Procurement sharpens up its act to take lead on recruitment

Posted on 19. Jun, 2009 by in News

As unemployment continues to rise across Europe procurement is playing an increasingly important role in labour recruitment – an area that is being scrutinised more heavily than at any time in generation.

The latest figures from the Office for National Statistics in the UK showed that unemployment had risen by 232,000 in the three months through April, and with a similar pattern emerging in Europe, procurement is being called on across the continent to manage a recruitment process that, for many companies, still represents one of their top three cost bases.

And according to Matthew Sanders, CEO of recruitment specialists de Poel consulting, procurement’s role is likely to gain in prominence – even as Europe begins to emerge from recession – as firms look to increase their use of temporary, rather than permanent staff. 

“As we come out of recession temp spend goes up and we’ll probably see this continue for, possibly, the next three or four years,” Sanders told Procurement Leaders. 

“Organisations don’t want to be seen as hiring and firing and while there’s an element of uncertainty in the economy then companies will hold off from embarking on major recruitment drives.

“Procurement is becoming far more actively involved in the recruitment process because spend is being scrutinised more closely than ever. CFOs are looking to get a firmer grip on what they spend and because procurement has a better grasp on spending then they’re taking the lead in front of operations and HR (human resources).

“Ten years ago procurement was a fairly blunt instrument now they’re a lot more commercially savvy – they’re now leading on recruitment in 90% of our contracts.”

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