Cost vs Value for Money – Procurement & Recruitment Perspectives - Procurement People
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Cost vs Value for Money – Procurement & Recruitment Perspectives

As a specialist Procurement Recruiter I was keen to write about something interesting and relevant that effects both the procurement and recruitment industry.

Surprisingly when I looked at the main issues affecting both areas I realised fairly quickly that there are some common occurrences. In procurement, one of the major issues I regularly hear about from my clients and candidates is that procurement are not seen by the rest of their business as a strategic partner, but merely a cost saving function. Similarly in recruitment, very often discussions can focus around cost and getting the best price, rather than actually focusing on getting the best level of service and ultimately finding the best talent.

Many business functions operate against multiple KPI’s, none more so than recruitment. Unfortunately, whilst there are some procurement functions that truly operate in a strategic value adding capacity, many are simply measured against cost savings.

Yes procurement deliver cost savings, however, they are much more than this and this continues to be a source of real frustration in many procurement professionals I speak with daily. One of the key skill sets becoming more and more important to our clients are the softer skills like relationship building which in turn enables much more effective stakeholder engagement to really deliver value to the business beyond ‘cost savings’ and more to ‘value for money’.

This too is a frustration that we can share within recruitment. When agreeing terms of business with a new prospect client I have lost count on the number of times I have been told “but our current suppliers are working to a much lower fee level”. 

The fact that we are even discussing terms of business when there are already suppliers in place itself should suggest there is a problem with your current strategy! So why focus so much on price? Should the focus not be on quality – how can we get the best ‘value for money’? Would it not be to have an efficient, detailed and thorough service provided from a truly dedicated market specialist that actually finds you the best recruitment talent?

Here at Procurement People we pride ourselves on the level of service we provide. All our Consultants are not just Procurement recruitment specialists but market sector specialists too, embracing our Executive Network Group philosophy – “inch wide mile deep”.

We have in depth knowledge, not just of procurement, but of our market sectors too, working on a daily basis to keep abreast of up to date industry news and trends. We work pro-actively in getting to know our clients and candidates so that we are able to find the very best talent not just on the market, but in the market. Those passive candidates that are not always found in multi-agency contingency approaches are where you can really add value within a recruitment campaign.

I have heard people say to me before - recruiting procurement people must be really hard as they are good negotiators. Actually it’s not! Any good procurement professional understands the importance of value for money over price as this is a key struggle for them too in their day-to-day roles.

As procurement continues into 2017 to grow and progress on its journey to becoming an out and out strategic business function, we here at Procurement People and Executive Network Group will continue too on our mission in making recruitment better!

If you would like to understand more about the services Procurement People can provide or to talk with a dedicated sector specialist please get in touch.

By Adam Roughton