Conquering the War for Talent in the Procurement Industry

In an increasingly multipolar world that challenges the interconnectedness of global supply chains in the network, businesses must invest heavily in the right talent and capabilities to build an agile workforce and tackle industrywide shocks and uncertainties.

Now, what many are losing to is the talent war – Chief Procurement Officers (CPOs) continue to find it hard to attract and retain talent as the demand for analytical and technical skills needed for success continues to outstrip supply.

Procurement demands a blend of specialized skills, ranging from enhancing supplier relationships and strategic partnerships coupled with mitigating risks tied to geopolitical tensions. This exclusive Q&A touches on a holistic approach in building a high-performing team, instilling a collaborative and innovative culture within it, and progressing in big strides toward talent retention.

As a seasoned professional with more than 25 years of experience overseeing end-to-end processes that encompass strategic sourcing and relationship management, Elaine Chen, is adept in her expertise to transform procurement function into an integral role for value creation. As the Vice President of Global Procurement, she fosters confidence in the team and capitalizes on movements in markets.

Being part of an extraordinary team in SATS that turns complexities into competitive advantage, Elaine further elaborates its strategies to empower its procurement team by driving cost optimization, contributing to bottom-line performance, and nurturing inclusivity and supportiveness in the workplace.

What does the war for talent mean and, in your opinion, why is there specifically a war for talent in procurement?

The war for talent in procurement is fuelled by the critical role procurement plays in driving business value and success and the scarcity of individuals with the necessary skills and expertise to excel in this field. Procurement requires specialized skills in negotiation, contract management, supplier relationship & risk management and cost analysis. Finding individuals with the right combination of those skills can be challenging. Furthermore, business competes to hire top procurement talent to gain a competitive edge as effective procurement directly impacts a company’s top and bottom lines by optimizing costs & processes. With globalization, procurement has become more complex. Competing in this environment requires professionals who understand global supply chains and can navigate cultural and regulatory differences. With technological advancement, companies seek individuals who are not only proficient in traditional procurement practices but also adept at using technology to enhance efficiency and effectiveness. With increasing supply chain disruptions due to weather impact or diseases etc., companies need talented procurement professionals who can mitigate risks, identify alternative suppliers, or supply source and adapt quickly to changing market condition.

Building a strong company culture can be instrumental in talent retention. How does SATS position its Global Procurement team to attract top talent who are looking for exciting and impactful careers?

A strong culture that prioritizes purpose, positivity, growth, engagement, diversity, and leadership can serve as a powerful magnet for top talent seeking a fulfilling and rewarding career experience. Global Procurement vision: A value enhancer to GLOBAL business stakeholders through WORLD CLASS people, processes, and tools.

While financial incentives are important, many professionals are also motivated by non-monetary factors. Could you elaborate on some non-financial methods SATS employs to attract and retain procurement talent?

Focusing on areas such as professional development, work-life balance, recognition and appreciation, meaningful work, work environment, opportunity for autonomy and responsibility as well as feedback and growth opportunities can help to secure a robust workforce.

In today's rapidly evolving procurement landscape, how does SATS ensure its procurement team stays ahead of the curve through continuous learning and development programs? Do you offer any unique learning opportunities that are particularly attractive to potential hires?

In Global Procurement, we have launched a procurement skills-based development tool which provides the golden standards for various key procurement skills based on roles and responsibilities and grade. It is used as a tool to facilitate two-way discussion on development plans and training needs between reporting officers and their teams. The trainings will be carried out both in-house and by external trainers, online and offline. Some of the unique procurement learnings we are exploring are supplier relationship management (SRM), risk management, sustainable procurement, data analytics and technology, global procurement, ethics and compliance, innovation and creativity. By embracing these unique learning opportunities, procurement professionals can continuously develop their skills, stay ahead of industry trends and contribute to the success of their organisations in a dynamic and competitive business environment.

What are some insights you've gained into why your top performers might be departing, and how does SATS address these factors to enhance retention efforts?

In terms of working locations, we offer hybrid working arrangement and Global Procurement is very flexible if there is a need for more flexible working arrangement. There is a need to emphasize the dynamic & fast paced nature of the work environment as an opportunity for growth, leaning and making a significant impact. We promote work-life balance to avoid burnout and create a culture that values collaboration, teamwork, and open communication. We showcase GP’s mission, values and the meaningful impact of the work being done, as well as the projects, initiatives, and opportunities for employees to contribute their ideas and drive innovation forward. Lastly, we showcase GP as an attractive place to work.

A diverse and inclusive team fosters innovation and better decision-making. How does SATS attract and retain talent from diverse backgrounds within its Global Procurement team?

Attracting and retaining talents from diverse backgrounds requires a multifaceted approach that emphasizes inclusivity, equity and respect for individual differences. We believing in cultivating an inclusive culture, establishing diver hiring panels, providing support program e.g. buddy system as part of new hire onboarding program, creating opportunities for growth and advancement, addressing biases and discrimination as well as recognize and celebrate diversity through team building events.

How does SATS empower its procurement professionals to take ownership of their work and contribute strategically to the organization's success? What recognition programs or initiatives are in place to celebrate the achievements of the procurement team?

SATS empowers procurement to operate strategically and contribute to the organization’s success by driving procurement value including hard savings, mitigating risks, enhancing supplier relationships, and supporting overall business objectives. We have recognition programs that acknowledge procurement for contributing to SATS’ bottom-line and our contribution to sustainable procurement is recognized in SATS annual sustainability report and media reports/programs. We also implement an employee recognition program that highlights outstanding procurement professionals on a regular basis.

Flexibility in work arrangements has become more prevalent, especially with the rise of remote work. How does SATS approach flexibility in work arrangements for its procurement employees?

SATS has a company policy to embrace hybrid working model. GP is very flexible if further flexible working arrangement is needed and known for a workplace of pro-family and employee work-life balance.

It's often said that progressive procurement leaders will ultimately win the war for talent. In what ways does SATS embody this philosophy, and how does it set itself apart as a leader in attracting and retaining top procurement talent in today's competitive landscape?

Progressive procurement leaders can differentiate themselves and attract and retain top talent by creating a supportive, inclusive and innovative work environment where employees feel valued, empowered and motivated to contribute their best. Some of the strategies include fostering a culture of innovation within the procurement team, creating a diverse and inclusive work environment where all employees feel valued, respected and empowered, encouraging collaboration and teamwork, creating a clear career path and opportunities for growth and advancement within procurement function, supporting work-life balance initiatives that accommodate employees’ personal and family needs, demonstrating strong leadership qualities by leading with integrity, transparency and a commitment to excellence, celebrating success and recognize achievements, and creating channels for open communication and feedback.

You are speaking at this year’s ProcureCon Asia event. Can you share what the audience can expect to hear from you and what excites you about this event?

I am excited to share our transformation journey and road map with my peers and learn from them best practices on key procurement trends and initiatives especially in AI for procurement, sustainable procurement and improving procurement maturity.

Hear from Elaine Chen, at Equarius Hotel, Singapore, on 10th July, 9:30AM: CPO Interview: Elevating procurement training excellence – How do you enhance your procurement training programs for continuous improvement, addressing gaps, retaining talent, and evolve with the changing industry landscape? Find out more here!