8 Steps to an Empowered Workforce of the Future

Manufacturers are facing pressing talent issues today. But they shouldn’t forget to plan for tomorrow.   

It’d be hard to blame today’s manufacturers for thinking short term. As demand continues to surge — despite inflationary pressures, supply chain challenges, and the war in Ukraine — manufacturing executives are understandably focused on filling orders and seizing opportunities to rebound from a turbulent two years.

The ongoing talent shortage plays a critical role here, of course. According to a recent study, nearly half of manufacturing executives are turning down business opportunities due to a lack of workers. While employment in the manufacturing sector is nearing its pre-pandemic levels, turnover remains high and keeping up with demand remains a challenge. Problems facing the industry before the pandemic — be it an aging workforce, younger generations’ expectations around flexibility, or the widening skills gap — have only been exacerbated.

Yet while manufacturers might be tempted to simply do whatever they can to get enough workers to meet the needs of today, they shouldn’t sacrifice investments needed to obtain and develop the right workers to meet the needs of tomorrow. Failing to do so will limit their ability to grow and derive value from investments in an increasingly digital operating model — and will mean passing up quick wins that will come by embracing long-term strategies.

On the bright side, it’s a good time to make these changes. Volatility and disruption aside, profits remain high, providing ample capital for investment. New technologies and the industry’s ability to produce essential PPE, ventilators, and other critical goods during the pandemic has also shifted negative public perceptions. Sixty-four percent of consumers now view manufacturing as innovative, up from 39% five years ago.

Manufacturers need to think beyond the challenges of 2022 and invest in the workforce of 2030.

These eight steps can help them do just that.

1 Define who you will be in 2030.

Here’s a concept that seems simple but is actually quite layered: Companies can’t assess what talent they’ll need down the line without understanding who they’re set to become. To answer this question, begin by understanding the industry you operate in, the type of products your company produces, who you want to be as an employer, and your current and future customer base.

For instance, a small manufacturer of watches that delivers direct to customers will have different needs than a high-end OEM. Understanding what resonates with your customers and what their future preferences will be — through customer surveys or other feedback mechanisms — can help lay the groundwork for designing your 2030 production line.

4 Update your approach to skills/talent development.

Every manufacturer has continuous education or learning and development functions, but many have gone stale. That will need to change to meet the skills needs of 2030: According to a recent study, only 50% of production employees feel ready to take on advanced roles, and 60% of skills shortages are due to insufficient STEM education and vocational training.

But there are initiatives that can address this shortage. Examples include partnering with vocational training and high schools to provide more apprenticeship and internship opportunities, sponsoring AI and robotics labs in schools, rotational management development programs (like those at GE or Honeywell), and adopting a German-style apprenticeship model in which students spend much of their time gaining hands-on experience.

Industry partnerships with community colleges are especially critical to this endeavor. But manufacturers have to take these partnerships a step further and guide these programs in ways that develop the right future skills and attract students earlier. For instance, Oakland Community College in Michigan, in partnership with HURCO, built an advanced training center and lab to not only educate students with state-of-the-art technologies but also expose them to industry applications and opportunities. In Ohio, Cuyahoga Community College’s Manufacturing Technology Center of Excellence brings its mobile training unit in a 53-foot-long trailer right to the doorsteps of local companies and schools.

Once employees are on the factory floor, they’ll need the right tools and training to hit the ground running and grow in their careers. Digital tools can help, from tablets that can digitize work instruction and standard operating procedures, to wearables that can provide alerts that reduce on-the-job injuries, to augmented reality (AR) that can help train workers and provide work instruction and remote assistance. Lockheed Martin, for example, uses cameras to project images on an aircraft wing to show workers where rivets need to be placed.

Still, there’s a balance to be had in integrating these new technologies to develop talent. While the technologies could play a role in attracting a younger workforce, organizations should be careful to deploy them in ways that support workers’ capabilities. For instance, a 2022 study showed that while using AR helps workers pick up instructions more quickly, it can also set them back should it be taken away later on.

5 Elevate talent acquisition and retention strategies to align with evolving employee expectations.

Behlen Manufacturing in Nebraska surveyed hundreds of high school students about what they’re looking for in a job. The answers? Balance and flexibility, good relationships with leaders and co-workers, community engagement, being valued and heard, and growth opportunities. Salary was way down on their list.

In other words, employee expectations—especially among younger generations—are changing. Nearly 40% of new manufacturing talent have different career/job expectations than previous generations. Thinking ahead to 2030, manufacturers must be prepared to attract and retain talent from this cohort.

While manufacturers aren’t tech companies who can give their employees everything they want — after all, most factory workers will still have to show up on site — they do need to demonstrate they understand this new world of work and be open to some change, particularly around flexibility. A few initiatives they should consider include:

• Changing work schedules — for instance, instead of three eight-hour shifts, try offering four six-hour ones
• Onboarding “floating” staff who can provide coverage for people who need time off (e.g., to go to the doctor, etc.)
• Understanding and appealing to specific employee segments. For example, women are an underrepresented portion of the manufacturing workforce. But Behlen found women enjoyed the satisfaction of making something, networking, and building relationships.
• Developing a deliberate onboarding process that engages people from the start
• Establishing employee resource groups to build a sense of community
• Recognizing your employees’ successes and efforts by offering incentives for contributing ideas and creating structures by which employees can recognize their peers
• Mapping out employee career progression so people can see the possibilities for growth at your organization
• Elevating the image of manufacturing and/or your company. This could be as simple as remodeling your front lobby to make a better first impression or showcasing innovative technologies during factory tours.

6 Connect with communities and build your employer brand.

Manufacturers have historically been intimately tied to their local communities. For example, Hershey, Pennsylvania, was built by The Hershey Company, and numerous other cities around the country have similar origin stories.

Also contributing to this article were Karen Bundy, Senior Manager, Human Capital Management, West Monroe; and Luis Davila, Principal, Consumer & Industrial Products, West Monroe