10 Strategies to Boost Workforce Retention

Forget "build it and they will come" → How about "invest in it and they will stay"?

In the competitive world of procurement, retaining top talent is vital for organizational success. Your procurement organization plays a crucial role in driving cost efficiency, fostering supplier collaboration, and promoting innovation. High turnover of procurement talent can undermine those benefits and lead to increased costs from recruitment, training, and lost productivity. Losing top talent can also disrupt supplier relationships and impede long-term procurement strategies.

By implementing strategies that prioritize career development, recognition, work-life balance, and professional growth, organizations can cultivate an environment where procurement professionals thrive. The outcome is a cohesive, skilled, and dedicated procurement team that significantly contributes to your organization's strategic objectives and could provide you with substantial savings in solvable turnover.

Chief causes and impacts of turnover

On average, US businesses lose nearly one in every four employees over a year. Each one of those voluntary departures comes with a cost. While the numbers fluctuate widely based on seniority, replacing a worker generally costs a business a third of their annual salary, according to Employee Benefits News.

To effectively address these outflows, it is crucial to first uncover the underlying reasons behind the turnover within your procurement team. Failing to pinpoint these causes makes it significantly more challenging to develop strategies that will drive positive change in the desired direction.

Neglecting these crucial areas can result in increased recruitment costs, decreased revenue, diminished employee morale, and the loss of institutional knowledge, especially if your organization experiences high turnover rates among your more seasoned staff.

10 steps to reduce and prevent procurement talent turnover

By regularly assessing employee turnover rates, engagement levels, and soliciting feedback from your procurement team, you can gain invaluable insights into their satisfaction and areas for improvement. For example, conducting surveys, one-on-one interviews, and organizing focus groups allows you to analyze trends and identify patterns that reveal common reasons for departure, which in turn enables you to address the underlying issues effectively. Additionally, training your people managers to take an active interest in their direct reports and serve as both mentors and advocates can further help retain top performers.

While this provides a strong starting point, procurement organizations can take further steps at every stage of an employee's career. By ensuring team members are the right fit, adequately motivated, and properly developed, organizations can help employees feel like valued contributors.

1. Hire the right people

Reduce or avoid employee turnover by making sure you are hiring the right people for your team. Take the time to thoroughly vet candidates and ensure they align with your company's values, goals, and culture. This will not only help you retain employees, but also create a cohesive and productive team.

2. Establish clear career paths

Provide transparent career paths by outlining potential roles, responsibilities, and qualifications required for advancement within your procurement team.

3. Provide opportunities for career advancement

Offer continuous training and development opportunities to improve your procurement teams' skill sets. Encourage your team to attend workshops, seminars, and obtain certifications to stay updated on industry trends, such as ISM, Certified Professional in Supply Management (CPSM), and Chartered Institute of Procurement & Supply (CIPS).

4. Offer competitive compensation and benefits

Compensate employees well, since competitive wages and benefits can boost employee loyalty and encourage them to stay longer in your organization.

5. Provide consistent and relevant feedback

Conduct performance evaluations that are meaningful and provide coaching, obtainable goals, and career aspirations discussions. These evaluations will promote a culture of open communication and individual growth.

6. Prioritize work-life balance

Offer flexible work hours, remote work options, and family-friendly policies that promote work-life balance and reduce burnout.

7. Create a supportive work environment

Establish a mentorship program by pairing experienced professionals with newer team members to facilitate knowledge transfer and personal growth.

8. Develop a strong work culture

Cultivate a supportive and inclusive culture that aligns with your company's and procurement department's values and promotes a sense of belonging.

9. Demonstrate your company impact

Highlight to your organization the positive impact procurement has on the organization's overall goals, sustainability, and social responsibility.

10. Conduct exit interviews

Hold exit interviews to better understand why employees are leaving your company. These conversations with departing employees can provide valuable insights into any issues or concerns within the organization that may be contributing to turnover. Use this information to make necessary improvements and prevent future turnovers.

Become an employer of choice

A career in procurement offers unique benefits, diverse opportunities, and robust avenues for professional development. These factors collectively make it an attractive field for individuals seeking growth and impact in their careers.

But employees have choices, and you need to do what you can to ensure your organization shines above the rest when it comes to providing both opportunity and fulfillment. By maintaining an ongoing feedback loop, organizations can fine-tune their retention approaches, implement timely interventions, and foster a culture of continuous improvement that keeps everyone rowing toward the same horizon.

References:
¹ The Cost of High Turnover
² Results of the 2023 US and Canada Turnover Surveys

Author:

Kim Neisen

Director of Talent, ProcureAbility