Making Manufacturing an Industry of Choice

Developing the next generation workforce depends on a new approach to cultivating talent for the M4.0 world.   

In a brutally tight labor market, companies across all industries are fighting for top talent and getting creative about how best to attract and retain employees. In the manufacturing sector, this may be a time of reckoning that will force some leadership teams to reevaluate what it takes to be an employer of choice, especially because manufacturers compete more now with other industries for talent than ever before.

Making sure your team is prioritizing the right leadership competencies, embracing advanced technologies and flexible work options, and taking a holistic view of the talent pipeline are all crucial areas manufacturers should focus on if they want to build a competitive next-generation workforce.

Future Leadership Competencies

Some of the defining characteristics of a successful leadership team may seem obvious, like the ability to think critically and make tough decisions. But whereas in the past many leaders may have focused more on being an individual contributor or their own path through an organization, they now find themselves increasingly being defined by how well they help develop their people throughout all functions of the company.

Being able to help cultivate othersโ€™ skills is crucial for leaders in any industry, but it is paramount right now in manufacturing where there are notable gaps between open positions for blue- and white-collar workers, challenges in recruiting new workers to an industry many perceive as old-fashioned, and vast possibilities for new ways to harness technology across the business enterprise.

โ€œThe manufacturing skills gap in the U.S. could result in 2.1 million unfilled jobs by 2030,โ€ according to a 2021 study from Deloitte and The Manufacturing Institute, a partner organization of the National Association of Manufacturers. Compounding that potential shortfall, there were 1.94 job openings for every unemployed worker across the U.S. economy as a whole in March 2022, according to the Bureau of Labor Statisticsโ€™ Job Openings and Labor Turnover Survey.

  • Using digital feedback platforms or learning courses: Many companies already use these types of tools at the corporate level, but manufacturers that want to stay competitive need to get more creative with how they incorporate such tools across the entire enterprise, and work to enable technology access for everyone on the shop floor and the corporate office.
  • Reassessing technology policies on the shop floor: Think about manufacturers that donโ€™t allow employees to use their phones on the shop floor, or donโ€™t have Wi-Fi available in their production facilities. This will hinder those companiesโ€™ opportunities to attract younger workers. Gen Z workers do everything online, and they likely wonโ€™t respond well to a printed binder of policies and procedures. Itโ€™s important to have IT policies in place, but manufacturers should also cultivate an environment of trust with employees when it comes to technology use, given that access to phones and computers throughout the day can boost productivity. That trust will also facilitate better employee satisfaction and morale.
  • Better equipping team members with data: Ultimately, data does not solve problems; the way employees use data solves problems. Leadership teams can empower employees by arming them with data not just about operations, but also about their performance. Building data fluency among employees can also improve the understanding that new technologies โ€” such as cobots, wearable tech, and automated processes โ€” exist to enable them as workers, not replace them.

Crucially, there needs to be buy-in from senior leadership for such efforts to succeed. For many manufacturers, this will likely require a mindset shift about the positive ways technology intersects with and improves workplace culture.

Holistic Talent Pipelines

Another mindset shift is in relation to how present and future talent pipelines differ from those of the past. The days of executives, managers, and others staying in one role for three decades is long gone, replaced by a more dynamic environment where employees seek out new opportunities based on a broader variety of factors alongside compensation.

This again highlights the importance of leadership competencies for the future. Executives and other leaders need to understand how the increasing importance of these other factors โ€” location flexibility, inclusive environments, opportunities for growth, and the importance of environmental, social and governance issues โ€” drive employee satisfaction and perceptions of the manufacturing industry.

Marni Rozen is a Director at RSM US LLP.