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April 18, 2023

Workforce Challenges And Solutions For The Manufacturing & Supply Chain Industry

Manufacturing and supply chain

The manufacturing and supply chain industries are no strangers to change, with workforce shortages and recruitment challenges being some of the more recent changes. Creating sustainable and scalable solutions prioritizing employee well-being and development is more critical than ever.

What Are The Biggest Challenges The Industry Is Facing?

The manufacturing and supply chain industry face a severely lacking workforce in a competitive labor market, and it will take strategy and adaptability to stay ahead. HR professionals are noticing not only the need for core competencies such as agility, resilience, and technological proficiency but also the value of diverse perspectives and an increased focus on employee well-being, talent development, and engagement.

Challenge 1 – Upskill Workforce

Due to a variety of factors, the manufacturing and supply chain workforce is shrinking. With the average age of highly skilled workers at 56 and nearly a quarter of them retiring over the next decade, HR must find ways to upskill the workforce. As automation and new technologies transform how manufacturing and supply chain industries function, many skills developed over the years will become obsolete. The manufacturing skills gap will only continue to grow with an insufficient investment in employee growth and development.

Challenge 2 – Boost Employee Engagement

Low employee engagement can occur for many reasons, such as work-life balance, stress, and burnout. In fact, less than 1 in 5 employees consider themselves “very engaged” at work. The sheer size of the manufacturing and supply chain workforce and its tendency to spread its employees across multiple locations poses a unique challenge to HR departments as well. To effectively leverage their workforce, the manufacturing and supply chain industries must improve their ability to create and foster engaging work environments.

Challenge 3 – Build Resilience & Morale 

With new technologies emerging and new generations joining the workforce, the manufacturing and supply chain industries are no strangers to restructuring. Building resilience during these times can be challenging, especially with high turnover rates, stagnant pay packages, lackluster benefits, and poor work environments. Therefore, building resilience and morale must be a top priority for HR.

Challenge 4 – Attract & Retain Talent

It’s becoming increasingly difficult to fill roles that require technical and applied skills. 54% of all supply chain organizations report that an inability to access talent has interrupted or curtailed their business activities. However, we often see a lack of investment in employee growth and development from both a professional and personal level even though today’s workforce has higher expectations than ever before, and is looking for more human-centric work environments. Because these industries can be prone to high turnover rates, it is critical for companies to be more creative when it comes to attracting and retaining talent.

42% of manufacturing managers say they lack confidence to develop skills. 20% of supply chain employees actively seek new employment.

TaskHuman’s Solutions

New generations of talent join the workforce and expect a different kind of workplace. With the TaskHuman platform, your organization can improve employee engagement, training, and talent development opportunities. An increased focus on people will allow the manufacturing industry and its workforce to grow.

Solutions To Upskill Workforce:

Empowering an organization’s learning culture is vital to upskilling its employees. In today’s market, employees look to their employers for development opportunities. HR departments can easily support employees by creating a talent development plan. Talent development plans include career pathing, training for new managers and leaders, and mentorship programs.

Resources for HR Leaders:
Why Mentorship Matters To Company Growth

Solutions To Boost Employee Engagement:

Create a space where employees can thrive by improving company culture. This usually starts with focusing on well-being. According to an Indeed-Forrester workplace survey, 80% of employees check for information about well-being programs before accepting a job offer. This means creating a flexible well-being program is crucial.

Additionally, implementing robust Employee Resource Groups (ERGs) is another way to get started. ERGs act as culture-builders that can create a sense of community and drive change toward a more equitable workplace. ERGs can work hand in hand with Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives. When done right, DEIB drives the organization’s culture, increases employee engagement, and empowers productivity.

Resources for HR leaders:
The TaskHuman Guide To Employee Resource Groups (ERGs)

Watch On-Demand: Introduction To Diversity, Equity, Inclusion, and Belonging (DEIB) Programs

Solutions To Build Resilience & Morale:

Although manufacturing and supply chain can be very highly skilled industries, it is important to also encourage the development of soft skills, especially in managers and leaders. With proper feedback and communication managers can help build resilience during times of uncertainty.

Employees can also seek support from their very own coworkers through the implementation of Employee Resource Groups (ERG) and Diversity, Equity, Inclusion, and Belonging (DEIB) programs. As industries and the workforce evolve, the importance of empowering professional development plans within organizations increases and is crucial for boosting morale.

Resources for HR leaders:
Watch On-demand: Strengthen Company Culture During Restructuring

Solutions To Attract & Retain Talent:

More than 85% of frontline supply chain employees say it is important for their organization to see them as a person, not just as an employee. This is why providing flexible well-being programs, career development, and advancement programs are extremely valuable – especially when opening the talent market to the younger generation. Leadership coaching and mentorship programs are great places to start empowering employees as a whole.

Resources for HR leaders:
Lead and Succeed Through Uncertainty

89% of L&D pros actively build employees skills. 62% of employees with strong coaching cultures are highly engaged.

TaskHuman Delivers Results:

The TaskHuman platform was rolled out to an entire business unit at one of the world’s largest tire and rubber manufacturers to support personal and professional development. The individuals involved averaged a rating of 4.82/5, generating a direct impact of +7 increase in employee NPS, and +4 increase in employee engagement.

Employee Growth & Support At Scale

The TaskHuman platform connects a global network of professional expertise to your employees, unlocking their fullest potential, improving performance and engagement, and providing preventative support – instantly.

Sources: Gartner Gartner LinkedIn Human Capital Institute

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