Curing all that ails the procurement talent pipeline

In today’s rapidly evolving business landscape, procurement professionals are more crucial than ever. However, organizations across industries are grappling with a growing talent gap. A 2023 Gartner survey found 86% of procurement leaders were not confident in their talent’s ability to meet the future needs of the function, and the CIPS Procurement & Supply Salary Guide 2024 found 58% of companies were struggling to find and retain procurement talent.

The need for skilled procurement professionals continues to rise while the workforce supply struggles to keep pace. To address this challenge, organizations must proactively build a sustainable procurement talent pipeline.

Daniel May, director of procurement strategy at the National Association of State Procurement Officials (NASPO), shared his insights on this topic in a recent article for Supply Chain Management Review and in a Talking Supply Chain podcast episode. What follows is a summary of those conversations to help organizations better build a sustainable procurement talent pipeline.

1. Early egagement through education

One of the most effective ways to cultivate procurement talent, May said, is by fostering early interest through education. Procurement is often overlooked as a career path due to a lack of exposure in high schools and colleges. May emphasized the importance of creating awareness by partnering with educational institutions. NASPO has done that with local schools and found students, once they learn more about the field of procurement and its opportunities, are showing interest.

•  Developing curriculum partnerships. Organizations should collaborate with universities and community colleges to integrate procurement courses into business and supply chain programs.

•  Internship and apprenticeship opportunities. Hands-on experiences help students understand the complexities of procurement and encourages them to pursue careers in the field.

•  Guest lectures and workshops. Engaging industry professionals in classroom settings can provide students with real-world insights and networking opportunities.

2. Targeted recruitment strategies

To bridge the talent gap, organizations need to refine their recruitment strategies. May highlighted that procurement roles require a diverse skill set, including negotiation, analytics, and relationship management. Attracting the right talent means rethinking traditional hiring approaches.

•  Broadening outreach efforts. Employers should extend recruitment efforts beyond conventional business programs and seek candidates from disciplines such as law, economics, and data science.

•  Leveraging technology and social media. Utilizing platforms like LinkedIn and specialized job boards can help target procurement professionals more effectively.

•  Emphasizing career growth. Clear career pathways and professional development opportunities can make procurement roles more attractive to job seekers.

3. Investing in continuous learning and development

Once hired, procurement professionals need ongoing training to stay competitive in a rapidly changing industry. May stressed the importance of professional development as a retention tool.

•  Certification and credentialing programs. Encouraging employees to obtain certifications like the Certified Public Procurement Officer (CPPO) or Certified Professional Public Buyer (CPPB) can enhance expertise.

•  Mentorship and coaching. Pairing new hires with experienced procurement professionals can accelerate skill development and career progression.

•  On-demand learning resources. Providing access to webinars, online courses, and industry conferences keeps employees engaged and informed.

4. Enhancing workplace culture and retention.

Building a procurement talent pipeline isn’t just about attracting new professionals; retaining them is equally important. A strong workplace culture that values procurement professionals can significantly improve retention rates.

•  Work-life balance and flexibility. Many employees prioritize flexible work arrangements, and procurement organizations should adapt to meet these expectations.

•  Recognition and advancement opportunities. A clear path for career growth and internal promotions can encourage long-term commitment.

•  Inclusive and collaborative environment. Creating a diverse and inclusive workplace fosters innovation and employee satisfaction.

5. Leveraging technology and innovation

The role of technology in procurement is expanding rapidly. Organizations that integrate emerging technologies can attract younger talent interested in tech-driven careers.

•  Automating routine processes. Leveraging AI and procurement software can streamline workflows, allowing professionals to focus on strategic tasks.

•  Data-driven decision-making. Providing employees with access to advanced analytics tools enhances efficiencyand performance.

•  Cybersecurity and risk management training. As procurement becomes more digital, professionals need training in data security and compliance.

Conclusion

The procurement talent gap presents a significant challenge, but with strategic initiatives, organizations can build a strong and sustainable talent pipeline. As May emphasized, early engagement, targeted recruitment, continuous learning, workplace culture, and technology integration are key components of a successful strategy. By prioritizing these efforts, procurement organizations can secure a bright future and ensure they have the skilled professionals needed to drive success.

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