Managing talent problems: Is HR or operations responsible?

It has been reported that U.S. manufacturing could see 2.1 million unfilled jobs by 2030, and the cost of those missing jobs could potentially total $1 trillion.

They say numbers don’t lie, but whether or not you believe the numbers, the fact remains the manufacturing industry has a talent problem that is not going away, and many metalformers are or will be facing significant challenges attracting and retaining talent.

For many, the easy answer is to blame HR — “We aren’t getting the right qualified candidates,” or “People are not showing up on day one,” or “Our salaries are not competitive.” Yes, HR plays an important role in your company. However, the reality is that this current talent problem has been brewing for years with very little being done to address it. And, the truth is, operations have just as much responsibility for the workforce as HR.

How did this happen?

In the ‘50s, ‘60s and ‘70s, when people were looking for a way to make a living, manufacturing jobs were incredibly desirable — competitive salary, family benefits, pension plans and opportunities for overtime and bonuses. And all of this did not require a four-year degree. Careers in manufacturing were sought after and helped create middle-class America. However, it is important to note that most of the workers who filled these jobs were young, white men.

Today, the story is different. Parents and grandparents who grew up working in manufacturing have encouraged their children and grandchildren to pursue careers in other industries. The reasons vary, but often it’s simply a desire for their children or grandchildren to have “more” or a “better” life (even though manufacturing provided a comfortable living). 

Additionally, during the great recession, jobs in manufacturing were eliminated, which alienated many against the industry. And, finally, manufacturing has an unfavorable reputation and perception. Many people feel a career in manufacturing is undesirable because it is dirty, hard and unsafe.

Unfortunately, all the people who influence students — teachers, coaches, parents and counselors — tend to encourage pursuing a career outside of manufacturing regardless of the fact that they are well-paying jobs.

When you put all this together, it produces significant workforce challenges for the small- to medium-sized manufacturer, making it even more important for metalformers to have a workforce strategy and be intentional about talent management.

1. The facility

Let’s start with your facility. Is it clean? Are your safety processes effective? Do you have a nice break and/or lunchroom location? In short, have you created an environment that people are proud of and enjoy coming to work every day?

Investing time and money to improve your facility and your processes not only benefits recruiting and retaining employees, but it will likely improve your efficiency, quality, and safety metrics. Many HR managers can bring people through the door, but if it is an undesirable place to work, then they often leave the first day.

2. Leadership roles

Also, there is a portion of the population that many manufacturers miss in recruiting talent. Companies need to understand how they can attract a diverse talent pool. It can be challenging because frequently people seek jobs where the other employees look like them and/or they have senior leadership that looks like they do. If you want to attract more diversity within your organization, you need to work toward leadership roles for people of color and women.

3. Onboarding

Another area to invest in is creating a solid and robust onboarding process for new employees. Onboarding should begin before an individual steps foot in your facility to start working. It needs to include communication, training/education and experience and provide information the employee needs to know to do their job. Additionally, onboarding should create interest in the company, reduce anxiety about starting a new job and create a feeling of belonging to the company.

If you are wondering if you have an effective onboarding process, take some time to talk to your employees and ask them about their experience. What could be done better? What did they like or dislike during onboarding? What do they wish they would have known when they started? Don’t assume you are doing it right, go out and ask those who have been through it whether it’s a solid process.

4. Retention practices

Don’t just focus on onboarding new employees — you want to retain them once they have joined your team. Take a look at your retention activities. Are you investing in training and education for your employees? Are you working with your employees to create a career plan?

Individuals are more likely to stay if they know there is a plan for their career development. Additionally, cross training can help your organization be more flexible to better manage business changes and provides something new or different for employees to do at work — no one likes to do the same thing every day for years.

5. Culture

Finally, don’t overlook your culture. A company’s culture is a critical factor in its ability to attract new talent and employee turnover.

And before you say your company doesn’t have a culture, know that every company has one — there is no such thing as a “culture-less” organization. It may not be something you have created, but it’s there, and you need to be aware of and nurture it to be positive. The next-generation workforce has clearly stated that they will not tolerate a bad workplace culture; 70% said they would take lower pay rather than deal with a bad workplace environment.

Culture starts with leadership, so gather the data and information, make an action plan and be intentional on what you want your culture to be.

How Wipfli can help

In the manufacturing industry, talent has been and will continue to be one of your biggest challenges. The talent crisis will not fix itself, and we can only expect it to get worse. Many companies are utilizing HR for only administrative functions and not strategically to support attraction and retention. If you are waiting for HR to fix all of your company’s talent issues, you will be at a disadvantage. Operations and HR need to work together to make your facility a desirable place to work and create a strategic plan for how to attract and retain your workforce. Talent is a problem that your entire leadership team needs to address.

We understand the importance of people, and that the right team can make all the difference for any business. We work alongside you and your organization to develop and manage high-performing teams, using proven methodologies and solid data to set you up for success. Learn more about our talent management consulting services or our team development offerings.