GENERAL NEWS
A manufacturing turning point ?
Healthy growth in demand for manufactured goods and services , as well as year-over-year increases in production capacity , revenue and shift work , highlight a positive outlook for the U . S . manufacturing sector in the second half of 2023 , according to a new survey from the UKG Workforce Institute . However , 76 % of manufacturers are struggling to fill critical labour gaps , and two in three ( 66 %) said it takes longer now to fill open positions .
“ Manufacturers understand the gravity of their situation . This is an issue that they ’ ve been tackling for a long time — much longer than the pandemic-induced labour shortages affecting other industries have existed ,” said Kylene Zenk , Industry Fellow , Manufacturing , at UKG . “ By and large , our research shows that most organisations are taking meaningful steps to close the manufacturing skills gap that could immobilise the U . S . economy if left unchecked . Manufacturers understand the assignment and are looking to people-focused initiatives and technology advancements to strengthen recruitment and retention .”
It may be working . “ Great Place To Work ” research finds that four in five manufacturing employees in the U . S . plan to still be at their jobs within the next six months , slightly ahead of other industry averages . Survey responses from more than 300 manufacturing HR leaders in the U . S . reveal a set of organisational priorities to diversify recruitment , strengthen the frontlineemployee experience and better support frontline managers in a vital effort to curb employee turnover while responding to a sharp rise in demand .
Diversifying recruitment
Women are one of the most viable and strategic talent pools for the manufacturing sector ( image : Shutterstock . com ).
To fill critical labour gaps and strengthen talent pipelines , manufacturers are continuing to diversify candidate pools to varying degrees , although a limited number ( fewer than one in four or 24 %) are proactively recruiting women , and just 39 % consider diverse hiring a “ high priority ” for their organisations .
“ The best way to solve a problem is to have a diverse team ; differences make us stronger ,” said Magda Dexter , senior vice president of human resources at Saint- Gobain North America , a company that views its deep commitment to building a diverse and inclusive workplace as a competitive advantage . “ The talents , perspectives and lived experiences of women and other underrepresented groups are invaluable to creating a workplace culture that attracts and retains the best talent , and every organisation can think of ways to remove barriers of entry and close the opportunity gap , especially as so many are struggling to find skilled workers .”
In the report , nearly nine in ten manufacturers ( 88 %) agree that diverse teams are typically “ more creative and innovative ,” and separate research from the Manufacturing Institute recently identified women as one of the most viable and strategic talent pools for the manufacturing sector .
Improving employee experience
Additional opportunity lies in reframing the frontline employee experience : 80 % of manufacturers in the report acknowledged that they have two separate cultures in their companies , often with greater focus placed on creating a positive culture and experience for corporate employees , compared to the hourly team members who keep production lines running .
For example , more than two-thirds of manufacturers ( 68 %) say their companies aren ’ t doing enough to support the frontline-employee experience with mobile technology . Professional development ; predictable work schedules ; paid time off ; employee-wellness programmes and flexible schedules for frontline workers are similarly lacking , as is training for frontline managers .
“ While operational dynamics may prevent all employees from having the same experience , manufacturers do have opportunities to enhance equity at all levels of their organisations . Whether by increasing flexibility to address family and personal needs or empowering frontline staff to learn new skills so they can advance within their companies , small changes can have big impacts on the frontline experience and make workplaces more attractive to skilled talent ,” said Zenk .
Trending in the right direction , nearly nine in ten manufacturers ( 87 %) said they are both proactively seeking new ideas from frontline workers to improve processes and are actively trying to set up more flexible work arrangements for frontline workers .
“ Taking better care of your people and giving them a voice in their experiences have a tremendous impact on retention ,” said Dr . Jarik Conrad , executive director of the UKG Workforce Institute , a global thinktank that provides research and education on critical workplace issues . “ The key is to operationalise this practice for the frontline , where not everyone has a work email and may not speak the same language . To be effective , feedback and communication channels need to meet your people where they are . Even more important is translating their input into action . Being curious , empathic and open to change are among the greatest traits that a leader can possess .” n
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ISMR October 2023 | ismr . net | 7