1. Prioritize upskilling, especially with the rise of AI and automation

Manufacturing workers are looking for upskilling opportunities. 66% would trade their current job for one that required longer hours but offered more upskilling opportunities, while 72% say that in anticipation of new waves of automation, they want the skills to supervise or lead that automation. However, companies prioritizing upskilling are dropping from 80% last year to 70% this year.

Investing in upskilling is always a good idea. It empowers your workforce to seize opportunities for advancement. It helps them learn new technologies that are rolled out across the company. It can help turn bad supervisors into efficient, encouraging leaders. Finally, it prepares your workforce to be leaders in an automated and AI-driven future.

2. Take on the issue of dropping morale immediately

Manufacturing workers are slowly losing morale. High morale has dropped from 52% to 45%, while low morale increased from 7% to 16%. This can lead to all types of engagement issues: not being fully present at work, absenteeism, low productivity, safety issues, high turnover, and burnout.

To have a healthy, productive workforce that continues to be passionate about building something with their hands each day, take steps to improve employee morale. Respondents were clear on how to do this:

  • Improve pay or bonus structure: This request is cited the most, as many feel inadequately compensated for their work.
  • Offer flexible work schedules: Respondents simply want flexible start and end times for their shifts—not radically altered schedules.
  • Listen to employees and take action on their concerns: Employees want to feel that their voice matters and that their concerns and needs will be acknowledged and acted upon.
  • Address bad supervisor behavior: Invest in leadership training to turn bad supervisors into encouraging leaders.
  • Invest in upskilling, technology, and sustainability: Empower employees with new skills and technology to help them perform their jobs more effectively. Considering that over half would take a pay cut to work for a more sustainable factory, prioritize sustainability efforts as part of your overall employee engagement strategy.

3. Don’t just invest in new technology — keep up with innovation and advancement

Respondents said that their companies are slowing down on their tech investment. Those who consider their workplace “very modern” decreased from 48% to 39%, while only 17% are using all digital documents. Are manufacturing companies just outdated, or are worker perceptions and expectations around modern technology changing?

2023 was a very tech-forward year, and workers saw that. There was a sharp rise in public adoption of a number of different AI apps, especially ChatGPT, which many manufacturing employees probably experimented with in their free time. They read all about how new technologies are changing industry—and likely did so on screens that fit in their pockets. They may also store their personal information and documents in a cloud, while many receive products or food delivered by robots. After all of these tech-enhanced interactions, they then come to a workplace that’s still using paper documents and outdated technology.

Is it any wonder that some are feeling a disconnect? Manufacturing companies may be readily investing in technology, but is it the technology that workers will see rising up around them in 2024? How can manufacturing leaders stay at the forefront of tech so that employees can come to work each day feeling that they’re stepping forward, not back, in time?

  • Move to the cloud: Manufacturing companies that move to the cloud find great versatility, security, and scale with their systems.
  • Digitize your documents: Moving to all digital documents not only reduces paper waste, but anyone who needs access can get it—even if they work remotely.
  • Invest in tech that’s easy to adopt: Look for technology that has similar interfaces to the tech workers use every day, like smartphones, reducing the learning curve and increasing seamless adoption.
  • Invest in tech that increases safety: Even before mentioning productivity, respondents said that technology helps keep them safer at work. Let that use case guide your investments.
  • Invest in tech that improves communication: For supervisors who want to improve their communication skills with workers, the right technology can help them keep their teams in the know.
  • Find use cases for emerging technology: Companies who want to be around in ten years must embrace emerging technologies by developing relevant, measurable use cases for them.

4. Listen to employees and take action on their concerns

Several worker concerns surfaced in this report. Many in the manufacturing workforce feel like their time is not being respected, while they also endure the pressure of unrealistic performance expectations. Many don’t have the communication or information they need to do their work well, and many fear layoffs due to budget constraints from the increased costs of raw materials.

The ability of management to truly listen to employees has one of the biggest impacts on overall workforce morale. Companies can improve their performance in this area by checking in with teams more frequently, setting up a physical or virtual suggestion box, ramping up an open-door policy, and genuinely being empathic to worker struggles. But listening on its own isn’t enough: To build lasting employee trust, leaders need to take action on feedback and suggestions as well. To streamline this process, consider leveraging a data platform to track suggestions and resolutions quickly and efficiently.

 

Investing in the Future

Manufacturing leaders today are invested in more than building successful and productive operations that will bring them to the forefront of their industry—they’re also working diligently to build a happy, engaged, and skilled workforce. By continuing to keep up with new technologies, improving morale, and prioritizing upskilling, manufacturing leaders can expect a bright future regardless of economic or industry challenges.

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Manufacturing
White Paper
Kerrie Jordan
Group Vice President of Product Management

Kerrie Jordan is Group Vice President, Product Management at Epicor. In her role, Kerrie leads the strategic direction of Epicor’s cloud-enabled industry productivity solutions to ensure they continue to deliver high value, innovation, security and insights for Epicor customers. As a technology evangelist and industry thought leader, Kerrie provides expertise on topics like SaaS, ERP, DaaS Supply Chain Management and more.

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