Is diversity of thought in Procurement being impacted by too few hires from other industries or functions? Is it time to ditch traditional values to help shake up the profession?

The Procurement profession has been suffering from a talent shortage for some time now, and it’s an issue that is unlikely to completely go away any time  soon. Organisations are on the hunt for mid-level professionals, with figures from early 2023 stating that three-quarters of them are looking to hire at this level.

Organisations are getting better and smarter about how they access new pools of talent. However, there is a common trend that their focus is on people already in the procurement profession, with those without procurement experience not being considered. Whether this is deliberate in light of potential risks to external recruitment, or due to the poaching of talent from other organisations, this insular approach has a detrimental effect of limiting the talent pool.

Procurement is already aware that we need to broaden our horizons to ensure the correct skills mix. A traditional approach may lead to a struggle to fill roles unless the profession diversifies its talent pool by looking further afield.

Hiring Outside the Profession

The great thing about a career in Procurement is how adaptable you can be to new roles and the huge number of transferable skills you learn as you go. From the most junior level all the way up to CPO, there are common skills that all of these roles need:

• Communication;
• Stakeholder/Customer Management (internal and external);
• Supplier Management;
• Flexibility and Agility;
• Influencing; and
• Leadership (more at a senior level, but these tend to be inherent in the individual).

What is worth noting is that none of the skills are Procurement-specific. In a more progressive mindset there is a school of thought that you can teach someone how to do most aspects of a Procurement role if they are willing to learn. And yet, many employers will not look seriously at a candidate, even for lower level or mid-management roles, if they don’t have any Procurement experience.

The perceived risks or issues in hiring from outside the profession – risk of compatibility; remuneration (procurement may command a smaller salary than other areas); lack of scope or budget for training – stand to reason for some roles. But it does mean that Procurement is leaving potentially excellent candidates on the outside when all they need is a chance to show what they can do.

Procurement Cannot Be Dismissive

Where hiring managers target the more ‘traditional’ skill set they end up competing for people from the same talent pool as many others. In order to cast a wider net, these managers need to be open to a more diverse set of backgrounds and make themselves open to the market.

For organisations brave enough to take that step there are success stories to aspire to. At a more senior level, people can be attracted to the profession by showing them the opportunities that Procurement and Supply Chain can give to their career (think Tim Cook). 

As we have said, the skills required for a leader or senior managerial position in Procurement really aren’t vastly different from those in Finance and Project Management. We should stress ‘leader’ in this, given that the transferable versus teachable skills mix differs by role, but if that leader has a track record of success, why would they be dismissed out of hand?

The Importance of Diversity

Why is diversity of thought so important? As the world moves on at a frenetic pace, organisations are looking for any edge they can find to either step ahead of the competition, or improve their bottom line through adding value and reducing costs. 

New people naturally bring fresh eyes and new ideas to their organisations. Diversity and Inclusion is critical not only for improving internal processes and success, but when it comes to external activities too. By ensuring D&I in the hiring process, it can mean happier employees, better morale and better engagement and productivity.

It allows teams and departments access to a wider range of opinions, thoughts and ideas, leading to better decision-making. On top of this, it’s likely to create more opportunities for suppliers and greater consciousness in the provision of equal opportunities, all of which are going to lead to better procurement outcomes.

How to Attract a Diverse Talent Pool

Of course, this is all good in principle, but it’s far easier said than done when it comes to attracting people to roles outside of their existing profession, industry or even sector. When it comes to bringing new blood into Procurement, the profession needs to make people more aware of the positives that a new career there can bring.

There are the success stories that have already been seen, but Procurement can also provide a stepping stone to a higher level of management when those new skills have been banked alongside the transferrable ones people already have. Add to this the opportunities to be involved at the ground level on ESG and sustainability projects, the Circular Economy and ethics, and we begin to create a compelling proposition.

An open mind on both sides will help immensely, especially when it comes to what can and should be expected. Hiring someone who is good at communicating and has strong leadership is all fine and well, but there needs to be an appetite to provide the training on role-specific skills. 

Training needs to be a focal point for Procurement, both in the early days and then as an on-going activity (not only for people coming into the profession, but for everyone). Training will help in removing the fear of failure for the individual, but also mitigate the risks felt by the organisation.

It’s not necessarily about abandoning the traditional approach entirely, but updating and evolving it to make it more relevant. The cost wouldn’t be prohibitive, but the benefits could be what Procurement needs to jump ahead.