Key Takeaways
- The procurement workforce is growing older, demonstrating a need to develop and train the next generation of procurement professionals.
- Recent global supply chain events like the pandemic show the benefits of having a diverse workforce with multiple skill sets and perspectives.
- Procurement departments that take initiative through active recruitment will benefit from a strong, resilient, long-term purchasing team.
As unemployment in the US reached new lows in April 2023, many industries enjoyed a busy hiring year despite inflation fears. In some cases, the hiring of new employees has been too good, as top consulting firms delayed start dates for new MBA graduates due to the recent glut in new hires. In contrast, procurement is facing the opposite issue.
Even as experienced procurement professionals transition to upper management or retirement, the procurement workforce has seen an increase in its average age. The recruitment of young, passionate professionals should be a priority for companies looking to retain a strong purchasing team and cost savings in the long term.
What is the average age of a procurement professional?
The average age of a procurement professional is 46 years old, which is noticeably higher than other professions. For example, the average age of individuals working in management consulting is 43, while software engineers possess an average age of 39. These two career paths tend to be among the most ‘popular’ for college graduates, with consulting firms and tech companies heavily recruiting current university students and new graduates.
In the last few decades, longer life expectancy in the United States has been the primary driver of aging workforces across all industries, with the number of workers over 55 doubling in the last 20 years. With an older workforce, businesses incur higher labor costs in the form of high salaries, insurance, and paid time off that has accrued over many years. Additionally, when these individuals decide to retire, firms lose valuable experience and industry knowledge that is not guaranteed to be replaced with new hires.
Individuals are also working longer than in the past due to an inability to afford retirement. In the procurement field, however, this issue should be mitigated. Though California’s cost of living is higher than many other states, the average salary of a procurement manager in Los Angeles ranges from $121k and $153k, compared to an average salary of $87,000 for product managers in the same area. The median salary for procurement managers in the United States is $123,400.
The above-average salary for procurement managers should result in a workforce that is able to effectively plan for retirement. While this is a positive sign for employee satisfaction, it ultimately puts procurement at risk of losing institutional knowledge sooner – a factor that businesses must account for.
Therefore, it’s imperative that businesses begin training the next generation of procurement professionals while their current leaders can train and educate them while simultaneously investing in solutions that can train staff and minimize the loss of institutional knowledge.
Why should procurement focus on the next generation?
Finding new hires in the procurement field will only grow more important as time passes and existing professionals begin to reach retirement age. Organizations can help retain employees with valuable skill sets by implementing strategies that revolve around encouraging their individual growth, providing opportunities to learn new skills, and fostering an environment that supports an employee's overall job satisfaction.
Hiring a recent college graduate and gradually tasking them with more important duties, thereby empowering them and facilitating their personal and professional growth is a proven management methodology that procurement must lean into to rejuvenate the industry and inject it with fresh ideas.
Employers that focus on employee satisfaction also find a marked increase in employee loyalty, as work-life balance and job satisfaction remain one of the top considerations for candidates evaluating careers. By recruiting and elevating young professionals, you can ensure employees with valuable skills and perspectives stay with your business longer.
The coronavirus pandemic rapidly transformed the work environment towards digitalization and remote collaboration. Younger employees are often better equipped to adapt to this change. Many millennials have even become ‘reverse mentors’ and helped their older coworkers adjust to the digital world. This improved engagement and job satisfaction for both parties, demonstrating just one benefit of a diverse workforce and introducing more young workers to the procurement field.
Recent global events like the pandemic and the Russian invasion of Ukraine also provided valuable experience for new procurement professionals. With the global supply chain becoming more complex and volatile than ever, events like these prepare the next generation of professionals for future adverse trends on the horizon.
These include material scarcity, worsening economic conditions, and high inflation. This experience will nurture an employee’s ability to react to drastic changes across multiple categories, strengthening your team and potentially leading to cost savings or prevention the next time world events affect categories and supply chains.
Where should you start recruiting?
Procurement departments should understand that the training of procurement professionals does not occur over a short period, but rather through years of valuable experience, support, and training. There are tangible opportunities in the talent acquisition of young, recent graduates that show an interest in the field.
Seeking new graduates with interesting and valuable skill sets, then training them to become confident and competent category managers and sourcing professionals will ensure procurement as a profession continues to be a high-value necessity for strategic businesses. Prioritizing job satisfaction through internal hiring and promotions will also increase the likelihood that these recent graduates will become valuable experts in your procurement department in the long run.
There are multiple ways procurement departments can recruit young talent in the coming years. College career fairs are alive and well and are a great way to meet interested candidates in person, improve brand recognition, and educate young professionals about procurement as a viable, engaging profession.
Additionally, posting on university career portals is a great way to garner interest from job seekers. This method would be highly effective in advertising the procurement field to a population that may not understand procurement and its opportunities, as well as recruiting those that did not initially have an interest before their job search began.
Where are the procurement teams at career fairs?
When you think of a career fair, you probably imagine recruiters from finance, consulting, engineering, and tech companies. They’re searching for management consultants, product managers, and computer engineers.
Procurement rarely, if ever, factors into these recruitment conversations. It’s not a point of discussion among students or professors — yet.
As a business analyst for a procurement market intelligence provider, I often find myself having to first explain the procurement field when discussing my career. When speaking with family and friends outside the industry, how many times have you had to define your title or change it to something more familiar, like purchasing, buying, and other synonyms?
Procurement departments are integral to many businesses’ bottom lines, but the name recognition is just not there yet, which may contribute to the current lack of new blood in the field. Procurement is still a growing initiative among many companies, and it has yet to reach mainstream appeal and awareness. Educating young professionals about the industry is a crucial next step to hiring and retaining talent in future procurement positions.
Final Thoughts
Procurement is on the rise. There are great thinkers and leaders in the industry that are leading the charge into solidifying procurement’s role as a critical element of strategic businesses.
That’s why procurement should begin recruiting its next generation of thinkers and leaders now – while there’s still time for the current generation to pass down their wealth of knowledge.
Procurement departments should understand the value of hiring the next generation to ensure they gain valuable experience from current professionals and that industry experience is not lost. As we enter an uncertain landscape for the remainder of 2023, it is more important than ever for procurement to plan for the future.
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