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In February 2014, the Michael Page Procurement & Supply Chain team delivered a presentation to clients which included insights on the economy, current industry trends, salaries and the evolving labour market.
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26TH FEBRUARY, 2014
PRESENTED BY RICHARD DUNLOP AND CHRIS CLARKE
AGENDA
PageGroup Overview
Areas of Specialisation
The Decade in Review
What Did We See in 2013?
Current Industry Trends
Salary & Employment Forecast 2014
Has the Recruitment Landscape Changed?
Summary
PAGEGROUP OVERVIEWGLOBAL COVERAGE
PAGEGROUP OVERVIEWASIA PACIFIC COVERAGE
PAGEGROUP OVERVIEWAUSTRALIA & NEW ZEALAND COVERAGE
PAGEGROUP OVERVIEWPROCUREMENT – CAPABILITY AT ALL LEVELS
LEADERSHIP
MANAGEMENT
SUPPORT
PAGEGROUP OVERVIEWSUPPLY CHAIN & LOGISTICS– CAPABILITY AT ALL LEVELS
LEADERSHIP
MANAGEMENT
SUPPORT
THE DECADE IN REVIEWTHE AUSTRALIAN ECONOMY
Annual GDP Growth
THE DECADE IN REVIEWANNUAL EMPLOYMENT GROWTH
THE DECADE IN REVIEWANNUAL EMPLOYMENT GROWTH
NSW & Australia (2004-2013)
WHAT DID WE SEE IN 2013?
The demand for Procurement professionals declined sharply in Q1 and did not lift again until Q4
Demand across Supply Chain and Logistics remained steady throughout 2013
Subdued domestic market influenced by mixed global economic conditions
The promise of post-election movement is still yet to be fully realised
Organisations remained focused on the ‘bottom line’
The importance of Procurement and Supply Chain as strategic functions continued you to grow
Employers demanding greater depth/diversity in skill sets
IS THE CURRENT MARKET THE “NEW NORMAL”?
There are no forecasts for a large spike in the market
Tier 2 & Tier 3 organisations investing more heavily in systems, process, frameworks and governance
Businesses are generally more positive about the outlook for 2014
Lack of growth focus is good news for Procurement and Supply Chain
Increase in restructures within management teams
Delayered teams place a premium on retention of best talent
INDUSTRY TRENDS
Procurement
Continued strong demand for highly technical candidates
Early resurgence in market has highlighted need to continue to focus on cost base, to ensure profit rises
Salaries are still above market rate – retention & attraction strategy?
Supply Chain
We tend to see very few requirements for supply chain talent in Financial Services, with the exception of specialised logistics services and management consultancy
FINANCIAL SERVICES
INDUSTRY TRENDS
Procurement
Specific experience highly valued: Software, Services, Hardware or Infrastructure. More focus on non-IT Indirects
Continued off-shoring of operational functions places higher emphasis on regional procurement experience
ERP platforms are becoming more user friendly across organisations. This has been in large part due to the influence of procurement functions
Supply Chain
Generally well developed outsourced supply chain management functions. Current focus on driving commercial value through 3PL/4PL partners
The growth in this sector has been in supply chain analysis
IT & T
INDUSTRY TRENDS
Procurement
Swing towards FMCG, Food & Personal Care in terms of demand. Pharmaceutical and Healthcare flat.
Low cost country sourcing highly valued, even more so in finished goods.
Professional, business & corporate service categories becoming more important to the executive management group
Supply Chain
In the Supermarket industry suppliers have had to upskill and grow their supply chain capability in collaboration with the retailers
Organisations with traditional focus through the grocery channel are now increasingly driving growth through alternative markets, eg Online
CONSUMER GOODS
INDUSTRY TRENDS
Procurement
Tough year in 2013 – two speed economy no longer exists.
QLD seeing greatest growth in industrial sector with LNG, resource & construction projects leading the way
Mix of centralisation & decentralisation of procurement functions is sending mixed messages to the market
Supply Chain
Import and distribution functions are becoming more critical in Australia with manufacturing moving overseas
Managing 3PL contracts has become a challenging and niche skill set requirement
With the mining sector steadying, there has been an increase in recruitment for supply and demand planners
INDUSTRIAL
SALARY & EMPLOYMENT FORECAST 2014SALARY & REMUNERATION
SALARY & EMPLOYMENT FORECAST 2014RECRUITMENT ACTIVITY
SALARY & EMPLOYMENT FORECAST 2014ATTRACTION & RETENTION
SALARY & EMPLOYMENT FORECAST 2014ATTRACTION & RETENTION
HAS THE RECRUITMENT LANDSCAPE CHANGED?
Employees struggling to see career progression, causing staff turnover
Companies are short-term focused in their replacement strategy
This is in-line with a shorter term goal focus / cost focus in a challenging economy
Candidates become more specialised – less breadth of skills/industry knowledge
Creation of perpetual ‘job recruitment’ rather than career development
Often outside the control of staff retention strategies if the next step isn’t realistically available
THE EFFECT OF STRUCTURAL EFFICIENCIES
HAS THE RECRUITMENT LANDSCAPE CHANGED?
Group Discussion
Has the current economic environment impacted your approach to recruitment?
THE EFFECT OF STRUCTURAL EFFICIENCIES
HAS THE RECRUITMENT LANDSCAPE CHANGED?THE EFFECT OF STRUCTURAL EFFICIENCIES
HAS THE RECRUITMENT LANDSCAPE CHANGED?
Access to candidates is now far
easier
Job boards provide an
un-targeted approach
Aggressive LinkedIn campaigns
can have a detrimental effect
Greater sophistication is
essential in effective candidate
management
MANAGING THE CANDIDATE MARKET
The difference between passive and active candidates is evaporating
Active Passive
SUMMARY
The employment market proved to be inconsistent throughout 2013
Should we accept the current market as the ‘new normal’? The outlook for 2014 continues to be cautious with some level of
optimism
Companies continue to be bottom line focused – good news for Procurement and Supply Chain professionals
There are longer term effects of efficiency restructures With greater access to a broad candidate pool, correct candidate
management is crucial for an efficient recruitment process and company EVP
THANK YOU
Any questions?
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