With reports indicating that we are heading toward a global recession, you are right to be putting in place a plan of action for the future of your business. One important thing that you might not have considered: have you thought about how your hiring strategy might look in the coming years?
Taking on new talent and speaking to recruitment agencies can be the last things on your mind during times like these, but it shouldn’t be. A recession, as challenging as it is, provides an opportunity to tighten your practices and set new goals. It means a mindset shift that is more than just changing working habits. When forced to look at your entire business in a new light, you will surely realize areas of weakness within your teams; hiring new staff is very often vital for rejuvenating and strengthening them. Sometimes it’s better to cut costs on IT or crunch down on miscellaneous spending to ensure that you hire that person that’s going to lead your business to returned prosperity.
This is why a great recruitment strategy is crucial and, with that said, here is a list of the 5 tips that help you attract and retain the best talent during a recession.
An economic downturn doesn’t have to have devastating consequences for your business. It goes without saying that planning is crucial in order to avoid lost revenue and having an effective recruitment strategy is equally important.
With more competing opportunities than ever before, employers are looking for ways to develop a healthy pipeline of talent as well as retain the competent employees they already have.
Greetings, Earthlings! I’m excited to announce that Purple Tree
Recruiting is launching our brand-spanking-new One Question Survey for
HR Professionals. The OQS is a quick, painless survey that we created to
quickly gather feedback from our friends in Human Resources.
Because you’re busy! Far and away, the number one complaint we hear
from HR professionals is that you’re overworked. That’s why in our quest
to learn as much as we can about HR teams we decided to keep it simple
and most of all quick. It takes less than 30 seconds to answer the OQS,
making it the easiest thing you’ll do today.
Every week we’ll make the results of the OQS available to everyone.
Whether you’re curious about what your peers think, or are looking for
data on HR for your own purposes, the OQS results are insightful and
Big Data is on the lips of every consultant from Silicon Valley to Dubai and it seems like these days everyone has a new tool or platform that claims to use data to drive profits and efficiency. The reality on the ground is entirely different however, as we encounter executives everyday who struggle to integrate data into their decision-making or worse, pull the wrong conclusions from the data that is available.
With a greater portion of products and services resting in the hands of third-party suppliers, the race is on to solidify consistent, long-term supplier partnerships. But just because the fundamental nature of the buyer-supplier relationship is changing doesn’t mean suppliers have the upper hand.
The power of reciprocity is more important than ever, in fact, as the harmonization of the buyer and supplier relationship becomes more and more vital to ensure intelligent, scalable, and sustainable growth.
In this day and age, the success of any buyer-supplier partnership is not only contingent upon a mutual understanding that there’s more than one business opportunity out there. It also rests on the establishment of a mutually beneficial, performance-oriented agreement.
This increasing need to curate and sustain value to remain competitive today has redefined the significant and overall concept of supplier relationship management from the ground-up.
“Old-School” Supplier Relationship Management
The traditional objective of supplier relationship management (SRM) has been to ensure contract compliance and mitigate risk through the proper management of third-party suppliers. But conventional SRM is short-sided in that it’s essentially focused on the exchange of monetary value for a product or service.
Instead of investing in a transparent and ongoing relationship that generates value for both parties, traditional SRM is heavily geared towards managing the final step in the traditional procurement process and ensuring previously agreed upon terms are met.
80% of survey respondents in a recent American Productivity & Quality Center (APQC)study claimed that SRM implementation has improved supplier reliability and reduced risk. But considering how critical suppliers are in delivering products and services today, viewing third-party suppliers as a potential liability and source of risk can be a huge business mistake today.
This rigid approach to SRM can potentially hinder the level of innovation and value that can come out of a more constructive, valuable, and sustainable buyer-supplier partnership. Instead, determining the most valuable suppliers and establishing a reciprocal supplier relationship based on transparency, innovation, and continuous two-way prosperity is critical to retaining a competitive advantage.
“New-School” Supplier Relationship Management
There are a ton of potential suppliers out there and even more procurement departments competing for supplier attention, best pricing, and priority insight into future product launches and how to stay ahead of the pack.
Considering suppliers play such a huge role in the production and delivery of products and services, securing the right suppliers and moving towards a more strategic supplier relationship that is sustainable and mutually beneficial for both the party’s bottom line is more important than ever. So how can you achieve a value-oriented supplier relationship?
We’ve outlined three action plans designed to foster a more constructive and sustainable supplier relationship. We like to call this the “new-school” concept of SRM.
Determining the most valuable suppliers
There are two predominant concepts that can be used to identify your most valuable suppliers, the second being the most relevant given the changing nature of supplier relationship management:
Comparative advantage is an economic strategy used by global supply chains and companies that may ideate locally but produce and manufacture products abroad. In essence, the principle of comparative advantage is based on the mindset that countries should manufacture the products that best minimize total operational costs and import everything else. But the comparative advantage concept has noteworthy pitfalls.
Quality standards, compliance standards, and consumer expectations, for example, differ from country to country, market to market. Products that are able to meet all of these criteria are often more expensive. And with thecurrent trade and tariff environment, establishing tariff-proof supplier relationships along with competitive (and consistent) import prices brings with it another web of challenges.
Supplier performance management (SPM), on the other hand, is an effective up-and-coming, end-to-end solution to determine your most valuable suppliers. The best practices in SPM can also be used by bothlocalized supply chains and global operations.
Supplier performance management focuses on evaluating suppliers based on delivery fulfillment, product and/or service quality, lifecycle costs, trustworthiness, integrity, and various other applicable criteria. Because supplier performance is extremely volatile at times, SPM is a comprehensive and continual process that’s often integrated into real-time SRM software, which we’ll discuss in a minute.
2. Establishing performance-based contracts
Predetermining mutually beneficial goals and contractual terms for every point in the supply chain is key to any sustainable supplier relationship.
TheInstitute for Supply Management has pinpointed 145 different types of relationships between buyers and third-party suppliers. Out of these established buyer-supper relationship links, the following are known to breed the most collaborative and reciprocal arrangements:
3. Using technology to build transparency
Constructive buyer-supplier relationships depend on trust, transparency, and reciprocity. Having the right technology in place can streamline the process of meeting these needs by:
Integrated and real-time supply chain management and supplier relationship management software are on the rise to solve problems stemming from a lack of resources and clearly outlined procedures allocated to SRM.
Modern SRM software continues to rise to such challenges by embedding supplier segmentation, SRM, SPM, and supplier development into the design of comprehensive SRM software features such as demand forecasting and planning, sales and operations planning, procurement fulfillment, logistics, and supply chain visibility.
Navigating the Emerging Performance-Based Supplier relationship
Given the integral role that suppliers play in product and service fulfillment and delivery today, supplier relationship management is rapidly evolving. Establishing value- and performance-based contracts defined by mutually beneficial goals and KPIs is indispensable for cultivating and nurturing consistent, long-term buyer-seller partnerships.
What’s your game plan to navigate the emerging value-based supplier relationship to not just stay afloat, but thrive in the long haul?
Smart technologies are continuing to solve inefficiencies in the supply chain, customer expectations are becoming increasingly stringent, and the future of global trade in flux.