Strategic Workforce Planning: A Key to Manufacturing Success

eBook Strategic Workforce Planning: A Key to Manufacturing Success

The manufacturing industry faces signiûcant challenges, including a talent shortage, technological advancements, and market changes. For example, the National Association of Manufacturers (NAM) has reported that over 2.1 million manufacturing jobs could go unûlled by 2030 due to the skills gap, highlighting the critical talent shortage faced by the industry (The Manufacturing Institute). And, according to a McKinsey report, the implementation of automation and robotics has led to a 70% increase in productivity in some manufacturing processes. However, this also requires a workforce skilled in operating and maintaining advanced technologies, exacerbating the talent gap (McKinsey & Company). Furthermore, the shift toward reshoring and the need for more localized production is causing many manufacturers to ramp up operations. A Deloitte study projects a 40% increase in domestic manufacturing output over the next decade, which will require manufacturers to adopt strategic workforce planning to meet growing demand (Deloitte). While employment and wage rates can üuctuate weekly and monthly, the future state is clear: to remain competitive, manufacturers need to implement workforce strategies today that address these issues and ensure long-term success. Here’s how manufacturing leaders can develop and implement effective workforce strategies.

The Importance of Strategic Workforce Planning Strategic workforce planning involves aligning an organization’s workforce capabilities with its long-term business goals. For manufacturing, this means anticipating future talent needs, identifying skills gaps, and developing strategies to attract, retain, and develop the necessary talent. To successfully implement strategic workforce planning, manufacturing leaders must focus on several key components: 1. Workforce Analysis and Forecasting 2. Talent Acquisition Strategies 3. Training and Development Programs 4. Employee Engagement and Retention 5. Leveraging Technology and Automation 6. Building a Flexible Workforce 7. Enhancing Workplace Culture

1. Workforce Analysis and Forecasting Understanding current workforce capabilities and forecasting future turnover occurred within the ûrst one to two weeks, indicating needs is the foundation of strategic workforce planning. This involves potential training and job matching issues. By addressing these analyzing workforce demographics, skills inventories, and turnover issues, they improved the worker experience and reduced early rates. Leveraging data to identify trends and gaps in the workforce turnover. This, in turn, led to a more engaged workforce and record enables more informed decision-making. breaking productivity. By zeroing in on key data points rather than generalizations, the company was able to implement targeted For example, one manufacturer partnered with Eastridge to study changes quickly and effectively that had a big impact on the bottom data to get to the root causes of turnover in the early stages of line. employment (Eastridge). This helped identify training gaps and misaligned worker expectations. For example, a large percentage of

2. Talent Acquisition Strategies Effective talent acquisition strategies are essential to address the As an example of the very real impact these strategies have, the immediate and future talent needs of the organization. This includes: Eastridge team successfully increased stafûng capacity to 91% for a manufacturer in Cleveland, Ohio, by implementing a three-phase ● Proactive Recruitment: Building a talent pipeline by approach (Eastridge). This involved more effective candidate engaging with potential candidates before positions become outreach, facility tours to educate applicants, and ongoing onsite vacant. management to reduce turnover by 42%. The project ultimately resulted in a 97% show-up rate and 93% retention, directly supporting ● Diverse Sourcing: Expanding recruitment efforts to include the importance of proactive recruitment and workforce retention underrepresented groups and non-traditional candidates with strategies in manufacturing . transferable skills. ● Employer Branding: Enhancing the company’s reputation as an employer of choice through positive workplace culture and competitive beneûts.

3. Training and Development Programs Ongoing training and development are critical for maintaining a one company needed soldering technicians, but had difûculty ûnding skilled and adaptable workforce. Programs like the GATE (Gateway to qualiûed candidates with the required one to two years of experience. Achieving Talent Excellence) program provide comprehensive Eastridge customized the GATE program to include a soldering training and assessment for new entrants into manufacturing, assessment to evaluate candidates' skills and potential resulting in a ensuring that employees have the necessary skills and knowledge to fresh slate of soldering technicians, many of whom were new to the perform their roles effectively and adapt to changing industry ûeld (Eastridge). In another example, the Eastridge GATE program demands. helped a medtech startup quickly scale production by expanding its manufacturing workforce by 300 headcount in just a few months This program has helped a wide range of manufactures expand their (Eastridge). talent pool and signiûcantly improve retention rates. For example,

4. Employee Engagement and Retention Employee engagement and retention are vital for reducing turnover Corporation integrates core values into its strategic roadmap, and maintaining productivity. Strategies to enhance engagement focusing on leadership and employee engagement. Employees are and retention include: more likely to stay when they feel connected to the company’s mission and values (The Manufacturing Institute) (The Manufacturing ● Career Development Opportunities: Providing clear Institute). These types of programs can reduce turnover by signiûcant pathways for career advancement and continuous learning. margins4up to 50% in some cases (Bright Horizons Global ● Flexible Work Arrangements: Offering üexible hours and Homepage). Another example is Mutual of Omaha, which uses remote work options to accommodate employees’ personal learning and growth plans to achieve a 94% favorability rating among needs. new hires and an 86% retention rate (The Manufacturing Institute). ● Recognition and Rewards: Implementing programs to These examples show that programs speciûcally aimed at employee recognize and reward employee contributions and engagement have a real impact on retaining talent 3 key to upskilling achievements. the workforce and gaining a competitive advantage today and in the Several manufacturing companies have improved retention through future. leadership training and recognition programs. For instance, Vermeer

5. Leveraging Technology and Automation The integration of technology and automation in manufacturing productivity by over 70% in processing areas and 280% in packaging processes can enhance efûciency and reduce dependency on manual by automating key processes. This transformation was not just about labor. However, this requires a workforce that is skilled in operating technology; the company collaborated with local colleges to retrain and maintaining advanced technologies. Investing in training staff for high-tech roles, ensuring that automation enhanced their programs that focus on these skills is essential. workforce capabilities (McKinsey & Company). This case illustrates One example that illustrates this perfectly is through a global how investments in automation can reshape talent management consumer packaged goods (CPG) company that increased strategies and improve productivity.

6. Building a Flexible Workforce Having a mix of full-time and temporary employees allows for greater work models, offering a variety of arrangements such as four-day üexibility in meeting production demands. Temporary stafûng can work weeks and hybrid work schedules. These üexible models allow help manage seasonal üuctuations and unexpected surges in the company to attract talent by accommodating employees’ needs demand. Partnering with stafûng ûrms that understand your while maintaining operational efûciency (The Manufacturing business needs can provide the necessary agility. Institute). Flexible stafûng is also becoming more common in manufacturing, where temporary workers help meet üuctuating Global aerospace and defense leader, Northrop Grumman is an demand (The Manufacturing Institute). example of a company that has successfully implemented üexible

7. Enhancing Workplace Culture Creating a positive workplace culture is key to attracting and retaining talent. This includes fostering an inclusive environment, providing opportunities for professional growth, and ensuring work-life balance. A strong workplace culture can enhance employee satisfaction and productivity. The impact of workplace culture is discussed in a conversation between Eastridge’s CEO, Seth Stein, and former CEO of WD-40, Garry Ridge (Eastridge). In the conversation, Ridge emphasizes that a strong company culture, rooted in values and servant leadership, is essential for creating a workplace where employees feel fulûlled and happy. He shares how the culture at WD-40 led to a remarkable 93% employee engagement rate, which directly contributed to improved company performance and long-term success . Another example, comes from nVent, a global company that designs and manufactures electrical connection and protection solutions. nVent prioritizes culture as a tool to attract and retain talent, with initiatives driven by a highly engaged leadership team. They focus on creating an inclusive environment that makes employees feel valued, helping them stay motivated and connected to the company’s broader goals (The Manufacturing Institute) (CMTC). Additionally, Power Curbers, a manufacturer of concrete paving machines and curbing equipment, has implemented a proût-sharing plan that fosters a strong sense of belonging and ownership among employees (CMTC).

Driving Efficiency and Closing the Talent Gap Through Strategic Workforce Planning Strategic workforce planning is essential for addressing the challenges facing the manufacturing industry. By focusing on workforce analysis and forecasting, effective talent acquisition, training and development, and employee engagement and culture, companies can help close the talent gap in manufacturing and improve efûciency.