The Drummond Bridge Report - Is Your Business Ready for the Shift in the Supply Chain & Operations Workforce in 2016?

Drummond Bridge Examines the Findings from its 2016 Career Survey

At Drummond Bridge we support UK and internationally based organisations to grow and develop their Supply Chain & Operations business functions.

In December 2015, we polled a sample population of Supply Chain and Operations professionals including; previous and current candidates, business clients, and industry partners, to gain insight into their career motivations and aspirations.

Specifically we wanted to understand:

• What proportion of people would consider a career move in 2016? • What are the main reasons professionals would consider leaving their current role? • What are the important and motivating factors in choosing a new position? • Does jobseeker behaviour vary dependent on demographics? • Which industries are most attractive to candidates in 2016?

The breakdown of our sample population by professional discipline was as follows.

• Transport & Logistics – 7% • Manufacturing Operations – 37% • Procurement – 15% • Supply Chain & Materials Management – 29% • Other associated – 12%

What our Results Reveal…

What is clear from the results of our survey is that businesses need to do more in order to retain talent. There is a significant appetite for change amongst Supply Chain and Operations professionals. Most significantly 53% of those polled stated that they were “definitely seeking a career change” in 2016.

Whatever the size of your own team, what would you do if 53% moved on this year? To many this doesn’t bear thinking about.

Whilst many organisations are focussing on plugging the talent gap created in part by the lack of investment post 2008 recession, our results lead us to ask the more pertinent question:

Are employers doing enough to reward, develop and invest in their existing workforce and retain their best talent?

In this report we examine in more detail the key findings of our survey. This includes workforce motivations and aspirations, and what actions employers should take to prepare for, or prevent, a loss of talent from their business.

53% of Supply Chain & Operations professionals polled are seeking a career change in 2016

This figure is clearly a concerning one, which is compounded when we take into account that 85% of survey respondents agreed that they would “consider a career change” in 2016.

Additional analysis of our results sheds some more light on the situation, pinpointing the demographic, level and disciplines of those most likely to consider a move.

• 58% of those who would consider a move are between the ages of 30-45 • 76% of those who would consider a move are currently at Managerial or Director level • 28% of those looking to move are Supply Chain professionals • 35% of those looking to move are Manufacturing and Engineering professionals

Employer Considerations:

• What current recruitment attraction campaigns are you undertaking to grow your own talent? • How is your organisation going to sell itself over your competitors in a competitive market where talent is scarce? • Do you have adequate succession plans in place and leadership development plans to plug the gap that would be left by the 76% of

Managers / Directors who might consider moving on? • For those in supply chain & operations, what development opportunities exist for your top and business critical talent?

43% of professionals surveyed would consider a move abroad

In an increasingly globalised world, many businesses encourage employees to gain some international experience at some stage in their career. The benefits can include a wider understanding of global business, experience of learning, cultural adaptation, and exposure to new and unique challenges.

Again, analysis of the results lets us look in more depth at those individuals considering a move abroad.

• 57% of those looking for a move abroad are between the ages of 30-45 • Most likely to consider a move are Manufacturing professionals (40% of polled individuals) • Second most likely to move are Supply Chain professionals at 33%

Employer Considerations:

• Does your organisation offer adequate career opportunities for your employees abroad? • If your organisation is UK based, would you look to partner with a similar business on an ‘employee secondment swap’ program if available?

Why are people looking to make a career change in 2016?

Of those polled, it appeared that the primary factors driving a change of role were the lack opportunity of progress (26%) and the desire to gain alternative experience (23%).

It appears that businesses certainly value their staff, as very few cited a feeling of “not being valued” as a reason to consider alternative opportunities, and even fewer suggested they were unhappy with current remuneration. Our results gave some interesting insight into additional factors impacting this desire for change.

• Lack of progression opportunity is the biggest reason for people looking to move with 26% citing it as a reason to move • Desire to gain alternative experience is second driving factor with 23% of professionals polled choosing this option • Only 6.8% of people said a desire to move was driven through feeling undervalued (3.9%) or underpaid (2.9%) • 35% of respondents indicated individual circumstances such as redundancy, location etc. were drivers • 35% of respondents indicated general manufacturing would be the most desirable sector to move to, followed by food & drink (25%), and

Banking & Technology (13.7%)

Employer Considerations:

• Many of our clients are focussing heavily on being competitive with regards to salary and benefits, however the findings would suggest a compelling proposition with regards to career development is essential to retain top talent.

• Does your organisation offer significant scope for employees to move between business units/functions?

The requirement for Job Satisfaction as a desired outcome decreases as seniority of position increases

This headline finding is an interesting one, and is worthy of more investigation. It is possible that there is a trade-off between job satisfaction and earning potential when climbing the career ladder, or that the pressure and responsibility of holding a senior post dilute the satisfaction one would gain from holding such, or simply that those that move on to more senior positions are driven by other factors rather than their own happiness.

The likelihood is that the reasons for such vary from person to person, however our findings would suggest that job satisfaction as a motivator became less important the more senior you become in an organisation.

47% of entry level professionals indicated that job satisfaction is a primary motivator for them in considering opportunities. This reduces to 41% of Managers feeling this way, and further reducing to 38% of Directors.

Below we look at the various demographic motivators;

• Both Work/Life Balance and Progression Opportunity ranked equal second choice motivators behind job satisfaction, with 25% of the vote each for Directors

• At Manager level, Job Satisfaction was a clear key driver (41%), with Career Progression the next important driver with 32% of managers choosing this option

• The Entry Level/Qualified population indicated that Work/Life Balance (26%) was the next most important actor in their career behind job satisfaction, which was selected by 47%

Employer Considerations:

• Often clients will structure a generic company benefits package with slight differences in things such as pension dependent on level, do companies pay enough attention to offering flexible working, or structured career development plans

• Do organisations give enough thought to how the develop and offer more opportunity to C-Suite leaders? • Do organisations give enough thought to, and invest enough time in defining and developing organisational culture?

Drummond Bridge Career Survey Summary The results of our survey clearly indicate that there is an appetite for change amongst a number of people working in Supply Chain and Operations professions, presenting a real challenge for businesses.

Employers looking to retain their talent need to consider what they are offering in addition to remuneration and benefits, including clear career progression pathways, flexible working, and options for relocation. What is important to note is that the needs and wants of those at the various levels of seniority differ significantly, and should be taken into account dependent on level of position.

In addition to retention of talent, businesses should also be mindful of succession planning for their senior team, given that our survey suggests there is a real appetite for change from those operating at Director level.

The results of the Drummond Bridge Career Survey serve as a wakeup call for those employers who are not already actively engaged in employee engagement, satisfaction and retention. In short, there is a significant challenge ahead, but the options to tackling it are many.

For more information on the Drummond Bridge Career Survey including sample size and demographic, or to discuss your business’ recruitment and succession planning strategy, please contact:

Jamie Brown Drummond Bridge jamiebrown@drummondbridge.com 0141 212 4666