Category Archives: Talent

Is It Time To Dust Off the Resume?

The annual salary surveys are reporting that salaries are rising again. In addition to Next Level Purchasing’s survey, which was discussed in yesterday afternoon’s post, we have the Logistics Management 27th Annual Salary Survey, which found that median salaries increased for the third year in a row. And even though the average increase was only 2.2%, that’s still good given the economy, and a 12.5% increase since 2007.

The article notes that a number of search firms are saying, including Kimmel & Associates, are saying that the time is right for seasoned pros looking for a new job, but is it? While I agree that your average manufacturer and retailer is as lean as they can get and that they are not going to be able to build their top lines if they don’t staff up their supply chain departments, I still don’t know if the average company is ready to hire. While it’s true that the impending crunch for seasoned supply chain and logistics talent is going to put any seasoned pro with a good education at a premium, I still don’t see a plentiful job market. But I guess it never hurts to be ready with a polished resume when it does return. Any thoughts?

How Relevant is Africa to the Purchasing Equation?

Quickly reviewing Next Level Purchasing’s “2011 Purchasing & Supply Management Career & Skills Report”, one statistic jumped out at me — 37.5% of the respondents are from Africa. Considering that the GDP of Africa is only 2 Trillion, give or take a few hundred billion depending upon whether you prefer the IMF, World Bank, or CIA Factbook calculations, or about 3% of global GDP, as compared to the roughly 16 Trillion for North America, 18 Trillion for Asia, and 20 Trillion for Europe, the first question that jumped to my mind was relevancy. (And the fact that Europe only accounted for 6.7% of respondents didn’t help.)

It might be the case that Purchasing managers in developing areas are a lot more interested in surveys since they are trying to establish the importance of their profession, and it might be the case that most of Next Level Purchasing’s students and/or association members are from developing areas since they would be the least likely to have access to local training and eduction options (and Next Level Purchasing’s courses and certification is completely web based), which would account for a strong showing from these areas, but it makes one wonder how relevant the results are to Europe and North America, which are still the dominant locales for international purchasing (even though Asia is rising).

While it likely doesn’t affect the responses to skills, education, and certification related questions, as the top answers to the most important skills response are typical, the expected results from certification trend normally, and people who study for certification generally believe in its importance, it does put some suspicion on the applicability of the average annual cost savings & avoidance results. While I do agree that savings will increase by years of experience, annual hours of training, certification, and degree status, I’m not sure that I would trust the unweighted averages, especially since the average cost savings go from about 800K in Africa to 3.7M in Europe. It would be nice to see the savings and avoidance statistics broken down by continent, or at least weighted by continent, to clearly illustrate the impact of education and training.

Relevancy aside, it is nice to see interest in professional purchasing spreading through Africa and Asia.

Overqualified Candidates are Truly Rare …

… and rarer still are instances when you should pass on these candidates. A recent post over on the HBR blogs that asked if you “should hire an overqualified candidate” made some great points about the assumptions made by Hiring Managers when presented with “overqualified candidates”, and hinted at a few others.

Most Hiring Managers misunderstand what overqualified is
A candidate is only over-qualified if they exceed the skill requirements of the job. This means that the following candidates are not overqualified:

  • candidates with an advanced degree that exceeds stated educational requirements
    because the education might not be that relevant anyway
  • candidates with considerably more years of professional experienced than expected
    because if most of a candidate’s experience is in a different role (because they just changed career paths a few years ago), the experience with respect to specific skill requirements could still be minimal
  • candidates with a lot of experience in similar roles in the function
    because candidates with 20 years in tactical order placement and processing would not have a lot of experience in strategic negotiation, a major requirement for sourcing professionals today

Today’s job definition will not be tomorrow’s job definition.
Business is evolving as rapidly as the technology that drives it evolves, and this means that the requirements for a role are no longer static. If the job responsibilities are evolving rapidly, you will need a candidate with more education, skills, and experience than the job requires today to keep up.

There’s nothing stopping you from paying a candidate what he or she is worth.
Maybe you planned to pay 60K, but if you get a candidate who is so perfect for the role that he or she will be twice as productive, and you can get that candidate for 90K, you’re getting someone who can do the work of two people for only 75% of what it would cost you to hire two lesser skilled candidates.

Just because a candidate is overqualified doesn’t mean that he or she will be bored or move on quickly.
This particular misconception drives me nuts. Some jobs are always challenging. Like sales. You never know what the customer is going to want. Or development. Technology is always changing and you never know what new technology is going to pop up that you will have to integrate with or what new bug will appear in the next release that you will have to track down.

Not every candidate wants your job.
Not everyone wants to be the boss … and, in fact, a candidate who has been the boss and decides that she would rather spend her days getting work done instead of fighting fires, going to a never ending stream of management meetings, and micro-managing lesser qualified employees who can’t keep on track without constant guidance is less likely to try and take you job than an overly ambitious over-achieving up-and-comer. If you create the right position for the individual with the most impressive non-boss title you can give them, pay them well, and free them to do what they want to do, they will likely be more than happy to leave you to you own personal boss-hell while they build systems that work, successfully source strategic categories, and design and implement new processes for efficient operations.

Bottom line, there are very few overqualified candidates and fewer still who would not make a good hire if you pay them well and give them the opportunity to shine (because most people would rather complete a task and have a sense of accomplishment than “be the boss”). So if you get a very qualified candidate, the first thing you should do is get her in for an interview before the competition does — because she is the type of candidate you want.

More Proof We’re Overworked … and in Deep Talent Trouble

As per this recent article in Industry Week on “building a lean, mean profitable machine”, productivity in manufacturing has jumped by a record 94% during the past two decades while headcount has significantly shrunk. That’s a productivity increase that’s 60% higher than any other U.S. business sector. Since technological innovations have occurred across the board, one cannot attribute all of this productivity increase to new technologies. A good portion of it is due to blood, sweat, and tears — and people working harder and longer than ever before. And while it looks good on the books, it’s not sustainable over the long term.

There’s a reason that 9 out of 10 employees are looking for a new job. They feel like they’ve been worked to death and that there couldn’t be a job that is possibly worse than their current job. Considering that production is becoming more and more specialized and reliant on precision machinery and technology, this is not a good thing as the industry as a whole is facing a dire shortage of skilled production workers, scientists and engineers. Add this to the predicted shortage of up to 100,000 logistics workers by mid-decade, and you see a deep talent shortage looming across the supply chain.

How does your organization plan to manage it … before it’s too late?

The Universal Key to Supply Chain Success

These days, there’s a lot of requirements for supply chain success. Even a supply chain that is carefully architected, supported by the best technology, and managed using the most modern (collaborative) process is not guaranteed to succeed. But whether the supply chain is in the public sector or the private sector, there is one fundamental requirement of success that does not change: talent.

I was reminded of this when reading a recent post over on the HBR blogs about “the intelligence challenge” where the authors, who were all Marine Corps Intelligence Officers in Iraq who now advise clients through the Mayflower Strategy Group, noted that the way ahead, for those who want success in the public sector and the military, is to emulate the lessons learned from the recent slim-downs in the private sector where the winning organizations were those that spent money on obtaining best-in-class collaboration tools and top talent to deploy them.

The reality is that there is no one (network) architecture, technology, or process that will guarantee success in today’s global supply chain that is wrought with risk from end to end. That means an organization’s best chance of success is having top talent in place who can quickly react to unpredictable occurrences and prevent minor hiccups from becoming major disruptions. A good supply chain runs on good people, so make sure you have some. And be sure to give them the best tools and training available, as they can never be over prepared.

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