The manufacturing industry is involved in just about every product we use in our daily lives — from cars and clothing to furniture and plastic. But the industry is running into
According to consulting firm Deloitte, 77% of manufacturers expect ongoing difficulties when it comes to attracting and retaining talent. The Association for Manufacturing Excellence estimates an absenteeism and employee turnover rate of approximately 37%, compared to the national voluntary turnover rate of 25% in 2020. And with the impending retirement wave of baby boomers in the next decade, manufacturers have even more cause for concern.
However, reverse mentoring could keep the industry afloat amid the incoming shifts in talent and experience, says Jaime Urquidi, a principal industry expert at Parsable, a company that provides digital tools to frontline industrial workers. This means younger workers would be paired with older workers and learn from each other’s respective strengths.
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“There is a great opportunity to redefine how work is done with the experienced view of older workers, coupled with the technology-savvy new generation,” says Urquidi. “By putting these two approaches together, both generations can be the defining factor on how the new manufacturing world should and will look like.”
This will not only allow older workers to pass down valuable knowledge, but engage younger workers in an industry that often features wide skill gaps and insufficient training. For Urquidi, reverse mentoring along with the expansion of digital tools are more than worth a try — while nearly 3.5 million manufacturing jobs will be available by 2025, Deloitte estimates that two million positions will remain unfilled, amounting to $1 trillion loss in 2030. EBN spoke with Urquidi further to understand what manufacturers may need to keep in mind if they want to keep their workforce.
Why is reverse mentorship so crucial in manufacturing?
It's a critical concern because a huge portion of the manufacturing workforce is either approaching retirement age or choosing not to return to their jobs because of the pandemic, among other reasons. With reverse mentoring, manufacturers can show they are more inclusive of all generations, especially during a time when so much attention is on recruiting and retaining younger employees. Millennials and Gen Z can help older generations learn how to leverage digital tools to become more efficient and productive. At the same time, older generations can use these tools to quickly share and store data on best practices that they've accumulated from their many years of experience.
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Baby boomers power some of the oldest industries in the world. With their retirement, the manufacturing world stands to lose significant knowledge in a relatively short time. However, if manufacturers can now digitally capture and record the expert knowledge of older generations, which will make retirement transitions more seamless. This is a great example of how diversity in age and experience will really make a difference for an entire industry.
What is the danger of companies only putting attention on younger workers?
A “gray tsunami” is expected to increase the number of late-career workers retiring in the next eight years. These manufacturing workers carry with them years of knowledge that younger generations do not yet possess. Investment in older generation workers can help them stay in the workforce a while longer, allowing these workers to share important information with the younger workforce to help them be successful on the manufacturing floor.
When attention is placed only on attracting and retaining younger workers, companies miss out on the tacit knowledge of older generations that at best, is stored in a paper binder somewhere and at worst, is not recorded at all. Being able to retain older generation workers who can provide the next generation with this valuable information will save years of retraining, setting new workers up for success from the start of their careers.
What role does digital tech play in manufacturing, and does it pose a threat to the older generations?
Digital technology empowers frontline workers with tools that increase productivity and safety, and can positively impact manufacturing operations through reduced paper waste and unplanned stoppages. With environment, social and governance being a top priority for all companies today, digital technology can also help manufacturers ensure they’re meeting ESG regulations and goals through digital tracking of data such as material and process waste, COVID-19 protocols and industry standard compliance.
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The manufacturing floor is becoming increasingly dependent on digital technologies, which may differ from what older generation workers are used to. This can present a challenge for these employees if companies do not take the time to train them on the new technologies. It’s important to note though, that technology is increasingly important to all generations. Recent research from Parsable revealed older generations are more receptive to digital tools and technology than one may think: 81% of those aged 55 and older actually have no issues using software and digital tools at work.
Beyond mentorship, how can employers offer other avenues of support for their whole workforce?
Regardless of age, digital technology should absolutely be viewed as a collaborator. In a Parsable survey of nearly 1,200 frontline manufacturing workers in the United States, we learned that more than 70% of frontline workers across all generations express no hesitation in using digital tools. In fact, McKinsey & Company recently predicted that digital collaboration has the potential to unlock more than $100 billion in value and found that digital tools provide manufacturers the opportunity to boost productivity while enhancing overall quality.
In another Parsable survey, we found that 45% of frontline manufacturing workers said the opportunity to work in a more modern, digital environment would be part of their decision to leave their current employer. This makes investment in digital tools — which empowers manufacturing workers to access information, ensure safety on the job and do their jobs more efficiently — a necessity for manufacturers that want to retain and attract talent.
