How Do We Focus on Retention Hiring in Procurement?

There is a growing talent shortage in procurement, and it is something that management teams across the globe are constantly thinking about. Inevitably, they are asking themselves, how will we meet these challenges in the future? And, more importantly, what can we do right now to set our companies up to be as successful as possible? As the talent gap continues to grow, more companies and the recruiters they work with need to begin focusing on hiring for retention so that when they find great talent, they have a higher chance of keeping them with the company for a longer period of time. To achieve this, a shift in mindset is needed on the part of hiring managers.

Think about a candidate’s internal path

Often it is the candidates (not the hiring managers) who focus on the opportunity for advancement in an organization, but that is changing. More companies are making the conscious choice to think about candidates not only in terms of the job they are looking to fill in the moment but also how they can promote those individuals and utilize their skills in other areas of the business as time goes on. While it may still be necessary to hire professionals with specialized skills for a very specific role, procurement has reached a level of maturity where it is very likely that there will be other companies looking to hire that person for more money. Those same candidates are likely to leave, especially if your company does not have opportunities for advancement available.

Acknowledge what type of employees will stay

Are you Google? Can your company pay like Google? More companies and their leaders are shifting from trying to hire the top, most-desired candidates in the field, to hiring professionals that will fill their needs and grow with the company. When the competition for talent is tight, companies end up losing candidates six to twelve months after hiring them because they move on to other opportunities that pay better or have higher brand prestige. Losing employees is not cheap — according to Employee Benefit News, it costs employers 33%of a worker’s annual salary to hire a replacement, with many reports stating the cost is even higher. Why hire someone when you know your chances of retaining them is extremely low?

Use education, advancement, and transparency

Companies that offer education reimbursement to their employees have a higher chance of retaining staff. Remember that educating your staff is an investment, and employees tend to see free education as one of the main benefits of employment. By educating employees and subsequently promoting from within, it builds rapport with employees. Transparency allows your employees to see a path forward, and also to feel appreciated.

Hiring managers need to think about how their company can benefit each candidate and how long they are likely to stay. If we are truly hiring to retain, we want employees to know exactly what they are signing on for, so when they accept the job offer, they will have their expectations met. We will continue to see more companies and recruiters being very upfront and honest about what organizations and positions can offer in terms of growth opportunities and benefits. 

When companies and recruiters partner to hire for retention, companies thrive and they have an increased number of happy employees who truly want to be a part of the organization and its success over the long term.