Comment: Talent gaps, faltering retention and experience innovation

However, talent gaps and declining retention rates remain critical issues that can’t be overlooked. The skills shortage within the industry intensifies year after year and shows no signs of slowing down. With 35 per cent of manufacturers expressing concern regarding the shortages’ impact on their organisation’s overarching success, many manufacturers are left struggling to keep up with the rapid advancements in technology and automation.

Beyond obtaining key talent comes the challenge of retaining it. In a recent report, executives from D&W Diesel, Hempel and other global manufacturers revealed that the sector is struggling to find and retain the skilled workforce necessary to drive digital transformation. Specifically in areas such as AI, ecommerce and data analytics. Why? Simply put, technology is moving at a rate that even educational institutions are unable to keep up with.

With organisations lacking the required resources to effectively train teams in these areas, manufacturers are struggling to retain employees as more talent gets drawn to the more digitally advanced B2C sector. Further complications, such as compliance with various data security regulations and competing in constantly changing global markets, put additional pressure on manufacturers to adapt and future-proof their workforce to stay afloat.

So, what can manufacturers do to attract and retain rare, in-demand talent?

Invest in the existing workforce

Much of addressing this disparity comes down to technology training and skills development. Manufacturers must prioritise their existing workforces and invest in a culture of continuous learning. Instead of solely relying on acquiring talent, organisations should also focus their energy internally, establishing a diverse range of ongoing training opportunities and nurturing the potential within their current teams. This approach allows manufacturers to tackle the skills shortage while also boosting employee morale and retention.

But let’s not forget the importance of team building. Make sure people feel part of the (digital) team, celebrate successes together, and keep things personal. This has a huge influence on retention and success. The B in B2B doesn’t stand for boring.

Outsource and partner up

Outsourcing is another approach manufacturers are increasingly turning to address various skills gaps within their organisation. By partnering with integration partners or tech consulting firms, organisations can diversify their digital expertise and tap into specialised skills to support each other in their respective digital transformation journeys. Collaboration can also eliminate the need to search and hire full-time employees, allowing manufacturers to bridge gaps while maintaining internal training and development initiatives.

Foster a culture of innovation

All too often, manufacturers stick with what they know, repeating the same routines and processes day in and day out for years. But this stagnation can hinder innovative thinking. While it can seem risky, breaking away from fixed processes is critical to long-term growth, staying competitive, and ultimately letting talent excel.

Fostering a culture of innovation empowers teams to contribute meaningfully, whether it's by improving internal processes or enhancing the customer experience. When employees have the freedom to experiment, take risks, and share new ideas, they become more engaged, more invested, and more likely to develop innovative solutions. This creates a vibrant, fulfilling work environment where individuals can truly thrive and reach their full potential. Ultimately, this approach not only enhances employee retention but also unlocks the creative power within the workforce, driving the organisation’s growth and success.

The takeaway

The challenges facing the manufacturing industry are significant but not insurmountable. By adopting a proactive and holistic approach to fostering an employee-first culture, manufacturers can tackle the current talent issue and secure a competitive advantage. For organisations to achieve this, it’s essential that they commit to continuous learning, fostering strategic partnerships, prioritising innovation and empowering their most valuable asset: their people.

Mascha Tamarinof, global marketing lead Industrials at Valtech