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The supply chain industry, like many others, is currently experiencing a talent shortage that is negatively impacting business. What makes the need for workers in this area more dire, however, is the fact that the health of the supply chain affects the health of many other businesses. As such, it is vitally important that we respond to this worker shortage.
While the global pandemic is the root cause of many talent shortages, the situation in supply chain is more complex than that and cannot be tied to a single factor.
One of the main issues supply chain professionals are dealing with is the bullwhip effect (seemingly minor changes in demand that have major impacts.) It takes a significant amount of strategic thinking to keep up with the changes in consumer behavior that have massive impacts on demand. This has been exacerbated by the uncertainty of the pandemic.
The bullwhip effect also applies to labor itself. When the pandemic began, we saw a significant number of layoffs. When reopening started and more talent was needed, we saw a labor shortage begin immediately.
These shortages are also continuing because of workers getting sick (or overworking and burning out) and needing time off to get well. We’re seeing this both at home and overseas, creating many kinks in the supply chain.
Additionally, the pandemic has shone a light on just how important the supply chain is. Delays and shortages have added an additional hurdle to navigating the last couple of years and persist even now. As organizations now need to grow and become more resilient to phenomena like COVID-19 disruption, the demand for workers rises.
One issue is that the supply chain industry has an aging workforce. Many seasoned, experienced professionals are retiring with few younger workers to replace them. Jobs are opening up much faster than the industry can fill them, on top of the jobs being created and added.
While technology and automation are helping the supply chain to become more efficient and effective, these advancements are adding new skills to the fold. Now, professionals in this space must have operational and analytical skills, as well as knowledge of the technologies being implemented. This is a difficult skillset to come by.
Some more simple solutions to this problem involve outreach to younger workers. These may include training to both new and existing workers, internships, an employee referral program, or partnerships with schools and universities. This will create a pipeline of new talent into the supply chain industry.
Adding additional technologies will also quell the talent crisis. While this will require the aforementioned training, one-third of younger supply chain professionals indicated that limited access to the correct tools is creating frustration in their positions. Increased automation can help to streamline tasks and leave more room for strategic thinking, which many professionals see as more rewarding and engaging work. Investing in those tools for the employees you do have will decrease attrition and help you to retain the talent you have and that you will acquire.
Upward mobility and clearly defined processes are also concerns of the millennial supply chain workforce.
Organizations should respond to these concerns directly, but they can also implement mentorship programs to help assuage the issue. A mentor can provide the guidance needed to further develop younger talent and help them to qualify for promotions. Hiring from within is a great way to fill talent gaps, so ensure that you’re upskilling your existing workforce and setting them up for success.
While retention is a great solution to the talent shortage facing the supply chain industry right now, there will always be a need to hire externally to build your team. The above will make your organization more attractive, which will help. Even so, you may need assistance from experts outside of your own business. A recruiter can be the perfect partner in this case.
Please reach out directly if you would like assistance in hiring amidst this talent crisis.
