Compensation in a Hot Job Market

It will come as a surprise to few that there is a major talent shortage within the procurement function right now. Indeed, I’ve seen a level of recruiting activity over the past 6-9 months that I’ve not witnessed in close to a decade, and with many people having already moved jobs during this time, current procurement openings are sitting empty for longer and companies are battling it out for the remaining top talent.??

Compounding this issue is the fact that many companies are still overlooking great candidates with more experience because they deem them overqualified, or are only looking to hire people who are already doing the exact job they’re hiring for. For the most part, that’s simply not enough of an incentive these days, unless you have deep pockets.??

But if you are the candidate in question, and you like what you do, perhaps this is music to your ears! This talent shortage can certainly work in your favor when negotiating a salary, with many offers coming in at well above market. Is this sustainable? Probably not. Are some people losing perspective as to what is a fair and equitable valuation of their experience? Perhaps. Should they care? It depends!??

If you can accelerate your career and earnings, without putting a target on your back in future years then why on earth wouldn’t you? After all, we’ve all seen companies leverage the power they wield in tough times. Now it’s your turn.?

How to negotiate a competitive salary?

So, how to approach this, especially with someone you’ve just met? It helps to be prepared before starting salary negotiations. Here are a few suggestions:?

Start by researching average salaries for similar roles in your area, considering your skills and qualifications compared to other positions. Job search sites like Indeed have salary data based on the jobs posted, listing the benefits included and the salaries for similar roles across the country. Knowing these numbers will give you a better understanding of the salary being offered and whether it is competitive or not.?

During negotiations, make sure to highlight the skills and knowledge you would bring to the organization. Be prepared with KPIs you were directly responsible for and make sure you know how to explain their relevance to organizational goals. Procurement in 2022 doesn’t just focus on cost savings. The procurement function of the future is largely concerned with ESG, supplier diversity, PPV, OTIF, and keeping supply lines open. KPIs proving you are competent with these factors will go a long way in salary negotiations.?

Don’t be afraid to ask for time to accept the initial offer. If you know the offer is below your desired range, ask for at least 48 hours to evaluate it. The company is not going to walk away, and this time will allow you to prepare a counteroffer.?

Right now, it’s far more likely you’ll be offered a highly competitive wage with extra “perks,” but be sure to have a dialogue about those too. Some employees can’t compete with the hot wages, but offer other things that might work better for your lifestyle. It might seem obvious to ask about them but, in reality, few do. Signing bonuses, stock options, remote work flexibility, and PTO all have value too.??

It’s a great time to be a job candidate in the procurement sector right now. With so many jobs open because of a perceived lack of available talent, now is prime time to find a great position and negotiate a competitive overall package. Do your research, highlight your skills, and go into the discussion with an open mind. You may be surprised at what you can get. ?