In the realm of procurement, entrepreneurial thinking is a game-changer. I have been trying to emphasise this with my previous posts on the subject of “Entrepreneurial Procurement”. It propels companies forward, fosters innovation, and creates robust, resilient supply chains. But how do you move beyond mere recognition to offer rewards that genuinely resonate with and motivate procurement professionals? I have some ideas about tangible ways to reward entrepreneurial actions within procurement teams.
Cultivating a Rewarding Environment:
1. Profit Sharing and Equity Incentives:
Traditionally, sales teams benefit from the immediate financial fruits of their labour. Why not apply this to procurement? When procurement professionals secure innovative deals or cost savings (but ensure the original budget is challenged), some of these gains could be returned to them through profit-sharing schemes or equity incentives. This rewards their efforts and aligns their interests with the company’s financial health.
2. Investment in Professional Development:
Reward initiative by investing even more in the professional growth of your procurement team. Offer significant opportunities for further education, certifications, or attendance at industry conferences. Such investments are twofold rewards—they acknowledge the individual’s contributions and enhance their capability to contribute to the company’s success.
3. Innovation Funds for Pilot Projects:
Establish a dedicated fund to finance pilot projects proposed by procurement teams. Reward entrepreneurial thinking by giving team members the resources to bring their innovative ideas to life within the company, bridging the gap between idea and implementation.
4. Cross-Departmental Opportunities:
For procurement professionals who display entrepreneurial flair, offer opportunities to collaborate with or even work in other departments, such as R&D or marketing. This recognises their potential and promotes cross-pollination of ideas within the company.
5. Leadership and Autonomy:
Create pathways for procurement professionals to lead projects or teams, allowing them to shine and apply their entrepreneurial mindset to different challenges. Autonomy and leadership opportunities are potent motivators for those with a pioneering spirit.
6. Recognition in Company Communications:
Beyond the traditional ’employee of the month’ model. Feature stories of procurement innovation in company newsletters, annual reports, or on the corporate intranet. Highlight the tangible impact of entrepreneurial efforts on the company’s success, giving due credit to the minds behind the movement.
7. Tailored Experiences and Rewards:
Finally, understand that one size does not fit all regarding rewards. Tailor rewards to individual preferences. Some might value additional time off; others might appreciate exclusive membership to clubs or societies that reflect their personal or professional interests. Be creative and ask what would truly be rewarding for your people.
Conclusion:
Recognising and rewarding entrepreneurial procurement is essential for nurturing a culture of innovation. The key lies in offering rewards that carry real meaning—those that contribute to the personal and professional growth of the individual and align with the company’s objectives. By implementing such rewards, you can encourage a more entrepreneurial approach to procurement and attract and retain top talent in this critical function.
