by Jennifer Hart Yim | Sep 25, 2019 | Blog, Leadership, Strategy, Supply Chain, Talent
New research shows Gen X business leaders are being promoted slower than their millennial and boomer counterparts. This Gen X talent looking to jump ship.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Much attention has been given to millennial employees over the years –what attracts them, what causes them to stay in a role, how to manage them differently than other generations of employees. It was a hot topic of discussion at the recent SCMA National Conference. At the same time, more baby boomers are beginning to retire. These two generations represent the back and front end of the Supply Chain industry’s talent pipeline, and they’ve been the industry’s focus. But of course, the demographic picture is broader and more nuanced than just these two generations.
Last week, we wrote an article about the importance of the emerging Generation Z – people born between 1997 or so and the 2010s – to companies seeking to win the war for Supply Chain talent. Hopefully, it helped fill in the generational picture even further.
Now a recent, very interesting article in Harvard Business Review has us wondering – are Gen X employees being forgotten by the industry? If so, what’s the impact on their careers, as well as organizations who employ them – the companies who stand to lose if dissatisfied Gen X’ers begin to jump ship?
At the risk of explaining the obvious, Gen X’ers are generally defined as being born between the mid-1960s and early 1980s – after baby boomers, but before millennials. They also came of age with a reputation for being “unambitious” – a reputation that’s just as outdated as some of the most famous slacker movies (classic though those movies may be).
As we said with our article about Gen Z, these generational distinctions are a bit fraught. Career motivations are different for every person. They’re too complex to paint everyone with the same brush. But when you can marshal enough data, you can start to learn some interesting high-level things about the hopes, dreams, and discontents of a particular demographic. In 2018, HBR worked with EY and The Conference Board to collect and analyze data from some 25,000 business leaders. Those surveyed were from all over the business landscape, but there’s data here that will be useful for Supply Chain organizations looking in the mirror.
Some of the results related to Gen X in the workplace were very interesting, in particular:
- The majority of Gen X leaders (66%) had either not been promoted in the past 5 years, or had only been promoted once.
- Baby Boomer and Millennial leaders were more likely to receive promotions (58% and 52% respectively). This is unsurprising for the boomer generation, but it is surprising that a generation younger than Gen X seems to be getting promoted more. It suggests Gen X employees are being “skipped” compared to their counterparts.
- The data found that Gen X employees are promoted typically 20%-30% slower than millennials are.
- Generally speaking, Gen X managers have more direct reports than millennial managers at the same level, indicating a higher workload.
This is the situation on the ground for Gen X talent and leaders. But how are they responding to this lack of advancement?
Gen X employees tend to be more loyal to their current employers, with 37% contemplating leaving their current role compared to 42% for millennials. They came of age before the 2008 financial crisis, in a time before the rise of the gig economy, which might account for their willingness to spend longer in a role.
But companies shouldn’t mistake this loyalty for complacency: according to the data, only 58% of Gen X employees feel that their careers are advancing at a good rate, which is significantly lower than the 65% of millennials who feel the same way. Almost one in five Gen X leaders surveyed reported an increased desire to leave their current role (18%).
Many organizations are beginning to reckon with the retirement of the baby boomer generation. They’re trying to attract and retain millennial talent by improving opportunities for career growth. Maybe they should also be doing more to nurture Gen X talent, to avoid losing that all-important middle group within the talent landscape.
As Stephanie Neal, the HBR writer puts it, a significant number of Gen X’ers might be reaching a “breaking point in” their careers. But she identified some key strategies for companies to avoid neglecting Gen X talent:
- Invest not only in continuing education for employees, but personalize it. Most Gen X employees have developed a broad base of skills, but individual needs and desires vary. Organizations should tailor their talent development to each person. Stay interviews, which we’ve written about recently, are a good strategy to better understand what motivates each individual in your organization.
- Give Gen X leaders opportunity for mentorship, and not just within the organization. We also recently wrote about the power of mentorship in a Supply Chain career, so we were happy to see HBR highlight the importance of mentorship as well. According to the research, a majority of Gen X leaders craved mentorship outside their organizations, which is enabled by things like industry conferences and professional groups. Investment in these opportunities not only helps with retaining Gen X leaders, it also offers chances to expand your supplier network or find new business.
- Hire and promote based on data, rather than gut feelings. Hiring managers often work hard to try to eliminate unconscious bias from the hiring process, but ageism often goes under the radar. Applying stereotypes to a certain cohort introduces bias that harms your process and leads to dissatisfaction. Neal uses the example of assuming that a millennial would be better at a digital marketing role than a Gen X employee. Decisions based on data such as assessments and quantifiable achievements will always be more successful than those based on stereotypes.
It’s a good start, but maybe this is issue deserves an even closer look. If we may add another tip: avoid stereotypes. Data surveying the preferences and mindsets of a large group of people can be instructive, but don’t assume that every Gen X employee is wired the same way.
What do you think? Are there any specific talent retention strategies for individuals in the Gen X cohort? Are you of this generation, and if so, how do you feel about your career prospects? We’d love to hear from you.
Related posts:
by Jennifer Hart Yim | Jul 30, 2018 | Blog, Content Marketing, Logistics, Marketing, Supply Chain, Talent
A new article discusses the way that automation, AI and big data are transforming the industry. It raises the alarm that supply chain management will soon cease to exist, only to assert that it will still exist, just in a very different form.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
A new article in Harvard Business Review has been generating some automation-related controversy in the Supply Chain Community, as well as lots of buzz and interesting conversation. Naturally, we at Argentus want to weigh in. Titled, “The Death of Supply Chain Management,” the article discusses the way that automation, AI and big data are transforming the industry. It raises the alarm that the function will soon cease to exist, only to – as these “X is dead“ articles often end up doing – assert that it will still exist, just in a very different form.
Beyond the obviously clickbait headline – which we couldn’t help but indulge in ourselves – the article makes some fascinating predictions about the future of supply chains. But even more relevant to us at Argentus, it has some interesting forecasts about the future of supply chain talent in particular, in the coming world where automation is king.
Automation is one of the hotter topics in the supply chain community – as it is across the entire economy. As a major feature in McKinsey discusses, automation has already made a number of jobs in the field way less relevant, threatening to eliminate those jobs entirely. Many companies have already automated their front-line transactional purchasing activities. Automation has eliminated a number of blue-collar supply chain jobs in warehouses and distribution centres, and driverless trucks stand to transform the logistics field, eliminating the need for millions of truck drivers.
But many are alarmed that automation will replace white-collar workers as well. The HBR article talks about how more companies are automating functions like demand forecasting, which has long been seen as more of an “art” than an exact science. No longer.
In the authors’ words, “within 5-10 years, the supply chain function may be obsolete, replaced by a smoothly running, self-regulating utility that optimally manages end-to-end workflows and requires very little human intervention.”
[bctt tweet=”Automation through digital technology isn’t really just about lowering labour costs, it’s about creating huge opportunities for companies to dive deep into data and create end-to-end visibility into their own supply chains.” username=”Fronetics”]
Automation through digital technology isn’t really just about lowering labour costs, it’s about creating huge opportunities for companies to dive deep into data and create end-to-end visibility into their own supply chains. This kind of visibility opens up huge opportunities, not only by lowering risk but also by letting companies become more strategic.
The HBR article outlines an interesting development: more retail and manufacturing companies are adopting “digital control towers” for their supply chains. These companies have physical rooms staffed with dozens of data analysts working in real-time to identify and squash challenges.
Picture an airport control tower, but for supply chain management: staffed 24/7, full of large screens full of 3d graphical representations of potential bottlenecks and inventory shortfalls all the way from order to delivery. These control towers are full of systems that can automatically correct for various issues, and they’re increasingly considered to be core aspects of company operations.
The authors outline how mining company Rio Tinto is using robotic train operators, cameras, lasers, and tracking sensors to monitor and fully automate its supply chain from train to port.
But do these developments hearld the end of the need for skilled Supply Chain professionals? Of course not.
A highly-automated “digital control tower” needs responsive individuals with deep understanding of how to solve Supply Chain challenges. An automated mining supply chain deep in the jungle, monitored in another country still needs people to monitor it and respond to issues.
Maybe unsurprisingly, the HBR article ends up saying that Supply Chain people will always be in demand, but that skill needs are changing, and we agree. People need to re-skill, up-skill, and educational institutions need to make sure that they’re training people with skills for the future and not the past. In the short term, executives who can manage people doing repetitive tasks (like transactional purchasing) need to learn how to manage information flows for more highly-specialized workers. Further down the ladder, the highest-demand analysts will be those who can draw insights from an ever-expanding pool of data and communicate them to senior leadership. Companies will need specialists with deep understanding of both technology and operations to design and implement automated supply chains – even more than they already do.
But beyond the trends that the HBR article outlines, we think they’re missing a key element: even if automation progresses to affect white-collar workers, even if data automates functions like supply planning, logistics, and sourcing, the human element will always matter. Companies will always need people who can build relationships with vendors when conducting large-scale Procurement. They’ll always need people who can negotiate contracts and rates, people who have the emotional intelligence to understand the psychology of the person sitting on the other end of the table, and arrive at a deal that drives value.
Machines will get better at the tactics, but the strategy will always be human, at least until the robots take over the world completely. (Which we don’t think will happen, by the way).
In the 19th century, luddites protested the adoption of machines in the British textile industry, fearing that they’d be out of a job. And they were. But while opportunities for weaving by hand disappeared, employment didn’t: the industrial revolution pushed new skillsets to the fore, creating a demand for people to manage production – leading to today’s supply chain function, by the way – while raising overall wealth and standard of living in the process.
While the rise of AI, big data and workplace automation has some important differences, we think it’s a worthwhile analogy: as with then, these new technologies will shift the employment landscape and put the squeeze on individuals with transactional or blue-collar skillsets. But supply chain professionals who can up-skill themselves, and become masters of the interpersonal skills that will never go away, will have more opportunities than ever before.
Take it from a company that’s on the front-lines of hiring in Supply Chain: while automation eliminates jobs at the lower-skilled end of the spectrum, demand for high-skilled candidates is higher than ever before, and only rising. So is Supply Chain Management on death’s door?
Not so fast.
Related posts:
by Fronetics | May 21, 2018 | Blog, Logistics, Strategy, Supply Chain, Talent
Millennial talent seeks employment opportunities with companies that promote transparency, technology, excellence, and social change.
We write often about the supply chain talent gap and how supply chain companies should be proactively recruiting millennials to join their companies. So a recent Harvard Business Review article, which talks about how companies that “young people find dull” (like electrical distributors and manufacturers) can make their businesses seem “cool,” seemed particularly relevant.
While we adamantly disagree that the supply chain isn’t cool, we do think it’s important that logistics and supply chain companies think strategically about recruiting millennial talent.
Millennial talent and the vision thing
According to a new study by strategy firm Department26, “Transparency is the millennial standard operating procedure in the workplace.” Honesty and security are top of mind for this generation that came of age just as the country plunged into The Great Recession.
[bctt tweet=”Beer kegs and ping pong are nice, but millennials are more impressed with leadership that sets goals and delivers on them. ” username=”Fronetics”]
Beer kegs and ping pong are nice, but millennials are more impressed with leadership that sets goals and delivers on them. They want to know how their role contributes to the organization’s success, and they want to know the effort they’re putting into a job is worth it.
“Setting them up for success means regular check-ins, both positive and constructive feedback as a rule, and structured mentorship,” write the authors of the Department26 study.
People say millennial talent doesn’t work for money, and it’s true that they’re not motivated by salary alone. Younger employees want meaningful work that enhances their personal growth.
They also want flexible work rules that show an employer respects and trusts them. Sharing details of your strategic plan or examples of how your HR policies reward personal initiative can help millennial talent see your “boring” business in a new way.
“The thought of not being granted flexibility in exchange for hitting performance metrics is absurd to millennials, and it’s a concept that’s diametrically opposed to the freedom they crave,” the study concludes.
Talk tech
Logistics or trucking can sound dull to the iPhone generation — until you paint a picture of forward momentum and innovation that might surprise them.
Automation, robotics, autonomous vehicles, blockchain, drones and the Internet of Things (IoT) are reshaping the industry. Companies like Amazon, Pfizer and Wal-Mart are experimenting with new technologies to reduce costs, boost productivity, and improve handling performance.
“Wearable technology could soon become a standard must-have in the logistics industry,” according to a recent story in The Business Journals. “As these technologies continue to carve out their role in the global logistics industry, we’re likely to see previously unimagined levels of optimization — from manufacturing to warehousing to delivery.”
Find ways to change hearts and minds by exposing young people to the realities of today’s supply chain. If they think it’s boring, it’s because they really don’t know what it is.
Be the best damn supply chain company anywhere
People want to work for “the best” — the most innovative, the most profitable, or the most admired brand — in every industry. Workers are proud to say they work for a company recognized as being the best at what it does because it says they’re the best, too.
Even millennial talent that has never thought about a career in logistics might reconsider if they’re being recruited by an industry leader.
Celebrate excellence at your company. Promote the awards you’ve won. Share customer testimonials, positive media coverage, and community recognition with prospective recruits.
It also helps to do well by doing good. This is a generation that trusts business, not government, to create positive social change. “Millennials are hungry for a work culture that inspires them. At a macro level, companies should communicate clear plans that reflect their core values,” says Department26.
HBR author Bill Taylor summarizes these sentiments well: “What [millennials] value is the chance to join companies that make a difference and where the work brings out the best in them.”
How is your company recruiting millennial talent?
Related posts:
by Fronetics | Apr 16, 2018 | Blog, Current Events, Strategy, Supply Chain, Talent
In the wake of the supply chain talent gap, try these strategies to fill critical positions with qualified employees and to create a pipeline of future talent.
It’s no secret — the supply chain is experiencing a major talent gap. In fact, according to Supply Chain Insights, 60% of companies within the supply chain industry have job openings, and 51% of companies are seeing an increase in turnover of supply chain leaders. So what can you do to overcome the talent shortage?
These five strategies can help companies feeling the strain of the supply chain talent gap.
5 strategies for overcoming the supply chain talent gap
1) Partner with universities and educational programs.
In an interview with Fronetics, SCM Talent Group founder Rodney Apple suggested that companies looking to attract top talent should “partner with supply chain universities and proactively recruit students from these universities, early and often.”
As more and more universities are offering supply chain degrees, these schools are a prime recruiting ground for highly qualified candidates for entry-level positions. This means “proactively reaching out to universities in the region and even nationally that match up with people in the workforce,” says Apple.
2) Be open-minded in your hiring.
A recent Google study has yielded what might be a surprising result that points to the importance of open-mindedness in hiring practices. While conventional wisdom suggests that recruiters should be focusing on STEM capabilities, it turns out that “soft skills” are often a more accurate predictor of innovation and success.
In the same vein, it’s increasingly being suggested that liberal arts grads could play an important role in the future of the supply chain. These majors emphasize the kind of critical-thinking skills that are crucial for future leadership potential.
3) Promote from within — from the manufacturing floor and beyond.
When looking to fill higher level positions, you may be overlooking a tremendously important resource: your own people. Promoting from within has several obvious advantages. Firstly, there’s institutional knowledge and trust built in — you already have relationships in place.
Promoting from within means that you’ll be placing people in higher level positions who understand the particular intricacies of your operations. This, in turn, means you save valuable time on training and eliminate what could otherwise be a steep learning curve.
4) Invest in talent acquisition.
Talent acquisition can quite literally shape the future of your company, and it’s crucial that you make it a priority. This often means working with a recruiting firm, particularly one that specializes in the supply chain.
In addition to partnering with supply chain universities, Apple suggests that companies “invest more into job training and mentoring programs, like supply chain certifications and tuition reimbursement.”
While the shortage of supply chain talent is often attributed to a skills gap, there’s a more fundamental problem: The supply chain just isn’t perceived as sexy.
“Perceptions need to change — fast,” writes Fronetics CEO and Founder Frank Cavallaro. While it won’t necessarily be easy, “convincing the public — young and old — that the manufacturing industry really is undergoing a renaissance” is ultimately the most lasting fix to combat the supply chain talent gap.
Placing the spotlight on new technologies like 3-D printing, robotics, and advanced analytics should demonstrate that the supply chain is a place for creativity, critical thinking, and fulfilling careers.
How is your company combating the supply chain talent gap?
Related posts:
by Fronetics | Mar 14, 2018 | Blog, Content Marketing, Logistics, Marketing, Supply Chain, Talent
Logistics and supply chain careers are increasingly high paying, diverse, and in demand.
With the talent gap growing wider every day, ambitious current and future supply chain professionals have many interesting opportunities. And not only that — Logistics and supply chain careers are increasingly high paying, according to LinkedIn’s State of Salary Report 2017.
According to Rob Byrne of Logistics Bureau, “Through its extensive span of activities, the supply chain sector offers wide-ranging possibilities for employment and career progression. The variety of functions involved — product design, procurement, warehousing, production, transport, distribution, sales, for instance — encourage demand for new employees.”
Here’s a look at five of the top logistics and supply chain careers available to today’s professionals.
Top 5 logistics and supply chain careers
1) Customer Satisfaction Director
Automation and analytics are taking over in fulfillment centers, and the options for building a load, planning a route, and confirming shipments are extending. Forbes contributor Kevin O’Marah writes, “Customer contact at the point of delivery may be your best chance to make a great impression and renew the business.”
The industry once thought of the customer satisfaction director as a “logistics manager.” But as technology revolutionizes the sector, this role has — and will continue to — evolve.
2) Distribution Center Supervisor
These are professionals who administer all the daily activities of a distribution center. They manage expenses, minimize losses, and are responsible for ensuring that goods are sent to buyers at the right time. This role requires juggling complicated tasks to keep processes running smoothly.
3) Procurement Manager
Procurement managers are responsible for finding the most competitive prices to buy goods for their company. If you have excellent communication and negotiation skills, love working with numbers, and are adept at establishing professional networks, this could be a great career option for you.
4) Demand Planning Analyst
As a demand planning analyst, you would be responsible for analyzing your company’s inventory and billing processes, managing stock levels, and purchasing goods. If you’re someone who enjoys quantitative analysis, this is a fulfilling option.
5) Supply Chain Consultant
Supply chain consultants provide a third-party perspective to companies regarding vendor and inventory management, or any aspects of their supply chain and logistics activities. This is a great option for seasoned supply chain professionals looking for a career shift, as experience is a plus when it comes to consulting.
These logistics and supply chain careers represent just five of the many exciting options available to professionals these days. What career paths do you find most exciting/fulfilling/promising?
Related posts:
