Combating the Pressures That Inflate Procurement Turnover

In a recent article with Supply Chain Executive, Kim Neisen, Director of Talent at ProcureAbility, shared how increasing procurement turnover is adversely affecting organizational performance. While supply chain professionals may generally report satisfaction, there is still room to improve employee retention. Kim offers her thoughts on strategies that could help create a positive work environment where employees will want to stay.

Receiving an employee’s two-weeks’ notice can spur feelings of anxiety and concerns for the continuity of your operations. Employee turnover leaves a gaping hole in your talent and operations. That individual is taking with them their skills and tacit knowledge about your company’s procedures and goals. It will take weeks to find another skilled candidate and onboard them. And then it will take months or years before they perform at the previous employee’s level. When this happens more than occasionally, you’re in even more trouble. High turnover rates lead to increased recruitment costs, loss of knowledge, and decreases in organizational efficiency, financial performance, and strategic continuity.

On average, U.S. businesses lose nearly one in every four employees over the course of a year—a slow leak that feels more like a big blowout. While supply chain professionals in general report high career satisfaction levels, recent pressures are leading to burnout for procurement professionals. At the top of the supply chain process, these professionals are the critical link that acquires the materials, goods, and services for the next stage of operations. When a procurement professional leaves, supplier relationships are disrupted, rogue spend increases, and there is instability within the procurement team.

On top of these disruptions, replacing a worker generally costs a business a third of the employee’s annual salary—an amount that can vary widely based on employee level and seniority—according to Employee Benefits News. Given these disruptions and costs, stemming employee turnover should be a top priority for all businesses.

Read the full article in Supply & Demand Chain Executive.

Kim Neisen is an industry expert with over 25 years of proven experience in talent acquisition, managed services, and procurement. She has an extensive history of driving innovation and enhancements that elevate operational effectiveness, employee engagement, and client satisfaction.  Kim believes in leading by example and finding innovative ways to provide value to clients, candidates, and her peers.

Prior to working at ProcureAbility, Kim led the global, enterprise-wide Professional Services MSP under Global Spend Management at Aon Corporation, where she earned the Outstanding Buyer of the Year award from the Chicago Minority Supplier Development Council.

ProcureAbility, a Jabil company, is the leading provider of procurement services, offering advisory, managed services, digital, staffing, and recruiting solutions. For nearly 30 years, we have focused exclusively on helping clients elevate their procurement function.

We combine leading methodologies, analytics, market intelligence, and industry benchmarks with our uniquely flexible and customizable service delivery model. Global organizations of all sizes trust ProcureAbility to transform their procurement operations, drive growth, and reimagine what’s possible.

Let ProcureAbility help you reimagine your procurement capabilities.