People Management in the Age of Workforce Globalization

Procurement's Role in Talent Attraction, Development, and Alignment

The pandemic forced people to work from home, which sent procurement teams scrambling for the right tools and processes to manage their work. Although some amount of normalcy has returned to the business world, most analysts agree that the nature of people management will never be the same.

People management may no longer be the sole purview of HR departments. As workforces become more globalized and remote work becomes the norm, procurement executives are taking on a greater role in people management, as they are in a primary position to procure talent and services. Today, procurement leaders must not only attract and develop talent but also ensure their team members can align stakeholders with key procurement objectives.

The Implications of Hybrid and Remote Work for People Management

Traditionally, procurement teams have been physically close to the businesses they serve. This allowed for regular face-to-face interactions with key stakeholders and a better understanding of their needs. Now, procurement teams are becoming increasingly remote, relying on technology to keep themselves aligned and in order to communicate.

This shift in roles has two major implications for the procurement function.

The first implication is that procurement must become more agile and adaptable, even as the workforce is spread across multiple regions. This creates a challenge, as procurement professionals may be working remotely or in a different time zone than the rest of the organization. Procurement teams must be able to work together to quickly adapt to changes in the supply chain, regardless of the time of day.

The second implication is that procurement executives must focus on developing talent within the team, even if some employees are physically removed from the rest of the organization. In a traditional workplace, procurement professionals can rely on face-to-face interactions to build relationships with other teams and develop talent. However, in a remote or hybrid work environment, procurement professionals must be proactive in developing relationships with other teams and training employees on new technologies.

Attracting, Managing, and Developing Talent

Talent attraction is key in a competitive market for procurement professionals. Furthermore, potential employees are searching for flexible, more meaningful job opportunities. According to Harvard Business Review, 9 out of 10 people are even willing to earn less money if it means being able to do more meaningful work.

Employer Value Propositions

A well-defined employer value proposition (EVP) can help to attract top talent by emphasizing the unique opportunities that the organization offers.

An employer value proposition is a statement that articulates the unique value that an organization offers to its employees. It goes beyond salary and benefits to encompass all the elements of the employee experience, including culture, development opportunities, work-life balance, and more.

For example, an EVP could offer employees the ability to work with a global team and have an impact on procurement decisions that affect the entire company. It could also demonstrate a focus on developing procurement talent through mentorship and training programs or an emphasis on work/life balance and flexible working arrangements, such as remote and hybrid work.

Once the organization has attracted top talent, it is important to manage and develop them effectively. In this regard, the procurement function can take some suggestions from HR leaders.

Upskilling Opportunities

Organizations should consider providing opportunities for procurement professionals to work on a variety of projects. This will help them stretch their skills and allow them to develop new expertise. This is an especially effective strategy when onboarding new technology solutions in the function, as employees who are quick to adopt them could become champions of the new solution.

For example, multinational consumer goods company Unilever discovered it could benefit by making use use of employees’ untapped skills, so it launched a technology platform to help match its people with relevant tasks for their skillsets. According to HR Magazine, “because the platform allows employees to input their ambitions as well as their hard skills (for instance, they might have a yearning to learn more marketing skills), the AI won’t just suggest potential matches based on a specific skills match, but will also match people who have a strong desire to expand their learning in a certain area.”

Following Unilever’s example, procurement leaders can also encourage procurement professionals to take on more leadership roles in cross-functional teams. Cross-functionality and collaboration between departments like procurement, IT, and finance will be essential to addressing supply chain challenges moving forward. This strategy can also help to reveal previously unknown skills within the function.

To read more on Overcoming Disruptions in Indirect Procurement and how to align stakeholders with your key objectives, click here