SUMMARY

Recruitment across permanent roles remained fairly steady for us again over the quarter, showing very similar hiring patterns to this time last year with many organisations utilising new FY budgets to kick start a range of strategic uplift plans, supported by both perm and contingent labour hires.
Our overall contractor numbers have also remained strong over the quarter across all key sectors with healthcare, FMCG, mining, energy and education the standout sectors.
Demand for contracting talent with 5+ years of contract management experience currently remains high, as does category management, with IT and FM categories leading the way.
We have also seen an increase in demand for procurement contracting talent with risk, assurance and governance skills over the last three months, combined with strong reporting, data and analytical skills.
Across Supply Chain, Supply Planners have been in demand and, at the more senior level, we are seeing an increase in requests for Supply Chain Managers across all industries, particularly those with automation skills.
With more than 20 years of procurement and supply chain experience across most of the major continents, and with senior roles in a range of sectors, including mining, aerospace and tech, we had the privilege of spending some time with Victor Cavalcante this month.
Candidates returning to the market after extended periods away from the workforce can find it challenging so we explore some of the things that can help to navigate through this process.

MARKET UPDATE

Recruitment across permanent roles remained fairly steady for us again over the quarter, showing very similar hiring patterns to this time last year. A range of factors support these numbers, including many organisations utilising new FY budgets to kick start a range of strategic uplift plans, supported by both perm and contingent labour hires.

A noted increase in Sydney based procurement and supply chain candidates looking to move to QLD is reflective of the broader migration patterns that have existed between the two states for some time now. At a national level, we have seen increases of around 15% in new placements where the candidate has been sourced from another state over the last 6 months.

Further, whilst proposed changes to international migration rules may impact the types of candidates coming to Australia in the coming years, those organisations that are prepared (or in some cases forced) to look at overseas candidates to meet skills and capability requirements that may not be readily available within the Australia market are engaging some really strong candidates.

Whilst relocation presents certain hiring risks, including last minute cold feet (especially where sourcing from overseas), where these risks are carefully managed throughout the recruitment process then organisations can really tap into a talented, skilled and broad candidate pool.

Across our contracting desk, overall numbers have remained steady over the quarter across all key sectors with healthcare, FMCG, mining, energy and education the standout sectors. Low unemployment rates combined with strong levels of contractor engagement and retention across the major sectors, including high contractor extension rates, have helped to support these numbers.

In terms of in-demand skills and experience, contracting talent with 5+ years of contract management experience currently remains high, as does category management, with IT and FM categories leading the way. We have also seen an increase in demand for procurement contracting talent with risk, assurance and governance skills over the last three months, combined with strong reporting, data and analytical skills.

Across Supply Chain, Supply Planners have been in demand. At the more senior level we are seeing a steady demand for Supply Chain Managers across all industries, particularly those with automation skills.

Data quality is crucial to all organisations and underpins the success of so many procurement and supply chain strategies. However, the effectiveness of these initiatives also relies on having the right capabilities in place, including people that (amongst other things) have strong systems knowledge and technology experience, can source meaningful data, and can then action this information effectively and with real value to the organisation.

We have seen a steady increase in demand for these skills and capabilities over the last 12+ months as organisations look to have the right capabilities in place to support a range of strategic initiatives, and fully implement these projects.

Candidates with experience across the key systems and technology used in the procurement or supply chain lifecycle remains in high demand, but we have also seen an increase in demand for candidates with experience in the design and implementation of data governance frameworks and protocols as many organisations look to upskill in this important area.

SPOTLIGHT

With more than 20 years of procurement and supply chain experience across most of the major continents, and with senior roles in a range of sectors, including mining, aerospace and tech, we had the privilege of spending some time with Victor Cavalcante this month.

Q. How did you get into procurement?

Back in the days, as a Chemical Engineer graduate and MBA student, I started my career in technical and operational roles in the consumer goods industry. At that time procurement was largely viewed as a tactical, back-office function focused primarily on transactional activities, but with a significant potential to be developed. That is when I had the opportunity to join the aerospace sector being exposed to a technology-driven and international landscape that could be vastly impacted by strategic procurement.

Q. What are some of the opportunities and challenges that you see for the sector over the next 6 to 12 months?

Some of the opportunities may have to be addressed way beyond 6 to 12 months, but topics such as Artificial Intelligence and Automation, ESG (Environmental, Social and Governance) compliance and a relentless focus on attracting and developing talent need to be part of any discussions about the value that can be delivered by the Procurement function.

These are very dynamic times with more information available than we can possibly process and limited borders enabling ease of communication globally. Setting a clear Procurement vision fully aligned to the business requirements and adaptable to an ever-changing environment is key and will help establishing priorities, but needs to be executed by an open-minded and motivated team able to allocate time wisely whilst being supported by efficient and fit for purpose systems.

Q. You have worked in senior roles across a number of different countries. What are some of the main differences between the procurement and supply chain sector here versus overseas?

Living and working across multiple continents such as North America, Latin America, Europe, Asia, and recently Oceania presented a unique set of learning opportunities and challenges. I have learned to appreciate and respect diverse cultures which enhanced my personal and professional growth.

While Australian businesses increasingly participate in global supply chains, the level of integration may be lower compared to countries with more central geographic locations or larger economies. The local economy has a strong focus on natural resources and agriculture, which shapes its procurement and supply chain priorities differently to those that are more technology and manufacturing-focused. Lastly, Australia has been somewhat slower in adopting advanced supply chain technologies compared to some leading overseas markets, though this gap is narrowing.

Q. What are your views on AI and how that might affect the sector in the future?

Digital technology is already enhancing both performance and sustainability across different sectors of the global economy. By exploring the full potential of data and AI, its impact can be accelerated, unlocking innovation and driving significant value creation across the whole supply chain. Despite concerns about job losses, our focus should be on supporting our teams to develop proper capabilities which will be much needed in the future.

Regarding Procurement, there will be several opportunities to improve the function efficiency including, but not limited to, automation of transactional tasks, AI-powered conversational interfaces that can handle supplier enquiries, much enhanced predictive data analysis, proactive risk assessment and streamlined execution and enforcement of contracts.

While AI offers great potential, it is critical to maintain human oversight in critical decisions and ensure data quality and integrity to power AI systems.

Q. What career advice would you give to your younger self?

Do not be overly concerned with your mistakes – learn from them and remain resilient, embrace lifelong learning, never underestimate the importance of building relationships, develop risk tolerance at an early stage of your career – explore different roles and consider opportunities outside your comfort zone. Finally, always think one or two levels above your current role – this will help expand your strategic mindset and potentially provide a catalyst for career progression.

Q. What is the best part of your previous roles in procurement?

I enjoyed working in dynamic environments where there were engagements with various stakeholders, suppliers, and departments. This variety keeps the work intellectually stimulating, allowing me to continually develop cross-functional skills and adapt to new challenges.

Q. What does life look like for you outside of work?

I am passionate about sports and music, having a weekly routine that includes HIIT, weight lifting and cycling – always with my ear buds on. Living in Perth during the last 3 years has allowed my family and I to explore outdoor activities and enjoy the fantastic local nature. Other than that, we love travelling, rarely revisit the same destination and enjoy being exposed to new and different cultures.

A FEW MOVERS IN THE MARKET

Congratulations to everyone who moved into new roles over the quarter, including:

Matthias Fuchs who joined Knauf as Procurement Director, Asia Pacific.
Jackie Aggett who joined Transgrid as Chief Procurement Officer.
Lynda Stern who moved internally to a GM Group Supply Chain role at Ventia.
Sharyn County who moved from Jemena to APA as General Manager Procurement and Real Estate.
Claudia Teal who left News Corp to join ING as Head of Procurement.

MARKET OBSERVATIONS – CANDIDATES RETURNING TO THE MARKET

I have spoken to three really strong candidates over the last few months who are all looking at returning to work after leaving their previous roles (more than 18 months ago) to take some extended time out. These are strong candidates, each with over 8 years procurement and supply chain experience, but all three were struggling to secure suitable roles in the market.

Leaving any role for extended periods of time can carry a risk, and candidates returning to the market after extended periods away from the workforce can find it challenging. Systems, processes, procedures, laws and regulations etc. all change very quickly (although often not as quickly as you may think), many candidates do not maintain their CVs or LinkedIn profiles, others may not have been to an interview or through the assessment process for many years, and some simply lose their confidence.

However, there are some things that candidates can do to help them to navigate through this process, and secure the right role, including:

Spend some time on your CV – There are some great templates that can be utilised online and many recruiters (including our team) offer free CV review services to candidates. Please also see our recent article on writing a winning CV, which hopefully provides a bit of guidance here.

Polish up that LinkedIn profile – Hiring teams and recruiters spend a lot of time looking at LinkedIn profiles so make sure that it is up to date and really stands out. Again, good recruiters can help you with this.

Network – I have said this before but most return to work candidates find their new roles through existing contacts. Again, LinkedIn is a great place to start so reach out to old connections, inform them of your intention to return to the workplace and find out what is happening in the industry (including new and emerging trends). I have seen many candidates secure roles through this approach, with positions often created to secure really strong candidates.

Be clear on what you want – I have spoken to many candidates who are going through the application or interview process but are still unclear on what their ideal return to work plan will look like. This may include salary expectations or daily rates, role type or level, location or preferred working arrangements (e.g. perm, contracting, hybrid working arrangements etc.). I have also seen candidates that have been completely burnt out in certain roles or industries and then fall back into the same environments that made them leave the market. So, take some time to reflect before you start the process, work out your non-negotiables (write them all down) and be very clear on this before applying for roles. Again, recruiters can add a lot of value here to candidates in terms of role types, salaries, working arrangements etc. so don’t be afraid to reach out and ask.

Take your time – I have seen candidates that rush into the first real opportunity that they are offered which often does not work out well for the candidate or the hiring organisation. Whilst the process is daunting, and factors like financial pressures may impact your decision, planning really does help to produce better outcomes. Candidates that have more success here often start with their ideal return to work date and start to plan several months in advance, including taking the steps above.

Hiring process – As well as the normal research that you should do on any potential hiring company, it is also important to get up to speed on changes in the industry – new systems, technology, laws/regs etc. Again, recruiters can help you through the often daunting interview and assessment process, but your networks can also help, and there is so much readily available information online now that can support you in this process, including sample assessments and interview questions. Also be prepared to be asked questions on your reasons for taking time out, perhaps how you have maintained your knowledge on industry changes and what your broader career plans may be.

For hiring organisations, remember that return to work candidates often have some incredible skills and experience that really do not diminish with time and can add significant value to your organisation. This can include management and leadership skills, project management, stakeholder relationship management and years of contract and category management experience. Being a parent of three children, I also know that my own time-management skills have improved (and definitely my conflict resolution skills!).

Thank you once again for your continued support and we look forward to speaking to you very soon.

Ilsa and the team.