There has been a talent deficit for at least the past ten years, and it has gotten worse as the supply chain crisis has arrived. This holds globally and in all industries. Since businesses have realized how crucial the supply chain is to their success, there is a greater than ever-demand for supply chain skills. Studies conducted by several organizations have demonstrated that businesses with high-performing supply networks see revenue growth considerably above the sector average. And you cannot achieve a high-performing supply chain without talent.
Procurement and supply chain managers need to do more than just raise compensation in order to attract and keep top talent. You’ll need to modernize your workplace to provide benefits and training opportunities responsive to employee needs, broaden your hiring practices, and plan for potential staff attrition.
Causes of the Crisis in Supply Chain Talent Shortage;
A Rapidly Changing Industry
For a few decades, the supply chain business has been evolving due to technological advancements and digitization. The issues faced by the global workforce are fundamental, including increased customer service standards, more competitive work settings, and supply chain interruptions. To keep up with the changing demands of the industry, supply chain management is becoming increasingly digital. In order to increase efficiency, the supply chain sector is at the forefront of technical development. As the sector expands, automation and technology have enhanced efficiency and potential.
Insufficient Talent To Meet Demands
Rapid changes are taking place in the sector. The U.S. Bureau of Labor Statistics estimates that there are roughly 4.4% more job opportunities than there are employed people, while the unemployment rate is only 3.5%. In essence, there are more positions than qualified candidates to fill them. Additionally, as the industry develops, so do the skill needs. Today’s ideal employee possesses analytical abilities as well as knowledge of tactical and operational issues. 58% of businesses claim that it is difficult to find this combination. Future talent must also excel at leadership, strategic thinking, innovation, advanced technology, and analytic skills. The shortage of talent has been highlighted by the increased demand for people with particular talents.
Here are some tactics for luring and retaining the top supply chain and logistics professionals;
- Train Employees
Give employees access to free ongoing education and opportunity for advancement inside the business. This will encourage them to sign up and stick around and give you an advantage when hiring for other positions. You might provide your employees with one of the many training and certification programs offered by the Association for Supply Chain Management (ASCM).
Experts advise emphasizing upskilling (teaching new skills) and reskilling (preparing people for different positions within the firm), as well as providing career mentoring and establishing opportunities for employees to observe others in action. Currently employed pickers may become your next forklift operators.
- Value Them
Managers should make an attempt to interact with staff members honestly and address their feedback. Additionally, managers and the business itself should attempt to foster a sense of commitment and value among staff members, for instance by proactively discussing promotions during each performance review.
- Offer Flexibility
Employers can adjust by providing flexible schedule options, such as weekend or four-hour shifts, and by determining whether responsibilities could be handled just as well remotely. Consider increasing the benefits for employees who come into the office, such as buying them lunch once a week or holding a raffle with prizes for attendees.
- Use Analytics To Adapt
In one successful application of people analytics, a trucking company identified the group of drivers who were most likely to depart, examined the causes of their dissatisfaction, and made changes as a result, which improved both retention and new hiring.
- Recruit Broadly
It takes both ingenuity and diligence to find outstanding talent. Technology has made it simpler than ever to post job openings to a large audience, but in order to attract suitable individuals and generate interest in the position and your business, you must discover ways to differentiate yourself from other employers.
- Good Work-Life Balance
Companies are becoming more and more aware of how crucial a seamless supply chain is. As a result, compensation for Supply Chain positions has climbed along with their rank. Executives are becoming more and more aware of the need to improve the profession’s appeal in order to recruit and retain the best talent. In this aspect, having an inventive attitude is crucial. Not just the pay and benefits significant; a better work-life balance is also becoming more and more crucial.
The Bottom Line
You must demonstrate to both new and present employees that you value them, care about their issues, and want to see them succeed in order to adjust to the labor scarcity in the sector. Your workplace may become more inviting to join and remain in if you offer better work-life balance and flexibility, as well as additional training and advancement opportunities.
We know that the recruitment process can take a lot of time and effort. That’s why hiring one of the best recruiting and staffing agencies like KTEK resourcing can help you. At KTEK, our excellent team of talent hunters can find the right candidate for your open job position.