite. If your company calls it one thing but everyone else calls it something different your current boss is going to be the only person that will find you!

Be aware, too, you might not be aware just how jargon-filled your job title is if you’ve worked in the same business for a while. So take some time to find that out. Search for someone similar to you and see what they call it. And then such for some more for verification!

9 Signs You’re Undervalued At Work

Feeling undervalued at work? If you can’t remember the last time you got a pay rise , haven’t received any formal training since your role commenced and are consistently working unpaid overtime, you probably are!

This article was written by Anna O’Dea, Director and Founder of Agency Iceberg. 

We all have a sense of our personal worth in the workplace, and sometimes it can feel as if our valuable experience, strong commitment and innovative ideas are being taken for granted.

At Agency Iceberg, I meet a lot of people facing this situation. They suspect they aren’t being supported by their managers, they’re being underpaid for their knowledge and input, or are being overlooked for well-deserved promotions.

From my experience working for eight years in the recruitment industry, my team and I have found there are nine key signs that suggest you could be being undervalued by your employer. If they sound familiar, it could be time to speak up or move on!

1) The numbers aren’t stacking up

In the current economic climate, pay rises aren’t vast. But if you’re constantly stuck with getting just the minimum cost of living rise, while your peers get bumped up for a similar job, you might not be getting the financial reward that you should be. With the internet, it’s not hard to compare your earnings with what others in the same role are getting. Do the research and you’ll have tangible evidence to back your case.

Another one to watch is bonuses. Did your colleagues get a flash of cash that you missed? If there’s no logical reason why you were skipped over, there could be unfairness at play.

2) Your performance and pay reviews are constantly postponed

If your annual performance and remuneration review keeps getting put off another week, month, or a few months, with lots of excuses from management (and no guarantee of back pay) you’re being taken for a ride. The longer you don’t get a pay rise, the more you’re working at a higher skill for the company’s benefit.

3) You have to ‘act’ in a higher role before you’re promoted

It’s common to get told you need to step up your responsibilities to ‘prove your worth’. But if ‘acting’ in the next role goes on for too long, the advantage can again pass from you gaining experience, to your employer getting excellent skills for less pay.

4) People are promoted around you

If you’ve got the credentials and factual evidence to deserve a promotion, yet continually miss out, they may not be seeing your true worth. More worrying, and harder to fix, could be signs of favouritism, sexism or ageism.

5) You’re not trusted to be autonomous

If you have to run every move by your manager, or aren’t trusted to manage your schedule or clients your own way, your abilities may not be recognised. In extreme situations, you could be being micro-managed, which can be quite destructive to growth.

6) Your input is curtailed

When you show your talent, such as sharing innovative ideas in meetings, or suggesting positive ways to improve processes, and it’s clear they’re not welcome, it’s a concerning sign. In some cases, insecure managers won’t let you shine, which is not only letting you down, but also the business.

7) Overtime is expected, and you aren’t given time in lieu

We’ve all read that clause in contracts that says ‘extra hours may be necessary’. However when overtime is systemic and with no lieu time offered, the business has you in its claws. We see this when people travel for work – enduring overnight flights or early morning trips with no time off.

8) You can’t be sick on sick days

Sick used to mean staying at home and sweating out the bug. However technology has shifted the expectations of many bosses to be on 24-7. If your boss insists you stay online when you should be recovering, or text messages and countless emails on the weekend from your boss doesn’t sound out of place, it’s a sign you’re being overworked.

9) You’re not getting trained for growth

Every good employer should encourage the development of their employees. If your employer isn’t investing in your training or opportunities, you could be in a one-way relationship.

If some of these signs ring true, take time to consider the next phase of your career. Your professional pride, mental health, sense of purpose and financial future are too important.

Anna O’Dea is a recruitment expert, LinkedIn Top Voice 2016 and Founder and Director of Agency Iceberg. This article was originally published on LinkedIn

How To Hold On Tight To Prospective Procurement Talent

The recruitment process can be brutal. You’ve worked hard to identify and attract the best procurement talent. But,  at the last minute, the candidate pulls out leaving you back at square one.  

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article which featured some exclusive insights from Graham Lucas, Managing Director  Procurement & Supply Chain and Logistics at Michael Page. Graham suggests six ways procurement teams can hold on to new talent that they’ve worked so hard to attract. 

Procurement has come a long way and holds a position of positive influence within many organisations but there has never been a more urgent need for bigger change and greater evolution.

You need only to look at the progress over the past few years to recognise this; SRM, improved supply chains, driving both value and innovation from suppliers, and category leads shaping strategic agendas are some of the developments we have seen.

Whilst the progress is positive, the evolving shape of organisations and the disruptive nature of technology is only going to increase both the degrees, and speed of change required. I genuinely don’t believe that procurement as a function will continue to exist unless it drives a much greater breadth to its commercial influence over an organisation.

So what affect does this have on talent attraction, acquisition and retention in procurement teams?

The Procurement Talent Pool

It is clear that 80 per cent of the roles on which we are being briefed carry very similar requirements. Organisations are competing for the 20 per cent of  candidates in any potential pool that possess  the key skills needed to help procurement teams deliver that broader value. Influencing skills, communication, being able to connect with stakeholders and suppliers, and driving innovation etc. Most procurement teams will have advertised a role recently specifying many of these requirements.

Identifying the talent you want to hire is only one aspect of the challenge. You’ll also need to ensure that you are able to acquire them. Three in every  four of the offers that our clients are making are being met with counter offers, many of them substantial.  In half of these cases the counter offer is equal to or greater than the offer made by our client.

It’s important to prepare a candidate for what is to come when they resign. We would also consider what they need from the process and screen out those that are not serious. This is all part of what a good recruiter will do. And after that, it’s down to you….

What  can procurement teams  do to avoid losing talent they have worked so hard to identify and attract? It comes down to six key factors. 

Understand key motivators

Understanding candidates’ key motivators is crucial to ensuring that any chance of buy back is reduced, and to make the right hiring decisions for long-term performance and retention. If you have truly understood their motivators you are more likely to run a process that allows them to see how these can be met by you and your organisation. Where these don’t match you can save yourself critical time. This will allow you to focus on better prospects in terms of those that will actually join and, just as importantly, stay.

Get clarity on the full package

Package clarity: as with motivations, it is vital to get into the detail of a candidate’s current package at the beginning of the process so provide a full breakdown of the package and the value of it.

This will allow for an accurate comparison of a candidate’s current situation vs. the package on offer. Bonuses (likely earnings and also when they are paid), pensions, healthcare, car packages…. Not only do they mean different things in different businesses but many people don’t know the details until they are asked to look. Get in the detail early and manage expectations from day one. Otherwise you could be either under offering or underselling your own offer.

Offer a healthy balance

It’s easy to overlook the importance of a work life balance. There’s no point getting into the middle of a process only for a candidate to decide the commute is too tough or expensive. Likewise, what is the realistic work/life balance you can offer  in the new role? What are the candidate’s personal circumstances? Will this impact their final decision? It is crucial to be upfront about this from the start.

Ensure that people want to join your people!

This has a huge impact on candidates but is, strangely, sometimes underestimated. Candidates will form an attraction to a business and a team. This is separate from things like role specification, package, location etc. If you can get your prospective employee to meet people that they believe they can work with, and most importantly learn from, it makes the organisation much more desirable.

People join people more than they join companies.

A competent recruitment process

Candidates often judge businesses by their processes particularly at interview stage.  Make sure there are  clear timelines in place to manage expectations. Does the advised preparation match with the content of the interviews?

Whilst these may seem like small things, they can make a big difference. A company that is well organised, thorough and effective at recruitment, can either impress or put a candidate off. Asking someone to deliver change in an organisation that doesn’t appear able to do what it says it will do sends out the wrong signals.

Make your offer compelling

An offer should always be made based on what the hiring business thinks the candidate is worth, not just on the advertised package. For each role it is worth considering what a compelling offer would be. Both as a statement of intent to secure the candidate and also to ensure your remuneration is in line with the rest of the market. Importantly, this might not just be salary; it could be a bonus, private healthcare package or flexible working hours.

Best of The Blog- Should You Ever Rehire An Ex-Employee?

When you rehire an ex-employee, especially one that was a star, it looks like you are getting a great deal. What you see is what you get. They understand your business and its own unique culture, are immediately productive and bring industry knowledge and new ideas.

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article by Elaine Porteous who explains why organisations must be very cautious when considering whether to rehire employees. 

The best-case scenario is when an employee wants to return because he has had time to learn new skills and has gained in-depth work experience somewhere else that he can share with you.

The good news about rehiring top performers

Rehiring former employees often costs much less than hiring from scratch, especially since you can cut out the extremely costly recruiting and interview process. When budgets are tight, you can explore this avenue using social media, alumni groups and word-of-mouth to find out who is actively looking.

The potential rehires, also known as boomerangs, are easier to assimilate into the organization and you will save you orientation time. The thinking is that since they know exactly what they’ll be signing up for, they will be likely to stay longer the second time and therefore be less risky, more productive and better for your retention statistics.

There’s also some thought that a rehired person can provide you with a fresh perspective, innovative ideas and some industry intelligence.

So what can go wrong? Quite a lot

Not all former employees are worthy of rehiring. Let’s hope they left for the right reasons and of their own accord. Obviously, you will exclude anyone who was fired, incompetent or unproductive or suddenly has accumulated a criminal record.

Here are a few of the main disadvantages of rehiring former employees:

  •  Current managers and co-workers may feel threatened if the employee returns with a new set of skills, and especially irritated if they come back onboard with a higher remuneration package, which is quite likely. They may feel an employee already had their chance.
  •  The reason that they left in the first place may still be a problem: the boss from hell, lack of benefits, poor promotion prospects and/or lack of opportunities to learn.
  •  There may be unintended consequences if the rehire is appointed at a higher level than his previous role. It may trigger other departures if promotional prospects are blocked, i.e. waiting to fill “dead man’s shoes.”
  •  Returning employees may just not fit in. The climate and culture of the company may no longer be the same. In this case, their new presence may be disruptive and cause tension.

Develop a rehiring policy

A definite success factor is having a firm policy that is applied fairly to all potential “Comeback Kids.” Who is eligible to be rehired should be agreed upon internally and be legally defensible.  Two important elements to include are how long after leaving an employee can return, and  what’s a reasonable maximum time to be away.

In some industries, some employers also refuse to rehire an employee who left to go to a competitor. Other organizations may welcome the broader experience and give preference

to ambitious ex-employees who went off to try their hand at consulting or starting their own business.

Booz Allen Hamilton, a leading U.S. consultancy, is such a staunch believer in rehiring that it sponsors a Comeback Kids program, through which it actively reaches out to past employees and those from the military.

A few more things to consider when rehiring

  • Make sure the conditions that caused that person to leave are not still barriers. Exit interviews are notoriously unreliable. so it’s best to work out why the employee really left. If he undervalued the company before, has anything changed?
  • Is this person really the best candidate for the job? It should not be a quick fix — don’t take the lazy recruiter’s solution.
  • Are you overlooking quality internal candidates? Someone else internally might be just as qualified to do the job. Think about the message you’re sending and the possible repercussions of rehiring instead.

Don’t forget to brief the new employee on how things have changed since he left and any new projects that have come up since.  A “welcome back” interview shows that your company is open to hiring the best people, whatever their job history.

Would you rehire a great former employee? Let us know by commenting on the story below.

Contingent Workforce: Why Procurement Still Hasn’t Found What It’s Looking For

In some ways the procurement profession is in a stronger position than ever before. But in others, in the words of great philosopher Bono, we “still haven’t found what we’re looking for” when it comes to the contingent workforce.  

Different Categories, Different Organisations, Different Value

Is our role really about cost reduction when it comes down to it? Or are we moving into a brave new world where the small, but perfectly formed, procurement function is focused on extracting innovation and competitive advantage from key supply markets?

Clearly, “value” is a word that has to feature, but saying procurement is about value is a bit of a truism;  of course it is! And so is everything else that an organisation does.

This in itself doesn’t help us to progress very far in the debate but one useful thought might be this: Every spend category within our organisation contributes value to the organisation in a different way; and for any given spend category, that value will differ from organisation to organisation too.

The Evolution of Procurement and What it Means for Managing Contingent Labour

In our new paper, The Evolution of Procurement and What it Means for Managing Contingent Labour, written in conjunction with Spend Matters, we look at this issue and also touch on other aspects around where procurement might be heading, including the fashionable idea of “procurement as a service”.

Using contingent labour as an example it is possible to illustrate how procurement has evolved and how a category can create value in various ways.

In some organisations, obtaining the right contingent labour, such as highly skilled technicians, creative folk or IT experts, might be a direct source of innovation and, as such, competitive advantage. In other cases, cost reduction and operational efficiency through a super-slick engagement processes for contingent workers might be the key factor.

The key point, however,  is that every procurement professional needs to understand the contribution for their categories in their organisation.

Procurement Must Take A Multi-Pronged Approach To Contingent Labour

(An Excerpt from The Evolution of Procurement and What it Means for Managing Contingent Labour

Any analysis will immediately confirm that procurement must follow different approaches depending on both the category of spend being addressed, and the nature of the business and the drivers of success.

Are the ingredients for a food product important to its success, or is it enough that they are safe to eat? If we spent more on a better quality purchase, would we sell more or be able to charge a higher price?

Considering services spend categories, how important, for instance, is marketing to the success of the firm? If innovation and new products are key drivers, then supporting that by identifying and working successfully with the very best external marketing services providers will be more important than haggling over their margins.

Contingent labour spend may simply be a case of minimising cost at an acceptable level of risk, or it may be much more strategic, with access to hard-to-find talent, and speed of engagement critical to the business.

That was reflected in our roundtable last year when we heard several excellent examples of how the use of contingent labour was truly linked to organisational strategies. “We are looking at scenario planning and resourcing models to help predict blue collar contingent labour requirements.” And the days of the contingent workforce being purely low-level blue-collar or administrative staff are long gone.

“Some of our contingent workforce are key to how we win business from our own customers; they are a strategically important and also scarce resource”.

You can download the full white paper for free here.

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Recruitment Insider: Demand For Temporary Workers Fast Outstripping Supply

Demand for workers is accelerating so fast that it’s outstripping supply. How can organisations find the employees they need without racking up a whole load of extra cost?  Jon Milton explains  the elephant in the recruitment room.

A cursory look at REC jobs market figures show that turnover in the recruitment industry for 2014/2015 was £31.5bn, the highest since records began in 2001/2002.

Permanent recruitment revenues have increased by 58.4 per cent from the recessionary lows of 2010/2011. Temporary or contract revenues are up by 60.1 per cent over the same period. Unemployment is exceptionally low.

What this means is;

  • Demand for workers is accelerating
  • Organisations are turning to recruitment agencies to help them meet it
  • The pool from which to draw workers from is receding

Any situation where demand outstrips supply should result in higher costs. These costs may be reflected in margin, pay rate, expenses or even resource commitment as your organisation searches to find the right worker fit. We have, however, gotten used to paying workers at a certain level and it’s possible to secure low margins from agencies.

How do you deal with this challenge without racking up a whole load of extra cost? Not as you perhaps think – and it’s probably worth addressing that particular elephant in the room first.

The Urban Myth: Exchanging volume with a single agency supplier will solve all my problems.

There are c24000 recruitment agencies operating in the UK, employing about 102,000 recruitment consultants. It’s a massively fragmented supply market that has never responded well when customers with diverse needs have attempted to exchange volume with a single supplier.

In the managed service world, some providers have responded to the challenge of keeping margins low with brute force, transferring workers supplied by incumbent agencies to their own books at implementation, and attempting to fill every requirement that comes along. In the long term this approach inevitably drives off contract buying and significantly reduces quality. This will obviously impact organisational output and competitiveness.

Keeping rates sustainable – making it worthwhile for the agency

The rate paid to an agency is sustainable if it covers their cost of sale and generates a reasonable profit. Cost of sale is important here; agencies typically pay their temporary workers at the end of the previous week worked and get paid by the customer in arrears. As such, prompt and efficient payment is crucial; agencies only get paid once they have filled a role successfully. Providing a decent level of opportunity on a level playing field is extremely important; and they are a vital component in delivering the temporary workforce so it is important to allow them to be heard (and not just through email) and responded to.

In terms of return, it’s important to pitch rates at the right level. Instinctively you may distrust agencies if you have stung by high spot fees in the past, but there are boundaries beyond which margins simply don’t work and render the fee payable non-profitable. Clearly it’s important to push these boundaries where the market dictates, but you will need to develop a strong understanding of the market to do so.

In our own managed service model suppler relationship management is a key component of our service and one that has helped us to address these issues. If you’re considering the managed service route, do talk to your agencies and ask them to give their views on different managed service providers – it will be an interesting conversation and one that should form part of your market approach.

Keeping rates sustainable – making it worthwhile for the worker

Whilst demand for skilled workers is currently outstripping supply it’s easy to think that the amount that you pay for those workers will have to go up, but this is not necessarily the case. Whilst pay rate is of course important, a workers decision on where to work is also led by a number of other factors. The includes the work itself, length of assignment, departmental profile and culture, amenities and work-life balance.

Keeping rates sustainable – managing expectations

Over the last 24 months we have been regularly canvassing the views of our agency suppliers to understand market dynamics, and one consistent theme has been of expectations. In an uncertain economic market where there is an abundant supply of skilled workers, the chances of recruiting someone who meets all your criteria are relatively high, so conversely with the market going full circle, expecting the same now can lead to disappointment.

The best way to address this is to allow agencies to manage the expectations of your line managers for you. This will help your managers to focus on their required outcomes rather than their perception of what they need. It will enable them to benefit from the recruiters’ knowledge of the market and what skills are available.

Whether you allow a managed service provider to manage this on your behalf or not, what is of paramount importance is that these relationships are strictly governed.

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Don’t Judge A Procurement Job By Its Cover

Ever been attracted to a new job because of the flashy brand? Graham Lucas warns that you should be looking at the people on the inside. 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Graham Lucas is Managing Director – Procurement & Supply Chain and Logistics at Michael Page. He’ll be speaking at this year’s Big Ideas Summit about procurement  recruitment.  We’ve picked his brain this week to find out what key skills procurement recruiters are fighting over in 2017 and what mistakes job applicants should avoid making.

Who are the best procurement candidates and why?

For me, the best procurement candidates are those that are highly commercial whilst having lots of emotional intelligence. We are also increasingly talking about bravery.

The requirement around influencing, communication skills, and category knowledge are well trodden boards and are still very valid. But the bravery and creativity it takes to innovate is underdone. This is something that we need to see much more of day-in and day-out if the procurement functions are going to end up as overall commercial custodians of their organisations.

What key skills are recruiters fighting over in 2017?

People who can demonstrate an ability to:

  • Deliver value to the bottom line in a dynamic manner and not just reduce costs
  • Unlock competitive advantage from the supply base through true partnership
  • Influence others, both internally and externally
  • Embrace technology that can help us move further, faster
  • Innovate by managing a supply base of experts to help their business compete

What are the biggest mistakes procurement professionals make throughout the recruitment process?

I think many people are keen to talk about the £30m saving they made.  This is great but I do think that, unless you are managing a huge spend, it’s easy to oversell your impact.

Talking about some of the more tangible things that you did, and how you delivered these, is more impressive. I met with a candidate last week who had identified a food material that was being cooled a further four degrees lower than was required before being packaged. He was able to explain the financial benefits across the utility and labour spend which amounted to a £400k saving. All whilst speeding up the manufacturing process, which supports their customer objectives. Evidently, the previous half-dozen people in his role didn’t identify this.

How has the recruitment industry changed during your time at Michael Page?

Fourteen years ago the market was fairly linear. The line manager or their personnel team recruited someone, or an agency did.

Now the market is much more varied, highly competitive and dynamic. Four thousand recruiters started up last year I believe and that’s just in 2016.

Add to that the advances of technology (job boards, linked in etc.) in-house recruitment teams, RPO’s, MSP’s, and we can see that many more commoditised markets have been eroded.

Whilst recruiters are having to evolve and embrace these challenges, I genuinely believe the right specialists, knowledge and strong relationships, have never been more required than they are now.

What two pieces of career advice would you give to any of procurement’s rising stars?

Don’t be blinkered. The more you can understand your broader business, the sector you are in, supplier challenges etc., the more likely you are to progress. Your ability to navigate organisations and departments outside of your own will be essential. That’s the secret to being  highly successful.

Don’t judge a job or organisation on the brand, or value of your category. A great career move tends to be based on the person you will work for, the people you will work with, and how those two things can personally develop you.

How do you identify innovation in candidates?

Someone should be able to clearly and positively explain what they have challenged, changed and most importantly, show what positive impact that has had on customers. For me, the best innovation has the customer at the heart of it, adding value to them even if at times it hasn’t directly benefited the bottom line.

Join the conversation and register as a digital delegate for Big Ideas 2017