UK Procurement & Supply Chain Recruitment - January 2022

UK Procurement & Supply Chain Recruitment 

January 2022

2021 was an extraordinary year for almost everyone in the recruitment sector; and no less so than in the Procurement and Supply Chain Recruitment. From gentle growth in recruitment activity in the first quarter 2021 we saw activity really picking up as we entered the second half of the year. Growth was led initially by permanent staffing demand; but as the year progressed and the challenges of securing good permanent staff has become more difficult in an ever more competitive market, we saw significant increase in demand for interim staff, particularly in the last 4 months of 2021.

Momentum continued at pace and recruitment activity showed no sign of slowing down as we entered the final quarter of 2021.

By the end of the year we saw demand for procurement and supply chain talent above pre-pandemic levels with the need for specialist talent driven by post pandemic economic growth and focus on UK and global supply chain challenges; as the need for optimal and effective supply chains had become and remains the hottest topic on board room agendas.

Moving into 2022

Despite great economic uncertainty and risk of a slowdown amid the latest Omicron variant of COVID-19, we see overall demand for talented procurement and supply chain professionals remaining strong as we move into 2022 and we believe fundamental demand for efficient supply chain and procurement functions will ensure demand for talent will remain high and fluctuations in demand will be less effected than most other disciplines.

Short term positive economic outlook

Economic indicators from the ONS, OECD and other sources point to continuing economic growth in 2022 and a slow down as we move into 2023 with the latest OECD economic forecast stating “the economy is recovering and expected to reach pre-crisis levels at the beginning of 2022. Output is projected to rise by 6.9% in 2021, with growth moderating to 4.7% in 2022 and 2.1% in 2023. Consumption is the main driver of growth during the projection period. Business investment will improve but continues to be held back by uncertainty. Increased border costs following the exit from the EU Single Market are weighing on imports and exports. Unemployment will continue to decline. Inflation will keep increasing due to higher energy and commodity prices and continuing supply shortages. It is expected to peak at 4.9% in the first half of 2022 and then fall back towards the 2% target by the end of 2023.” (Source: OECD Economic Forecast Summary, December 2021)

Clearly the challenges of Pandemic recovery and Brexit in the UK will be key drivers for procurement and supply chain activity; and we see no let-up in the demand for procurement and supply chain talent over the oncoming months and most likely on into 2023.

Key Trends for 2022

The Fall and Rise of Interim

In 2020/21 the Interim Procurement and Supply Chain market took a hit, with IR35 postponed Off-Payroll regulations resulting in many companies putting off hiring interim consultants, and instead opting for FTC options which in many instances didn’t deliverer the candidates that were really needed.

In the Interim market the end of the year was busier, although still not up to pre Covid-19 / pre IR35 implementation levels. As we progressed through 2021 we have seen organisations become more familiar with the Off-Payroll (IR35) Regulations and more willing to go move away from inside IR35 and Fixed Term Contracts (FTCs)  to outside IR35 contracts, to secure the level of interim talent they need. We believe will see an increase in available Interim contracts outside the IR35 regulations as we move through the 2022.

As one might expect with the challenges of the Covid-19 Pandemic and Brexit, Government and Consultancies supporting Government/ NHS projects have driven a large increase in interim vacancies, and certainly we don’t see any significant let up in this as we move into 2022. Clearly the Government and NHS Covid response has been driving a good deal of the demand in the interim space and this with the Omicron variant and other ‘unknowns’, it looks like demand is here to stay for a good while yet.

Sector Activity

Unsurprisingly Pharmaceutical has been very busy, but we have seen activity increase pretty much across the board. In Manufacturing there is huge demand for great people to guide and develop effective supply chain functions to deal with the myriad of developing worldwide supply chain challenges; and in the Retail sector we have seen a move to operating models with more online presence. These have all bolstered demand for dynamic and innovative procurement and supplychain specialists that can strategise and innovate in what is probably the fastest changing supply chain environment we have ever seen.

Increased public awareness of environmental impact of supply chains and increased focus on sustainability means that organisations can no longer afford to ignore their procurement and supply chain imprint, further increasing the demand for talented specialists in these areas.

Government policy from fossil to renewable energy creation, is driving demand across the board in in Energy and Utilities sectors, with great procurement people required to resolve challenges, optimising existing energy sources and developing minimal impact solutions in renewables.   

On hold Projects coming on stream

Amidst pandemic and lockdown, it seems that many non-critical projects have been put on hold. As organisations all become more accustomed to the challenges and vagaries of Pandemic and Brexit, we think many ‘back burner’ projects will be looked at again further increasing demand for specialist staffing across the board. Areas we believe will be particularly strong this year will be: Technology Procurement (all areas), Digital Marketing & Logistics.

Candidate Driven Market

The most significant challenge for employers in all industry sectors, continues to be securing candidates with the specific procurement and supply chain skills required in a ‘candidate short’ market. Employers will need to offer competitive employment packages including home/agile working and be willing to pay maximum market rates in a fast-changing candidate driven market. Finding suitable candidates will become progressively more difficult. Many of the best Supply Chain and Procurement candidates are likely to be ‘passive’ and occupying good roles already, although there are strong indicators that employees are now more willing to ‘jump ship’ as the realise their specific skill sets are in high demand and have become more accustomed and less fearful of the vagaries of a pandemic effected economy.

Skills Shortages

We have seen an increased demand across almost all areas, and we see no let-up in this as we move into and through 2022. Evidence of exceptional soft skills; supplier management, stakeholder management with effective engagement and persuasive skills remain as critical as ever.

We anticipate a very busy and competitive recruitment market throughout the first half of 2022, which is likely to continue throughout the year, across all sectors significant skills shortage across many levels, especially Senior Buyer and Category Manager level roles. Traditional skills shortages in IT, Logistics, Marketing HR and Professional Services Procurement areas will continue especially at in the mid-level.

Pressure on Rates

The rapidly increasing demand for specialist supply chain labour and more jobs available than suitable applicants, has put significant upward pressure on both interim and permanent market rates. Good candidates are getting multiple offers compelling some companies to offer at the top of their bandings (or getting senior approval to go in excess of banding) to get people onboard. In a fast-moving environment, specialist market knowledge will be critical.

How and where we work

The move to home and agile working during the pandemic has had a fundamental effect on most people’s expectations of how and where they work. For most employees there is now an expectation that home or agile working is facilitated, with the hybrid model being most requested. Organisations need to have formal and supportive agile working systems in place, and organisations unable to offer this will lose talent and struggle to find new talent.

Counteroffer culture

Companies will need to do more to retain existing staff due to the problems in recruiting new ones. We expect to continue to see counter offers becoming even more widespread. Organisations need to ensure their HR processes and organisational structure, acknowledges, supports and rewards good performance of hard to replace Procurement and Supply Chain people.

Recruitment and on-boarding:

Recruitment and on-boarding processes will need to be slick and candidate focused. With good people increasingly harder to find organisation need to optimise their Interview Offer and On-boarding processes. The market is moving quickly and talented people with hard to find skills can afford to be ‘choosey’. Any gaps or delays in the company’s recruitment process, runs the risk of losing the candidate’s commitment and loss to other employers.

Conclusions….

Positive economic indicators for 2022, Covid-19, Brexit, environmental & sustainability demandsand the ever more urgent need for effective supply chains to meet these challenges, point to exceptionally strong demand for procurement and supply chain talent and a very busy recruitment procurement and supply chain market in 2022.

Good candidates will be hard to find, however as we all come to terms with the uncertainty of a Pandemic and Brexit influenced economic environment, employees have adjusted, and are more willing to ‘jump ship’ to secure a new opportunity. Despite more candidates coming to market, we see the demand for procurement and supply chain talent increasing at a faster rate than the available talent pool.

In such a competitive market, finding and attracting the best talent will require employers to present solid brand value, security, opportunities for career development, as well as market competitive and comprehensive salary and benefits package. There is also now an expectation amongst candidates for comprehensive flexible/home working options as part of the employment package. Many employers will need to offer significant salary uplifts, to secure talented professionals already in good jobs.

To engage the candidate and ensure commitment throughout the recruitment process, the recruitment package needs to be backed-up up by efficient, quick and responsive interview and onboarding processes; in what is a fast moving and highly competitive race for talent.

The FTC has proven unpopular with interim contractors, so other interim employment options should be considered and where possible contracts outside IR35 will secure organisations the best interim talent.

We see 2022 being a great year for Procurement and Supply Chain professionals where their contribution can be seen and rewarded at all levels within, both public and private sector organisations.

The contribution of the Procurement and Supply Chain profession has never been as visible as it is now, and we truly look forward to a great year helping our candidates secure great jobs and our clients find and secure the best procurement and supply chain people, as we all move forward from the challenges of the last two years…

For more information please contact:

Oliver Lewsley

Recruitment Director

Tel: +44 (0)1403 248 448

Email: oliver@beselect.co.uk

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