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People Management – Workforce Shortage: Acceptance is the First Step
People Management – Workforce Shortage: Acceptance is the First Step
John Ha
Baby Boomers are going to retire soon. There won’t be enough skilled labor to fill all the jobs. Employers aren’t prepared to handle the labor shortage. It goes on and on. So, is this maintenance workforce shortage thing for real? Well, YES!
Five Stages of Grief
Denial: “This isn’t happening.” – Yes it is. Bargaining: “Just let me last through my own retirement.” – Nice try. Anger:“I hate my job.” – Let it all out. Despair:“We’re doomed.” – It’s OK. It’s not that bad. Acceptance:“OK, what are our options?” – There you go!
The numbers don’t lie. By 2012, the U.S. Department of Labor (DOL) estimates there will be 165 million jobs and only 162 million people available in the workforce. That doesn’t sound too bad until you consider that 19 percent (30 million) of those available workers will be age 55 and older (see Chart 1).
Further, the Baby Boomers will hit the average retirement age of 62 beginning in 2008, and there is a real concern of skill deficiency. The bottom line is no industry will be immune to the workforce shortage issue, including the maintenance portion of the manufacturing industry, which, according to the DOL, is expected to grow 10 to 20 percent in total jobs per year.
OK, you’ve probably heard it all before. The question is: What are you doing about it?
I know this is an enormous challenge, but the first step is acceptance. Move through the “five stages of grief” (see the insert box) as quick as you can and accept the fact this isn’t going away. Acceptance is critical, because if you want to survive, you must have open eyes and be prepared to make serious commitments. Sadly, I think too many companies are in denial and either underestimate the magnitude of the maintenance workforce shortage or ignore it altogether. For these firms, disaster awaits.
For those of you who have accepted the challenge, your primary focus should be on employee retention. There is nothing more costly to a company than losing a critical employee. I’m not suggesting that you throw money around to retain critical employees through bonuses or matching an outside offer. Successful retention is more strategic and has several key components. These components aren’t difficult to identify. Just start with the employee’s point of view. When describing an ideal employer, the top three factors given by employees (aside from location) are consistent:
Challenging and enjoyable work.
Opportunities for growth and development.
Corporate values similar to personal values.
Chart 1. Percent of Labor Force by Age Group, 2002 and Projected 2012
Unfortunately, not everyone finds what they were looking for once they start work. But, if these are the reasons that motivate an individual to accept a position, wouldn’t it stand to reason that these same factors would motivate them to stay? I recently spoke to a reliability engineer who enjoys his work, is well compensated, but hasn’t had a vacation day in two years. Is it a surprise that he is looking for a new opportunity? What is your company doing to develop people and provide meaningful, challenging work within an organizational culture that aligns with their personal values and goals?
Finally, focus on new talent acquisition. I’m not referring to traditional headhunting. I’m referring to identifying and attracting talent from high schools, trade schools, community colleges and four-year institutions – candidates who have the foundational skills and education to learn quickly.
I understand that you need to find experienced professionals in certain situations, but a workforce strategy based on headhunting is a recipe for failure during times of workforce shortages. Bidding wars, escalated salaries and high turnover are the results.
What is your company doing to attract and develop the kind of talent you need to fill the vacancies we all know are coming? Moreover, what are you doing to attract these talented people to the field of maintenance and reliability? Are you proactively planning for the expected shortage by recruiting and developing your talent? Or, will you participate in the “war for talent”? You have a choice. Wait, and the choice will be made for you.
I have received untold phone calls over the past several years, from friends in the industry, explaining that their mill is/was undergoing a ‘re-engineering’ of maintenance. Re-engineering in the broadest sense, including panic payroll reduction. The general theme of that re-engineering effort seems to be elimination of the maintenance department per se. Perhaps, however, behind this change, there is a larger, broader expectation.
I have received untold phone calls over the past several years, from friends in the industry, explaining that their mill is/was undergoing a ‘re-engineering’ of maintenance. Re-engineering in the broadest sense, including panic payroll reduction. The general theme of that re-engineering effort seems to be elimination of the maintenance department per se. Perhaps, however, behind this change, there is a larger, broader expectation.
The way we see maintenance work being done, you have preventive maintenance which is done is to prevent a failure or to detect a failure early. Continuous improvement, you may have some those, those are the things to be done from redesigns. I can see you doing that in two cases...one is if you have a root cause and you see whatever you have a problem on you have a piece of equipment that is not working right...you may have to redesign it.
The way we see maintenance work being done, you have preventive maintenance which is done is to prevent a failure or to detect a failure early. Continuous improvement, you may have some those, those are the things to be done from redesigns. I can see you doing that in two cases...one is if you have a root cause and you see whatever you have a problem on you have a piece of equipment that is not working right...you may have to redesign it.
When I moved into the civilian world of continuous process manufacturing in the USA, I saw no reason to change my methods or philosophy when it came to ensuring we had a mission like focus to ensuring our plant and machinery had maximum availability, to run at maximum speed and to produce first quality product ‘right first time every time. Thus, for me, mission focus turned into the three elements of business focus described in Overall Equipment Efficiency OEE, i.e. availability, quality and speed.
When I moved into the civilian world of continuous process manufacturing in the USA, I saw no reason to change my methods or philosophy when it came to ensuring we had a mission like focus to ensuring our plant and machinery had maximum availability, to run at maximum speed and to produce first quality product ‘right first time every time. Thus, for me, mission focus turned into the three elements of business focus described in Overall Equipment Efficiency OEE, i.e. availability, quality and speed.
Introducing diversity into your Lean Leadership Programme requires effort but brings great reward. You will need to build a comprehensive approach that spans recruitment, development, culture, and accountability. By setting clear goals, implementing inclusive practices, and fostering an environment that values diverse perspectives, your organisation can develop a diverse leadership pipeline that drives innovation, enhances problem-solving, and reflects the diversity of your workforce and customers.
Introducing diversity into your Lean Leadership Programme requires effort but brings great reward. You will need to build a comprehensive approach that spans recruitment, development, culture, and accountability. By setting clear goals, implementing inclusive practices, and fostering an environment that values diverse perspectives, your organisation can develop a diverse leadership pipeline that drives innovation, enhances problem-solving, and reflects the diversity of your workforce and customers.
If you decide to implement RCM in your plant, be sure that your organization is ready for it. If you are not ready for it, you will divert your attention from more important and cost-effective improvement initiatives you can do. If you are not prepared, an RCM implementation would be a waste of time and money.
If you decide to implement RCM in your plant, be sure that your organization is ready for it. If you are not ready for it, you will divert your attention from more important and cost-effective improvement initiatives you can do. If you are not prepared, an RCM implementation would be a waste of time and money.
