I recently wrote about the general market differences in hiring between the US and Europe and also about what candidates are looking for.
But what are the specific variations applicable in the Digital Procurement and Supply Chain Technology sector that we experience?
Size of the market
Just simplistically, the US Procurement Technology market is bigger. There are more people.
Why?
Basically, many of the biggest organisations in the sector are US-based or have significant operations based there. Additionally, a number of the smaller entrepreneurial startups and ‘best of breeds’ began in the US so their headquarters and ‘key players’ are in the US. There is also a bias towards more senior people with global responsibilities who manage EMEA teams.
Labour (Labor) Market Dynamics
The overall Tech Sector generally has a larger demand for tech talent, particularly in major tech hubs like Silicon Valley, Seattle, and New York City. The Digital Procurement and Supply tech market is just part of this and as a result, there is often more competition for the top professionals in the US.
The pace of the hiring process is often much faster as the US labor market is far more flexible with less employment legislation and typically much shorter notice periods. This drives client and candidate behaviour.
If someone resigns then they are leaving soon. Often within 2 weeks. Organisations need to act fast to replace them. Equally, candidates need to secure a role quickly. They aren’t waiting for a possible offer; typically the first offer typically wins.
Interviews tend to be shorter and more to the point and reflect the emphasis on individual achievements. Follow-ups are typically quicker.
As an example, a US P2P Client interviewed a Director-level candidate over the Christmas period three times in 10 days and made an offer immediately after the final interview. This kind of pace is unusual in Europe, especially over a holiday period.
Entrepreneurial start-up culture
The US tends to have a more entrepreneurial culture and this is true in Procurement Technology and there is generally a higher tolerance for risk-taking and innovation. Start-up culture is particularly prominent, and there is a strong emphasis on individual initiative and the pursuit of ambitious growth-linked goals. Sales roles, in particular, can be highly KPI-driven with a ‘no prisoners’ attitude to hitting the numbers.
Yes, there are plenty of entrepreneurial start-ups in Europe but not to the same level.
Location / remote working
There is no ‘centre’ as such in Europe but in the US a number of the firms are located in California (many elsewhere) but work across the Nation.
As such remote working has been established for much longer and people were often comfortable with 3-4 days away per week (less so since the pandemic). In Europe, we are seeing some demand for a return to the office up to 2-3 days, in fact.
On both sides of the Atlantic travel to meet clients is becoming expected on a ‘needs’ basis
Open to approaches / willingness to move
Until 5 or 6 years ago the percentage of the workforce with an active LinkedIn profile was still higher in the US than Europe. Whilst the UK is at similar levels for professional roles in some parts of Europe levels are much lower or people use different work platforms (such as Xing in Germany). The number of ‘open’ profiles on Linkedin is higher in the US and due to this it is still typically easier to identify the right type of person in the US.
Typically, in the US, people are more open to an approach even if not actively looking. They will listen and with the more fluid labour market are often more likely to move and take a risk.
People in Tech and SaaS especially are more typically ‘early adopters’ so open to different things and this is reflected in Procurement Technology.
Pay & benefits
The salaries in the US are typically significantly higher than their European counterparts and may reflect the % of start-ups as stock options and equity are more common in the U.S. European companies may offer equity, but it’s less common.
Language
Yes, English is often the main business language but in Europe, a significant % of people in the sector are bilingual. We are frequently asked to look for people with professional business fluency in at least two languages and this is gradually becoming a more prevalent ‘ask’.
In one of our US clients, however, Spanish is increasingly important reflecting their customer and sector demographics and may reflect a future trend?
IF YOU NEED MORE INFORMATION ABOUT ANY OF THE POINTS RAISED IN THIS ARTICLE PLEASE DO GET IN TOUCH, I’D BE HAPPY TO ADVISE YOU
Peter Brophy
VP Digital Procurement & Supply ChainVP Digital Procurement & Supply Chain
peter@edburydaley.com