Key Takeaways:
- A survey of HR leaders in manufacturing found that, while attracting and retaining top talent are their top two challenges, leadership development is a close third.
- Though most respondents listed advancement opportunities as a primary reason candidates join their companies, the focus seems to be more on teaching technical skills than developing the next generation of leaders.
- Greater attention to and investment in leadership development programs can strengthen recruiting and retention efforts.
Not surprisingly, HR leaders in manufacturing ranked attracting (31%) and retaining (27%) employees among their top challenges, according to a survey from Grant Thornton. But leadership development (23%) was another common struggle.
Learning and development is becoming a priority for manufacturers — survey participants also listed advancement opportunities (29%) as a primary motivator for candidates to join manufacturing companies, right behind benefits (38%) and bonuses / incentives (32%). This suggests that while employees are often immediately drawn in by benefits and pay, the promise of a path to promotion encourages them to stay.
“Respondents said that advancement opportunities are one of the reasons why people come to the organization,” said Jennifer Morelli, Principal, Growth Advisory Services at Grant Thornton Advisors. “But they’ve said that leadership development is one of the challenges that they’re facing. That tells you what they’re talking about in advancement, versus building leaders of the future.”
Survey results indeed indicate a focus on equipping employees with skills for the future of work. Most survey respondents at least slightly agreed that their company understands the future skills required for their workforce (91%), has identified where upskilling is necessary (92%), and has implemented technology to manage workforce planning effectively (92%).
But while closing skills gaps is crucial to keep up with technology advancements in manufacturing, retaining employees depends on uncovering what skills they already have, what they’re interested in learning, and where they want to move within the company. Preparing them to fill the shoes of retiring leaders will help transfer institutional knowledge and motivate them to stay with the company for years to come.
