Jerry Dolinsky is the CEO of Dozukia leading connected worker solution for enterprise-level manufacturing companies.
The manufacturing sector faces a significant challenge when it comes to talent retention. As more and more businesses embrace digital transformation, the need to not only attract but also retain skilled workers is reaching an unprecedented level.
High-tech environments, like smart factories, help increase job satisfaction and retention rates by improving work quality, streamlining processes, and providing flexible, on-demand training. According to a recent Deloitte study, high-tech manufacturing environments have contributed to higher retention rates and reduced training time for roles like welding 50% to 60%.
But how can manufacturers effectively implement these technologies to solve this problem? Here are four essential steps to ensure a successful transition:
Step 1: Internal readiness for AI-based technologies
Effective onboarding requires a supportive environment that retains talent by reducing friction during transitions. Follow these steps to ensure a smooth process:
• Build a cross-functional team. Include representatives from IT, quality, human resources, communications and operational technology (OT). This ensures diverse input, making it easier to address potential concerns that could drive employees away.
• Start with a strategic pilot project. Test AI tools on specific processes such as process digitalization or predictive maintenance to gather feedback for refinement before larger scale deployment. For example, a pilot project using digital work instructions to troubleshoot machines can streamline how operators handle breakdowns. This results in faster recovery times and reduced equipment downtime, helping to build worker confidence in new technologies.
• Communicate the evolving nature of the pilot project. Be clear that process adjustments will be made based on employee feedback, such as changing digital guides for machine setup. This transparency helps workers feel included, which is crucial for retaining qualified employees.
• Grow organically. As more team leaders recognize the benefits of the pilot (like fewer errors during audits), the program can slowly grow in scale without overburdening employees. Scale up gradually as workers see the benefits, maintaining engagement throughout the transition.
Step 2: Overcome Common Challenges
AI adoption can pose challenges that, if handled poorly, can increase revenue. Effectively addressing these issues can boost retention by fostering a sense of stability and engagement among employees. Here’s how to approach these challenges:
• Focus on the human side of change. Show your team how AI tools can reduce physically demanding tasks, such as automating work order documentation. This can improve safety and reduce injuries, allowing experienced operators to stay on the job longer.
• Foster an environment conducive to feedback. Implement systems for workers to directly input suggestions for improving digital work instructions, such as adjustments to step-by-step guides for machine calibration. When these changes are implemented quickly, workers realize that their contribution matters, making them feel empowered.
• Start small. In your pilot projects, such as using digital work instructions to streamline production line setup times, you have leverage. When operators see a 15% reduction in setup time, they will be more willing to adopt AI tools in other aspects of their roles. Get these first use cases under your belt, then shout them from the rooftops.
Step 3: Focus on data quality and talent acquisition
Quality data ensures employees can see the value of their contribution. Just one review on a guide could save tens of thousands of dollars per year. With such data, you can also improve retention. Here’s how to obtain and maintain data quality:
• Build a master data management function. Maintain accurate data on production metrics such as machine efficiency and training completion rates. This ensures your operators make real-time decisions, such as adjusting machine parameters for better output.
• Integrate disparate data sources. Use AI to unify data from your LMS, MES, ERP and QMS. This provides retraining alerts to address audit compliance or notifications if an outdated process has been updated. When operators can see that these alerts help them avoid unexpected failures, it increases their sense of control over the machines and reduces their frustration.
• Implement real-time data updates. Provide live data on metrics like cycle time and defect rates, allowing frontline workers to make immediate adjustments. This reduces delays and minimizes downtime, contributing to a more stable and predictable work environment, essential for retaining skilled workers. Ford’s manufacturing chief recently made a webinar on how they use vision systems and other AI technologies to improve quality and, therefore, retention.
Step 4: Address concerns about job security and skills development
When introducing AI into the workplace, addressing fears of job loss is critical to building trust and employee engagement. Here are the main steps manufacturers can take:
• Emphasize the role of AI as a “co-pilot”. AI is intended to assist employees, not replace them. Highlight how AI helps manufacturing workers with repetitive tasks, allowing them to focus on more strategic and creative aspects of their role. As Amazon’s Andy Jassy noted in his letter to shareholders“AI allows our team to automate repetitive tasks, allowing employees to work on more creative and complex challenges.” This framework is empowering and scalable.
• Communicate emphasis on empowerment. Emphasize that AI tools are intended to enhance employees’ capabilities rather than diminish their importance. Show how AI tools help improve production line efficiency, such as automated recycling modules that ensure safety standards are met. This prevents failures during security audits, giving workers the feeling that their expertise is being enhanced, not replaced.
• Highlight opportunities for development and strategic growth. Provide training for tasks that involve digitizing process knowledge. Show workers a clear path for career progression. Some of my company’s clients have made trajectory maps for their workers and posted them throughout their facilities. These artifacts can entice new team members to join the team and make seasoned workers more likely to stay and grow within the organization.
Conclusion
By taking these four proactive steps, manufacturers can solve the talent retention crisis while navigating digital solutions. Technology can drive both efficiency and job satisfaction, but only when combined with a thoughtful, people-centered approach.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Am I eligible?