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.
When you ask front line supervisors or team leaders if all people in their teams are performing to the same standards or if some are doing more work and achieving more results than others, you will often get the same answer. All over the world, the most common answer, after some analysis, verifies that about 30% of the people do 70% of the work.
When you ask front line supervisors or team leaders if all people in their teams are performing to the same standards or if some are doing more work and achieving more results than others, you will often get the same answer. All over the world, the most common answer, after some analysis, verifies that about 30% of the people do 70% of the work.
Unfettered expression and spiritual satisfaction? How does this relate to managing a maintenance department, especially one in the U.S. Postal Service? Open your mind. Take a page from the Zen Buddhist monks who preach: When you are quiet and listen, you become aware of sounds not normally heard. USPS maintenance leaders are listening and beginning to understand that maintenance success doesn't come through closed minds and closed doors.
Unfettered expression and spiritual satisfaction? How does this relate to managing a maintenance department, especially one in the U.S. Postal Service? Open your mind. Take a page from the Zen Buddhist monks who preach: When you are quiet and listen, you become aware of sounds not normally heard. USPS maintenance leaders are listening and beginning to understand that maintenance success doesn't come through closed minds and closed doors.
It is not uncommon that many reliability and maintenance improvement initiatives fail to deliver expected results. Why is it so? Some of the most common causes I have observed include:
It is not uncommon that many reliability and maintenance improvement initiatives fail to deliver expected results. Why is it so? Some of the most common causes I have observed include:
Why do improvement efforts fail or perhaps not sustain the gains? There are many reasons, but those most often stated are “lack of commitment” and not “following the process”. But why is there lack of commitment, and why aren’t processes followed? Here are a few of the reasons that I’ve seen:
Why do improvement efforts fail or perhaps not sustain the gains? There are many reasons, but those most often stated are “lack of commitment” and not “following the process”. But why is there lack of commitment, and why aren’t processes followed? Here are a few of the reasons that I’ve seen:
When a piece of production machinery broke down at the Whirlpool plant in Findlay, Ohio, several years back, it was accepted practice for the machine operator to call maintenance and then sit back and wait for the problem to be fixed. Critical information and knowledge was not shared between the operator and maintenance technician. Like many companies, these workers were stuck in traditional roles - operators run the machines, maintenance fixes the machines, and the two do not cross. As a result, productivity opportunities were missed.
When a piece of production machinery broke down at the Whirlpool plant in Findlay, Ohio, several years back, it was accepted practice for the machine operator to call maintenance and then sit back and wait for the problem to be fixed. Critical information and knowledge was not shared between the operator and maintenance technician. Like many companies, these workers were stuck in traditional roles - operators run the machines, maintenance fixes the machines, and the two do not cross. As a result, productivity opportunities were missed.
Many managers are unaware that best-in-class companies routinely design-out maintenance at the inception of a project. That, clearly, is the first key to highest equipment reliability and plant profitability. Whenever maintenance events occur as time goes on, the real industry leaders see every one of these events as an opportunity to upgrade. Indeed, upgrading is the second key, and upgrading is the job of highly trained, well-organized, knowledgeable reliability professionals.
Many managers are unaware that best-in-class companies routinely design-out maintenance at the inception of a project. That, clearly, is the first key to highest equipment reliability and plant profitability. Whenever maintenance events occur as time goes on, the real industry leaders see every one of these events as an opportunity to upgrade. Indeed, upgrading is the second key, and upgrading is the job of highly trained, well-organized, knowledgeable reliability professionals.
The true translation — might it be proper to say a new and improved translation? — is being used today by Cervecería Cuauhtemoc Moctezuma, one of the largest brewers of beer in Latin America. Known throughout this company as Mantenimiento Alto Desempeño (MAD), or translated as High-Performance Maintenance, the concept of TPM is alive and well at the company's six plants in Mexico. Perhaps the best example is at CCM's brewery in Tecate, located a short drive from the U.S.-Mexico border on the Baja California peninsula.
The true translation — might it be proper to say a new and improved translation? — is being used today by Cervecería Cuauhtemoc Moctezuma, one of the largest brewers of beer in Latin America. Known throughout this company as Mantenimiento Alto Desempeño (MAD), or translated as High-Performance Maintenance, the concept of TPM is alive and well at the company's six plants in Mexico. Perhaps the best example is at CCM's brewery in Tecate, located a short drive from the U.S.-Mexico border on the Baja California peninsula.
