Crain's Content Studio

MANUFACTURING CULTIVATING A 21ST CENTURY WORKFORCE

Access to a qualified workforce remains a top inhibitor to a manufacturer’s growth, regardless of offerings, market share, geography or size. Four industry leaders shared their insights on attracting and retaining a smart, engaged workforce with Crain’s Content Studio.

What are some necessary skills for the 21st century manufacturing workforce, and how are organizations helping employees acquire them?

Kraig Kniss: 21st century employees will need to be effective communicators who are data-centric, analytical and tech-savvy with the ability to convert tremendous quantities of data into actionable business intelligence. Regardless of function, they must be able to recognize and solve problems independently while still collaborating with others and participating in decision-making. Innovative logistics and supply chain professionals will also be key to staying relevant and globally competitive. We must be proactive with training and growth opportunities; that’s why we pay for education, provide leadership development and offer a core

curriculum to help employees thrive and grow—and stay engaged.

Renée Metcalf: Today’s talent must be able to apply advanced analytics, leverage artificial intelligence, cloud computing and robotics. Our clients are working with colleges and universities to source talent, building apprenticeship programs, supporting advanced education programs/ certification and engaging with STEM programs at the elementary and high school levels.

Jennifer L. Sherman: Necessary skills for our jobs include welding, computer literacy and the ability to be part of a team and problem solve.

These skills may be acquired pre-hire through community vocational training programs supported by our businesses. As an example, one of our facilities funds programming, donates used machinery and lends employee

volunteers to teach welding at a local high school. Graduating seniors who’ve accepted full-time job offers with our company are celebrated at a “signing day” ceremony. When interviewing, we specifically look for individuals with resiliency, curiosity and a sense of ownership. Post-hire training programs are offered to all employees. Our senior management team emphasizes being accessible

“WE’VE BEEN SUCCESSFUL HIRING HIGH-QUALITY WORKERS FOR OUR FACILITIES IN A TIGHT LABOR MARKET BECAUSE OF OUR REPUTATION, CULTURE, FOCUS ON SAFETY AND EMPLOYEE BENEFITS.” JENNIFER L. SHERMAN and approachable to all employees, as they value a culture that supports employee development and a sustainable workforce.

Plan. Implement. Excel.

Aligning performance and practice for strategic business success CUSTOMER

STRATEGY

David Boulay: It starts with critical thinking skills, such as linking ideas, fact-based decisions, problem solving and continuous improvement. These provide the foundation to navigate change; however, they can’t be developed in a one-day classroom, but rather over time. It requires working through the job, mentoring and regular feedback. One tip regarding

OPERATIONS

LEADERSHIP

WORKFORCE

MEASUREMENT & RESULTS

www.imec.org | 888.806.4632

critical thinking skills is to be great at asking good, basic questions.

One of my favorite approaches is the Five Whys to learn about an issue and dig into root causes and potential solutions.

How are companies addressing the labor shortage and competition for talent?

Metcalf: Our manufacturing clients are partnering with higher education, designing in-house training programs, creating new types of apprenticeships and retaining “tribal” knowledge by engaging retirees to stay on as contributors. Manufacturers should consider pairing with a partner firm that can provide modernized recruitment technology and expertise. A good partner will help consolidate records and processes.

Moving application materials to an online portal will help keep track of strong candidates, easily search for records and even open new doors to improve the company’s profit by facilitating the collection of data supporting work opportunity tax credits. Lastly, a technology partner can help craft a social media strategy. More than three billion people around the world use social media each month, with nine in 10 users accessing preferred platforms via mobile devices. Companies are working with experts to create mobile-friendly messaging and target their audiences on social media in a low-cost manner.

Sherman: We’ve been successful hiring high-quality workers for our facilities in a tight labor market because of our reputation, culture, focus on safety and employee benefits. We make a point of building meaningful relationships with local schools, including offering plant tours, participating in middle-school level career expos and supporting local tech programs and vocational training. These efforts make us stand out as real people in the community and not just a facility down the road. The dynamic growth of our company and the fact that many of our products provide environmental benefits also makes us an attractive employer. Finally, we selectively and successfully attract experienced talent from outside the industry, seeking individuals with new and different perspectives.

Boulay: Companies are investing in technology, like robotics.

They’re looking at ways to remove the repetitive and mundane tasks from human hands so the talent can focus on more complex work.

Companies are also thoughtfully expanding their potential worker pool, for example hiring individuals with no manufacturing experience if they feel they fit their culture.

Finally, companies are focused on retaining current employees.

They’re working to solve turnover, improve engagement and offer different offramps for retirees, such as transitioning to part-time work.

Kniss: One of the best ways to combat a labor shortage is to retain good people. Word of mouth is powerful, and employees are a great referral source. We’re creative about getting our word out, recruiting via local media, social media and even billboards. College job fairs help fill professional and intern roles.

Even county fairs present recruiting opportunities. Successful plant leaders become visible, well-respected members of the community. As filling jobs in the trades and manufacturing becomes harder, more manufacturers invest in automation.

How is technology disrupting the manufacturing workforce?

Boulay: Sensors and the cost of data, such as cloud computing, is

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As connecting work to individuals’ values becomes increasingly important, how can businesses make employees feel like they’re making a difference?

DAVID BOULAY

KRAIG KNISS

President IMEC dboulay@imec.org 309-677-3766

VP - Operations Elkay Manufacturing Co. kraig.kniss@elkay.com 815-273-5646

becoming very affordable, opening the door for virtual reality, realtime data tracking and collaborative robots, among other solutions. Many are calling this Industry 4.0. I call this the opportunity to solve the productivity crisis. The imperative for manufacturing leaders is to embrace these technologies; to create stepfunction productivity gains. On one hand, it’s a concerning time. On the other, what an exciting time. And, a time with massive implications for our workforce.

Kniss: Technology is driving speed and process measurement, resulting in greater accountability, repeatability and accuracy. We’ve changed the nature of problem-solving from reactive to predictive—often without human intervention. Technology is also reducing the overall length of the supply chain. Through digital technology, the flow of information from customer to supplier, or from product design to manufacture is advancing at light speed. While these changes are a boon for companies, they represent a double-edged sword.

We need our workforce, but we need them with different skills.

Metcalf: Mid-market manufacturers are positioned to thrive as this disruption is underway, fueled by VC investment in relevant technologies and mass-market

SVP, Market Executive - Illinois Global Commercial Banking Bank of America renee.metcalf@bofa.com 312-904-1145

JENNIFER L. SHERMAN

President, CEO Federal Signal Corp. jsherman@federalsignal.com 630-954-2000

our facility and another completely individuals who’ve been born and state-funded program provides raised near our manufacturing an opportunity for low-income/ facilities—giving them the ability low-skills young adults to join our to stay where they have a longworkforce, earn a paycheck and established and supportive social develop valuable job skills. network. Other efforts to access and attract qualified employees Boulay: It’s time to think of our have been supported by economic Sherman: We see the increased talent supply chains and how our development and investment use of technology as an additional companies are situated within promotion organizations, such as tool we can leverage to continue them. Know the potential nodes the State of Illinois, the Illinois achieving manufacturing of potential supply—for example, Department of Commerce & efficiencies, improving productivity schools, community centers, Economic Opportunity, the City of and reducing inventory cycle churches—and nurture relationships Streator, and the Greater Livingston times. This results in a more to open the supply. Proactively County Economic Development flexible manufacturing modelElkay ad. Crain’s Chicago Business. Manufacturing Special Issue. March, 2020. give and take by supporting their Council, for an expansion of our for our workforce. If we practice needs and priorities and educating/ Vactor manufacturing facility self-disruption, we can offer supporting their understanding in Streator. In Alabama, at our 21st century employees a new of career opportunities at your Ox Bodies plant, a state-funded kind of manufacturing job that company. program runs a welding program at benefits employees and empowers employers. who are able to navigate changing systems are in high demand. These types of future-proof jobs will ensure the manufacturing industry can be a source of employment for years to come.

Boulay: It starts with leadership’s vision and culture building, then helping everyone see how they fit with that vision, to understand how their daily tasks are connected to something bigger. It involves active listening to the workforce, understanding and providing continuous insight on things such as stories about internal and external customers—showing employees how they’re part of making a difference in other people’s lives by the work they do. It’s also necessary to invest in the skills, abilities and expectations for frontline leaders, because we’re prone to associate our work experience with our interactions with our immediate supervisor. The way frontline leaders interact with and help new hires can help them feel like they’re making a difference.

What role does location play in accessing or attracting a qualified labor force?

Kniss: Regional culture and work ethic can have an impact on an organization’s ability to attract an adequate labor force, particularly when multiple manufacturing organizations are vying for the same labor pool. Also, if affordable housing is not readily available adjacent to a manufacturing plant, and public transportation is not available, employees may find it more difficult to work overtime or

“IT STARTS WITH LEADERSHIP’S VISION AND CULTURE BUILDING, THEN HELPING EVERYONE SEE HOW THEY FIT WITH THAT VISION, TO UNDERSTAND HOW THEIR DAILY TASKS ARE CONNECTED TO SOMETHING BIGGER.” DAVID BOULAY adoption of industry applications by consumers and business alike. Things like hands-free mobility, talking parts, improved safety for employees and better consumer user experiences are on the horizon. Automation has created thousands of new positions to design, engineer, manufacture, market, distribute, install and service these technologies, and employees

RENÉE METCALF

Sherman: Businesses should regularly communicate to employees the value of their individual jobs to emphasize how they contribute to the success of the whole organization.

Demonstrating how our products serve the needs of our customers generates pride in workmanship and a sense of personal value as part of the organization. Our employees are always encouraged to submit recommendations for process improvements and product innovation.

alternative shifts because it involves a more challenging commute.

Bottomline, it’s harder to fully staff a manufacturing plant in a remote area than in an urban area where there’s greater access to mass transit and affordable housing.

Imagine working for a company that inspired this kind of feedback:   

I’m proud to work for Elkay.

The company invests in my success.

I do work that makes a difference.

 

I love my co‐workers.

I feel like part of a family.

Come to work for Elkay, and that’s how you’ll feel.

Elkay is a thriving, values‐driven global company focused on doing the right things so we can be in business forever. We’re financially‐stable and family‐owned, with an enduring reputation for ethics, integrity, giving back, and providing an engaging, inclusive environment where careers flourish and grow.

If you’re ready to join a company where everything you do makes a difference and you go home proud at the end of each day, talk to us about joining the Elkay family!

Sherman: We offer meaningful employment opportunities to

www.elkay.com

MANUFACTURING CULTIVATING A 21ST CENTURY WORKFORCE Kniss: It can be as simple as connecting employees with other people from across the company. In our Elkay Bridges job-shadowing program, employees get to know peers in other departments, making new friends while gaining a better understanding of how their work quality impacts others. Employees are proud that their work addresses consumers’ health and hydration needs while reducing single-use plastics in the environment. Volunteer programs are another way that employees can make an impact.

Teaming up with co-workers to do community service builds confidence, positive feelings for the company and stronger inter-personal relationships which translate directly into a reduced turnover.

Metcalf: Brand reputation, culture and “doing the right thing” are the new currency. At Bank of America, we strive to be a great place to work for our employees, providing the support they need to be their best at work and at home, make a genuine impact and contribute to the sustainable growth of our business and the communities we serve. This means being a workplace where

our employees feel appreciated and engaged, and can build their careers with us. We’re focused on employee engagement and listening, providing programs for professional and personal development, training, education and the ability to make an impact locally through volunteerism.

six months, onboarding is a vital investment. It may feel expensive or time-consuming, but robust training, effective mentoring, standard work and well-trained supervisors bring workers to full potential more quickly. In the long run, it’s a wise investment.

As the average tenure of employees decreases, how can manufacturers onboard individuals quickly and utilize them to their full potential?

Kniss: At Elkay, new hires receive hands-on training to learn the skills to be successful immediately. They meet their future team and are assigned a big brother or sister to answer questions and reduce some of the

Boulay: I’m glad you use the word onboard. Too many times people think of just the new hire orientation—providing the rules and required paperwork. The full onboarding experience makes someone say “Hey, I feel welcome here, I know what I’m supposed to do, and I’m excited to be a part of the team.” Onboarding really starts with that first interaction, the interview.

The front lobby appearance, the ways candidates are greeted. The little details that distinguish a company.

Readily sharing your culture will help someone understand how they fit.

Given that 50% of hourly workforce turnover often takes place in the first

Chicago, we understand the value you bring to the community. We are committed to your success and can help your business grow with strategic advice, guidance and solutions that make business easier.

We are proud to serve your business needs. That is why we are always asking: Renée Metcalf Market Executive

Sherman: We assign mentors to help new employees acclimate and provide opportunities for job success and forming relationships across the enterprise. This enables new hires

“A DIVERSE AND INCLUSIVE WORKFORCE HELPS BUSINESSES AVOID EMPLOYEE TURNOVER COSTS, AND HELPS FOSTER A MORE CREATIVE AND INNOVATIVE CULTURE.” KRAIG KNISS stress that comes with being new. To increase tenure, we offer job rotation for employees who are early in their careers, which builds employee skills while providing variety.

Rotation helps younger workers find their “sweet spot” where they feel challenged and enjoy their work and

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the people they work with. Those who agree to job rotation receive pay incentives reflecting the greater value they bring. Because younger workers seek more interactivity and problem solving, we continually seek ways to leverage more technology and make our manufacturing roles visual and engaging.

To support commercial banking clients, Bank of America: Serves 40,000 business owners Employs 1,550+ local commercial business specialists Provided $220 billion in lending services in 2018

What would you like the power to do?® Let us know at renee.metcalf@bofa.com

“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2020 Bank of America Corporation. All rights reserved. 2903158 11-19-0005

to quickly feel part of a team that encourages his/her success. We also promote a 30/60/90-day constructive feedback program.

What impact does immigration have on manufacturers’ labor challenges?

Boulay: I can walk into metal manufacturers today and see signs in English, Polish and Spanish. I can hear machinists speak in Polish, although I confess, I don’t understand.

These work settings are a nod to a long tradition between manufacturing and immigrant communities. The Polish community became a part of Chicago manufacturing in the 1880s and have handed down their craft through the generations.

It’s an incredible story. And, it’s a clear example of the importance of immigrant communities for manufacturing success.

Kniss: While immigration has little direct impact on Elkay’s labor pool, we recognize that in certain regions of the country, and certain industries, immigrants and migrant workers are the only people willing to do the hard labor and challenging shift work for the wages available. And while “well then pay higher wages” is the simplistic response you may at times hear thrown around, with wages often being one of the higher line items in the cost of goods sold, increasing wages may price your product right out of the competitive marketplace. There’s definitely room for immigration reform that takes these complex issues into account.

How are manufacturers dealing with the rising cost of employee healthcare?

Sherman: For a long time, we’ve made significant contributions to the cost of providing our employees with healthcare coverage. We currently offer annual biometric screenings, discounted medical premiums and a company wellness program. Our aim is to create a work environment that’s consistent with company values and that reflects our focus on sustainable business practices.

Kniss: A healthy workforce is the best way to control healthcare costs, so we talk about wellness a lot. Each plant has a wellness team teaching the importance of employees “owning” their health. Programs cover physical and mental wellness, physical activity and communication, stress reduction at home and work, and the need for adequate rest. Another way we manage rising healthcare costs is by offering health screenings for employees and their spouses to keep them informed and actively engaged with their “wellness score,” which reflects leading health indicators.

Working with their doctor, employees take proactive steps to manage any health indicator causing an elevated score, and they receive premium discounts for moving their wellness scores into a healthy range.

Metcalf: It’s critical that manufacturers make sure employees understand benefits comprehensively and offer a package that helps offset the rising cost of healthcare. Offering employee benefits that are personal and making financial wellness actionable will give employers an edge. From longevity to caregiving, employees are navigating an increasingly complex financial journey. By better understanding the factors, employers can better support employees with financial wellness solutions that offer an integrated approach to benefits and address people wherever they are. With the health and wellness of employees having a profound impact on the health of a business, employers play an important role in helping employees address the challenges they face. Employers can educate employees on the realities of growing health care costs and offer planning options, like an HSA, that can help employees better manage these expenses.

What role does diversity, equality and inclusion play in cultivating success?

Metcalf: Diverse workplaces with inclusive environments foster creativity and innovation, and generate community engagement, responsible growth and client satisfaction. Bank of America has

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ABOUT THE PANELISTS DAVID BOULAY is president of IMEC, a publicprivate partnership committed to driving growth through enterprise excellence.

Over the last 20 years, he has held leadership roles with manufacturing companies, universities and nonprofits where he has created and implemented initiatives to increase the flow of state and federal funding to manufacturers for projects to improve energy efficiency, update worker skills, and help smaller manufacturers adopt new technology and business practices. He holds a bachelor’s degree in operations management, an MBA, and a doctorate in workforce development.

11 employee networks with over 120,000 members in more than 250 chapters around the world.

Employees with shared interests connect, develop leadership skills, build ties with their communities and advance diversity recruitment.

These programs provide support and promote inclusion for all teammates. Whether you’re a man, woman, a caregiver or living with a disability, you’re facing some of the same challenges; knowing there’s a company that cares, and that you’ve got flexibility and support leads to loyalty—which translates to retention.

Sherman: One of the benefits of the increase in diversity that we’ve seen over time is that we’re hearing the opinions of individuals with different backgrounds and perspectives.

For example, our new product development brainstorming sessions intentionally combine a diverse group of employees from multiple job levels and functions in pursuit of finding a solution to a business challenge. The creative approach to problem solving and the collaborative nature of these sessions has produced mutual respect for all participants’ contributions,

KRAIG KNISS is vice president - operations for Elkay Manufacturing Co., a Downers Grove-based, 100-year-old family-owned company that produces, sources and delivers residential and commercial building products and services. He currently oversees Elkay’s supply chain network, including multiple U.S.-based manufacturing plants; its global procurement, sourcing, planning and distribution teams; and its central services quality functions.

He joined Elkay in 1980 as a product engineer, and through the years held a variety of management roles in quality services, inventory control, materials and manufacturing.

RENÉE METCALF is a senior vice president and market executive of Illinois Global Commercial Banking for Bank of America. She manages a team that provides treasury, credit, investment banking, risk management, international and wealth management services for middlemarket companies with revenues between $50 million and $2 billion. She previously held senior positions at BOA in commercial real estate and sales performance. Earlier in her career, she was an estimator in the construction industry. She has a bachelor’s degree in finance and a master’s in general business.

one of the last bastions of the glass ceiling, Elkay has been recognized by the Women Corporate Directors organization for the diversity of our board composition.

Boulay: A commitment to diversity in the workplace can also improve employee retention rates. That said, one of the gaps we need to explore is the lack of diversity and equality in our leadership ranks. If we’re going to count on leaders for cultivating success, then leader diversity—from the frontline to senior leaders to owners and the board room— impacts how we can meaningfully embrace inclusion.

How can manufacturers inspire a new generation of creators and workers?

Metcalf: Manufacturers will need to think outside the box and apply strategies to reach their targeted talent pool in new ways. In some sense, they’ll need to become marketers and consider how to leverage social media channels and influencers to tell their stories, build interest and become relevant to both millennials and Gen Z.

“MANUFACTURERS WILL NEED TO THINK OUTSIDE THE BOX AND APPLY STRATEGIES TO REACH THEIR TARGETED TALENT POOL IN NEW WAYS.” RENÉE METCALF further strengthening our culture, corporate innovation and our company overall.

Kniss: A diverse and inclusive workforce helps businesses avoid employee turnover costs, and helps foster a more creative and innovative culture. Diversity in the workplace is necessary to create a competitive economy in a globalized world.

While some say the boardroom is

Boulay: We need to actively engage our local schools, colleges, high schools and primary schools.

There are so many ways to be involved and educate, from robotic competitions, being a classroom speaker, providing internships, mentoring and offering tours. We should show off the great stories of our companies and the potential of the future. Manufacturing is bright

and exciting—let’s celebrate and inspire.

Sherman: As we attract new generations to join the Federal Signal mission, to “build and deliver equipment of unmatched quality that moves material, cleans infrastructure and protects the communities where we work and live,” we believe modern manufacturing will offer an environment where creators and workers are inspired to work

JENNIFER L. SHERMAN is president and CEO of Federal Signal Corp., a publicly traded diversified industrial manufacturing company (NYSE: FSS) based in Oak Brook with approximately 3,500 global employees. Since assuming her current role in January 2016, she has guided the company to divest non-core businesses, made highly strategic acquisitions and transformed its organic growth efforts. Her commitment to new product development resulted in the company winning a 2016 Chicago Innovation Award. In 2017, the Executives’ Club of Chicago nominated her for CEO Innovator of the Year.

with the latest technology, explore their ambitions and advance their careers through lifelong learning opportunities. We consider adaptability for both our business and our workforce to be a path forward; adaptability is one of our core corporate values and describes our commitment to continuously developing our workforce.

Kniss: We must all stimulate our teams with a compelling culture,

Moves. Cleans. Protects.

take time to humanize our work activities, provide a safe and inviting work environment, and commit to providing our people the work-life balance they need to feel happy and satisfied with their jobs. Employees are drawn to a workplace that’s friendly and fun, where they feel like they’re part of something greater than themselves, and where they can be proud of the company they’ve joined and the impact it has in the community.