Addressing Skilled Talent Shortages in Procurement

Insights from:

‣ Michel Duquette, Global VP of Procurement at GRYB International
‣ Joël Collin-Demers, Senior Consultant at Pure Procurement
‣ Dominique Laplante, Procurement Director at Nemaska Lithium
‣ Gérard Dahan, Strategist and Marketing Expert, Procurement Software Solutions

The manufacturing industry is facing a growing talent shortage, a challenge that has intensified post-pandemic as more employees prioritize flexibility, growth opportunities, and company values. At our recent 5@7 des Achats event in Montreal, procurement experts gathered to discuss this pressing issue. The panel offered valuable insights for procurement directors looking to attract and retain skilled talent in a competitive labor market.

Here are the key takeaways from our discussion on managing skilled talent shortages:

1. Adapting to Changing Workforce Expectations

Today’s workforce, particularly younger employees, places high value on work-life balance. The pandemic shifted employees’ expectations regarding flexibility, with many workers now prioritizing roles that allow for hybrid or remote work options. This flexibility can be challenging in manufacturing, but it’s essential to explore hybrid or flexible scheduling in roles where possible.

To meet this expectation, procurement directors should consider:

Offering flexible work options: Evaluate which procurement tasks can be performed remotely or on a hybrid schedule.

Improving work-life balance initiatives: Invest in policies and tools that help employees manage their work-life balance, such as flexible hours or well-being programs.

Notably, about 15% of workers changed industries or roles during the pandemic, seeking positions that offer motivation, growth, and fair compensation. Companies that fail to adapt to these new expectations risk losing talent to industries that offer these benefits.

2. Emphasizing Company Values and Workplace Culture in Recruitment

Young professionals today are more discerning in their career choices and increasingly prioritize company values. They seek alignment between their personal beliefs and those of their employers, which means that companies need to communicate their values clearly to attract these candidates. To do this effectively, manufacturing companies should integrate “HR marketing” into their strategies, showcasing their workplace culture and values in recruitment campaigns.

To attract and retain talent that aligns with your organizational goals:

Promote company values and culture in job postings: Highlight your commitment to sustainability, diversity, employee well-being, and innovation to resonate with candidates.

Invest in social media and digital platforms for HR marketing: Use these channels to share employee stories, company achievements, and workplace benefits that emphasize your values.

Highlight growth opportunities: Younger candidates are drawn to companies where they can see a clear path for professional development and personal growth.

3. Recognizing and Rewarding Talent

One of the most significant factors influencing younger employees’ loyalty is recognition. They value a workplace where they are acknowledged for their contributions and can see a tangible path to advancement. For procurement directors, this means creating clear pathways for growth, offering skill-building opportunities, and rewarding high-performing employees.

Some ways to recognize and reward employees include:

Offering salary increases tied to performance: Regular salary reviews that reflect employees’ contributions can be a strong motivator.

Promotions and leadership opportunities: Provide promising employees with opportunities to take on leadership roles, project management responsibilities, or cross-departmental collaborations.

Investing in skill development: Establish programs that allow employees to build new skills, particularly in areas like data analytics, supply chain optimization, and digital procurement.

Employees are more likely to stay long-term with companies that invest in their growth and development. This also benefits the company, as well-trained, engaged employees are more likely to contribute to innovation and overall productivity.

4. Bridging the Talent Gap Through Continuous Learning

The rapidly evolving nature of procurement and supply chain management calls for a workforce that is adaptable and open to continuous learning. Encourage employees to participate in skill-building opportunities to stay current with industry trends and technological advancements. Procurement directors can also consider partnerships with educational institutions to create pipelines of skilled, ready-to-work talent.

Ways to support continuous learning include:

Offering in-house training and mentorship programs: Programs focused on upskilling in critical areas such as supplier management, data analysis, and strategic sourcing can make employees feel valued and invested in.

Partnering with local universities or trade schools: Consider creating apprenticeship programs or offering internships that introduce young talent to procurement roles within your company.

Promoting industry certifications and courses: Support employees who wish to earn certifications like Certified Professional in Supply Management (CPSM) or Lean Six Sigma, which add value to their skill set.

Moving Forward with a Strong Talent Strategy in Procurement

The manufacturing industry’s skilled talent shortage presents an opportunity for procurement directors to rethink traditional talent strategies. By fostering a workplace culture that aligns with today’s workforce values, companies can attract motivated, loyal employees who are ready to grow within the organization. As discussed at the 5@7 des Achats event, adapting to new workforce expectations—whether through hybrid work, HR marketing, or continuous learning—is critical for retaining top talent.

In today’s competitive market, procurement leaders need to be proactive and innovative in their approach to talent management. By emphasizing flexibility, promoting company values, recognizing employee contributions, and prioritizing skill development, manufacturing companies can build a resilient workforce that will drive long-term success.

The following video is in French.