How Has ‘Job-Hopping’ Affected Procurement?
Job hopping, perhaps arbitrarily defined as consistently spending less than 12-18 months in a position, has been on the rise, and the trend is showing no signs of slowing. The job market has shifted, and more people are open to the idea of job-hopping as an easy way to gain salary increases, with millennials feeling most favorable about the move. 75% of employees under 34 state that they believe job-hopping can benefit their careers. This can be problematic for procurement organizations that are working hard to attract and retain employees when the supply of qualified candidates is limited.
How does job-hopping affect procurement organizations specifically?
Recruiters have mixed reactions. The older generation of recruiters may doubt that job-hopping can benefit their organization. The cost of losing an employee can represent more than one-third of their annual salary, and training new people takes internal resources. On the other hand, younger recruiters have a mindset consistent with a younger generation of candidates. They see the power and value of consistently bringing in new people with new ideas to keep the company’s momentum building.
Companies can grow. As mentioned above, bringing in new talent can lead to new ideas. It also creates an opportunity for companies to bring in candidates who know best practices, have insight into what other leading companies are doing, and deeply understand new technology that can help take the business to new heights.
Relationships are on the line though. Many procurement professionals would argue that procurement is a relationship-driven business — especially if an organization is in the early stages of building the function. How can you expect to keep solid relationships when the key point of contact is being swapped out (and then re-trained) every year or so? Many internal stakeholders are not accustomed to working with a centralized procurement department and emphasize their desire to buy from an individual, even with a robust process in place.
Job hopping and procurement professionals
We know that employees are increasingly considering job-hopping to accelerate their careers. But, how useful is it?
You have abundant opportunities. Your ability, or right, to apply to a director-level job is no longer just based on your tenure or whether you have ‘earned your stripes’. Candidates feel empowered to apply to jobs that they believe they are capable of doing — and they are landing them. Historically, this was much harder, as they would be perceived as not ready.
You may hit a wall. You can only change jobs so many times before you find yourself competing with professionals who are asking for the same salary as you are, but have a lot more experience. You may find yourself stuck at a salary cap until you can stick around and gain more experience, or find yourself needing to hop jobs again to find a position where you can gain the skills you need to continue to move up the ranks.
Job hopping is here to stay
With the talent shortage that we have in procurement, employees are going to continue to job hop, and companies are going to have to keep an open mind. Companies will need to take chances on candidates they would not otherwise consider, and candidates will need to make smart career decisions based on their unique set of professional goals.