Employers choosing experience over potential when hiring for supply chain roles

Since the global pandemic hit in 2020, the balance of power between employers and employees has oscillated often. For some industries, like supply chain and logistics, the effects are even more pronounced than verticals that are less susceptible to politics and changing global conditions. The market has hit a tough point between global trade wars and tariff uncertainties, leaving companies to reassess who they bring on board and how they structure their teams.

According to Brent Orsuga, Founder of Pinnacle Growth Advisors, an award-winning recruiting firm specializing in supply chain and logistics, the industry is witnessing unprecedented demand for proven sales professionals.

Demand for revenue drivers: "I have never seen such demand for sellers and revenue drivers as I do right now," says Orsuga. He explains that the industry has undergone a dramatic shift over the past four years, moving from a seller's market to a much more competitive environment.

"We had two years where it became very easy. Companies were essentially servicing, not selling, because there was such an abundance of freight," Orsuga notes, referencing the boom period when supply chains were overwhelmed. "There were a hundred boats sitting at Long Beach. You didn't really have to sell."

However, the market has changed dramatically. "What’s happened is it’s completely gone the other way. Now you have a generation of people who were brought in or exposed during the best of the best, once in a century dynamic, and for the first time they've been exposed to a very challenging market," says Orsuga. Unfortunately, many of these professionals "did not develop the skills to navigate through that," he adds. 

Experience over entry-level: One of the most significant shifts in hiring has been a move away from entry-level positions. Traditionally, the industry recruited heavily from supply chain programs at universities like Penn State and Arizona State. That approach is changing.

"Nowadays there's not really a big appetite for entry-level hiring because companies will lose money on those people for six to eight months," Orsuga explains. "Rather than pay a newcomer $50,000, companies are saying they'd rather pay a proven producer $100,000 than take a chance on two inexperienced hires."

This preference for experience over potential represents a major shift in industry hiring philosophy. Companies are more often looking for sales professionals who have weathered difficult markets before and can bring established skills to push through current challenges.

"Nobody wants to take a chance on someone going through a challenging market for the first time," he adds.

Doing more with less: Another trend Orsuga identifies is companies streamlining their workforce while focusing on quality over quantity. "Companies are doing more with less. They would rather pay a proven producer $150,000 than three less experienced people $50,000 each," says Orsuga. "You're seeing headcount shrink, but overall talent increase."

This approach reflects the premium being placed on experienced professionals who can deliver results immediately, especially in a market where price sensitivity is high. "In challenging markets like this, price becomes such a dominant factor, and if you sell on price, you lose on price. There's not really a skill set around that," Orsuga observes.

Management roles under pressure: Middle management positions have been particularly affected by the industry's challenges. As companies focus on frontline revenue generation, coaching and management roles are being scrutinized.

"One position that really got hit last year was middle managers and coaches," explains Orsuga. "When you go through difficult markets, companies are reluctant to pay someone $120,000 or $200,000 to coach. It becomes all hands on deck."

This has created opportunities for recruiters like Orsuga, who notes that companies might be undermining themselves with some of their operational changes, making it easier to recruit talented professionals looking for better opportunities.

Pendulum of power: The balance of power between employers and employees continues to fluctuate. Orsuga sees it as a natural cycle in the industry.

"It's always going to go in waves," he says. "There will be times when companies are in complete control and times when employees have the upper hand."

He points to the post-COVID period of 2021-2022 when "everybody needed people" and companies were offering generous compensation packages to attract talent. During that period, remote work became prevalent, the "great resignation" was in full swing, and employers had to pay premium rates to secure workers.

"The employees were in control," Orsuga states. "The last two years that completely flipped. Consider all the layoffs and consolidation we've seen. Now we're moving back toward a situation where everyone's competing for top talent once again."

As the supply chain industry continues to survive market challenges, expecting that the dynamic between employers and job seekers will ebb and flow is in its own way a 'constant'. "Someone is always going to have the advantage," Orsuga concludes. "It just alternates who holds that power."