For many financial officers, there is a focus on lean manufacturing, process improvements, and your P&L statement. You want to innovate with technological advancements that propel the business. You may feel the need to fund innovation and to make smarter investments in facilities, robotics, vehicles and smart equipment that give your company a competitive advantage.
But when you focus on the biggest or most visible projects that promise the highest value, you may be neglecting your most important asset — your employees. While you may not be able to control economic downturns, M&As, plant closings and openings, commodity prices, or unplanned business disruptions (like COVID), you can help prevent a very devastating internal company problem:
A recent study finds that 2 of 5 manufacturing companies (43%) report an average of at least 20% annual turnover.
There has been a skills gap in manufacturing for a decade. Industrial companies are desperate to find enough skilled workers and willing trainees to fill positions.
Which makes retaining the employees you already have a huge priority.
Retaining your workers helps you mitigate costs associated with turnover. As an added benefit, experienced employees do better work. They know the industry trade secrets and they know how your company works. You can't substitute wisdom and the skills created from years of experience on the job.
If your company doesn’t have strategies to reduce turnover, you will suffer the consequences. From the expenses of finding and hiring new workers, as well as their training and education, to the cost of dealing with a less-skilled workforce, poorer quality products/services, and reduced productivity.
Dissatisfaction comes from a poor work environment, such as unsafe working conditions, micromanagement, toxic cultures or peers, and a negative company attitude. While it may seem as though a CFO has little influence on team dynamics and morale, you actually can make a big impact.
Complacency happens when workers feel there may be better opportunities with other companies. Improving their wages may provide the deciding factor, but they are most likely looking for a new or unique situation. Essentially, they are looking for a improved experience.
To keep your manufacturing company below that industry average turnover rate, you'll need to invest in preventative measures that improve satisfaction levels and creates a unique setting, eliminating complacency, for your employees.
1 — Start by significantly improving your work environment. For some reason, safety seems to be the new four-letter-word. But if you can implement proactive measures that keep employees healthy, you'll dramatically improve the work culture.
Solutions are available that prevent workers from being injured, promotes health and wellness, keeps minor injuries from becoming major, and gives them advice and tips from a licensed, certified healthcare professionals while on the job. Talk about new and unique work environment!
2 — Next, make it easy for them to report any injuries that do occur on the job. Give them access to the same healthcare professionals, who specialize in OSHA first aid and musculoskeletal disorders (MSDs) that are caused from repetitive motion, over-exertion, and awkward postures. Incident triage platforms exist that can provide a walk-up kiosk on the facility floor as well as a mobile app to talk directly with the experts. Most times they'll be given self-care instructions and can return to work, preventing costly and unneeded ER visits.
3 — Many CFOs consider cutting safety or health and wellness programs once the rate of incidents begin to fall. By doing the exact opposite - rewarding employees who take advantage of your injury prevention system - you'll see an epic boost in morale and satisfaction. When you reduce work injuries, keep employees healthier, show that their health and safety matter to you... you are providing a powerful work incentive as your giving them the added benefit.
When employees feel safer, protected and valued, you will enjoy all these types of values that will affect their quality of work, their output, their peer-to-peer relationships and overall happiness at work.
In turn, they will stay with your company longer. They won't have nagging pains from MSDs. They won't won't skip work or try to leave early. They will even encourage others to join your business!
Learn how Healthy Roster helps companies achieve all these goals and helps CFOs fight manufacturing turnover today.