Critical Components to Your Talent Attraction and Retention Strategy
Finding quality talent is challenging…retaining quality talent is equally challenging
It goes without saying, that many manufacturers are challenged with attracting and retaining the ‘quality’ talent needed to execute its strategic objectives. Is this the case for your organization?
Significant workforce factors that may be affecting organizations like yours include:
Shifting workforce demographics (multiple generations in the workplace)
Pending retirement of your highly skilled workforce (i.e. baby boomers)
Shortfall of skilled leaders and workers needed to execute your organizations’ business goals
Significant gaps in skill sets that are core to your business’ success
MAGNET’s 2017 Northeast Ohio Manufacturing Survey, conducted in partnership with The Corporate University at Kent State University – Stark Campus cites additional concerns from our local manufacturers:
80% of the respondents find hiring qualified workers difficult to very difficult. A lack of required skills or educations was mentioned as one of the primary reasons by 39.5% of the respondents.
58% of respondents find attracting and retaining qualified workers to be a major issue.
Manufacturers are also struggling with a rate of employee turnover ranging from 5% to 10% annually.
Each of these factors have direct implications for how well your organization is position to execute its strategic goals near-term and long-term.
In 2013, the Institute for Corporate Productivity’s (i4cp) identified the top five talent KPIs from their People-Profit Chain™ study. They found that, in high performing organizations (HPO), there is a direct correlation to high market performance when organizations focus on the following KPIs:
Maximizing employee productivity
Retention of talented employees
Cross organizational/group effectiveness
‘Quality of talent’ KPIs that drive talent attraction and retention include:Quality of candidates sourced and the satisfaction rate of your hiring managers
Quality of the candidate’s experience linked to their satisfaction with your recruitment and onboarding processes
Quality of talent movement throughout your organization
Quality of talent retention and its impact on your company’s culture
A well-thought out talent management and succession plan with clearly defined metrics can ensure a prepared talent pipeline that can be leveraged for continuity in key leadership and workforce roles, a plan and approach for continued growth and development of your most talented people, improved performance that leads to increased market performance, and consistent achievement of your organization’s strategic business objectives.
In Part 2 of this article, we will explore further how a well-thought out talent and succession plan can help you achieve the talent KPIs referenced above.
HEADLINE The survey definitively shows that product innovation leads to more growth, while “grow your own workforce” strategies will be needed to fill the major labor shortages hampering small manufacturer growth. Emerging technologies like the Internet of Things (IoT), 3D printing, and digital manufacturing are beginning to enhance innovation and productivity, but still have significant room for adoption amongst Ohio’s small manufacturing businesses. ABOUT THE SURVEY Under the direction of the Ohio Manufacturing Extension Partnership (Ohio MEP), MAGNET: The Manufacturing Advocacy and Growth Network conducted a thorough survey of Ohio’s manufacturing base. Contributing approximately 20% of Ohio’s jobs (and driving in some regions up to 50% of Ohio’s economy), and generating a disproportionate amount of export revenues and Gross Regional Product, manufacturing is critical to Ohio. Greater than 95% of Ohio’s manufacturers are small (under 500 employees), and these manufacturers need to remain competitive both nationally and internationally to ensure our economy’s health. Ohio’s Development Services Agency and the National Institute of Standards and Technology, which runs the MEP, recognizes the importance of this sector and fuels MAGNET and the Ohio MEP program to directly serve and support innovation, efficiency, and growth in small and medium manufacturers. What manufacturers need
How Virtual Reality and Augmented Reality Can Help Keep Our Engineers Safe and Our Manufacturing Strong Recall how difficult it was to put together complex LEGO creations when you were a child or helping a child. Now, picture assembling a fighter plane from a room full of parts. Even highly trained engineers can benefit from technology to help improve consistency and quality. Virtual reality (VR) and augmented reality (AR) are making near-perfect assembly a possibility in the manufacturing space. By wearing AR glasses that use cameras, depth sensors and motion sensors to overlay images onto the real working environment, engineers and factory workers can visualize the exact bolts, parts, part numbers and instructions on how to assemble a particular component correctly. Lockheed Martin began using AR goggles and improved F-35 assembly time by 30 percent, in addition to increasing accuracy to 96 percent. In order to remain competitive, businesses should consider the ways VR and AR can improve efficiency and supply chain productivity. According to a recent BofA Merrill Lynch Global Research report, AR platforms can provide companies up to 25 percent in cost savings on installation of equipment. Here are four ways VR/AR is disrupting the mid-market manufacturing space:
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