Future of Sourcing - Talent Management http://futureofsourcing.com/tags/talent-management en Training and Developing Procurement Professionals http://futureofsourcing.com/training-and-developing-procurement-professionals <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Employee%20Upskilling.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Employee%20Upskilling.png" title="Training and Developing Procurement Professionals" class="colorbox" rel="gallery-node-1465-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Employee%20Upskilling.png?itok=aAgDmy44" width="624" height="325" alt="Training and Developing Procurement Professionals" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Training and Developing Procurement Professionals</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/4-major-procurement-trends-to-watch-for-in-2020">4 Major Procurement Trends to Watch for in 2020</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Training a company&rsquo;s team members is a foundational step in running a company, but it is often forgotten when busy times hit. This is a big mistake. Putting the time and effort into designing a training program that suits the unique needs of procurement will drive more effective results in less time. Employees will be better equipped to manage the various situations and surprises that sourcing across numerous categories brings about. The more they are trained, the more valuable they become and the better they can enhance the productivity and benefits of the company in the long run.</p> <p><a href="https://www.sig.org/job-postings" target="_blank"><img alt="Find sourcing and procurement jobs in SIG's Career Network." src="https://futureofsourcing.com/sites/default/files/SIG-Career-Network.png" style="width: 300px; height: 250px; float: right;" /></a></p> <h1>Identify Top Procurement Talent</h1> <p>One of the first stages in developing a solid procurement team involves navigating the landscape to <a href="https://futureofsourcing.com/10-plays-to-win-the-sourcing-talent-game" target="_blank">identify the appropriate talent</a>. Depending on available positions and required experience, companies are often successful in finding this talent from hiring within their pool of college interns. Even though these employees are considered entry level and may require more attention, assign a mentor or project manager to help them learn the ropes. A formal mentorship program will reflect your investment in them and enable them to learn valuable best practices.</p> <p>For more experienced hires, the training and extra attention will ensure alignment from their prior work experience to the expectations of the current company and position. It is important for the company to have a dedicated recruiting team to bring in the talent. Retention, however, is at least equally important. Programs for continuous skill development must ensure that new hires evolve alongside your organization and within the procurement function itself.</p> <h1>Find Growth Areas and Cross-Train</h1> <p>As employees join the team, their interests and areas in which they excel should be assessed. By identifying these, management can place newly onboarded procurement professionals in a direct or indirect material category in which they will enjoy working and can add value. Organizations might also consider introducing rotational programs to provide new hires with a diverse set of experiences. Exposing new hires to procurement&rsquo;s broad range of responsibilities will encourage them to feel invested in their professional development as well as your organization&rsquo;s ongoing progress.</p> <p><em><a href="https://info.sig.org/sig-university-april-may-enrollment" target="_blank">&gt;&gt;Skill Up: Professional Development Opportunities for Sourcing and Procurement Professionals&lt;&lt;</a></em></p> <p>Setting the employees up for success means granting them access and properly teaching them how to use internal and external systems such as spend analytics tools, contract management software, ERP systems, and any other technologies that the company uses. Regular check-ins and clear development paths should ensure the new hires develop fluency in these tools as well as accepted policies and best practices.</p> <h1>Set Up a Professional Development Plan</h1> <p>Once the team is operating efficiently, management should schedule periodic meetings to evaluate the employee&rsquo;s progression, ensure the training process is effective and measure progress to confirm that the employee is performing to expectations. To further the employee&rsquo;s training and skill development, management can develop a growth plan that targets a specific skill category such as procurement and sourcing expertise, category management, strategizing and problem-solving, supplier relationship management, analytical and negotiation skills.</p> <p>The more an employee is exposed to these skills and practices them in their own work, the more valuable they become to the client and procurement team. Ultimately, when the procurement team achieves success, the company benefits. To ensure these programs remain effective, leadership should survey their participants for feedback. This will keep programs adaptable to emerging issues and trends.&nbsp;</p> <p><a href="https://sig.org/blog/7-creative-hiring-strategies-build-your-procurement-team" style="font-size: 13.008px;" target="_blank"><em>&gt;&gt;Read More: 7 Creative Hiring Strategies to Build Your Procurement Team&lt;&lt;</em></a></p> <p>Training and developing employees is highly recommended and certainly applicable throughout the entire organization, however it is especially crucial to sourcing and procurement. If training and skill development programs are implemented correctly, companies and their clients can benefit from being well equipped with a knowledgeable team that can meet project deadliness and provide clients with faster and better results. Successful employees lead to a successful business.&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/training" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Training</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-acquisition" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Acquisition</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/core-competencies" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Core Competencies</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Training and Developing Procurement Professionals - Future of Sourcing" addthis:url="http://futureofsourcing.com/training-and-developing-procurement-professionals"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 05 Aug 2022 02:00:00 +0000 Samantha Hoy 1465 at http://futureofsourcing.com http://futureofsourcing.com/training-and-developing-procurement-professionals#comments Is This the End of the Great Resignation? http://futureofsourcing.com/is-this-the-end-of-the-great-resignation <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Is%20This%20the%20End%20of%20the%20Great%20Resignation.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Is%20This%20the%20End%20of%20the%20Great%20Resignation.jpg" title="What is the state of the Great Resignation for employers and job seekers?" class="colorbox" rel="gallery-node-2190-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Is%20This%20the%20End%20of%20the%20Great%20Resignation.jpg?itok=RDowy3x-" width="624" height="325" alt="What is the state of the Great Resignation for employers and job seekers?" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>What is the state of the Great Resignation for employers and job seekers asks Mike Gibbs, CEO of Go Cloud Careers. He looks at the factors that originally drove people from their jobs and the transition to a&nbsp; focus on advancement.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/dollars-talk-but-great-leaders-keep-the-best-workers-from-walking">Dollars Talk, but Great Leaders Keep the Best Workers From Walking</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>There are a lot of factors that led up to the labor trend that has come to be known as the Great Resignation, including some that were in play before the pandemic began.</p> <p>For example, the baby boomers were an aging demographic starting to <a href="https://www.forbes.com/sites/jackkelly/2021/10/01/baby-boomers-are-leaving-the-workforce-to-live-their-best-lives-in-a-silver-tsunami-great-retirement-trend/?sh=49fee18260bd" target="_blank">retire</a> during this season. Additionally, there&rsquo;s a population migration of people leaving jobs in high-tax or expensive-to-live areas such as New York City and the San Francisco Bay area to relocate to places like Texas and Florida where they can find either lower taxes, a lower cost of living or a more friendly business environment. When the circumstances of the pandemic were added to these factors, it made things a lot worse.</p> <h1>Tech and Health Care Workers Pushed to Their Limits</h1> <p>Initially, the pandemic affected two sets of employees who were pushed to their limits: health care workers and technology workers. <a href="https://www.healthline.com/health-news/the-shadow-pandemic-covid-19s-impact-on-healthcare-workers-mental-health" target="_blank">Health care</a> professionals were working non-stop at hospitals caring for Covid patients, especially when we did not have the therapeutics to treat the disease.</p> <p>IT professionals were also taxed. Prior to the pandemic, we were used to people working in the office. But out of nowhere, IT professionals were called upon to create remote access environments to allow work to continue during the pandemic. This required the creation of a new technology infrastructure and supporting a work-from-home workforce versus an in-office workforce. To accomplish this, technology professionals had extremely huge demands placed on them for the past two years.</p> <p>Predominantly, the industries that saw the most change were healthcare and IT, but not exclusively. Workers across a wide range of industries have been affected.</p> <h2>New Work Environments Add to Workplace Tension</h2> <p>We went from working in normal office settings during normal office hours to much more stressful environments. Now it seems as if we are in meetings 24 hours a day, seven days a week. Before the shift to remote offices, we would go to the office and we would leave the office at five o&#39;clock, six o&#39;clock or even seven o&#39;clock. Regardless of the time, eventually we would go home.</p> <p>When you work from home, however, there is no stopping. You could be getting phone calls at six o&#39;clock in the morning and you can be on Zoom meetings until midnight. We are at many more meetings because the managers can&rsquo;t see what employees are doing during the workday like they could in the office. We have no boundaries, which means people are asking us, calling us and texting us 24 hours a day.</p> <p>The work overload we experienced in this new environment &ndash; being constantly on-call and always in meetings &ndash; has been challenging for some people. The socialization that occurred at work disappeared. When you are not able to hang out by the water cooler and talk to each other, you are always going to be working. Without this socialization, we went from spending our days in a half-work, half-social place to a whole-work place with no boundaries.</p> <h2>Many Workers Want Better Pay and Conditions</h2> <p>As the controls put in place because of the pandemic began to lift, we started to see workers looking for different work situations. Instead of short-term contract situations, they started searching for long-term positions.</p> <p>People were also looking to leave lower-paying jobs in the aftermath of the pandemic. A great reshuffling occurred in the hotel and the food industry where people are looking for higher-paying jobs. We have seen a migration from lower-paying jobs toward higher-paying jobs, and a migration from in-office jobs to work-from-home jobs.</p> <h2>Cost of Living Increases May Drive Additional Shifts</h2> <p>Now we are in a new environment with new circumstances that have the potential to prolong the Great Resignation. This hyper-inflationary state will cause one of two things to occur. Organizations can make <a href="https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/inflation-continues-to-surge-affecting-wage-and-benefits-planning.aspx" target="_blank">strides</a> to keep employees by increasing salaries. This would require organizations to raise the prices of their goods and services to provide resources to accommodate the higher salaries, which will cause runaway inflation.</p> <p>If organizations were able to increase wages to keep up with the inflation rate, we would see employees staying in the office. If not, then employees are effectively taking an eight-to-10% pay cut with the current aggregate rates of inflation. That would result in many more people quitting their jobs and looking for other opportunities.</p> <p>In addition, we are starting to see people called back to the office. This could also result in more resignations. There are people who are <a href="https://www.cnn.com/2022/02/16/success/pew-survey-covid-affect-on-work-from-home/index.html" target="_blank">scared</a> to go to the office due to health and other considerations. People are quitting their jobs just from the fear of going to the office and looking for work that allows them to continue to be remote.</p> <p>From increased workloads to new salary demands to new workplace expectations, there are many factors that could prolong the creation of environments in which the Great Resignation can continue. We may have seen the worst of it, but we have not seen the end of it.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/remote-work" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">remote work</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Is This the End of the Great Resignation? - Future of Sourcing" addthis:url="http://futureofsourcing.com/is-this-the-end-of-the-great-resignation"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 17 Jun 2022 02:00:00 +0000 Mike Gibbs 2190 at http://futureofsourcing.com http://futureofsourcing.com/is-this-the-end-of-the-great-resignation#comments Procurement Gets Competitive With AI Technology http://futureofsourcing.com/procurement-gets-competitive-with-ai-technology <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Procurement-Gets-Competitive-With-AI-Technology.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Procurement-Gets-Competitive-With-AI-Technology.jpg" title="Here&#039;s how forward-looking companies are exploring AI and automated technologies to go beyond merely surviving to position themselves to thrive for the long-term." class="colorbox" rel="gallery-node-2180-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Procurement-Gets-Competitive-With-AI-Technology.jpg?itok=LolupmNJ" width="624" height="325" alt="Here&#039;s how forward-looking companies are exploring AI and automated technologies to go beyond merely surviving to position themselves to thrive for the long-term." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>The Covid-19 pandemic and the ongoing labor shortage created by the &ldquo;great resignation&rdquo; has dramatically changed workforce dynamics says Keith Hausmann, Chief Revenue Officer at Globality. He shares how forward-looking companies are exploring AI and automated technologies to go beyond merely surviving to position themselves to thrive for the long-term.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/leading-procurements-digital-transformation-three-steps-to-success">Leading Procurement’s Digital Transformation: Three Steps to Success</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Global businesses have now spent nearly two years navigating the various challenges of the pandemic. Although some of the fallout was predictable, the dramatic impact we have witnessed on the global employment market was more unexpected. Companies that were already adjusting to new ways of working now find themselves in the middle of arguably the worst employment crisis in modern history&mdash;a phenomenon known as the Great Resignation.</p> <p>In the United States alone, four million people quit their jobs in August last year. An additional 2.5 million people retired during the pandemic. This left companies scrambling to keep their operations running smoothly&mdash;a complicated and complex challenge made all the more difficult by the prevailing supply shortages and the specter of further shutdowns caused by the pandemic, as well as the ongoing changes we have seen in the workforce over recent years.</p> <h1>Embracing Technology to Reimagine Operating Models</h1> <p>Although the current situation is causing further uncertainty for businesses, it&rsquo;s worth remembering that every crisis is also an opportunity to reassess and transform processes and practices for the better.</p> <p>The COVID-19 pandemic mercilessly exposed flaws in global value chains, calling into question how organizations sourced, where they sourced from and where their risks were. Companies had to look hard at their operating models and consequently identified a clear need to utilize new technology to build greater resilience and adaptability in their procurement processes.</p> <p>Cumbersome and disconnected legacy systems that were already struggling to cope before the pandemic were unable to supply the right type and volume of information to support informed decision-making. Companies scrambled to confirm whether their current suppliers were able to provide the goods and services they needed. In many cases, they had to quickly find alternative, qualified businesses to take the place of trusted providers.</p> <p>Now, as the global economy stabilizes and organizations start to focus on growth again, <a href="https://futureofsourcing.com/real-time-risk-intelligence-the-antidote-to-supply-chain-disruptions" target="_blank">businesses are using these innovative technologies and digital solutions</a> that enabled them to survive the early days of the pandemic to build their future operating models. The need to weather the storm remains pressing, but so does the requirement for companies to focus on tomorrow.</p> <h2>Dealing With the Labor Crisis</h2> <p>For businesses caught up in the Great Resignation, this new technology also offers hope. The ongoing labor shortage is creating a real sense of urgency, forcing many global enterprises to increasingly rely on outside vendors for what were previously core business services. As the workforce of the future continues to evolve, this trend is unlikely to stop. And without a strategy in place, companies are finding it increasingly difficult to find the right people.</p> <p>Innovative digital technology solves this problem, enabling companies to scale quickly and take advantage of fast-changing markets without having to recruit large numbers of new employees. At the same time, cutting-edge platforms and solutions can also help attract today&rsquo;s workforce, which expects a seamless, consumer-like experience in their professional as well as personal life.</p> <p>Similarly, using AI and automation to digitize outdated analog processes frees up time for the workforce to focus on more human tasks such as problem-solving, supplier collaboration and product innovation.</p> <p>And with today&rsquo;s workforce increasingly reassessing what they look for in a job, there is more emphasis on corporate purpose. The way a company spends its money <a href="https://futureofsourcing.com/esg-risk-assurance-an-opportunity-for-transparency-and-trust">can impact its ESG strategy</a> more than anything else, and this creates a unique opportunity for companies to employ cutting-edge digital technologies that both drive their profitability and help build a fairer, more sustainable global economy.</p> <h2>Surviving and Then Thriving</h2> <p>As a function, procurement&rsquo;s core responsibilities have traditionally included optimizing costs, delivering value and creating strong networks. Previously, the use of AI and automation has been limited to product-based spend categories or simple transactions. Yet with advances in AI, it is now possible for procurement to tackle more complex processes and categories of spend. Areas such as consulting, marketing, tech and professional services are often ambiguous, and they present challenges because their outcomes are qualitative, outcome-based and often evolving.</p> <p>Procurement has a critical, tangible impact on company performance, and adopting innovative digital technologies can help guide organizations through current workforce challenges, such as the Great Resignation and unprecedented shortage of talent, and then build long-term agility and resilience into their operating models and processes.</p> <p>Using these uncertain times as a catalyst for innovation and <a href="https://futureofsourcing.com/is-digital-transformation-procurements-secret-weapon-to-boosting-business-agility" target="_blank">digital transformation</a> will position businesses to successfully navigate future disruption while accelerating growth and long-term value.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/globality" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Globality</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Procurement Gets Competitive With AI Technology - Future of Sourcing" addthis:url="http://futureofsourcing.com/procurement-gets-competitive-with-ai-technology"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 25 May 2022 02:00:00 +0000 Keith Hausmann 2180 at http://futureofsourcing.com http://futureofsourcing.com/procurement-gets-competitive-with-ai-technology#comments Dollars Talk, but Great Leaders Keep the Best Workers From Walking http://futureofsourcing.com/dollars-talk-but-great-leaders-keep-the-best-workers-from-walking <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Great-Leaders-Keep-the-Best-Workers-From-Walking.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Great-Leaders-Keep-the-Best-Workers-From-Walking.jpg" title="High compensation isn&#039;t enough to counter bad leadership and a poor work culture says Eric Harkins, President and Founder of GKG Search &amp; Consulting. He offers five things leaders can do to keep their best employees from walking." class="colorbox" rel="gallery-node-2157-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Great-Leaders-Keep-the-Best-Workers-From-Walking.jpg?itok=6xQDfJjf" width="624" height="325" alt="High compensation isn&#039;t enough to counter bad leadership and a poor work culture says Eric Harkins, President and Founder of GKG Search &amp; Consulting. He offers five things leaders can do to keep their best employees from walking." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>High compensation isn&#39;t enough to counter bad leadership and a poor work culture says Eric Harkins, President and Founder of GKG Search &amp; Consulting. He offers five things leaders can do to keep their best employees from walking.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/boomerang-employees-what-to-consider-before-working-together-again">Boomerang Employees: What to Consider Before Working Together Again</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>For months and months, we&rsquo;ve heard and read ad nauseam about &ldquo;The Great Resignation.&rdquo; We&rsquo;ve been given numerous reasons why record numbers of people are leaving their jobs.</p> <p>But let&rsquo;s be real about the main root cause. We are experiencing a great exodus of employees nationwide largely due to bad leadership.</p> <p>One recent study found that toxic work culture was the primary factor pushing workers out the door. Leaders are most responsible for the kind of culture created. Abusive managers and failure to recognize employee performance were two of the common themes in the MIT Sloan Management Review.</p> <p>People are just <a href="https://www.hourly.io/post/10-rules-of-leadership" target="_blank">not going to tolerate bad leadership</a> anymore. The last two years dominated by the COVID-19 pandemic confirmed what we already knew: life is too short. Why would I put up with a bad leader, who has never given me a compliment or let me know how I&rsquo;m doing, when I can go somewhere where my new boss will?</p> <p>That&rsquo;s what&rsquo;s happening.</p> <h1>The Cost of Poor Leadership</h1> <p>Work cultures need to evolve the same way they have always needed to: to be the company that doesn&rsquo;t tolerate bad leaders; to be the company that sets an expectation that the leaders&rsquo; only job is to make sure Monday morning isn&rsquo;t miserable; to be the company that recognizes its high performers and addresses poor performers. A company that does those essential things is not experiencing a great resignation.</p> <p>And notably, higher pay doesn&rsquo;t matter if leadership is poor.</p> <p>Amazon was in the news recently for more than doubling its maximum base pay &ndash; to $350,000 &ndash; for some corporate and tech employees. The company reasoned that a tight labor market prompted the big boost as Amazon aims to attract and retain top talent.</p> <p>How much should leaders prioritize compensation across all employee levels in order to retain good employees, and to build and maintain a strong work culture? Pay has been just one of several reasons, and often not the only or main reason, that people have left their jobs in droves the last few months.</p> <p>In the last few years, the subject of pay has dropped off some lists as to why people leave or join a company. Things like culture, quality of leaders, working environment and flexibility have taken over as key factors driving people to either stay or leave.</p> <p>I still think these non-pay-related items are most important but pay seems to have come back into the mix as the competition for talent is as high as it&rsquo;s ever been. But I go back here to my theme: people are not going to tolerate bad leaders anymore. And it doesn&rsquo;t matter what you&rsquo;re willing to pay them. Getting all the money a person wants as fair or even overboard compensation for a certain job isn&rsquo;t going to keep them at their job if they hate it because their leader is terrible.</p> <p>As companies consider raising pay to attract more people, they also need to ask whether or not they have the right leaders, the right culture and the focus to attract people. If everyone is paying $20 an hour now for a job that used to pay $15 per hour, then you still have the same challenge: why would I work for your company when I can go down the street and work for a company that knows how to make sure Monday morning isn&rsquo;t miserable?</p> <p>Companies need to be willing to pay what the market is requiring them to pay. But the companies with good leaders that create a culture high performers will always pay less in the long run. That&rsquo;s because they won&rsquo;t have to hire as many people, train as many people or lose as many people.</p> <h2>The 3 Cs of a Good Work Culture</h2> <p>I learned the value of hard work from my parents as well as the importance of staying humble. I&rsquo;ve worked for all kinds of companies &ndash; Fortune 500, privately-held, family-owned and private-equity owned. I&rsquo;ve been lucky because I worked for some good leaders, but I was even luckier because I worked for some really bad ones, too.</p> <p>One thing that&rsquo;s always been true, and always will be true, is that a bad leader will never create a good culture. The importance of having great leaders in your company is, was and will always be the only thing that sets you apart from your competition.</p> <p>Great leaders are great leaders, and it doesn&rsquo;t matter if you&rsquo;re in an office, on Zoom or have a hybrid model. A great leader knows how to create a culture that high performers want to be a part of.</p> <p>Companies need to set expectations for how they want their leaders to lead. Few companies do this and it&rsquo;s the biggest gap to building a great culture. Tell the leaders in your company that they only have one job: to make sure Monday morning isn&rsquo;t miserable. And every leader should know that employees want three things when they go to work:</p> <ul> <li>A cool place: There is something about the company that makes me proud to say I work there.</li> <li>Cool projects: The work is engaging and rewarding and I&rsquo;m recognized for my contributions.</li> <li>Cool people: This has to be the company&rsquo;s commitment to not allow bad leaders to hold leadership positions. A company doing things right has the type of people you want to work for and with.</li> </ul> <h2>Leading in a Remote Working World</h2> <p>COVID has brought more remote working and, as conditions improved, created tension between some companies and employees in terms of how often people should be allowed to work from home versus coming to the office.</p> <p>Clearly most employees prefer working remotely most of the time. And leaders who don&rsquo;t get this and accept this will lose more people, including their top performers. The availability of talent willing to go into an office five days a week is much smaller than it was a couple of years ago.</p> <p>Company leaders need to realize there&rsquo;s been a shift. Ultimately, I think this shift brought visibility to leaders in a different way. Great leaders knew/know how to create a culture that high performers want to be a part of in person and on Zoom, but bad leaders have struggled to <a href="https://www.hourly.io/post/employee-engagement-in-your-business" target="_blank">keep the engagement of their team</a>.</p> <p>The remote working angle forces companies to focus on all that matters &ndash; the work getting done, and not getting caught up in the &ldquo;how&rdquo; and &ldquo;where&rdquo; the work gets done. The &ldquo;where&rdquo; it gets done has always been a barrier to companies focusing on the right things. Employees who showed up every day and sat at their desk for eight or nine hours underperforming were often rewarded more than the high-potential employee who was exceeding expectations but doing it remotely.</p> <p>Another important aspect of the leader-in-a-remote-working-world concept is, do they care about their employees as much when they aren&rsquo;t in the office or on Zoom as when they are? Do they get to know them enough at an individual level that they know how to show empathy and compassion when employees are dealing with real-world issues? Great leaders do these things because they are great people.</p> <h2>5 Things Leaders Should Do</h2> <p><strong>1.</strong> <strong>Create a culture that high performers want to be a part of.</strong> Poor performers don&rsquo;t quit voluntarily. Show your high performers you value their work by addressing the poor performers in your company.</p> <p><strong>2. Bring energy and enthusiasm to work every day.</strong> Are your leaders the most positive and engaging people in the company? They should be.</p> <p><strong>3. Build relationships at all levels of the organization. </strong>Everyone remembers the last conversation they had with you, the leader. Was it one that fostered excitement about meeting again, or one that left the person hoping they never have to talk to you again?</p> <p><strong>4. Support the direction of the company with no hidden agendas. </strong>When the leaders in your company need to communicate a message to their teams, do they communicate as &ldquo;we&rdquo; or &ldquo;they&rdquo;?</p> <p><strong>5. Help the company grow by developing people.</strong> Are the leaders in your company excited about the idea of having their backup on the team, or threatened by it? A bad leader will never want someone who is capable of taking their job working for them.</p> <p>The pressure for companies to have good leaders truly leading people is finally at a point that it should have always been. Companies that allow bad leaders to lead people will lose. They&rsquo;ve always lost, but now they can lose more than ever.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/remote-work" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">remote work</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Dollars Talk, but Great Leaders Keep the Best Workers From Walking - Future of Sourcing" addthis:url="http://futureofsourcing.com/dollars-talk-but-great-leaders-keep-the-best-workers-from-walking"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 28 Mar 2022 02:00:00 +0000 Eric Harkins 2157 at http://futureofsourcing.com http://futureofsourcing.com/dollars-talk-but-great-leaders-keep-the-best-workers-from-walking#comments Leading Procurement’s Digital Transformation: Three Steps to Success http://futureofsourcing.com/leading-procurements-digital-transformation-three-steps-to-success <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Leading%20Procurement%E2%80%99s%20Digital%20Transformation.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Leading%20Procurement%E2%80%99s%20Digital%20Transformation.jpg" title="Globality CRO Keith Hausmann discusses how innovative technology can help procurement meet today’s biggest challenges, while increasing its influence through the power of “Performance Spending.”" class="colorbox" rel="gallery-node-2147-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Leading%20Procurement%E2%80%99s%20Digital%20Transformation.jpg?itok=LhuDJ9ux" width="624" height="325" alt="Globality CRO Keith Hausmann discusses how innovative technology can help procurement meet today’s biggest challenges, while increasing its influence through the power of “Performance Spending.”" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>As enterprise companies struggle to digitally transform, Globality CRO Keith Hausmann discusses how innovative technology can help procurement meet today&rsquo;s biggest challenges, while increasing its influence through the power of &ldquo;Performance Spending.&rdquo;</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-organizations-are-driving-value-from-procurement-with-ai">How Organizations are Driving Value from Procurement With AI</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>In her book <em>Trade wars, pandemics, and chaos: How digital procurement enables business success in a disordered world</em>, Dr. Elouise Epstein, a digital futurist at Kearney, explains why most companies have historically been underwhelmed by the digitalization of procurement processes, noting that it hasn&rsquo;t always delivered on the promise to empower people to move at speed, be more agile and work how they want.</p> <p>However, progress has since been made. As Dr. Epstein explains, &ldquo;Digital procurement technology has evolved, the expectations for leadership regarding digital technology has changed, and the opportunity has arrived for those who are able to seize it.&rdquo; There is now significant opportunity for procurement to be a crucial driver of enterprise growth and value.</p> <p>A <a href="https://sig.org/future-procurement-today-how-leaders-can-seize-moment-digitizing-procurement" target="_blank">recent survey</a> Globality conducted, in partnership with SIG, found that only 15% of respondents believe that they are &ldquo;best-in-class&rdquo; or &ldquo;industry leaders&rdquo; when it comes to the digital transformation of their operating models, and an eye-catching 50% describe themselves as &ldquo;laggards.&rdquo; Globality and SIG discussed these findings at an <a href="https://sig.org/cpo-executive-virtual-series" target="_blank">executive virtual roundtable</a> &ndash; below are three key takeaways for procurement leaders who want to successfully transform their operating model:</p> <h2>1. Utilize the Power of Performance Spending</h2> <p>Turning the money that procurement spends into an asset to accelerate business performance is a new concept that we at Globality call &ldquo;Performance Spending.&rdquo; This approach will enable procurement to become a key driver of enterprise growth and position it firmly at the heart of the business.</p> <p>Performance spending will help procurement drive improved business performance and impact, whether that is speed to market, agility and resilience during times of disruption, savings, or increased inclusion and sustainability.</p> <p>A key part of this new idea is helping to enable a company&rsquo;s ESG strategy. There&rsquo;s no doubt that ESG is increasingly top-of-mind for investors, CEOs, employees and customers. Procurement can help enterprises hit their targets of increased environmental sustainability, more inclusive economies, greater transparency and stronger corporate governance&mdash;all via a global trade ecosystem that is transparent and fair, with greater opportunities for companies of all sizes.</p> <h2>2. Democratize the Procurement Process</h2> <p>Procurement has long talked about the need to democratize the buying process and there is now a clear need to expedite this transformation. Few procurement teams have enough people to actually stay ahead of the business needs of all of their stakeholders across their entire company.</p> <p>So the question is how do visionary procurement leaders empower users to self-source, but with appropriate guardrails around issues such as risk, preferred suppliers and vetted suppliers?</p> <p>Traditional buying channels should become new digital self-sourcing processes where we empower and democratize what traditionally was done by the procurement people that teams no longer have enough of, particularly given the current talent shortages in the marketplace.</p> <h2>3. Set Procurement Talent Free</h2> <p>Closely linked to the above is how companies can transform their procurement models, so they are less reliant on humans in the performance of traditional, repetitive procurement tasks, such as running RFPs. Not because humans aren&rsquo;t capable of doing this, but because there is an increasing shortage of talent on which companies can rely and that talent can be better utilized on more strategic work, such as business partnering and supplier relationship management.</p> <p>AI technology can help companies deliver better outcomes for many repeatable processes, effectively picking up the burden and freeing up limited human resources. When this happens, procurement talent can focus on more value-driven work. Rather than navigate cumbersome legacy systems, for example, workers can prioritize activities such as problem-solving, supplier collaboration and product development.</p> <p>Ultimately, as intuitive technology takes routine tasks out of human hands, it&rsquo;s important for procurement leaders to expand the role of the few team members they do have from being transactional to becoming important innovators within the business. Doing so also opens up the definition of what &ldquo;procurement talent is&rdquo; and where people with the required skills can be found (often in other business functions).</p> <h2>Embracing the Future of Procurement</h2> <p>Transformative CPOs and procurement leaders need to articulate a clear vision of the future of procurement &ndash; one where they adopt innovative technologies and platforms to either replace outdated analog models and legacy systems, or to enhance and augment installed core systems. Taking this approach, alongside building a team that actively wants to explore new ways of doing procurement to add greater strategic value, will help the broader business gain competitive advantage both today and tomorrow.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/globality" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Globality</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/environmental-and-social-governance-esg-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Environmental and social governance (ESG)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Leading Procurement&amp;rsquo;s Digital Transformation: Three Steps to Success - Future of Sourcing" addthis:url="http://futureofsourcing.com/leading-procurements-digital-transformation-three-steps-to-success"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 11 Mar 2022 02:00:00 +0000 Keith Hausmann 2147 at http://futureofsourcing.com http://futureofsourcing.com/leading-procurements-digital-transformation-three-steps-to-success#comments Strategies to Manage Supply Chain Labor Shortages and Chaos http://futureofsourcing.com/strategies-to-manage-supply-chain-labor-shortages-and-chaos <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Strategies%20to%20Manage%20Supply%20Chain%20Labor%20Shortages%20and%20Chaos.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Strategies%20to%20Manage%20Supply%20Chain%20Labor%20Shortages%20and%20Chaos.jpg" title="The best way to survive the labor shortages is to ensure top talent is happy." class="colorbox" rel="gallery-node-2111-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Strategies%20to%20Manage%20Supply%20Chain%20Labor%20Shortages%20and%20Chaos.jpg?itok=l9i2hJH6" width="624" height="325" alt="The best way to survive the labor shortages is to ensure top talent is happy." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>The best way to survive the labor shortages is to ensure top talent is happy, says SIG CEO and President Dawn Tiura, CSP, CSMP, C3PRMP, CIAP.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-mindset-required-for-sustainable-supply-chains">The Mindset Required for Sustainable Supply Chains</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Supply chain disruptions continue to drive up prices and lead to a growing shortage of goods&nbsp;across the U.S. and abroad. The Biden Administration has taken many steps over the last few months to address these issues and strengthen the country&rsquo;s supply chain operations &ndash; e.g., creating the<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/08/fact-sheet-biden-harris-administration-announces-supply-chain-disruptions-task-force-to-address-short-term-supply-chain-discontinuities/" target="_blank">&nbsp;supply chain disruptions task force,</a>&nbsp;calling on&nbsp;<a href="https://www.cnn.com/2021/10/21/politics/supply-chain-national-guard-trucking-joe-biden/index.html" target="_blank">the National Guard&nbsp;</a>to help ease the stress of disruptions, and&nbsp;<a href="https://www.nytimes.com/2021/10/18/us/port-of-los-angeles-supply-chain.html" target="_blank">extending port hours</a>&nbsp;at the Port of Los Angeles.</p> <p>But these proposed solutions, as well-intended as they are, may not be enough to ease the backlog on their own.</p> <p>The real issue isn&rsquo;t just the delay in dockings and unloading containers. The truck driver labor shortage&nbsp;is having a serious impact on the supply chains&rsquo; ability to operate properly.&nbsp; Over half of all freight shipped in the U.S.&nbsp;&nbsp;travels over the highways. A shortage of drivers leads to shipping delays, extended lead times, and problematic overhead. &nbsp; And it doesn&rsquo;t appear the issue is going away any time soon. According to the American Trucking Association, the U.S. needs to recruit nearly 1 million truck drivers to replace retiring ones and keep up with high freight demand over the next decade.&nbsp; &nbsp; &nbsp;</p> <p>It&rsquo;s not only truckers. The Labor Department in July reported that the warehouse industry&nbsp;had a record 490,000 job openings. Companies such as Walmart, Target and Amazon are going to great lengths to attract warehouse workers with benefits, including free college tuition.</p> <h3>Looking Past Hiring</h3> <p>But hiring is just half the battle. Once hired, companies need to retain their workers.&nbsp;Many warehouse employees worked in industries designated as essential during the pandemic. They felt pressured to work despite an environment they felt was unsafe. As a result, the warehouse industry has cycled through millions of workers, some of whom have sworn off warehouse jobs altogether.</p> <p>And even if warehouses are lucky enough to hire new workers,&nbsp;<a href="https://www.forbes.com/sites/stevebanker/2021/10/12/warehouse-labor-woes-are-worse-than-ever/?sh=b1d3508aaf69" target="_blank">ARC Advisory Group research</a>&nbsp;shows only 29% of warehouses can bring a new worker up to speed in less than a month (i.e., able to work at the average speed of all employees at that site).&nbsp;This timeline doesn&rsquo;t help alleviate logistical nightmares with the busy holiday season.</p> <p>Moreover, workers are using this crisis to demand raises and to negotiate better terms. Forty percent of all port traffic comes in through the west coast. Union dockworkers there are set to renegotiate their labor agreement&nbsp;in July of 2022, which is bound to create a work stoppage that further strangles port traffic. The contracts apply to about 15,000 ILWU members, including longshore workers, marine clerks, and foremen employed at 29 west coast ports, from Washington state&rsquo;s northernmost port of Bellingham to San Diego (near the border with Mexico).</p> <p>One constant remains amid all the uncertainty: Supply chain disruptions are going to continue well into 2022. Consider these strategies to help alleviate some of the pressures that continue to plague the industry.</p> <h3>Prioritize Talent</h3> <p>Supply chains need professionals in procurement organizations to traverse these murky waters. The best way to survive the labor shortages is to ensure top talent is happy. Companies need to use this urgency to digitize their operations with sophisticated tools. Technologies like AI don&rsquo;t replace workers. Rather, it frees workers from wasting valuable time and resources on monotonous tasks that can be automated and empowers them to do more strategic, fulfilling work. Workers will jump at the opportunity to do challenging work. And if they&rsquo;re not being challenged enough at their current workplaces, they will leave to pursue the opportunity elsewhere.</p> <h3>Become the &ldquo;Customer-of-Choice&rdquo;</h3> <p>To add some resiliency to supply chains, companies need to become the &ldquo;customer-of-choice&rdquo;. This means working with their suppliers to really understand their supply chain issues. For example, don&rsquo;t penalize a supplier for missing a KPI (like on-time delivery, order fill rates, etc.). Instead, collaborate and come together with mutual trust and support for one another. By doing so, &ldquo;customer-of-choice&rdquo; companies are better positioned to keep their supply flowing.</p> <h3>Rethink Inventory Channels</h3> <p>Near zero inventory level and just-in-time delivery is not going to work. Although the cost of capital is still low, treasury departments don&rsquo;t want to carry the cost of inventory. Companies must accept that inventory on-hand is a stopgap to carry them through current supply chain disruptions.</p> <p>In the meantime, companies can solidify their relationships with each other. For example, the CPO at The University of California, San Francisco recounted how trust in partnerships helped his staff immensely when they were short on PPE during the early days of the pandemic. Salesforce oversaw that the university got the PPE they needed through its own network and delivered it directly via airplane from the manufacturers. This kept the medical and hospital systems running during a time of high uncertainty.</p> <h3>Invest in Infrastructure</h3> <p>Any long-term supply chain solution requires investment in the national infrastructure. For example, the government should consider implementing a COVID transportation law that is consistent across all 50 states. The Department of Transportation sets rules at a national level, but then individual states add nuances that make trucking even more complicated. This means that every time a trucker moves into a new city or state, new rules apply to them. For example, can they leave the vehicle; can they unload their own vehicle, or do they have to remain inside at loading docks; do they need masks and/or vaccinations; how long can they drive? The list goes on. A national law would standardize these rules and regulations for all states, eliminating guesswork and confusion from a trucker&rsquo;s daily job.</p> <h3>Reframe Global Regulations</h3> <p>Global regulations are needed to protect both a company&rsquo;s ability to import as well as to export. For example, ships should not be allowed to bypass being reloaded once empty. They should not be allowed to miss pickup deadlines so they can secure a good spot in line for advantageous fees. These issues and more need to be coordinated. Rules need to be rewritten. But it is going to take a number of countries and private businesses to align on common goals, standards and practices. And they have good reason to: Profits will be impacted, prices will be impacted, warehouses will be built, and goods will be transported once again in a timely manner.</p> <p>Supply chain chaos will inevitably continue as we enter 2022. But the industry is no stranger to disruptions. The worker shortage won&rsquo;t last forever, and the industry will align to operate on a global scale to better navigate challenges as they arise.</p> <p><em>This article was first published in <a href="https://www.mhlnews.com/labor-management/article/21182335/strategies-to-withstand-ongoing-supply-chain-labor-shortages-chaos">MH&amp;L</a>.</em></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/labor-shortage" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Labor Shortage</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Strategies to Manage Supply Chain Labor Shortages and Chaos - Future of Sourcing" addthis:url="http://futureofsourcing.com/strategies-to-manage-supply-chain-labor-shortages-and-chaos"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 14 Jan 2022 02:00:00 +0000 Dawn Tiura 2111 at http://futureofsourcing.com http://futureofsourcing.com/strategies-to-manage-supply-chain-labor-shortages-and-chaos#comments 5 Ways Digital Procurement Mitigates Risk http://futureofsourcing.com/5-ways-digital-procurement-mitigates-risk <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/5%20Ways%20Digital%20Procurement%20Mitigates%20Risk_0.png"><a href="http://futureofsourcing.com/sites/default/files/articles/5%20Ways%20Digital%20Procurement%20Mitigates%20Risk_0.png" title="5 Ways Digital Procurement Mitigates Risk" class="colorbox" rel="gallery-node-2078-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/5%20Ways%20Digital%20Procurement%20Mitigates%20Risk_0.png?itok=ayUChlTA" width="624" height="325" alt="5 Ways Digital Procurement Mitigates Risk" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Procurement teams are facing risks on multiple fronts and a cutting-edge technology solution is no longer a nice to have but a requirement, says Mohammed Kafil, a procurement consultant with Kissflow Procurement Cloud. He outlines five common risks faced by procurement teams and examples of how technology can help you avoid those risks going forward.&nbsp;</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/top-5-strategies-to-improve-supplier-relationships">Top 5 Strategies to Improve Supplier Relationships</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Nothing in business is risk-free. Every department in a company needs to deal with risk daily.</p> <p>Risk management appears to be a simple concept, yet it is a highly complicated aspect of organizational and procurement strategy.</p> <p>We all know that procurement must be dependable and secure. Hence, it&#39;s crucial to control and mitigate the variety of risks connected with business operations to achieve success.</p> <h2>What is Procurement Risk Management?</h2> <p>Procurement risk management aims to foresee potential threats and safeguard organizations from risks during the procurement process. As a result of risk management, organizations are able to assure the smooth and effective functioning of their purchasing and supply processes.</p> <p>Even though the actual risk management process may vary from one business to another, few standard methods exist. As a result, the procedure may be something you already do without even realizing it.</p> <p>If you have an excellent procurement risk management plan in place, your firm will save vast amounts of money and prevent setbacks. In addition, it will keep the procurement process running smoothly and efficiently.</p> <p>Below we&#39;ll discuss some common procurement risks and how you can mitigate them with digital procurement tools.</p> <h2>Common Risks Faced by Procurement Teams</h2> <p>In today&#39;s world, risk management in procurement has even more significant implications for a company&#39;s future performance and reputation. Some of the common risks associated with the procurement process include the following:</p> <h3>Overspending</h3> <p>Having a clear understanding of your requirements &ndash; how and who will meet them &ndash; is crucial to the success of any supply chain.</p> <p>Many difficulties can occur throughout the procurement process if there is no clear visibility of the expenditures made by each employee. In a conventional procurement system, employees spend money deliberately without knowing whether the purchase is necessary or not.</p> <p>Aside from being inconvenient, this can lead to unauthorized purchases and additional expenses, and wastage of valuable time. Furthermore, it will be impossible to connect budgets to actual purchase behavior, which will result in an inadequate audit trail, exposing you to severe financial risk.</p> <h3>Disorganized Supplier Management</h3> <p>A disorganized <a href="https://kissflow.com/procurement/vendor-management/top-vendor-management-tools/" target="_blank">supplier management system</a> involving extensive paperwork and manual processes can prove to be a significant risk throughout your organization.</p> <p>Today, many companies are still using outdated sheets to manage different suppliers and inventory, making the process inefficient because of limited features. It also restricts companies from making the right decisions while choosing suppliers.</p> <p>If you are not onboarding the right suppliers or managing their accounts and payments effectively, you might lose a profitable supplier and suffer huge losses.</p> <p>For example, your company has a supplier that provides you with goods at lower prices than others. Due to the ineffective internal processing and approval system, their payments get delayed every month.</p> <p>As a result, they switch to other buyers next time, providing them with a competitive edge over your company.</p> <h3>Manual Processing</h3> <p>Manual entry, processing and sign-off procedures slow down the procurement cycle, causing late payment penalties, lost documents and even endangering your supplier relationships.</p> <p>Furthermore, any system that relies on paper and human data entry is prone to error &ndash; resolving the issue results in higher invoicing resolution costs and lower employee productivity.</p> <h3>Inadequate Need Analysis</h3> <p>The procurement process begins when a department or business unit recognizes a need for a product or service. The risks are clear: exaggeration or underestimation of the necessity, unrealistic timelines, budgetary constraints and poorly conceived requirements.</p> <p>While it is self-evident that these risks cost time and money, the actual issue is the ripple effect. Incorrect forecasting and budgeting from the start may lead to a series of bad decisions down the road.</p> <p>You may, for example, purchase far too many of a single product or purchase unnecessary goods that might not even meet your needs.</p> <h3>Inappropriate Use of Talented resources</h3> <p>In a survey conducted by DHL Supply Chain, <a href="https://app.cdn.lookbookhq.com/production/clients/169/content/2017-06-07/043446/SC_Talent%20Gap_Research%20Paper_EN.pdf" target="_blank">nearly 70% of survey respondents </a>said that a &ldquo;perceived lack of potential for career growth&rdquo; and &ldquo;perceived status of the supply chain as a profession&rdquo; have a high or very high influence on their ability to identify, attract and retain talent.</p> <p>Because there are significant skill shortages for supply chain experts, you must plan to mitigate the risk of wasting talented resources on mundane tasks. Otherwise, your procurement process will be slowed by a lack of employees.</p> <h2>How to Mitigate Risks with Digital Procurement</h2> <p>Digital procurement can be defined as the process of enhancing the procurement function with the use of digital technology. By leveraging the latest technology available, CPOs can mitigate the risks associated with procurement.</p> <p>Below are some examples of how you can avoid risks with the help of digital procurement software:</p> <h3>1. Analyze Your Spending Patterns</h3> <p>Instead of relying on budgets that don&#39;t correspond to actual spending patterns, you can use the contemporary automation technologies that digital procurement tools provide.</p> <p>You can track and analyze transaction data for each purchase and examine use patterns using <a href="https://kissflow.com/procurement/procurement-analytics/" target="_blank">spend analytics</a>. In addition, it provides you with helpful information about how to improve and adapt your company&#39;s procurement strategy.</p> <h3>2. Streamlined Supplier Management</h3> <p>Digital procurement solutions enable easy to use supplier portals and simplify supplier evaluation and administration, substantially reducing supply chain risk.</p> <p>By defining and assigning responsibilities for each element of the procurement process &ndash; such as requests, approvals and purchases &ndash; digital procurement software may limit or eliminate unnecessary expenditures.</p> <p>Another benefit of digital procurement solutions is that it streamlines the strategic sourcing of goods that can help in negotiating better agreements for your business.</p> <h3>3. Automated and Digitized Document Management</h3> <p>With the help of digitized document management, you can gather, organize and store data in a systematic way. Moreover, automated entries and data extraction are less prone to errors and mistakes, which reduce data inaccuracy.</p> <p>Digitization of documents will save your employees valuable time and provide data consistency throughout the organization. Furthermore, it will cut down paper and storage costs.</p> <h3>4. Collaborative Interface</h3> <p>A collaborative interface allows users to track the journey of every purchase. Moreover, this helps in audit and verifies all the transactions made by the employees.</p> <p>Stakeholders can monitor what&#39;s going on at every level of their supplier tier, allowing them to predict and avoid problems before they happen. Entailing a journey toward transparency and mitigating procurement risks may provide organizations with several benefits.</p> <p>In addition to this, a collaborative system can help break data silos and avoid risks that can arise from miscommunication within and between the departments inside an organization. With the clarification of queries at request level with ease, any misunderstanding can be mitigated. This also provides a complete visibility into the entire process.</p> <p>Data sourcing can be automated to save time and money while also increasing company efficiency. Data automation reduces errors by validating data and ensuring that the data is delivered in an organized way to create data consistency throughout the organization</p> <h3>5. Talent Management</h3> <p>Digital procurement software helps free up your staff by reducing dull, repetitive tasks that might take up a lot of time. When mundane tasks are replaced by technology, employees deal with challenging tasks that keep them motivated and allow them to grow in their field.</p> <p>Moreover, digitizing your procurement processes can help you utilize your staff in crucial areas where human interaction is needed.</p> <h2>Conclusion</h2> <p>A growing number of companies now rely heavily on procurement, and a procurement risk mitigation plan is essential during the process. There&#39;s no denying that digital procurement and the application of cutting-edge technology may help mitigate risk.</p> <p>Given the current state of the economy, an efficient digital procurement strategy can help your organization&rsquo;s bottom line by lowering expenses and increasing efficiency and transparency.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/spend-analytics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">spend analytics</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/kissflow-procurement-cloud" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Kissflow Procurement Cloud</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="5 Ways Digital Procurement Mitigates Risk - Future of Sourcing" addthis:url="http://futureofsourcing.com/5-ways-digital-procurement-mitigates-risk"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 02 Nov 2021 02:00:00 +0000 Mohammed Kafil 2078 at http://futureofsourcing.com http://futureofsourcing.com/5-ways-digital-procurement-mitigates-risk#comments Three Supplier Conversations You Need to Have Now http://futureofsourcing.com/three-supplier-conversations-you-need-to-have-now <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Three%20Supplier%20Conversations%20You%20Need%20to%20Have%20Now_Future%20of%20Sourcing%20Digital.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Three%20Supplier%20Conversations%20You%20Need%20to%20Have%20Now_Future%20of%20Sourcing%20Digital.png" title="Your suppliers’ threat profiles will inevitably add to your business’ cybersecurity risk." class="colorbox" rel="gallery-node-1678-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Three%20Supplier%20Conversations%20You%20Need%20to%20Have%20Now_Future%20of%20Sourcing%20Digital.png?itok=ICJvxoVU" width="624" height="325" alt="Your suppliers’ threat profiles will inevitably add to your business’ cybersecurity risk." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Three Supplier Conversations You Need to Have Now</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-ai-and-digital-apps-can-support-in-person-vendor-negotiations">How AI and Digital Apps Can Support In-Person Vendor Negotiations</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Suppliers are mission-critical partners for business success. Unfortunately, too often, an &ldquo;arm&rsquo;s length&rdquo; relationship creates problems that are revealed only after it&rsquo;s too late.</p> <p>When suppliers feel conversations only occur after poor performances, the opportunity to have a productive, collaborative conversation may already be over.</p> <p>That&rsquo;s why regular conversations with your suppliers are critical. It&rsquo;s important to ask them questions about how changing business expectations are impacting their operations. For example, you may wish to ask:</p> <ul> <li>&ldquo;What are your goals?&rdquo;</li> <li>&ldquo;Where are your gaps?&rdquo;</li> <li>&ldquo;How can we (the buyer) help you proactively solve problems?&rdquo;</li> </ul> <h1>1. Talent</h1> <p><a href="https://www2.deloitte.com/us/en/pages/manufacturing/articles/future-of-manufacturing-skills-gap-study.html" target="_blank">According to Deloitte</a>, there are currently over 500,000 vacant manufacturing jobs. They estimate that of the 4.6 million jobs created in manufacturing between 2015 and 2025, 2.4 million will go unfilled due to skills gaps.</p> <p>According to a <a href="https://protect-us.mimecast.com/s/nd8LCn5Yzpc7OgoMvH2oqhr?domain=shrm.org" target="_blank">Society of Human Resource Management report</a>, nearly 27% of all manufacturing workers are set to retire over the next decade, taking their technical skills and specialized industry knowledge with them.</p> <p>No supplier is immune to the national talent shortage, regardless of their specific sector. For some product categories, the ability to recruit talent may significantly affect their future performance.</p> <p>Because your supplier&rsquo;s future performance will impact your company&rsquo;s operations, difficult questions need to be posed:</p> <ul> <li>&ldquo;How are you thinking about your talent strategy over the next five years?&rdquo;</li> <li>&ldquo;How does your talent strategy align with your digital strategy?&rdquo;</li> <li>&ldquo;Do you currently have any job openings?&rdquo;</li> <li>&ldquo;If our HR team discovers qualified candidates that could be a fit for your business, would you like us to forward them your way?&rdquo;</li> </ul> <p>Asking relevant questions builds trust and promotes an open and collaborative relationship. It also gives you the opportunity to assess your supplier&rsquo;s recruiting preparedness. Suppliers with excellent recruiting strategies will be preferred business partners.</p> <h1>2. Cybersecurity</h1> <p><a href="https://spendmatters.com/2019/12/02/deloitte-webinar-how-cpos-can-tackle-an-increasingly-complex-world-of-procurement/" target="_blank">Sean Peasley, Deloitte&rsquo;s partner on risk</a>, warned, &ldquo;adversaries are...agile and will use different methods to try and gain access, so companies must consider cyber risk early in every procurement process to be sure the proper protections are in place.&rdquo;</p> <p>Every supplier has a threat profile. Your suppliers&rsquo; threat profiles will inevitably add to your business&rsquo; cybersecurity risk. So, there&rsquo;s good reason to have a discussion around prevention and recovery. Some sample discussion questions are:</p> <ul> <li>&ldquo;If there&rsquo;s a hack and you cannot access any of your digital systems, what is your recovery plan?&rdquo;</li> <li>&ldquo;How can we help?&rdquo;</li> </ul> <p>You may discover you and your supplier share critical data, perhaps even financial account-level data, that you&rsquo;ll want to get locked down.</p> <p>While the threat to connected devices and firewalls is certainly worrisome, the greater risk is from scammers who might falsify purchase orders, phish for supplier account information from buyers, and <a href="https://www.bbb.org/article/news-releases/20100-scam-alert-phony-proposal-emails-target-small-business-owners" target="_blank">falsify RFQs and RFPs to infect suppliers&rsquo; computers.</a></p> <p>If your supplier is worried that they are vulnerable, or simply lack the resources to accurately assess their vulnerabilities, the following suggestions can reduce both their threat profile and yours.</p> <p><strong>Develop a password policy.</strong> A supplier password policy that asks people to regularly change and strengthen their passwords is an important first step toward better cybersecurity hygiene.</p> <p><strong>Create a back-up and up-time plan.</strong> While hacks that steal money are dangerous, the ones that destroy information and render machines unusable are disastrous. If your supplier&rsquo;s data is not properly backed up and there isn&rsquo;t a plan in place for restoring their systems, you have an opportunity to build trust by helping them develop back-up and up-time plans.</p> <p><strong>Identify a non-email-based channel.</strong> A potential hacker can get into an employee&rsquo;s inbox and gain full access to emails that contain valuable financial and account information. However, there is protection. Information can be sent through safer digital channels, making it more difficult for the hacker to access and safer for the supplier and your company.</p> <h1>3. Digital Collaboration Technology</h1> <p>The recent flurry of tariffs has added urgency for manufacturers, distributors and channel partners to provide additional layers of visibility into their orders.</p> <p>If suppliers and buyers can collaborate on projects in real time, the opportunities for visibility are significant.</p> <h1>Start Having Smart Conversations</h1> <p>Speaking with your suppliers solely when there&rsquo;s a crisis or you need something from them won&rsquo;t build strong, enduring relationships. Be a savvy partner and drive deeper collaboration by keeping an open dialogue and not being afraid to ask vital questions.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/it-security" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">IT security</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cybersecurity" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cybersecurity</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Three Supplier Conversations You Need to Have Now - Future of Sourcing" addthis:url="http://futureofsourcing.com/three-supplier-conversations-you-need-to-have-now"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 30 Aug 2021 02:00:00 +0000 Edmund Zagorin 1678 at http://futureofsourcing.com http://futureofsourcing.com/three-supplier-conversations-you-need-to-have-now#comments Three Ways to Deal with Workforce Retention in Today’s Hyper-Uncertain Labor Market http://futureofsourcing.com/three-ways-to-deal-with-workforce-retention-issues-in-todays-hyper-uncertain-labor-market <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Workforce%20Retention.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Workforce%20Retention.png" title="Workforce Retention" class="colorbox" rel="gallery-node-1751-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Workforce%20Retention.png?itok=wRZxLe5k" width="624" height="325" alt="Workforce Retention" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Three Ways to Deal with Workforce Retention in Today&rsquo;s Hyper-Uncertain Labor Market</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-find-calm-in-the-midst-of-chaos">How to Find Calm in the Midst of Chaos</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>With unemployment claims skyrocketing to almost 10 million at the end of March and expected to jump by millions more, COVID-19-driven economic jolts have quickly shifted the labor environment to the most volatile we&rsquo;ve seen &ndash; well, ever.</p> <p>For some employees<span style="font-size: 13.008px;">&nbsp;&ndash;&nbsp;</span><span style="font-size: 13.008px;">especially those with tenure, or high performers in essential business functions</span><span style="font-size: 13.008px;">&nbsp;&ndash;&nbsp;</span><span style="font-size: 13.008px;">the natural instinct will be to hunker down and weather the storm. Others, spooked by their current organization&rsquo;s readiness to navigate this hyper-uncertainty (especially those with relevant and in-demand skillsets), will start exploring their options in search of more stable opportunities.&nbsp;&nbsp;</span></p> <p>This greater openness to external job opportunities, and as a result, unsolicited recruiting messages, raises the risk of workforce turnover. And while many organizations are furloughing and laying off workers to address pandemic-related cost concerns, areas of the labor market are surprisingly still tight, making it harder to find and source talent for in-demand roles.</p> <h1>Talent Is Key For Navigating Chaos</h1> <p>Data shows <a href="https://www.hrdive.com/news/tie-talent-to-business-strategy-to-bolster-performance-study-says/571010/" target="_blank">72% of an organization&rsquo;s value</a> is tied to its employees &ndash; and this link is even more imperative for maintaining business performance in tough times. No organization can afford to lose their best workers right now. Holding onto talent that may be considering leaving requires organizations to implement targeted, proactive retention programs.</p> <p>The industries, locations, and job functions most at-risk according to a recent <a href="https://www.datanami.com/2020/04/03/how-covid-19-is-impacting-the-market-for-data-jobs/" target="_blank">labor market analysis</a>:</p> <ul> <li>Recruiters (115% above national volatility average), software engineers (+105%), marketers (+82%), and finance professionals (+77%), all <a href="https://www.cnbc.com/2020/02/14/workers-in-these-5-fields-are-most-likely-to-quit-their-jobs.html" target="_blank">typically categorized as highly volatile</a>, are even more so today. Given these functions are some of the most competitive, it&rsquo;s crucial to check in with these workers internally and identify and address any underlying attrition risk factors. &nbsp;</li> <li>Companies based in the greater San Francisco (50% above average) and Washington D.C. (+41%) areas tend to face above-average worker volatility levels. Organizations across every industry and size located in or around these cities should make retention their top priority, especially given how much this crisis will hit startups.</li> <li>Historically stable roles such as teachers (now 101% above average), skilled trades (+97%), construction (+83%) and healthcare staff (+77%), specifically nurses and doctors (+54% each), are <a href="https://www.workforcelogiq.com/2020/03/23/covid-19-analysis-impact-on-the-u-s-labor-market/" target="_blank">among the most volatile</a> considering the pandemic. This spike points to future talent risk with these workers on the frontlines of our COVID-19 response.</li> </ul> <h1>Strategies And Best Practices To Get Retention Right</h1> <p>Programs will look different for every organization given each has unique needs and objectives, but there are tried and true ways to boost retention. During these challenging times, when many companies are strapped for time and resources, it&#39;s especially important to implement very targeted strategies.</p> <p>Predictive insights offer a huge advantage in finding the best candidates and attracting them with the right recruiting messages. This intelligence also enables companies to identify the risk of attrition before it manifests, and high-value talent resigns.</p> <p><strong>1. Keep your employees engaged by making them feel heard.</strong></p> <p>Over <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" target="_blank">75% of millennials</a> &ndash; who make up the largest percentage of the workforce<span style="font-size: 13.008px;">&nbsp;&ndash;&nbsp;</span>feel businesses focus too much on corporate agendas, and not enough on contributing to society. While running a profitable business is important and will require even more attention in light of today&rsquo;s reality, companies can&rsquo;t ignore the societal implications of the pandemic and must demonstrate a commitment to the well-being of their employees and communities. On a broader scale, it&rsquo;s important that employees of all generations feel heard. One of the best ways to engage, and subsequently retain, your workforce is to understand what encourages staff to perform at their best and create cultures that prioritize those motivators.</p> <p><strong>2. Foster a supportive work environment and community.</strong></p> <p>Some studies show <a href="https://exclusive.multibriefs.com/content/how-leaders-can-stop-loneliness-and-create-community-at-work/mental-healthcare" target="_blank">loneliness in the workplace</a> was already a pervasive issue before the pandemic &ndash; and the gravity of today&rsquo;s situation will likely add fuel to the fire. When employees feel lonely, they&rsquo;re often disengaged from their work, making them less productive, and more apt to explore new roles and company cultures. Making people feel part of a community while at work is important &ndash; especially while most are working remotely. Virtual happy hours or team lunches over video where folks order from a local restaurant can boost morale, establish a sense of community and facilitate team bonding. It&rsquo;s also important to recognize employees&rsquo; contributions, increasing their overall confidence and incentivizing them to do good work not only in the interest of the business but also for their own satisfaction and motivation.</p> <p><strong>3. Tell them what <u>they</u> need to hear.</strong></p> <p>Employees jump jobs for a variety of different reasons, but today, fears over job security, company resiliency and business stability top the list. When employees feel they could lose their jobs or career momentum, they&rsquo;re more apt to explore other opportunities that will fuel their professional development. Employers need to understand the workplace characteristics their employees value and prioritize them accordingly. Today, for example, employees are putting more weight behind company resiliency (<a href="https://www.workforcelogiq.com/2020/03/23/covid-19-analysis-impact-on-the-u-s-labor-market/" target="_blank">up 12% from December</a>) followed by business stability, which means reassuring staff of the company&rsquo;s performance and financial health in this challenging time, and clearly communicating what you&rsquo;re doing from a resiliency perspective, is key.</p> <p>While undoubtedly more difficult today, with the right best practices, strategies, and market intelligence, employers can still source and sustain a reliable talent pipeline to thrive despite the uncertain employment environment.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/workforce-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Workforce Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/talent-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/workforce-retention" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Workforce Retention</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Three Ways to Deal with Workforce Retention in Today&amp;rsquo;s Hyper-Uncertain Labor Market - Future of Sourcing" addthis:url="http://futureofsourcing.com/three-ways-to-deal-with-workforce-retention-issues-in-todays-hyper-uncertain-labor-market"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 28 Jun 2021 02:00:00 +0000 Joe Hanna 1751 at http://futureofsourcing.com http://futureofsourcing.com/three-ways-to-deal-with-workforce-retention-issues-in-todays-hyper-uncertain-labor-market#comments Could Puerto Rico Become the Next Big Tech Haven? http://futureofsourcing.com/could-puerto-rico-become-the-next-big-tech-haven <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Could%20Puerto%20Rico%20Become%20the%20Next%20Big%20Tech%20Haven%3F.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Could%20Puerto%20Rico%20Become%20the%20Next%20Big%20Tech%20Haven%3F.png" title="Could Puerto Rico Become the Next Big Tech Haven?" class="colorbox" rel="gallery-node-1998-AZpLo1JMv3M"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Could%20Puerto%20Rico%20Become%20the%20Next%20Big%20Tech%20Haven%3F.png?itok=ZZgfQjNW" width="624" height="325" alt="Could Puerto Rico Become the Next Big Tech Haven?" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Could Puerto Rico Become the Next Big Tech Haven?</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/are-you-getting-the-most-out-of-your-nearshore-digital-transformation-partner">Are You Getting the Most Out of Your Nearshore Digital Transformation Partner?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>During the 2006 economic downturn in Puerto Rico, many jobs were lost and people left the island. Fast forward to 2017 when Hurricane Maria made the problem even worse. People left the island in masses; and many didn&rsquo;t come back. It&rsquo;s often said that every Puerto Rican knows someone who died and someone who left as a result of the devastation.&nbsp;</p> <p>It was a dire few decades for the U.S. territory, but the rebuilding is well underway (with <a href="https://www.npr.org/2020/09/18/914466896/trump-administration-announces-nearly-13-billion-in-aid-for-puerto-rico" target="_blank">funds</a> arriving from the U.S. federal government of fall 2020). Hope and optimism are returning at last. One shining star that is leading the way to economic recovery is the tech industry, but it&rsquo;s imperative that we shore up our tech talent and bring professionals back to the island.</p> <p>What&rsquo;s encouraging is that it&rsquo;s already happening. Puerto Rican native, Orlando Bravo, a billionaire running a global private equity investment firm along with many tech ventures, has given <a href="https://www.wsj.com/articles/orlando-bravo-rides-software-deals-to-heights-of-private-equity-industry-11600767001#:~:text=Bravo%20committed%20%24100%20million%20to,mid%2Dstage%20Puerto%20Rican%20startups." target="_blank">$100 million to support tech innovation and start-ups on the western part of the island. </a>In addition, another Puerto Rican native, Ric Elias, CEO of Red Venture, has invested heavily in nurturing tech talent on the island. And many global technology companies have offices in Puerto Rico, such as Infosys, Honeywell, GE and Microsoft.</p> <h2>The Benefits of Returning</h2> <p>Whether new to the island or returning to grow their businesses, there are huge opportunities for start-ups and established firms, as well as technology professionals across all areas of expertise.</p> <p>It was <a href="https://newsismybusiness.com/partnership-kicks-off-puerto-rico-5g-zone-initiative/" target="_blank">recently announced</a> that Puerto Rico will be home to one of the leading labs for 5G testing this year. The 5G Zone will enable tech firms, telecom companies and other businesses to test applications and build new use cases for 5G networks. The initiative promises to help the island better leverage our human capital and become a hub for tech in Latin America.</p> <p>Businesses find that there are many economic incentives to set up shop in Puerto Rico. &nbsp;There are many tax breaks offered to specific industries, public buildings can be leased at attractive rates, and there are varied wage incentives and access to financing through tax-free industrial bonds and direct loans.</p> <p>In addition, <a href="https://www.investpr.org/puerto-rico-tax-incentives" target="_blank">Act 60 is a new incentive code</a> designed to accelerate economic growth. Under the program, individuals receive a 4% flat income tax rate, 75% property tax exemption along with other financial benefits.&nbsp;</p> <p>Aside from the financial benefits, tech professionals are finding good paying jobs. When combined with the lower cost of living and quality of life, they offer an appealing proposition.</p> <h2>The Nearshore Model is the Best of Both Worlds</h2> <p>The pandemic also has shifted national attention back to the issue of bringing more tech services and manufacturing back to the U.S. from far-flung offshore regions, and this opens up widespread opportunities for Puerto Rico-based nearshorers, which can offer lower costs and equal quality than mainland providers.&nbsp;&nbsp;</p> <p>Already, Puerto Rico is home to <a href="https://pharmaboardroom.com/articles/5-top-pharma-manufacturers-in-puerto-rico/" target="_blank">11 of the top 20 global pharma companies</a>, such as Amgen, Eli Lilly, Pfizer and Bristol-Myers Squibb. For software, AI and other technology providers, this target customer base opens up great opportunities for business growth and partnerships.</p> <h2>The Challenges Being Overcome</h2> <p>Despite the enormous opportunities that are making tech a hotbed for technology leadership, there are challenges that must be overcome. Electric and cable infrastructure, a lifeline for most businesses, is often unsteady, and buildings and other infrastructure damaged by the hurricanes continues to be rebuilt. Here at Wovenware, we overcome these issues with back-up generators and redundancy in internet providers in case of outages.&nbsp;</p> <p>But the real challenge comes in having enough qualified tech talent to keep pace.&nbsp; Despite the fact that the island graduates 10,000 scientists, engineers and IT professionals each year (according to the Puerto Rico Information Technology Cluster), there continues to be a shortage due to young professionals leaving the island for the mainland; or pursuing other careers.</p> <p>Organizations, such as <a href="https://www.investpr.org/" target="_blank">Invest PR</a>, <a href="https://www.conprmetidos.org/" target="_blank">ConPRmetidos</a> and others are doing their part to welcome tech talent on the island, through training programs, marketing campaigns and networking events that work to bring more businesses to Puerto Rico.&nbsp; <a href="https://prsciencetrust.org/" target="_blank">Parallel18</a>, a program from the Puerto Rico Science, Technology &amp; Research Trust,&nbsp; promotes entrepreneurship in Puerto Rico, and serves as an incubator for start-ups.&nbsp;</p> <p>We&rsquo;ve all heard of the recent &ldquo;exodus&rdquo; of tech firms to Texas, Florida and other regions, which proves that tech innovation is alive and well beyond Silicon Valley. Puerto Rico is fast becoming one of these new destinations for technology innovation. We have the expertise and innovation, the backing of industry powerhouses, along with government support, and most importantly &ndash; the resilience and drive to make it happen.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/puerto-rico" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Puerto Rico</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/talent-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Talent Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/manufacturing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Manufacturing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/5g" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">5G</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Could Puerto Rico Become the Next Big Tech Haven? - Future of Sourcing" addthis:url="http://futureofsourcing.com/could-puerto-rico-become-the-next-big-tech-haven"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/latinamerica-caribbean" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Latin America/Caribbean</a></div></div></div> Wed, 09 Jun 2021 02:00:00 +0000 Carlos Meléndez 1998 at http://futureofsourcing.com http://futureofsourcing.com/could-puerto-rico-become-the-next-big-tech-haven#comments