ASSEMBLING YOUR FUTURE WORKFORCE. How organizations are using employee engagement to attract millennials into manufacturing.

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1 ASSEMBLING YOUR FUTURE WORKFORCE How organizations are using employee engagement to attract millennials into manufacturing.

2 EMBRACING A SHIFTING LANDSCAPE With over 10,000 baby boomers retiring every day, the demand for manufacturing workers is about to hit an all-time high. Almost 3.5 million manufacturing positions will need to be filled over the next decade, leaving companies grappling with a looming shortage of skilled workers. The most effective organizations are adapting to the new demands of the incoming millennial workforce and using technology to attract and retain their greatest asset - their people. Engagement means that people want to come to work, understand their jobs, and know how their work contributes to the success of the organization. Gallup Research As manufacturing struggles to shed its image as an antiquated industry and attract a younger workforce, executives are shifting their attention to beefing up company culture and relying heavily on increasing employee engagement to make their business an enticing place to work. Leaders in the industry recognize that while their organization may not have the same appeal as conglomerates like Amazon or Google, they can tout their use of cutting edge technology to stay competitive with recruitment, workforce planning and talent management. So how does employee engagement build a strong pipeline of qualified recruits? Employees thrive when given the opportunity to contribute ideas and take ownership of their work. They frequently act as the organization s advocate, sometimes without even realizing it, and help attract equally dedicated people to the company and position the organization as an employer of choice. An employer of choice offers their workforce more than compensation, and according to study after study, millennials want more than just a paycheck. They seek the daily use of technology and opportunities for personal development. Manufacturers can align themselves with millennial desires by highlighting the industry s advancement into a new era of technology through the use of robotics and automation. This can be a catalyst for attracting millennials, especially as more high schools and colleges across the country are pushing the STEM curriculum - science, technology, engineering, and mathematics. 70% of Americans are not engaged at work. Gallup Research

3 WHAT IS EMPLOYEE ENGAGEMENT? Employee engagement describes the relationship between an organization and its employees. You can engage your employees several times throughout the day and also at milestones in their career by leveraging your workforce management solution. Using an all-inone platform to manage HR, operations and IT functions, and connect with employees, integrates their day-today work with the bigger goals of the organization. Employee engagement begins during onboarding. Companies have the chance to build loyalty and accelerate time to productivity when their onboarding process is easy and seamless. It s the start of a positive relationship between the employee and organization. Your workforce mangement solution can also be used to engage employees in professional development by tracking employees skills and identifying areas for growth. It can provide visability into key performance metrics, which in turn, promotes a fair and productive relationship with managers. And the best part? Employee engagement is contagious. The attitude of the workforce is one of the largest contributing factors to company culture. Organizations can harness the workforce s energy through: Collaborative environments Opportunities to learn new technology Managers who are engaging If you consider the cost of recruiting and training new hires, the relationship between employee satisfaction and company profitability, and the impact of employee engagement on the success of an organization, it s well worth the investment in employee engagement. EMPLOYEE ENGAGEMENT BY THE NUMBERS Companies with highly engaged workforces outperform their peers by 147% in earnings per share. 36% of businesses see engagement as a top challenge. 8 of 10 organizations have specific initiatives in place to address workplace culture and engagement. 41% of employees say they know what makes their company different from competitors.

4 CLOSE THE SKILL GAP BUILD THE PIPELINE Americans consider manufacturing among one of the most important domestic industries for maintaining a strong national economy. So, why are organizations struggling to find workers? 3.2 million manufacturing jobs need to be filled over the next decade. 2 million are expected to remain vacant due to lack of appeal to millennials. 80% of manufacturing executives are willing to pay more than the market rate to respond to the talent crisis. 59% of millennials say an employer s provision of technology is most important when choosing a job. Today s technologies are breathing new life into the manufacturing industry. While assembly lines and production machinery will always be at the heart of operations, robotics and automation have already pushed the industry into a new age of innovation. ONLY 37% OF AMERICANS WOULD ENCOURAGE THEIR CHILDREN TO PURSUE A CAREER IN MANUFACUTRING.

5 5 WAYS TO ENGAGE YOUR EMPLOYEES Ask for ideas and input at the grass roots level Nobody knows the ins and outs of your business better than your employees. From the big picture to the minute details, employees provide the energy that keeps your business humming. Simply asking for input builds trust and fosters a culture of collaboration. Employers can use employee engagement surveys to pinpoint trends, identify bottlenecks and define areas for improvement. Industry leaders recognize that building a community where everyone is encouraged to share their ideas naturally gives employees a stake in the company. Take advantage of digital technologies Savvy manufacturers are not only using cutting edge technology on the shop floor, they re also incorporating it into back-office processes. Whether it s a technician using a mobile device or administrator in the office, employees expect to instantly access information that s important to them, like schedules and time off. Time consuming tasks, like payroll and collecting timesheets, can easily be automated through your workforce management solution to reduce time on paperwork and digging through spreadsheets. When these critical funtions are automated, businesses enjoy the benefits of controlled costs, reduced payroll errors, and happy employees. Find opportunities for work/life balance Manufacturing work isn t your usual 9-5. It s around the clock work that never stops. Employers can promote a healthy work/life balance in a variety of ways: Offer compressed work weeks Develop an employee wellness program Limit overtime

6 Track productivity and efficiencies in your workforce There s a number of ways to track productivity and efficiencies, and with real-time data, it s never been easier to identify star performers and improve operations. It starts with an accurate schedule and beginning each shift with the right employee in the right place. For employees who hop from task to task, tracking their activities can give management an accurate measurement of productivity and visibility into exactly where labor dollars are being deployed. Tracking tools can also identify and reward top performers, uncover areas for improvement, highlight opportunities for enhanced job training and career advancement. Coach and tap into middle management Middle managers can be your business most influential employees. They re the link between day-to-day operations and the overall business strategy. Cultivating their leadership skills and giving them visibility into production data will equip them to make faster and more informed decisions. Bringing mid-level managers into the fold can build stronger connections throughout the organization. 3 TRAITS OF A HIGHLY ENGAGED CULTURE: Employer of Choice A strong reputation builds a solid pipeline of workers, cutting down on recruitment efforts and costs. Ownership Mentality Engaged employees feel a sense of pride and ownership in their work, which keeps them productive and reduces absenteeism. Alignment Between Culture & Goals Empower employees with the right tools to innovate and drive the organization s goals forward.

7 BUSINESS BENEFITS & IMPACT Manufacturing has a prime opportunity to capitalize on the millennial workforce, which will represent 75% of available workers by Employee engagement can be the means to successfully attract this innovative, tech-savvy, and driven generation to your organization. While employee engagement may seem to be ambiguous, there are consequential statistics that cannot be ignored. Organizations where employee engagement is considered a core value experience: 17% HIGHER productivity 40% FEWER quality incidents 70% FEWER employee safety incidents 21% HIGHER profitability Simply put, engaged employees have a direct correlation to the success of an organization. Presence of IT can partner with you to uncover ways to engage your workforce, boosting critical focus on areas that you rely on. Employees are often the determining factor between successful organizations and ones that never reach their full potential. The difference: successful organizations have engaged employees.

8 About Presence of IT Presence of IT is one of the world s leading consultancies in workforce management, HR and payroll. We provide thought leadership, process improvement, software implementation and support services to some of the world s largest organizations in both the private and public sector. Our strength is in the excellence of our people and our customer-first approach. Our teams of experts are responsive, helpful and solution- focused. We take the time to understand your business and solve your challenges with market leading solutions. Presence of IT will help you transform your business operations and workforce management processes by giving you the tools you need to control labor costs, minimize compliance risk, and improve productivity. Get in touch Contact us today for a free 30 minute employee engagement assessment and recommendations with one of our expert consultants. workforce@presenceofit.com Phone: Web: excellenceinworkforce.com