Use technology and management solutions to address worker shortage

Much has been written about the shortage of trained workers and the difficulty of retaining them. Instances such as the recent strike by UAW-affiliated workers at the three big automakers in the US further exacerbate labor availability issues. 

Some of the tried and tested methods include attractive compensation packages, providing perks such as tuition reimbursement, creating opportunities for advancement, fostering a respectful and caring work environment, and tying up with local schools and vocational training institutes for apprenticeships. We will restrict the scope of this article to our own perspective, not unique in any way, on the usage of data and technology solutions to retain talented workers and address the worker shortage.

  1. Use data to gauge employee engagement – Employee engagement surveys could reveal information to the executive leaders of the company that may not be apparent in day-to-day operations. It is important to go beyond engagement scores to understand employee sentiment in each department. Artificial Intelligence tools make it much easier to gather sentiment information, positive and negative, from individual opinions expressed in engagement surveys. Patterns emerge out of sentiment analysis, which is a useful input for business strategy. An annual engagement survey is accepted as a good business practice to understand workforce behaviors, plan transformations and improve employee retention.
  2. Instill a data-driven culture – A work environment enriched with data shows each worker what they are accountable for and the value they bring to the company. Accountability and transparency into KPIs, when applied across the rank-and-file, are the best ways to gain business value from Data Analytics solutions. When all the key stakeholders agree upon the data and the calculations behind the KPIs, the likelihood of fudged numbers to meet targets would be significantly reduced.

    E.g.: Overall Equipment Effectiveness (OEE) is the purview of not just a manufacturing operations executive, but also line managers and cost accountants. A governance board of business and IT stakeholders to review terms and definitions used in IT and Operations Technology (OT) systems and approve changes creates a shared understanding between departments, clarifies ownership and improves collaboration. Improved collaboration in turn reduces conflict and employee turnover, and thus improves knowledge retention and problem solving.

  3. Invest in automation to fill gaps in labor needs – Cobots and robots on the shop floor and in warehouses address some of the workforce shortages especially when the jobs may cause injury or are highly unsafe. Software robots could also be deployed to take over repetitive data entry roles thereby preventing human error and speeding up the workflow. Software robots are especially useful for automating workflows involving legacy applications which are difficult to enhance or integrate with modern tools and platforms.

    In all these instances, automation will cut down the need to hire more workers but require human supervision. The cost and time to implement automation are important factors for calculating the return on investment. Consider automating simple workflows first. As savings are recorded from automating simple workflows, consider slightly more complex workflows for automation.

In addition to technology solutions, SMMs should consider managed services to address shortage in their OT and IT workforce. Managed services provide ongoing deployment and maintenance services, which are beyond just delivering turnkey projects or staff augmentation.

Learn more from the following resources:

  • Read an interview with Visier’s Chief People Officer about using People Analytics to drive business transformation.
  • Read a McKinsey article on the importance of creating a data culture.
  • Watch a video describing Cox Automotive’s efforts to make data discoverable and accessible to their employees quickly to drive innovation, and create new products and services.
  • Read about process automation success stories in the manufacturing industry, visit the resource libraries of leading software vendors UiPath and Automation Anywhere.