In June, Nigel Wright Group hosted the first of a programme of webinars intended to support industrial and manufacturing organisations in the region.

Guest speaker, Nicky Gallagher, HR Director at OnPath Energy, tackled the pressing challenges facing the manufacturing and energy sectors today. The session was anchored in the findings of Nigel Wright’s recent Manufacturing Insight survey, providing a deep dive into the complex landscape of talent management amid global and regional disruptions.

Introduction

Nigel Wright Group Associate Director, Lisa Taylor, began by acknowledging the multifaceted challenges brought about by global events such as COVID-19, Brexit, and ongoing geopolitical tensions. These have compounded issues like supply chain disruptions and have been further intensified by regional industrial developments such as new plant constructions in Teesside and Sunderland.

Lisa highlighted how these factors have made flexible working, diversity and inclusion, and talent management more challenging than ever. She delved into specific industrial advancements, including BP’s strides in hydrogen technology and AESC’s significant growth in electric battery manufacturing. These developments, while promising, add layers of complexity to recruitment and retention in the sector.

Main Presentation by Nicky Gallagher

Nicky Gallagher centred her presentation on the critical challenges of attracting and retaining talent in the manufacturing and energy sectors, contextualised by current economic and geopolitical dynamics.

Economic and Geopolitical Context

Nicky began by outlining the broader economic and geopolitical factors impacting the industry. She mentioned GDP fluctuations, inflation, and supply chain disruptions as significant concerns, alongside the conflict in the Middle East, which affects energy prices and supply chains. These factors necessitate a high degree of agility and resilience from businesses, who must plan for various scenarios, including sanctions and commodity shortages. The growing importance of green policies and sustainability in both sectors was also emphasised.

Recruitment and Retention Challenges

According to Nicky, manufacturing companies are finding recruitment more difficult than in the previous year, with top challenges including a shortage of suitable candidates, unrealistic salary expectations, and competition from other employers. Retention is equally problematic, with many businesses indicating it is as difficult or harder than before. Hybrid working, while beneficial for attracting talent, poses unique challenges in manufacturing environments where many roles cannot be performed remotely.

Candidates prioritise salary but also value comprehensive benefits, work-life balance, flexible working arrangements, and career development opportunities, says Nicky. However, providing flexibility in manufacturing is particularly challenging due to shift patterns and operational requirements. Nicky noted that company culture, job security, location, and sustainability are also crucial considerations for candidates.

Manufacturing Insights Survey Results

The survey revealed that half of employers surveyed benchmark salaries annually, while another significant portion does so occasionally. This regular assessment, says Nicky, ensures that companies remain competitive and attractive to potential candidates. Benefits, too, play a pivotal part in a candidate’s decision-making process when considering a new role. Interestingly, a third of the respondents benchmark benefits annually, with half doing so occasionally.

Despite these efforts, only 26% of employers actively ask their employees what they value beyond salary. According to Nicky, this is a missed opportunity, especially considering that there is a close correlation (29%) between companies that benchmark benefits and those that inquire about their employees’ preferences. Understanding what employees truly value can provide a competitive edge in both recruitment and retention.

Employers have several methods at their disposal to benchmark benefits against other organisations. Nicky noted how specialised firms like Willis Towers Watson offer comprehensive benchmarking reports on both salary and benefits. Recruiters, beyond conducting traditional salary surveys, can also provide detailed insights into benefit offerings. Additionally, networking groups facilitate data sharing among members, offering valuable industry-specific insights.

Nigel Wright’s survey also highlights the importance of employee involvement in idea generation. About 35% of respondents reported that staff are actively involved in generating ideas, while just over 50% indicated that involvement varies depending on the situation. Surprisingly, more than 10% of employers surveyed stated that idea generation is left solely to management.

Nicky highlighted research that consistently shows how encouraging employee participation in idea generation can lead to significant organisational benefits. For instance, a McKinsey & Co. Quarterly Survey on Innovation found that employee-led initiatives result in a 23% increase in project completion speed. Similarly, the Harvard Business Review reported that teams engaging in regular brainstorming sessions experience a 15% higher job satisfaction rate compared to those that do not.

These statistics, she says, emphasise the substantial advantages of fostering a culture of employee involvement in idea generation. By valuing and acting upon employees’ ideas, companies can enhance engagement, drive innovation, and achieve higher levels of satisfaction, productivity, and retention. Embracing this inclusive approach not only boosts morale but also propels organisational success, making it a vital strategy for any forward-thinking company.

Strategic Recommendations

Nicky presented several strategies to address the challenges outlined above:

• Benchmarking Salaries and Benefits: Staying competitive requires regular benchmarking against competitors.
• Tailored Benefits Packages: Benefits should meet the diverse needs of employees, offering flexibility where possible.
• Feedback Mechanisms: Regular employee surveys to gauge satisfaction and preferences, with actionable insights leading to meaningful changes.
• Communication and Alignment of Values: Training leaders to effectively communicate and embody the company’s values to enhance engagement.
• Flexible Work Arrangements: Piloting flexible work arrangements to improve engagement and retention, e.g. Flexible shift patterns, compressed shifts into fewer workdays, Flexible start and finish times, and Shift swaps. 

Conclusion

Nicky’s presentation underscored the importance of resilience, agility, and skill development in the manufacturing sector. The predicted skills gap by 2030 highlights the urgency of investing in training and development to retain top talent. By implementing targeted strategies, companies can better navigate the complex landscape of talent management, ensuring they remain competitive and capable of attracting and retaining the best talent in a challenging environment.