According to the Industry Pulse: 2018 Manufacturing Workforce Report, skilled talent is a top hindrance to growth in the manufacturing sector. The report states, “Three of the top challenges companies face in the next three years revolve around developing a skilled workforce. These challenges directly affect another top challenge: expanding business.”
Yet only 41 percent of companies believe they train people to develop the right skills. This represents a major opportunity.
The “skills gap” issue isn’t going to fix itself. If workforce development isn’t a critical focus area for your organization, it may be time to consider the cost of NOT investing in training and retention efforts.
Here are key highlights and 3 key takeaways from the Workforce Report you should know:
88% of manufacturers stated the ability to expand business is a top concern. 99% stated finding skilled new hires was a top workforce challenge.
Key takeaway #1: The skills gap in the workforce is a major threat to growth. Companies should prioritize recruiting skilled new hires, their current workforce and retaining employees.
81% cited implementing new technology as a growth challenge.
Key takeaway #2: Technology is accelerating at a pace faster than people development. Manual processes are being replaced, and today’s workers must be trained in a wide range of tech-driven skills, like analytics and robotics, for the manufacturing sector to reach its growth potential.
Conservative estimates reveal losing an entry-level employee may cost $7,500 or more, while the loss of an engineer may cost upwards of $30,000. These estimates do not include the cost of temporary labor to fill the gaps, loss of productivity, and opportunity costs, making the annual cost of turnover even higher.
Key takeaway #3: A frequent complaint of manufacturers is that they don’t have the funds to invest in a standardized training and development program, yet this cost is well offset by annual turnover costs.
The economy is poised for growth, but a lack of talent will stunt any organization’s ability to scale. Are you ready?
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