The talent supply chain

PURCHASINGB2B MAGAZINE, OCTOBER 2010: The economic downturn that once put a freeze on hiring is slowly thawing. As companies return to regular hiring practices, however, firms need to adapt their hiring and interview processes to the shifting economic times, or risk losing out on talent. While most industries face recruitment challenges, the supply chain management industry’s increasingly competitive nature makes the issue especially relevant.

In a weak economy, candidates are typically in abundance, over-qualified and vying for a scarce number of jobs. In a strong economy, on the other hand, companies are usually bidding on qualified candidates with multiple offers. Each shift presents new challenges, and companies need to be prepared to continually adapt their hiring practices.

Although some believe that the talent pool is still deep today, it is actually quickly getting shallow and the supply chain management industry needs to know how to swim in these changing waters. Qualified candidates will receive multiple offers in a strong market, so offers that either take too long or offer too little simply lose out. In this way, talent management is similar to managing any other supply chain.

Manage the talent pool

As Wharton management professor Peter Cappelli explains in Talent on Demand (2008), failing to manage your talent needs “is the equivalent of failing to manage your supply chain”. While supply managers ask questions around inventory, timing and costs, the same questions are just as relevant to talent needs, especially in a strong employment market.

Essentially, the very same principles of supply chain management, such as just-in-time manufacturing, can be applied to talent recruitment. Companies need to be forecasting if they have the right people in the right positions with every shift in the economy.

The supply chain management industry is already highly competitive. Competition from low-cost manufacturing countries, coupled with health, safety, and environmental challenges, has made the industry difficult to navigate. Pressure on sales and marketing staff to create customized services for clients is also growing. In order to create cost-effective solutions in these circumstances, companies need to find employees that are resourceful, creative and have strong leadership skills.

Tactical tips

So, how can companies ensure they have the right levels of talent in a recovering economy? There are numerous tactical steps companies can take to adapt their recruiting practices in the post-downturn market.

Ensure hiring processes are “just-in-time”. Companies with hiring and interview processes that move at glacial speed simply lose out on talent. Even if you are unable to make a decision right away, keeping up simple communication with candidates, such as post-interview thank-you notes and application status updates, will show potential employees that you are serious about hiring.

Hit the market with your best sales pitch. Talk about the company with enthusiasm that would make a potential candidate want to work there. Sell your services, firm and industry as you would approach and respect a potential client. This positive tone can be extended into all forms of communication, whether directly to a candidate in an interview, on the corporate website, at a job fair or integrated into emails and promotional materials.

Offer an attractive compensation package. Candidates have the ability to shop around in a strong market, so standards of pay and benefits need to be raised. When it comes to what might appeal to each potential candidate, remain flexible in possibly offering them package options specifically suited to their needs.

Work-life balance now strikes a chord with many, and pure monetary compensation is often no longer enough. Creating a personalized approach will be noticed.