Technology is not only shaking up the industry in the context of employee retention. Digital tools are revolutionising manufacturers’ day-to-day work, permeating the supply chain at every stage and causing productivity expectations to sky rocket.The meteoric rise of cloud computing has played a pivotal role in driving efficiencies, increasing product output while reducing costs. And yet, our recent research has found that over a third of manufacturing employees don’t think their organisation is committed enough to digital transformation. With all this in mind, there has never been a more crucial time for organisations to integrate their legacy applications with new tech, and steamroller into the digital-centric era.
High employee turnover?
According to the EEF’s annual exit survey, manufacturers expect 2017 to be another year of risks, with almost half (46%) seeing more challenges than opportunities over the next 12 months. It goes without saying that in these turbulent times, manufacturing organisations can’t afford to face an employee shortfall due to not listening to their workers’ needs. Of course, when you consider that 80% of manufacturing workers believe that having the right digital tools is crucial to their role, it’s easy to see how frustrations can escalate quickly.
People understandably want to work for the most innovative organisations: the ones that are making waves. Yet nearly 38% of manufacturing employees don’t think their employers are moving fast enough when it comes to digital transformation. Not having the right technology in place can leave you trailing behind the competition, and is increasingly enough to cost a business its top talent. In a time when STEM skills are becoming so valued and sparse, manufacturers may find themselves losing skilled headcount.
The simple answer lies in the need to invest in digital tools. However, existing legacy IT can cause problems when integrating new technology.New applications may not be compatible with current systems, meaning a full overhaul of an IT system may be needed and/or a transformation strategy defined. Manufacturing organisations simply do not have the resources or time to overhaul these systems, therefore the long-term gains of nurturing a digital business are often put on the back-burner. Despite digital transformation being a priority for 88% of manufacturing organisations, 42% consider integrating new applications into existing technologies as a missing skill which is hindering their drive to digital transformation.
A batch of confused workers
Another issue is the growing digital disconnect felt by employees. Although the vast majority of the manufacturing workforce recognises the importance of digital technologies, one quarter of employees questioned did not understand how to use the tools they had been given. For many organisations, this is a serious obstacle in securing digital investment: not fully briefing employees and providing them with the right training from the start means organisations won’t have staff buy-in for digital transformation projects. If the IT department is met with push back from employees, it will be much harder to make a business case to those who control much vied-for budgets.
Organisations must consider a continuous investment in training to make sure employees are both competent and content with the tech they have to work with on a daily basis. With the IT skills gap getting bigger by the day, securing the future of your employees and business by investing in their skills has never been more integral to business success. Providing education for employees will help them use the tools to optimal effect.
Moreover, when used effectively, digital tools more than prove their worth. Over half of IT decision makers across all industries felt that digital success was quantified by both increased customer service and satisfaction, and 43% felt it contributed to revenue growth. But the tools in themselves are not enough.
It’s clear that digital transformation in the manufacturing sector isn’t a straight path to success. It requires various stages of investment, and can feel too time and capital consuming for the effort, especially when processes are ticking over well in a business. But to remain competitive, things can’t just tick over. Organisations need to be innovative to succeed. If you don’t do it, your competitors will; and it’s likely they’ll poach your employees in the process.
Author profile:
Keith Tilley, executive vice president, Sungard Availability Services