Hays Procurement - January 2010

Hotspots

Procurement Manager/Specialist candidates are becoming an area of demand. We have seen an increase in positions registered by SME organisations that want a strategic procurement function. They are looking at moving away from procurement being transactional. We expect more greenfield stand alone Procurement Manager/Specialist roles to be created in the coming months.

In-direct spend Procurement Managers have been in most demand recently, with very similar roles registered at the same time from a variety of industry sectors.

Employers have expressed increased interest in Contracts Managers, as they realise the benefits of existing contracts. There has also been an increased interest in compliance and the implementation of new policies and procedures.

Candidates with experience running an end-to-end tender process and exposure to the public sector are another area of demand. As project activity increases in many sectors, qualified procurement contract and tender specialists will be required on a permanent and temporary basis to provide their expertise in establishing new contracts.

Within supply chain, quality Planners are sought. More recently, Senior Planners have become an area of demand as companies seek to be more effective in an ever-changing market. We expect this trend to continue for the first six months of 2010.

The coming quarter

As companies receive new hiring budgets and commit to more progressive procurement techniques, permanent greenfield Procurement Manager/Specialist roles will be created. Roles perceived as non-business critical that have been left vacant for some time are now being recruited. As these new roles are released we expect some to be filled initially in a temporary capacity. Some of these temporary staff with be offered a permanent placement after proving themselves.

SME companies are starting to view procurement as a function that can deliver real cost benefits to their businesses. As such, recruiting a specialist dedicated to cost reduction and implementing best practice is seen as a step in the right direction. This will help fuel recruiting momentum.

Some organisations used the GFC as an opportunity to restructure and are now looking for fresh talent and fresh ideas. Many companies have recently taken the opportunity to analyse their procurement functions either internally or by using a third party. This has uncovered a need for increased attention around existing contracts and implementation of best practice for new contracts.

Recruitment within the public sector was steady in the last quarter of 2009 and it is expected to remain steady in the first quarter of 2010.

Given that all signs point towards a candidate shortage in 2010, employers are advised to consider graduates and train them into the business to avoid skill shortages.

Executive trends

Employers have said they expect to recruit at the executive level in 2010. Some general senior procurement managerial roles have already become available as organisations look to restructure.

Employer trends

Employers demand more for their money and are often disappointed when they subsequently miss out on their first choice of candidate due to their stringent demands.

There have been a number of recent cases of employers recruiting for a role they had filled in 2009 with a more senior candidate than was required. The candidate subsequently found a more intriguing role when the job market picked up.

Some employers are placing greater emphasis on further education, while CIPSA has been noted as a preferred qualification for candidates to work towards.

Certain media reports have led some employers to believe there is an abundance of candidates available. This is not the case within the procurement market, which is experiencing a shortage of quality candidates, particularly in those 'hotspot' areas identified above. Within such a market, recruiting agencies can help employers reach passive candidates.

Candidate trends

In 2009, candidates assumed there were few good roles available and so were hesitant to enter the job market. They often focused on maintaining secure and long-term employment rather than advancing their career. But in 2010 confidence has returned and candidates are again considering their next career move. As more passive candidates enter the market, it will create more attrition-based recruiting needs. This need to replace departing staff will help build overall recruiting momentum once more.

These candidates are, however, the most highly sought after. Potential employers therefore need to sell their role and company in an interview. These candidates will not accept an offer unless the position, salary and opportunity align.