How Can Manufacturers Address the Skills Shortage?

It’s an employee’s market out there right now. Unemployment in the UK is at record lows and top talent is more sought after than ever before, given the prolonged shortage of skilled workers. This is an issue affecting almost every single industry today. While companies may be able to easily attract staff, finding the right employees with the appropriate skills and abilities is proving a difficult task. In fact, a survey of over 6,000 business leaders found that almost three out of four looking to hire were facing problems finding the right talent.

When it comes to the manufacturing industry in particular, the situation seems to be going from bad to worse. Currently, roughly 186,000 new engineers and manufacturers are required every year until 2024, but we are currently facing an annual deficit of 20,000 graduates. Furthermore, the National Association of Manufacturers found that 522,000 jobs remain open in the sector, causing growing concerns for the future of the industry. And this isn’t just a problem in the UK. In the USA, more than 500,000 manufacturing jobs remain vacant.

So what is causing this huge skills gap in the manufacturing industry and how can manufacturers address the skills shortage to recruit and retain the best and brightest?

Why is there such a big skills gap in manufacturing?

The skills gap in manufacturing has been put under the spotlight over recent years. One reason for this is Brexit, and while Brexit will almost certainly result in fewer skilled EU workers moving to the UK, in reality, issues regarding the skills shortage in manufacturing existed long before 2016.

One important financial event that prompted issues in the manufacturing industry was the recession. Once manufacturers got up and running again, they began to invest more heavily in technology and automation. While this helped businesses remain competitive — and continues to do so — it created a problem. Employees looking to come back to the sector discovered they no longer had the appropriate skills for the job, as they had no training on or experience with the newly introduced technology.

Of course, the problem is far more complex. The industry itself has an image problem and suffers from a lot of misconceptions. Many young people still look at manufacturing as “dull” — a career lacking stimulation or creativity. Many also see a career in manufacturing as one with fewer career prospects. It is hard to attract the best and brightest minds to the manufacturing industry when these same minds believe they won’t be challenged or rewarded by their work, regardless of how untrue these beliefs may be.

Look at how high-tech companies attract and retain their talent

We’ve already established that the manufacturing industry has an image problem. And the real issue is that this industry is vying against the likes of Google, with their seemingly endless resources and larger-than-life reputations. However, the reality is, you don’t need to be a huge tech company to use the methods these big brands employ. You also don’t need the money they have. You just need a willingness to shake things up and take a chance.

Companies like Google, Netflix and Apple experiment all the time with flexible working, remote working, unlimited holiday time and game rooms and take advantage of opportunities to explore creative work-related projects. When looking at your perks, remember that intrinsic motivators are more effective than extrinsic motivators in the long run. Employees are looking for freedom and flexibility when they work. They are seeking autonomy and control over their careers — this includes career trajectory and their workplace objectives. If employees sense your company is overly-restrictive or distrustful, highly skilled employees are likely to look elsewhere, and they won’t have a hard time finding another role.

Invest heavily in tech training

Just because an employee lacks a certain skill doesn’t mean they cannot pick it up quickly and efficiently. Manufacturing requires specialised knowledge and skills but, ultimately, you are looking for employees who are ambitious, dedicated and willing to learn. Employees are generally very eager to advance, learn and develop when given the opportunity and training. If you notice a skills shortage, a great way to counter it is to provide appropriate training. Invest in your employees and they are likely to remain with your organisation for the long term as highly engaged and loyal staff.

Remember, training isn’t something you can do once and tick off your list. This is especially true when it comes to tech training. As technology advances, employees need regular training to remain up to date and proficient.

Give employees purpose

Given the current skills shortage, you will want to do all you can to retain the quality employees you already have. One way of doing this is to engage your employees and get them enthusiastic about your company’s purpose. Your team wants to know what they are doing, why it is important and how it is contributing to your organisation’s purpose and direction. Be vocal about the purpose and aims of your company while explaining to employees how, and why, their individual objectives are effective in moving the company purpose forward. Get your employees excited to be part of your team and they won’t want to leave.

Invest in branding to improve perception

According to Deloitte, the National Association of Manufacturers and the Manufacturing Institute, fewer than 50% believe manufacturing jobs are “interesting, rewarding, clean, safe, stable, and secure.” This image problem needs to be remedied if the industry is to attract the right people.

There are a lot of companies out there that are doing their best to show the manufacturing industry in a more glamorous, or more attractive, light. Examples include Caterpillar, with its “Let’s Do The Work” ad campaign, and Koch Industries, which saw success with its “Challenge Accepted” ad. At its core, manufacturing is hugely innovative and creative — we just need the right marketing to shift perception.

Remembering perks for retirement-aged workers

While the manufacturing industry certainly needs to attract more young people, we can’t forget about our older workers — the ones with years of experience, who have finessed their skills and knowledge over decades. The manufacturing industry needs to remember the older demographic when considering the skills shortage by putting measures in place to encourage them to stay on board for longer. This can include job sharing, flexible working and remote working opportunities, when possible.

Companies can even put financial education measures in place to ensure employee financial wellbeing is being catered to — some companies offer retirement planning services so employees know that life after work is in hand.

Increasing awareness in schools and offering apprenticeships

We also need to consider young people who have not even yet considered a career in manufacturing. Interest in the manufacturing industry should begin long before university. This can be done through increasing apprenticeships, with more businesses partnering with schools and career event organisers to spark an interest in the industry and raise awareness of the possibilities that exist.

An increase in the number of manufacturing apprenticeships is a great solution when it comes to bridging the skills gap while also helping to dispel any associated misconceptions about the industry. Apprenticeships give young people on-the-job experience of the manufacturing world, which will help get them excited and guide their career decisions over the years. This is how the industry can carefully curate a large number of young, impassioned employees who are dedicated to the manufacturing industry and eager to serve it for the long term.

The author, Stuart Hearn, is Founder and CEO of Clear Review, an HR software that facilitates communication and human connections within organisations while boosting productivity and efficiency.

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