The Inflation Reduction Act & Supply Chain Hiring

While the race for skilled workers in this space continues to increase, if employers focus on offering the right compensation and benefits and right skills and training, they’ll find the candidates they need to navigate this everchanging industry.

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Since it’s passing in 2022, the Inflation Reduction Act – landmark legislation on climate change – has transformed the way the United States has approached the energy sector. The act itself funneled $115 billion into clean energy, technology and manufacturing in the first two years, and shows no sign of slowing down. In addition to the advancements this influx of funding has brought to the clean energy space in general, it has also brought with it an increased need for skilled workers, most notably in the supply chain sector.

While two years may seem like a lengthy amount of time, it really isn’t. This flood of cash has caused a sudden race for highly proficient and capable talent with an incredibly niche skillset. To hire these candidates, employers and companies in the supply chain space must consider what these individuals value most, including compensation and benefits, as well as their transferable skills and adaptability to evolve with the trends that are currently facing the industry.

Offering the Right Compensation

Let’s first take a look at compensation and benefits. According to a recent survey from DSJ Global, in the supply chain world, it’s incredibly likely that candidates will be offered a higher salary if they choose to look elsewhere for a job (rather than staying at their current company). This proves that companies are willing to do what it takes to get the best talent out there.

However, for today’s talent, more tantalizing than compensation are the benefits that come along with the job. The same survey uncovered that the top three benefits for supply chain professionals today are medical coverage, dental coverage and laptop and phone benefits. These seem relatively basic, right? Employers can oftentimes get caught up in the overly “trendy” or “showy” benefits, when top performing or skilled employees are simply after benefits that provide for them or their families outside of work.

Additionally, a key offering of supply chain-driven jobs is relocation compensation or support. Supply chain jobs focused on logistics are largely located near the country’s key ports, while manufacturing focused supply chain jobs, like those involving wind turbine farms, are located in more rural, remote areas. In both instances candidates expect – to some extent – that assistance will be provided in order to get them to their new home and new office. This includes the amount of time they will be given to make the move, as well as the financial compensation they will receive. As mentioned, some of these jobs are located outside of major metropolitan areas, so these candidates may need time and a bit of flexibility to relocate to a smaller city and navigate still incredibly high interest rates.

Pinpointing the Right Skills & Training

The Inflation Reduction Act’s deliberate shift towards clean energy resulted in an extreme shift in the number of roles involving more practical experience in clean energy within the supply chain – and this isn’t going to stop. Companies will continue to look to hire candidates with the skill sets that are unique to this industry. For example, EPC sourcing candidates require skills and experience specific to solar panels and wind turbine parts. However, because an industry like clean industry is relatively new it is, by default, a smaller talent pool. Because of this, it’s important to prioritize individuals that can already navigate the different systems and tools that have been introduced into the industry, but also those that have a related degree (or perhaps come from a start-up like environment and have that scrappy desire to learn) so that the knowledge is there from the start.

By prioritizing a potential employee with experience, managers can bypass some of the basic skills training that would otherwise be needed. In turn, it ensures they have the right person for the job, versus hiring someone simply to close a job listing or in a similar vein. This also contributes to longevity and retention – both for the candidate and the company. A candidate with the right skills from the start is more likely to stay in a job long-term than one who isn’t quite a fit and realizes quickly they aren’t a fit or aren’t going to be successful within the company.

Leveraging Transferable Skills

However, transferable skills cannot be ignored, as they can be extremely helpful when it comes to adapting to the ever-evolving trends within the supply chain industry itself.

Individuals who can be trained based on the specific needs of each organization can be extremely valuable and should be identified, rather than disregarded at the beginning stages of an application process, even if they may not be an immediate fit based on key job descriptors. These candidates, for example, may bring a fresh perspective to clean energy and bring new ideas to the existing team. They may also bring a different perspective or new processes to be more productive or operate with tighter or cleaner margins.

Talent with transferrable skills are – and should be – a value add rather than a loss, especially in an industry like the supply chain and clean energy where new subsectors or niche verticals are being created every day.

Looking Ahead

The Inflation Reduction Act was the right move for the clean energy movement in the United States – and especially the supply chain industry. And while the race for skilled workers in this space continues to increase, if employers focus on offering the right compensation and benefits, pinpointing the rights skills and training, as well as leveraging transferable skills, there’s no doubt they’ll find the candidates they need to navigate this everchanging industry smoothly and without fail. 

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