The latest jobs reports have come in and the findings have an impact on how you hire, how you invest in your current team and how you plan for your future.
Wage growth has increased over the past 12 months, the average earnings increasing to $27.48 and, even though manufacturing jobs grew by 32,000 in January, the ISM (Institute for Supply Management) index dropped by 5% in December. This shift illustrates a lack of confidence in the coming months for manufacturers across industries [Schneider NPR, 2019].
Today’s blog focuses on what the changes in the economy mean for your business and how production systems like Quantum help you keep your most valuable Operators engaged in the face of difficult trends.
These trends matter to you because, in an industry where new hires are hard to come by, the public having more confidence in their ability to find new work tilts the scales even more in their favor. This could put even more stress on your ability to hire new skilled employees and may drive up your salary requirements to land them.
Manufacturers across the country have been feeling the pinch of the trained workforce shortage for years, but compounding the problem is an economy where salaries are increasing and there are more jobs than people to fill them. Great for the average citizen, but a tough change of pace for businesses.
The number of people quitting their jobs is also increasing. Ironically, this is a signal of increased public confidence in the market. When the average person believes they can quit their job for something better, it implies they believe a better position is available for them. The fact that people are quitting at an elevated rate puts more power in the hands of your the workforce because they are controlling the demand of your market.
So how are companies dealing with these trends? First off, take a deep breath. These numbers project change but none of them are worthy of overreaction. Use these BLS market reports as a reminder not to take your people for granted. You know how hard it is to replace skilled Operators and employees who feel invested in by their company are more likely to stick around.
Employees need to know you’re as invested in them as they’re invested in the company. A strong start is to implement the technology that makes their life easier. Giving your team access to the premium production control MES on the market serves as a reminder to your Operators that they’re valuable. Stress the importance of their insight and experience by emphasizing the value of in-plan notes to capture the tribal knowledge only they have. When employees feel appreciated, they’re happier, and happy employees have outdated resumes.