Nearly two-thirds (65%) of distributors reported a shortage of skilled candidates as their top hiring challenge, indicating a significant gap in the talent pool (see Figure 1). Almost half (47%) reported heavy competition for talent, and more than onethird (35%) cited budget constraints for offering competitive salaries. Interestingly, 2023 PPAI 100 suppliers aren’t reporting the common hiring challenges at quite as high a rate as their counterparts, despite the fact that PPAI Media’s bimonthly business survey reported that suppliers faced more revenue struggles than distributors in February and March. One anonymous PPAI supplier even stated: “We don’t have hiring challenges. We have more qualified applicants than we need.” The most cited challenge (46%), however, remains a shortage of skilled candidates. This is followed by budget constraints for competitive salaries (38%) and high competition for talent (35%). “The promotional products industry faces multifaceted hiring challenges, from the scarcity of skilled talent and fierce competition to financial limitations and procedural inefficiencies,” says Alok Bhat, market economist and research lead at PPAI. “Addressing these issues requires innovative recruitment strategies, competitive positioning and possibly a reevaluation of hiring practices to navigate the complexities of the current talent landscape effectively.” A Particular Set Of Skills One anonymous supplier stated that their company was often hiring outside of the industry in search of more sophisticated skill sets, particularly when it comes to customer relationship management knowledge. Conversely, Alpharetta, Georgia-based distributor North Georgia Promotions hasn’t set any kind of limitations on the recruitment process and is still coming up empty. “We’re not just looking for skilled labor,” says Adam Campbell, MAS, director of operations at North Georgia Promotions. “We’re willing to train people, but we’re still having issues with hiring.” Even though the industry has moved on from the pandemic, some firms haven’t responded as well to its lingering effects. For example, adapting to virtual recruitment practices poses a challenge for 29% of distributors, with one anonymous respondent lamenting having to “sift through the flood of virtual applications” coupled with applicants often “ghosting interviews.” Bhat contends that these challenges are a sign of the progress the industry is making in technological advances and ambitious initiatives, which inevitably can require a FIGURE 1: PPAI 100 Distributors’ Top Hiring Challenges High Competition for Talent Budget Contraints for Competitive Salaries Shortage of Skilled Candidates Lengthy Hiring Processes Adapting to Virtual Recruitment Practices Other 35% 38% 46% 15% 4% 15% The State Of Hiring In Promo | Must Read PPAI • JUNE 2024 • 79
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