More than two-thirds of industry leaders say that the high demand for talent is a contributing factor to the talent shortage. Just like in any rapidly growing industry automation and technology have played a role in creating greater efficiency and increased opportunities. But demand isn’t the most significant factor. 86% of those studied say that changing job requirements have a high or very high ranking as a contributor to the talent shortage, while only 67% ranked overall demand as a high or very high contributor.
These variables have the greatest impact on a company’s ability to find and hire the right people:
- Changing Job Requirements – nine in ten supply chain leaders state changing job requirements are responsible for significantly hindering their ability to hire enough workers. Supply chain jobs require different skill sets than in previous years. Organizations need their people to have both supply chain competencies and soft professional skills like leadership, teamwork, and problem solving. In addition, companies often expect proficiency with certain types of software or experience particular industries. The underlying issue may not be a lack of candidates on the market, but rather that there are too few people with the unique combination of skills that the company is looking for, especially for middle management and executive positions.
- Technology Advancements – The supply chain industry is on the cutting edge of technology innovation, creating unprecedented demand for technology roles. A recent MHI Annual Industry Report lists robotics and automation, predictive analytics, IOT sensor technology, AI innovation, and driverless vehicles as key growth contributors in the supply chain industry. To remain competitive, organizations must hire data analysts, software developers, and IT technicians with both technical skills and business acumen. These are often difficult to hire because their skills are highly sought after in nearly every industry.
- Negative Perceptions Among Young Workers – Although technological innovation is a key growth driver in the supply chain industry, younger professionals don’t see it that way. They have misperceptions about being stuck in a boring, repetitive job with no opportunity for advancement. This may be due to companies that don’t give their supply chain the same prominence as they do other parts of the company. There is also some lack of education about the benefits of a career in the supply chain industry. Millennials and up-and-coming Generation Z workers simply don’t know what a supply chain career has to offer in terms of opportunity, compensation, and professional growth.
Overcoming the talent shortage will require focused hiring efforts from organizations. One study found that 32% of companies have taken no actions to create a talent pipeline. Ignoring the talent shortage problem definitely won’t make it go away, because the competition for talent will only continue to escalate as the needs of the industry evolve. Finding, hiring, and retaining enough workers to keep up with the explosive growth of the supply chain industry isn’t easy.
Many companies in the supply chain industry turn to trusted recruitment process outsourcing experts like Hire Velocity, to both fill their current open roles and set up their talent pipeline approach for long-term success. To learn more about how a partner like Hire Velocity can help your supply chain company, read more about Hire Velocity's industry expertise.
