In recent times, an unprecedented number of supply chain managers have chosen to depart from their roles, citing various factors contributing to their decision-making process. These departures, witnessed in record numbers last year, reflect a culmination of burnout and a pursuit of more financially rewarding opportunities.
The surge in turnover aligns closely with the escalating challenges within the supply chain domain throughout 2021. The disruptions caused by the pandemic resulted in the closure of manufacturing facilities, congested ports, and a rapid surge in transportation expenses. These formidable challenges predominantly fell into the laps of supply chain managers, making their roles significantly more demanding, albeit increasingly lucrative.
According to Kory Kantenga, a senior economist at LinkedIn, the current supply chain crisis has created a landscape ripe with new prospects. This, coupled with the prevailing burnout, has prompted an exodus of supply chain managers seeking greener pastures.
LinkedIn, a division of Microsoft Corp., assesses turnover rates by analyzing member profiles to ascertain the number of departures from positions each month. Comparing these figures with the 2016 average, referred to as the “separation rate,” reveals a noteworthy increase of 28% in the departure rate for supply chain managers from 2020 to 2021—the highest observed since the inception of LinkedIn’s data tracking five years ago.
The aspect of burnout remains a significant factor in this trend, as highlighted by Kantenga. The emergence of new opportunities, fueled by ongoing supply chain disruptions, has also played a pivotal role in enticing professionals to explore alternative career paths.
The demand for supply chain managers has surged noticeably. ZipRecruiter Inc. reported a doubling in the number of job openings for these positions between January 2020 and March 2023. This growth stems from both companies creating additional roles to address the crisis and the scarcity of labor providing workers with greater leverage to switch jobs, according to Julia Pollak, the company’s chief economist.
Since the onset of the COVID-19 pandemic, global consumers have grappled with empty store shelves and delayed shipments, prompting companies to adapt to unpredictable demand fluctuations and scarcity of materials. This scenario has propelled supply chain jobs into the spotlight, leading to increased interest among business school students in pursuing careers in this field.
The pandemic significantly disrupted the concept of “lean manufacturing,” a cost reduction strategy adopted by major corporations in previous decades. This disruption forced supply chain managers into a perpetual state of crisis management, unable to rely on established models due to unforeseen fluctuations in orders and disruptions in critical supply access.
Michael Martin, a supply chain director with extensive experience in various companies, noted the heightened stress arising from the shift in norms. He attributed this stress to the challenges faced in problem-solving, which became considerably more complex in the wake of the pandemic-induced disruptions.
The supply crunch has not only impacted tangible product availability but also affected essential tasks like data collection, exacerbating bottlenecks for both businesses and consumers. Madhav Durbha, vice president of supply chain strategy at Coupa Software Inc., highlighted that outdated processes contribute significantly to this issue. He emphasized the need for automating labor-intensive operations to enhance efficiency and accuracy, freeing up time for more impactful work.
A survey conducted by recruitment firm DSJ Global underscored that a majority of supply chain and procurement professionals anticipated salary increases in the coming year. The prospect of higher pay emerged as the primary motivation for U.S. workers seeking new job opportunities.
The current demand for supply chain skills has empowered job seekers to be discerning in their choices. Emily Prendergast, an executive director at DSJ, noted that a substantial percentage of supply chain professionals are open to exploring new roles within six months of securing their current positions. Candidates seek workplaces equipped with updated systems and processes, aiming to avoid the stress encountered in recent tumultuous years.
In conclusion, the surge in departures among supply chain managers stems from a convergence of factors, including burnout, the allure of better prospects amid ongoing disruptions, and an increased demand for these specialized skills in the job market. Understanding these dynamics is crucial in navigating the evolving landscape of the supply chain industry.
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