Talent availability and fit is consistently a topic of concern among senior supply chain leadership. The competitive job market, impacts from the pandemic, and increased regional demand for hourly talent have amplified this ongoing challenge. Labor growth strategies have historically focused on acquiring talent through pay incentives. However, sophisticated companies have matured past simply competitive hiring strategies, and have now turned to forms of development and investment in their current talent to meet future demand.
Professional development historically has been lagging within the supply chain industry. The physical movement of materials and goods has been seen as static in nature, but technology and tools have pushed the industry begrudgingly into the modern world. At the same time, the nature of the work has changed. Supply chain managers have spent the last several decades optimizing and “leaning” themselves within functional silos and across networks, creating minimally staffed machines of execution. Simultaneously, a technological revolution has occurred, in the form of innovations such as visibility tools, blockchain, complex network management and quantum computing.
Technology today offers a new way of looking at supply chain execution. The advancement of tools that enhance communication and collaboration across networks has enabled more complex decision-making and better end-to-end integration. As a result, new skills and more universal supply chain knowledge are required at all levels of execution. Leading supply chain companies have a future-focused view of skills, competencies and the collaborative nature of work. They’re actively assessing and closing gaps in their workforce through training, rotations and personal development programs.
Sometimes the best resources are already in-house. In the past, we’ve staffed to the valley and relied on overtime or increasing shifts to meet demand changes. Now, the conversation is shifting to how we can better enable our current workforce — to collaborate better and act strategically. Analysis of supply chain companies that weathered the pandemic attribute success to corporate agility and integrated capabilities. Prioritizing the identification and training of critical roles within the organization yields a much higher return on investment than external recruiting efforts. All too often, high-performing task workers are promoted to leadership roles without being given the tools and training to perform these new tasks successfully.
The workforce of the future is looking for meaning and impact in their careers. Supply chain’s recent popularity as a topic of dinner conversation has attracted more young professionals and students to the industry. This same group of future leaders is looking to align with companies that reinforce their personal values and social alignment, often prioritizing environmental impacts and social justice. Recent studies show that employees who align with the core values of their company are more likely to put in extra effort, relocate, and commit to longer employment.
ROI from acquisitions, technology and capital investments is realized in integration and implementation of daily work. Talent is the catalyst for enabling positive results from strategic planning. We have to invest in our existing talent through professional development and empowerment as much as we’re investing in the other areas of our business.
Outlook:
The trend toward professional development and growth is a counter to the more transient trends that we’ve recently seen in labor. Companies that emphasize training and professional development experience higher retention, better employee job satisfaction, increased ROI across existing investments, and overall performance improvement. The era of disruption isn’t ending soon, and talent will be the driver of future sustainability and success.
Melissa Hadhazy is senior client partner with Korn Ferry.
