In September 2016 I was lucky enough to attend Lora Cecere’s (founder of Supply Chain Insights) Imagine the Supply Chain of 2030 Global Summit. I found the conference extremely insightful and wanted to share with you some of my key takeaways from the event. This is the first article in a four part series to be published in the coming weeks, “Incubate your own talents”.
Talent shortage in the supply chain industry is a known issue, especially with the demand for middle management positions. The rapid expansion and increasing complexity of the industry, the qualifications needed for supply chain professionals are expanding. The industry does not have enough qualified people making invaluable decisions.
Great talent lies within every company waiting to be discovered and developed. But most of us tend to ignore this fact, or perhaps lack the sheer knowledge of it. We look outside whenever there is a need for specific skills in the organization. As a proactive business in the supply chain management industry, you should identify and cultivate talent within the existing talent pool. Sourcing internally is better than looking outside for several reasons.
Improved employee morale and engagement
Employee engagement plays a major role in the success of an organization. Employees who are involved in development opportunities feel a sense of belonging and appreciation. It’s a sign that you care about their personal and career development goals, and this, in turn, creates morale, motivation and greater job satisfaction in your workforce (Gill, 2014).
Boosts employee performance
Employees with opportunities for career advancement strive to achieve something more valuable and meaningful than their day-to-day work. Developing talents internally enables employees to have a more well-rounded skill set, which help enhances their performance. They become motivated, inspired and equipped to train other people around them.
Decreased employee turnover
Many companies in the supply chain management industry may see internal talent development as a gamble. If an employee resigns, the investment is watered down, and he could potentially move to a competitor. This is a mere misconception. The truth of the matter is that talent development is essential in the retention of employees. In fact, it’s a proven retention strategy that is adapted by successful companies in the industry. Employees who are appreciated and inspired are more likely to stay loyal to your company, reducing turnover as well as the direct and indirect costs that come along with it (Wilson, 2016).
Reduced hustle and cost of hiring new employees
Internal recruitment is obviously less expensive and less time consuming compared to external recruitment. It is not unusual for an external hiring process to take two months or more from the time you advertise the job to the first day at work. And the processes in between this period – interviewing and short listing candidates – are mind-numbing. Finding a candidate internally, whether to fill a new position or to backfill a position, does not require such extensive amount of effort and time.
Employees who are progressively trained and promoted into new roles are likely to achieve greater success than their external counterparts. Of course, the internal recruits will have better knowledge of internal systems and company values enabling him to take less time in settling in the new position.
Adopting a culture of developing talent within your company, rather than outside, is a great way to leverage the output of your employees, boost their morale and amplifies their loyalty. You skip you the rigorous process of recruitment and are rest assured of success in the new role assumed. It’s an investment with a definite ROI.
Supply Chain Insights LLC, Supply Chain Talent (2014, June – October)
Supply Chain Insights LLC, Global Summit Survey 2016 (2014, August)
Gill, A. (2014, November 3). Human Resources. Retrieved November 14, 2016, from The top 10 Benefits of Ongoing Staff Traiing and Development: http://www.saxonsgroup.com.au/blog/human-resources/top-10-benefits-of-ongoing-staff-training-development/
Wilson, T. (2016, May 18). Talent Space. Retrieved November 14, 2016, from The Benefits of Cost Effective Talent Development: http://www.halogensoftware.com/blog/the-benefits-of-cost-effective-talent-development