Addressing public sector agency hiring challenges

The Canadian government forecasts over 3,000 vacancies in public sector purchasing departments in the coming years. This is a significant figure, highlighting the vital role of efficient supply chain management in ensuring high-quality public services.

However, the challenge isn’t just about filling these roles. It’s also about finding candidates with the right skills and experience. Across the country, municipalities, school boards, and educational institutions are all facing a very real “supply chain brain drain.”

Several key factors are contributing to this supply chain brain drain:

• Aging workforce – Many experienced professionals are nearing retirement, creating a significant skills gap that needs to be addressed quickly.
• Complexity of supply chains – As public sector agencies navigate more complex supply chains, there is a growing demand for individuals who can manage procurement processes efficiently, ensuring compliance with regulations while optimizing costs.
• Sustainability focus – Canadian public sector agencies are increasingly prioritizing sustainable purchasing practices, which requires a workforce skilled in green procurement.
• Technological advancements – The integration of technology in supply chain management requires professionals who are adept at using modern procurement tools and systems.

Why Positions Aren’t Being Filled

Despite the demand, many agencies are struggling to fill supply chain positions.

Patrick Shannon, president of the National Institute of Supply Chain Leaders, said that many candidates drop out at the final stage of the hiring process due to unsatisfactory compensation packages. Agencies are also finding out that many candidates lack the necessary education or professional designations to meet the role’s requirements.

Rozalyn Werner-Arcé, executive director of the Ontario Buyers Association (OPBA), noted a steady increase in demand for qualified professionals but a persistent lack of supply.

The challenge is compounded by the need for what is called “instant employees” – candidates who have already done the job and are looking for better opportunities. They leave their employer and now the employer needs to hire another “instant employee.” The talent pool isn’t very deep, so this type of turnover leads to organizational instability as agencies scramble to fill roles with qualified candidates.

Leveraging Internship Opportunities

To address the shortage of qualified candidates, public sector agencies should create internship and co-op opportunities for students. These programs provide valuable hands-on experience, allowing students to learn the tools of the trade while developing essential skills in procurement and supply chain management.

Engaging students through internships and co-ops not only helps to cultivate a new generation of professionals but also allows agencies to evaluate potential candidates for future hiring. By fostering these relationships, agencies can build a pipeline of talent and ensure continuity in their supply chain departments.

One successful strategy is hiring college students after their first year for summer internships. At the end of the engagement, they’re offered a part-time position while they continue their studies. This allows the company to manage costs while ensuring a qualified candidate when a future position opens.

Public Purchasing Courses

Only a few Canadian colleges and universities offer a single course that prepare students for careers in public purchasing and supply chain management. Some notable institutions include Conestoga College, Douglas College, Fanshawe College, Seneca Polytechnic, and the University of Guelph. More courses and programs should be developed in order to offer students some options.

In addition, several organizations offer training such as OPBA, which runs courses for individuals interested in learning about the profession. The Procurement School in British Columbia also offers courses taught by individuals with extensive public sector experience.

While these programs play a valuable role in equipping students with the knowledge and skills needed to succeed in the field, there is room for improvement in preparing professionals to meet the specific needs of public sector agencies.

Finding Qualified Candidates

Given the current hiring challenges, there are several strategies agencies can consider using to identify qualified professionals:

• Engage with educational institutions – Collaborate with local colleges and universities to create programs and participate in job fairs that connect students with potential employers in the public sector.
• Consider hiring a fractional purchasing agent – For smaller municipalities, hiring a part-time or fractional purchasing agent can help manage procurement duties. Pooling resources with neighbouring agencies may allow for shared hiring of part-time procurement staff.
• Look for individuals that are retired or semi-retired – Retired professionals bring valuable experience and can be a great asset to agencies. Although they may command a higher hourly rate, the expertise they offer can provide excellent value.
• Utilize group purchasing organizations (GPOs) – This type of organization has already done the work and has established trade compliant contracts. There is no cost to join a GPO and no commitment to use any of their agreements. By using a GPO, agencies get the opportunity to save money and free up staffs’ time, enabling them to work on other projects that require their knowledge and expertise. For example, Kinetic GPO has a contract for staffing services awarded to multiple suppliers, including Insight Global. Insight Global has five physical offices across Canada, allowing public entities to work with a company that fully understands the market.
• Outsource administrative tasks – Some agencies may benefit from outsourcing specific procurement tasks, such as supplier onboarding and contract management, to specialized companies that work with multiple organizations. This approach can enhance efficiency while freeing up internal resources.

No Insurmountable Challenges

The challenges faced by Canadian public sector agencies in hiring qualified individuals for supply chain departments are significant but not insurmountable. By leveraging internship and co-op opportunities, collaborating with educational institutions, and implementing innovative recruitment strategies, agencies can build a robust pipeline of talent.

Addressing the current skills gap will ensure that public sector purchasing departments are well-equipped to meet the evolving demands of effective supply chain management in the years to come.

To learn more about how GPOs can help mitigate the supply chain brain drain, contact Gerald Ford at gerald@kineticgpo.ca.

Gerald R. Ford is a supply chain management professional with more than 40 years of experience. He has worked and consulted for more than 100 different organizations and businesses both in the private and public sector.