3 Winning Strategies to Survive Manufacturing Labor Shortages
The greatest danger in times of turbulence is not the turbulence,
It’s acting with yesterday’s logic!
Introduction
Workplace turbulence? Yes, we probably all agree. The turbulence is felt in all sectors: government, banking, hospitality, healthcare, research institutions, transportation, and manufacturing. No industry or workplace has been spared. Despite increased salaries and benefits, workforce resignations continue at unacceptable levels. Industry leaders are baffled.
The causes are many. The current labor shortage is the biggest factor. Beginning in 2007, about 67% of the civilian population was employed or seeking employment. That percentage began to fall in 2010 and by 2016 it was 63%. While the percentages are small, we must remember that the U.S. population is under 350 million. The drop has denied the American economy of almost 14 million workers.[1]
Additionally, research reflects that after decades of low birth rates, Baby Boomers began to retire in 2011. Their retirements continue until 2030. The 2020 COVID Pandemic triggered early retirements, deaths, long absences, resignations, and along with supply chain disruptions, each has added to workplace turbulence.
As the low birth rate collided with the retirement of the Boomers, organizations began to rely upon Generations X, Millennials, and Zs. Pandemic-related workplace losses has severely disrupted the workplace and workforce in ways unseen since World War II. While the Covid crisis has ended, the turbulence remains with no end in sight: a workplace and workforce tsunami.
The Great Resignation
As COVID surged, Congress funded a massive stimulus package. While the stimulus created a financial cushion, it allowed millions to consider new careers. Exit interview data, conducted in late 2020 and early 2021, reveal that younger employees want less stress, fewer responsibilities, work from home options, reduced travel, and a better work-life balance. There is no reason to believe the data has changed.
A new Post-Ipsos Poll of 1,148 workers, aged 18-64, found that “flexible work, better pay, opportunities for mentorship, job advancement, and a lack of interaction with managers contributed to the Great Resignation.” The Post-Ipsos Poll found that, “While eight of 10 workers are satisfied with their jobs, six in 10 said their work is stressful.”[2]
Additionally, a recent study of the Social Security Administration workforce stated that, “Job applicants and current [Emphasis Added] employees want flexible workplace benefits because it saves them money, increases productivity, work-life balance, overall quality of life, and job satisfaction.”[3] Some may argue that Zoom or Teams meetings are just as productive as face to face on-the-job collaboration The jury is still out.
The Great Reshuffle
Beginning in early 2020, business leaders reacted swiftly to the COVID Pandemic. To combat the spread, millions of remote positions were created but in many industries that strategy lacked a robust workforce support system. Suddenly, those with varying levels of experience were required to manage evolving tasks that involved decision making – for better or worse! Understaffed organizations and overworked employees remain exhausted, despite redesigned job tasks and a move to increase supervisor training. Salaries have increased and PTO policies have expanded. Interestingly, many organizations have begun to explore a four-day work week. Organizations continue to struggle. The labor shortage remains.
3 Winning Strategies to Build a Collaborative Workplace and Workforce
Turbulence creates change opportunities.
Great leaders are change ready!
For decades American business has faced many challenges. Leaders have always responded with solutions despite significant barriers and constraints. It can be done again! However, business leaders know they can’t do it alone. They recognize that “knowledge workers”[1] are essential for success. As before, a willingness to change is required! We offer three strategies to meet these challenges. Rapid implementation is key.
1. Develop Clear and Actionable Company Objectives and Goals
Alice: Would you tell me, please, which way I ought to go from here?
Cheshire Cat: That depends a good deal on where you want to get to.
Alice’s Adventures in Wonderland
A senior management driven comprehensive Strategic Plan is your organization’s roadmap for growth and long-term financial stability and success. During the Strategic Planning process, leaders will develop your organization’s values, define your company brand, and identify development opportunities. Short and long-term benefits will become apparent during Plan implementation. As your leaderships’ communication and collaboration increase, so too will workforce goal achievement which, in turn, will strengthen their long-term job commitment. Their self-confidence will soar!
Your Strategic Plan and its business objectives and goals will rely upon a trained and highly committed workforce. They are your organization’s best resource to meet and beat your competition.
Why is Strategic Planning so important? It provides a setting for senior management to:
Discuss organizational strengths and weaknesses
Identify and evaluate threats and opportunities from competitors
Provide opportunities for product development
Develop budgets that anticipate required operational changes
Set and measure short and long-term Goals
Generate organization-wide operational efficiencies
Build workforce collaboration and decision making
2. Build a Talented and Engaged Workforce
Today’s workplace requires knowledge leaders and knowledge workers!
Human Resource professionals are challenged as never before. In a tight labor market, they must source, attract, hire, and develop curious and resilient minds committed to workplace excellence. In short, today’s high tech organizations require knowledge workers! There’s a huge payoff in building a knowledge based workforce: engaged employees stay with you because they feel valued! Best of all: their commitment to excellence is highly contagious!
Developing a knowledge workforce is imperative. Given the labor shortage, it’s a sound investment. The following Human Resource programs will build and support your knowledge workforce:
Implement best practices in Talent Acquisition, Onboarding, and DEI processes and procedures
Build workforce knowledge and skills with focused training and mentoring initiatives
Foster a collaborative and innovative culture
Develop Performance Improvement Plans
Set performance goals and measure success
Provide positive and constructive feedback continually
Identify Succession Plan candidates
3. Leaders Lead!
A leader is someone who people follow to places they would not go alone
Leaders know where the organization must go, and they confidently lead others on the journey. When change is required, great leaders thrive and despite barriers and constraints they remain undaunted. They are change ready as they:
Recognize industry changes
Identify cost-effective change opportunities
Collaborate and build cohesive teams
Monitor and guide change initiatives constantly
Communicate benefits of change initiatives and
Develop similar change ready qualities in others – many others!
Identify your change ready leaders; look for those who are:
Flexible
Curious
Perceptive
Collaborative
Innovative and
Courageous
You will recognize your change ready leaders because they are:
Well informed
Question the status quo
Reframe issues and
Communicate solutions
Another clue? During turbulent times, change ready leaders are self-confident, trustworthy, and resilient. They remain highly focused. Change ready leaders add enormous value to your organization because they possess the five qualities of emotional intelligence which are:
Self-awareness
Self-motivation
Self-regulation
Social skills and
Empathy
Conclusion
Most importantly, their traits are infectious as they collaborate and develop similar skills in others. Let’s not forget: a workforce feels valued when it’s engaged!
When the best leader’s work is done, people will say,
‘We did it ourselves.’
At Antrim Consulting we listen carefully and use data-driven tools to identify current issues you are facing. Then, we collaborate with you and customize solutions for long-term benefits.
Our on-site workshops and one-on-one coaching sessions provide winning strategies to help you survive in labor shortages. Our goal is to help your key stakeholders recognize conflict and end its damaging effects. We aim to oxygenate your culture and increase your organization’s bottom-line profitability!
Online &/or Onsite Coaching
Free 1 Hour Initial Consultation
CONTACT ANTRIM CONSULTING
Footnotes:
[1] Forbes Magazine, (30 May 2022), Roots of America’s Labor Shortage, Ezrats, Milton
[2] Washington Post, Post Ipsos Poll, (2023, May 23), American Workers Mostly Happy With Their Jobs
[3]American Federation of Government Employees, Local 1923, (2023, June 20), SSA Workers Seek Expansion of Telework to Address Staffing Crisis
[4] Drucker, Peter, The landmarks of tomorrow, Harper & Row, 1957