This blog delves into our brand-new workforce development report—made in collaboration with the independent research firm Verdantix. Through interviews with over 50 manufacturing decision-makers of large enterprises with revenues above $200 million spanning North America and Europe, we revealed that only 35% of firms said their training program was highly effective.

Ineffective training is hurting manufacturers deeply. "We can't handle production and training together; we have to sacrifice one," said one respondent. "After training is provided, we [have to go back] and provide training again," said another. These familiar tunes - struggling with a major lack of resources and ineffective delivery - were common challenges we uncovered.

Yet manufacturers consistently drove home the point that effective and efficient training is vital to the success of their workers and the company at large. Effective training is production's biggest enabler, they said. Join us as we uncover the pulse of workforce development shaping the manufacturing industry.

Decoding the Current Landscape

The manufacturing industry's pursuit of effective workforce learning and development strategies has undergone a profound transformation spurred by the reshaping of workplace dynamics following the pandemic. Our research looks into these shifts, unveiling the substantial investment in time and effort devoted to training in the workforce.

Fundamental Role-Specific Training

Role-specific training in manufacturing refers to the tailored learning experiences and skill development programs designed to equip employees with the specialized knowledge and competencies required to excel in their specific roles. An astounding 49% of manufacturing personnel dedicate a minimum of nine hours per month to role-specific training. This statistic underlines the pivotal importance of honing specific skills within the sector. Notably, compliance training takes up a smaller share of time, with most respondents allocating less than four hours monthly. This nuanced breakdown is crucial when assessing challenges and potential remedies within the training domain.

Prioritizing Critical New Hire Onboarding

Amidst challenges posed by an aging workforce, persistent skills gaps, and the transformative wake of the pandemic, a striking 71% of firms have placed new hire onboarding at the top of their priorities. This urgent focus comes as the US Bureau of Labor Statistics forecasts a quarter of the US workforce to be over 55 by 2024, intensifying the demand for fresh talent.

The pandemic's impact has intensified turnover rates, resulting in unprecedented vacancies. Consequently, nearly half of the respondents are spending significantly more time on their new hire onboarding processes as they seek to fill those empty positions. The massive increase in new hire volume has significant ramifications. It inadvertently drives up costs and strains the resources dedicated to training. The staff responsible for training become overburdened and burnt out, leading to a perpetual cycle of playing catch-up. As a result, workforce proficiency and overall operational efficiency suffer due to these challenges.

The Pivot: On-the-Job Training Takes Center Stage

Survey results show that shadowing continues as the prevailing training method in factories, employed by 59% of respondents for over 40% of their training initiatives. However, a clear trend emerges for the next two years – a notable shift towards on-the-job training, including self-guided learning at the workstation. This hands-on approach is favoured for its ability to improve comprehension and retention of information, leading to elevated performance standards. In fact, a substantial 62% of respondents anticipate a surge in the utilization of on-the-job training.

Although augmented reality (AR) and virtual reality (VR) showcase benefits like simulating complex tasks, the anticipated decline of 14% of respondents over the next two years highlights the challenges posed by implementation costs, equipment demands, and change management complexities.

Training Challenges Caused by an Unstable Labour Market

Employee training faces an array of challenges, compounded by the instability of the labour market. Manufacturing firms are honing in on two key areas to address the knowledge gap resulting from an aging and fluctuating workforce: onboarding and role-specific training. The shift towards on-the-job training for skill enhancement is becoming more prevalent. Survey respondents emphatically underscore the imperative for workers to engage in their training, enabling them to proficiently:

Understand safety measures to avoid workplace injury
Train with new technology
Improve associates’ performance, grow confidence and understanding of their role and responsibilities
Acquire new skills and develop future career paths
Drive tangible business outcomes

However, the current training delivery, administration, and content creation landscape is straining resources as companies grapple with the demand to provide extensive training to new and existing employees.

Budget Constraints: A Strain on Training Initiatives

Economic uncertainties, characterized by rising energy costs, inflation, and geopolitical factors, have given rise to pressing budget constraints within the manufacturing industry. A staggering 61% of surveyed respondents pinpoint budget limitations as a paramount challenge in executing training programs.

Limited Access to Training Resources and Record-Keeping

While 72% of respondents witnessed an increase in the number of full-time training resources over the past two years, a notable 77% highlighted limited access to training resources as a significant hurdle. Digital solutions offer scalability and flexibility to counteract this, making training available on-demand in various formats. However, challenges persist in tracking and maintaining records, amplified by the surge in the number of skills employees must acquire during training. The shift from structured training events to on-the-floor training delivery necessitates innovative digital solutions for streamlined administration.

Slowly Improving Training Completion Rates

While it's promising that 82% of respondents reported an increase in training completion rates over the past two years, many firms still fall short of the target, with less than 50% achieving a rate of 85% or higher. Factors contributing to this shortfall include inadequate resources, lack of visibility into training records, and a lack of engagement from workers. Outdated tools and processes can exacerbate these hurdles, resulting in decreased productivity, higher turnover rates, increased costs, and diminished morale.

Ineffective Training Programs

Training programs' effectiveness is a pressing concern—only 35% of respondents view their programs as "highly effective." This gap between intention and reality underscores the challenge of aligning training goals with employees' needs. Performance metrics and chronic turnover signal low program efficacy. Responding to this, many firms are transitioning from legacy solutions to innovative approaches like mobile learning apps and training analytics to cater to evolving workforce expectations.

Conclusion

The 2023 report by Poka and Verdantix provides a detailed look at the challenges and transformations in the manufacturing sector's workforce development. From the profound impact of the pandemic to the importance of role-specific training and on-the-job learning, this report captures the pulse of the industry.

If you're keen on diving deeper into the intricacies of workforce development and how digital solutions are aiding in addressing current challenges, download the complete report.

The State of Training in Manufacturing Report [2023]