Growing Procurement Talent Internally Instead of Externally

According to a study by NFIB (National Federation of Independent Businesses), 25% of firms say finding qualified workers is their “single most important business problem.”

The days of working and then retiring from just one company have long passed, and now the trend has shifted in the other direction. Voluntary turnover is at an all-time high, indicating that company loyalty no longer holds the power it once did.

However, loyalty is a two-way street, and companies are also to blame for this job-hopping trend. While employees might not necessarily want to leave their company, they do want to move up the ladder. Despite this, many companies seem to automatically go external when hiring, and this often means overlooking the largest pool of potential candidates: a company’s own workers.

These five reasons are just the tip of the iceberg regarding why you should develop your own talent strategies internally.

1. Less Onboarding and Training Time

Employees who are promoted or hired internally already have a strong understanding of the company culture and structure. Therefore, the onboarding and training time will be less extensive or non-existent, and those employees can transition to their new roles quicker.

2. Save Money on The Hiring Process

Outside hiring can be expensive and time-consuming—posting a job ad, filtering qualified applicants, interviewing candidates, and ultimately making a hiring decision might take weeks or even months. By hiring internally, you could save money, and your employee will be more productive, faster.

3. Increase Employee Loyalty

When employees see that there is an opportunity for growth, they will be more motivated to work their way up the corporate ladder at the company. As a company, showing you are loyal to your employees and willing to lift them up, they—in turn—will be more loyal to you.

4. Improve Leadership and Skills Development

When a company takes the initiative to train and improve their employees, it allows them to develop into better employees down the line. Take, for example, Johnson & Johnson’s two-year Procurement Leadership Development Program (PLDP).

According to Theresa Lopez, director of procurement capabilities and leadership development at Johnson & Johnson, “The PLDP was formed to create a strategic pipeline of diverse, high potential talent into the procurement pipeline.” Current employees work on projects that help to develop key skills or develop new relationships.

Not only does the program help build future leaders for the company, but it is also a great way to attract new talent because it is proof there are future opportunities within the company.

5. Strengthen Company Image

Creating a reputation for promoting from within breeds loyalty and pays dividends as noted, and overall that positivity bolsters the company image.

When hiring, the goal of every company is to find the most-qualified candidate whose career goal and values align with the business. By hiring within, you can take advantage of the vast talent already in your company. Provide a path for employee development, and your organization will be creating a two-way street, while simultaneously solving business’ “single most important” problem—qualified staff.