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1、Putting Talent attheCentre:An Evolving Imperative forManufacturing W H I T E P A P E RF E B R U A R Y 2 0 2 5In collaboration with McKinsey&CompanyImages:Getty ImagesDisclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findi
2、ngs,interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.2025 W
3、orld Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.ContentsForeword 3Executive summary 4Understanding the evolving talent imperative 5
4、1 The key to talent strategy:viewing the frontline as aninvestment 101.1 (Re)invigorating your approach to talentinvestment 101.2 Understanding your unique workforce 122 Building the workforce with proven frontline innovations 152.1 Investments in capabilities must match local talent strategy 162.2
5、Multinationals must also localize 172.3 Innovative talent investments across sixcapabilities 173 Way forward:Operationalizing frontline talent investment 253.1 Create a structured process 253.2 Building a cross-functional team 26Conclusion and next steps 27Appendix:Findings from the Frontline Talent
6、 of the Future pilot 28Contributors 38Endnotes 39Putting Talent at the Centre:An Evolving Imperative for Manufacturing2ForewordTechnology isnt at the heart of production.People are.Putting people at the center is not a new idea,but technology has undeniably transformed industry and continues to do s
7、o,which means this imperative is evolving and so must our playbook for meeting it.Currently,a gap exists between business ambitions and the frontline talent needed to achieve those aims.By 2030,54%of the workforce in the advanced manufacturing sector will require training to meet evolving skill dema
8、nds.As former leaders in production,weve heard“people first”countless times.Yet,we know how challenging it is to turn that slogan into reality especially in manufacturing and supply chains.Why is the frontline talent challenge so acute?At a basic level,workers often struggle to earn a living wage,es
9、pecially in developing economies.According to McKinsey&Company,40%of frontline workers in manufacturing face financial insecurity,driving high turnover.Even in higher-wage contexts,competitive pay alone isnt enough.Employees seek meaning,growth and a workplace that values their contributions.Without
10、 this,burnout and disillusionment take hold.As a result,talent retention has become one of the biggest challenges for industrial organizations.A McKinsey study shows that companies with effective people strategies are 2.2 times more likely to outperform their peers.Yet many still treat talent as a c
11、ost rather than an investment.Its time to shift to a perspective that views frontline workersas key drivers of stability,productivity andgrowth.Organizations that embrace this mindset offering not just fair wages but opportunities for development and connection will lead the future of production.Ima
12、gine a workforce where employees proudly say,“I belong.I contribute.I have a future here.”These are the companies that will thrive,balancing business success with the well-being of the people at their core.This is the focus of the Frontline of the Future Initiative,a World Economic Forum initiative
13、in collaboration with McKinsey&Company.This initiative explores how investing in talent innovation creates a win-win:boosting business outcomes while strengthening peoples relationship with theirwork.It offers a new playbook to meet the changing imperative to keep people at the centre ofproduction.H
14、ave we solved the talent challenge?Not yet.But we know this:the organizations that truly invest in their people today will own the industrial future.Join us as we explore what it means to build a better path forward for business,for workers and for theworld.Kiva Allgood Head,Centre for Advanced Manu
15、facturing and Supply Chains,World EconomicForumFernando Perez Senior Partner and Leader,the Frontline Workforce ofthe Future Service Line,McKinsey&CompanyPutting TalentattheCentre:An Evolving Imperative for Manufacturing February 2025Putting Talent at the Centre:An Evolving Imperative for Manufactur
16、ing3Executive summaryWhile there has long existed an imperative to keep people at the centre of production,that imperative has and continues to evolve as industry undergoes fundamental transformations.A new age of intelligent operations has emerged and while it requires new skills,it also creates ne
17、w opportunities for frontline workers.A conscious approach to investing in talent is the missing ingredient that will allow companies to meet these challenges andopportunities.The Global Lighthouse Network,a World Economic Forum initiative,co-founded in 2018 with McKinsey&Company,and counselled by a
18、n advisory board of industry leaders,has demonstrated technologys transformative potential in manufacturing.Yet human workers remain central to production,and industries worldwide face an urgent need to transform frontline work amid mounting productivity and stability challenges.The Frontline Talent
19、 of the Future Initiative addresses this challenge by identifying global success stories and creating an actionable playbook for talent strategy.The initiative launched a pilot with 10 companies and at 13 sites across the globe to identify leading talent innovations.Initial results demonstrate posit
20、ive impact:pilot participants achieved,on average,52%improvement in stability metrics,34%improvement in financial metrics,and 28%improvement in productivity and operational health and safety metrics.Meeting the imperative to keep people at the centre of manufacturing has always been difficult,but du
21、al factors have compounded the challenge:productivity growth has declined to just 1%in advanced economies from 2016-2022,while 71%of US manufacturers struggle with workforce stability.Five root causes drive this instability:talent shortages,widening skill gaps,evolving worker needs,struggling superv
22、isors,andinsufficient rewards,recognition and incentives.Leading organizations are pioneering a fundamentalshift:viewing frontline talent not as a cost,but as aninvestment comparable to capital.Research shows that companies typically spend three times more on talent than capital equipment,but they l
23、ackthe same rigorous investment approach for talent particularly atthefrontlinelevel.Success requires locally tailored strategies and investment in six core capabilities beyond compensation:work design and safety,talent planning,attraction and onboarding,talent development,talent effectiveness,and c
24、ulture andexperience.Research conducted for this paper found that leaders take three critical steps:1)they set aspirational strategies after understanding the problem,2)they invest in talent innovations,and 3)they build the holistic workforce operating model at the corporate and site level to drive
25、and sustain impact.While even leading companies have only begun to tap the full potential of talent innovation,they distinguish themselves by connecting innovations directly tomeasurableimpact.In 2025,the Global Lighthouse Network will deepen its focus on talent by including additional talent-relate
26、d innovations and solutions in its framework.This means sites can apply for a lighthouse award to be recognized for achieving world-class performance with distinction in talent transformation.These organizations will help shape a future where frontline talent development drives sustainable industria
27、l growth.People,rather than technology,remainthetrue heart of industry.Putting Talent at the Centre:An Evolving Imperative for Manufacturing4Understanding the the evolving talent imperativeThe world must adapt to the evolving industrial imperative centred on people.Based on insights gathered from le
28、ading manufacturers and supply chains over the past year,one key takeaway stands out:no matter how advanced digital technologies become,people remain at the heart of all transformation.A new age of intelligent operations has emerged and while it requires new skills,it also creates new opportunities
29、for frontline workers.Meeting these evolving challenges and opportunities for the frontline calls for a new playbook.The understanding of the Fourth Industrial Revolution has been informed by the Global Lighthouse Network,a World Economic Forum Initiative,co-founded in 2018 with McKinsey and Company
30、,and counselled by an advisory board of industry leaders,it began with a focus on individual manufacturing sites that comprised the vanguard for operational excellence and has since expanded to recognize leaders in performance and sustainability impact across the production value chain.Now comprisin
31、g 189 lighthouses,the Global Lighthouse Network has provided increasing evidence that for all the advances technology has made,the human frontline remains essential.A changing frontline reality callsfor a revised playbookFrontline work has changed remarkably.In many ways,todays frontline workers are
32、 technology operators and creative problem solvers.Robotics connected to the internet of things(IoT)now operate where line workers once laboured in repetitive,dull and sometimes dangerous tasks.These advancements have changed frontline labour,but the new skills they demand have made the talent puzzl
33、e even more complex and companies continue to face people-related challenges specifically,maintaining frontline talent productivity growth and stability:A companys frontline productivity growth is the change in the output generated by the system per unit of input(e.g.units per hour),but its also mor
34、e than this.It is the improvement in quality,service,yield,non-labour costs,etc.In other words,all the relevant indicators for the systems performanceenabled by the frontline.A companys frontline stability depends on having people with the right skills and attitudes who consistently show up and stay
35、 with the organization.The ultimate stable workforce is the one that is fully present,fully engaged and remains with the organization.Because of this reality that the future of production remains about people global industry needs a new playbook for talent,and meeting such a tall order requires a po
36、werful collaboration.This is why McKinsey&Company and the World Economic Forum collaborated again in 2023 to charter the Frontline of the Future Initiative,with the aim of identifying frontline talent success stories from across the production value chain.In 2025,the Global Lighthouse Network will d
37、eepen its focus on talent by including additional talent-related achievements and solutions into its framework.This means that starting in 2025,sites can apply to be recognized for achieving world-class performance with distinction in talent transformation.This white paper presents insights from the
38、 Frontline Talent of the Future Initiatives pilot programme.It highlights challenges identified by participating sites and shares the innovative strategies companies have used to address them offering the first chapter of a new frontline talent playbook.While the report draws heavily on US data due
39、to its availability and industrial scope,these insights reflect global trends observed by initiative leaders.To unlock productivity and stability,the world must adapt to meet a changing talentimperative.Todays frontline workers are technology operators and creative problem solvers.5Putting Talent at
40、 the Centre:An Evolving Imperative for Manufacturingof respondents to a recent survey of manufacturing employees,are planning to leave their jobs in the next three tosix months.41%The essential differentiator:impact orientationMuch has already been written about talent in the context of the producti
41、on system.What sets the Frontline Talent of the Future Initiative apart?Its about drawing a direct line toimpact.Unlike other thought leadership efforts focused more generally on talent,this initiative has intentionally tied each innovation directly to a demonstrable productivity or stability outcom
42、e.On average,pilot participants saw a 52%improvement in stability metrics,a 34%improvement in financial metrics,and a 28%improvement in productivity and operational health and safety metrics.Average productivity growth across advanced economiesFIGURE 11997-20022012-20162016-20222.41.52.11.91.10.81.5
43、0.60.61.01.21.20.5Average advanced economiesAdvanced AsiaNorth AmericaWestern Europe2002-2007Great Financial Crisis2008-20111.62.62.2Source:Mischke,J.,C.Bradley,M.Canal,O.White,et al.(2024).Investing in productivity growth.McKinsey Global Institute.https:/ and stability remainelusiveIn most sectors
44、of developed economies today,business can no longer rely on the old tactics of increasing prices and finding new sources of growth as the drivers to increase profit.Rather,productivity is now,in many respects,the only viable path to increased financial performance.Despite this,productivity growth ev
45、erywhere is slowing.Advanced economies saw productivity growth of only 1%between 2016-2022,down from 2.2%between 1997 and 2002,a period driven by the boom of the“dotcom”era.The last 15 years have seen productivity growth decline,largely driven by the global financial crisis but also by other systemi
46、c issues,including ageing populations and decreased workforce participation.Manufacturing is no exceptionThe manufacturing sector,a pillar of most economies,is no exception to the trend.In the US,a similar productivity pattern of accelerated,declining and meagre growth has unfolded.Between 2011 and
47、2019,the decline in productivity growth was even stronger in manufacturing than in the broader economy,with only 0.7%growth.Most recently,from 2020 to date,the manufacturing growth rate has partially recovered to 1.8%,with the latest report at 1.3%in Q2 20241 but it is still lagging the historic rat
48、es,leading business leaders to reevaluate their productivity strategies.Labour stability,critical to improving productivity,presents a growing challenge.An outlook survey by the National Association of Manufacturers(NAM)2found that more than 71%of manufacturers have difficulty attracting and retaini
49、ng employees.One driver is labour market participation,which dropped sharply during the COVID-19 pandemic;meanwhile,job switching spiked neither of these has returned to pre-pandemic norms.Internal McKinsey research3 has found that among respondents to a recent survey of manufacturing employees,41%a
50、re planning to leave their jobs in the next three to six months.Absenteeism and attrition remain major issues forcompanies.Putting Talent at the Centre:An Evolving Imperative for Manufacturing6Attrition,especially among those in the first 90 days of employment,remains stubbornly high,reaching three
51、digits in many sectors.This instability has left many executives grappling with how to operate in the new normal.Unpacking the five drivers of talent instabilityThese challenges have five root causes:talent shortages,widening skill gaps,evolving worker needs,overburdened supervisors,and insufficient
52、 rewards,recognition and incentives.Talent shortagesThe long-term viability of any company depends on sufficient access to skilled and capable talent.Inevitably,the balance between supply and demand for manufacturing talent varies geographically;however,demand greatly outpaces supply in much of the
53、world.The US Bureau of Labor Statistics reported 622,000 unfilled manufacturing job openings nationwide,while the overall labour force participation rate fell from 67%in the 1990s to below 63%in 2023.4Furthermore,skills gaps can make it feel like there arent enough people even if the data show a sur
54、plus in the local market.If the available workers lack requisite capabilities,or if employees jump fromcompany to company looking for a higher wage,companies still face talent shortage and/or instability.Widening skill gapsThe integration of digital technologies in the industry is rapidly changing t
55、he skills required for frontline workers.Companies are struggling to find workers with the requisite skills as they switch from manual assembly to automated and digitized lines.This sentiment was shared by executives participating in the Frontline of the Future Initiative,including one human resourc
56、es(HR)leader who said,“the biggest challenge is the digital requirements of our frontline workers.We need to make sure that more and more workers are knowledge-based workers,not just skilled workers.”This is echoed in the World Economic Forums Future of Jobs Report 2025,which predicted that 39%of wo
57、rkers existing skill sets willbe transformed by 2030.5 Artificial intelligence(AI)and big data are among the most pressing priorities for workforce upskilling in 2024,especially in industries like advanced manufacturing,automotive,aerospace,consumer packaged goods(CPG)and electronics.By 2030,skill g
58、aps in the labour market are expected to be the primary barrier to business transformation,cited by 63%of surveyed employers in the Future of Jobs Report 2025.6 Cognitive and behavioural skills,creativity and agility are also gaining importance to ensure employees can navigate rapid technological an
59、d organizational shifts.Companies focusing on these areas are better positioned to adapt to the evolving industrial landscape and maximize generative AIs(genAI)potential for value creation.Focus areas of upskilling and reskilling by share of companiesFIGURE 2736871716956667672528473888310086Technolo
60、gy skillsAI and big dataCreative thinkingResilience,flexibility and agilityAdvanced manufacturingAutomotive and aerospaceElectronicsProduction of consumer goodsTechnological literacyCognitive skillsSource:World Economic Forum.(2025).Future of Jobs Report 2025.(Based on upskilling reskilling focus 20
61、25-2030).of workers existing skill sets are predicted tobe transformed by 2030.39%Putting Talent at the Centre:An Evolving Imperative for Manufacturing7 Evolving worker needsTodays frontline workers are looking for discernible career path.They respond to inspiring leaders,value meaningful work and s
62、eek more scheduling flexibility.However,many employers do not fully appreciate these changing needs.Research by McKinsey found that when manufacturing employers were asked what they thought were drivers of frontline attrition,they cited work-life balance,flexible schedules and ability to work remote
63、ly.7 In fact,while these issues did matter to employees,they didnt matter as much as employers thought they did.Rather,the top three factors employees cited as reasons for quitting were:1.They didnt feel valued by their organizations(37%cited this as one of their top three reasons).2.They didnt feel
64、 valued by their managers(36%cited this as one of their top three reasons).3.They didnt see potential for advancement(36%cited this as one of their top three reasons).One of the most challenging aspects of developing an effective talent strategy lies in the fact that,for the first time in history,to
65、days frontline workforce comprises five generations with considerable variation in their preferences and priorities.For example,while Gen Z cares about compensation,they care about it much less than older workers do.Meanwhile,they place a higher premium on meaningful work compared to other generatio
66、ns.8 This could include prioritizing working for value-based organizations with purpose-driven cultures.These generational preferences and career-progression shifts mean that organizations have to look at their employee value proposition(EVP)holistically to take decisive action.Factors that are impo
67、rtant to manufacturing employees versus what employers thinkisimportantFIGURE 3EmployeesEmployers0-1-2-2-10+1+2+1+2LessimportantSomewhatimportantMostimportantLessimportantMostimportantSomewhatimportantPoorhealthAccess totechnologyLiving in adesirable location Ability to workautonomouslyHaving caring
68、and trustingteammates Learning newthingsValued byorganizationValued bymanagerPotential foradvancementInadequatecompensationLooking fora better jobSense of belongingInteresting workPoached by another companyWork-lifebalenceFlexible scheduleAbility to work remotelyStarting abusiness SafetyMeaningfulwo
69、rkCare for familyManageableworkloadEmployers seem to overlook the relational elements that are key drivers for why employees are leaving,such as lack of belonging or feeling valued at work.More important to employees than employers appreciate As important to employees as employers think Source:McKin
70、sey&Company.(2024).Talent Trends Survey.Putting Talent at the Centre:An Evolving Imperative for Manufacturing8 Overburdened supervisorsSupervisors are eager to help people develop,but theyre finding that theyre able to dedicate less than a third of their time to people leadership,which includes acti
71、vities related to coaching and employee development.The majority of their time is dedicated instead to individual contributors and administrative efforts.9 Meanwhile,employees cite feeling valued by their manager and having a sense of belonging as two of the most important factors impacting their de
72、cisions to stay at a company.Middle managers,in particular,are struggling,with approximately 40%of them reporting burnout the highest rate of burnout reporting among all job levels.10 This is being reflected among their reporting workers,too:31%of workers say they are reporting to uncaring and unins
73、piring leaders.Where managers spend their time,by percentageFIGURE 4Average share of working time spent in each area,percentage of respondentsNon-managerial workStrategy-focused workTalent and people managementIndividual-contributor workAdministrative work23182831Source:McKinsey Global Survey of mid
74、dle managers,706 middle managers,29 March-8 April 2022.Insufficient rewards,recognition andincentives Wage growth has outpaced inflation.In fact,in 2022 and 2023,it peaked at roughly 8%annualized.In 2024,wage growth has remained around 4%.11 However,additional compensation is not enough to keep fron
75、tline workers in their roles.There are two reasons this is true.Firstly,while wages have grown in production roles,theyve also grown in other sectors,which has incentivized workplace switching and contributed to instability.In cases where wages are below the living wage which remains the case for ma
76、ny frontline positions the incentive to switch iseven stronger.Secondly,as mentioned above,its about more than just wages.Pay matters indeed,McKinsey analysis from October 2024 indicates that 41%of workers feel their compensation is insufficient.12 The dollar amount is transactional,and it is table
77、stakes.Beyond this,non-monetary factors play in,and the performance of frontline workers has to be supported by things that go beyond the transactional:recognition and appreciation.When workers consider leaving a company,a contributing factor is often not feeling valued by their managers or the orga
78、nization as a whole.9Putting Talent at the Centre:An Evolving Imperative for Manufacturing1Companies spend enormously on people,so it might seem counterintuitive to suggest that talent investment is lacking.To be sure,McKinsey research has found that on an annual basis,most companies even in capital
79、-intensive sectors spend about three times as much on talent as they do on capital equipment.1.1 (Re)invigorating your approach totalentinvestmentThe key to talent strategy:viewing the frontline as aninvestmentFrontline labour should be considered an essential investment,rather than just a cost line
80、.Historically,business leaders have viewed the workforce as a cost centre.Recent McKinsey research analysed the top 1%of publicly traded companies in developed markets in terms of labour productivity and total return to shareholders(TRS)and found that companies that create value focuson driving capi
81、tal and labour productivity in tandem.They do this by thinking of labour not as a cost but as an investment,similar to how they think about capital.The Frontline Talent of the Future Initiative has identified a common mindset that underpins all leading organizations:the belief that investing in tale
82、nt allows them to shape their own destiny.These companies create their own future by building a talent strategy with a localized approach,investing to build the workforce they need.This chapter will examine that mindset shift,then explore how companies can make a localized talent investment strategy
83、 based on understanding sites local contexts and provide a snapshot of the potential value gains smart talent investment can offer.10Putting Talent at the Centre:An Evolving Imperative for ManufacturingIndustries direct over 70%of investment towards labourFIGURE 5Average investment mix by industry,2
84、010-2021Labour investment(labour cost)Invested capital(WC+PP&E)Companies have robust capital investment processes,but investments in talent are not rigorously evaluated despite the relative weight in investment factors.HealthcareIndustrialsPharma&medical productsBusiness servicesConsumerTravel,logis
85、tics&infrastructureMaterialsEnergyGlobalIndustryInvestment mix88%83%82%81%77%76%74%48%74%12%17%18%19%23%24%26%26%52%Note:WC=working capital;PP&E=property,plant and equipment.Source:McKinsey Value Intelligence platform,McKinsey analysis.The difference in how they do so is stark.For capital expenditur
86、e(CapEx),theres a rigorous process aimed at ensuring the business case is clearly articulated.Companies have adopted disciplined,analytical thinking around CapEx investment with calculated metrics such as return on invested capital(ROIC).After many reviews and filters,CapEx investment plans are subj
87、ect to the highest level of board approval thresholds.When it comes to talent,there is rarely as much rigour or consideration a stark and telling contrast.For example,there is no generally accepted method for measuring“returns on talent investment.”Moreover,talent investments are largely concentrate
88、d in upper management and knowledge workers,leaving the frontline relatively neglected.This is a provocation that ripples throughout organizations,threatening both productivity and stability.Those who begin embracing the frontline as an investment will see rewards emerge amid the“people dynamics”of
89、their companies.Summary of ways to invest in talentTalent is no longer an enabler to the strategy;when it comes to operational excellence,the strategy is the people strategy.The research shows that in addition to compensation(pay,benefits,equity,etc.),leading organizations make targeted investments
90、across six critical talent capabilities,introduced here and explored closely in the next chapter.Leaders think of these six capabilities as the“what”and then execute against prioritized initiatives through their integrated frontline operating model between operations,HR and finance to define the“how
91、”:Research shows that in addition to compensation,leading organizations make targeted investments acrosssix critical talent capabilities.Six talent capabilitiesBOX 11 Work design and safety:Reimagining frontline work to create safe and productive workspaces and processes2 Talent planning:Understandi
92、ng the frontline skills needed at the organization and site-level;matching demand and supply through dynamic scheduling3 Attraction and onboarding:Finding and activating the next generation of frontline talent4 Talent development:Building distinctive frontline capabilities for operators andsuperviso
93、rs 5 Talent effectiveness:Managing performance for operators and supervisors,driving the right behaviours to achieve performanceaspirations6 Culture and experience:Defining and delivering a compelling employee valueproposition11Putting Talent at the Centre:An Evolving Imperative for ManufacturingIt
94、is not necessary to excel in all six talent capabilities to succeed,but the analysis found that among companies leading on talent,all six capabilities were mature with“spikes”in the areas that made most sense for their context.Indeed,a crucial first step in developing talent investment strategy is u
95、nderstanding the workforce in the context of the site.A company or site seeking to operationalize frontline talent investment should first perform a diagnostic that will inform its direction.This requires taking a holistic look at the labour market(s)where it operates to understand local labour dyna
96、mics.The talent imperatives show that companies cannot standardize their approach to talent in the same way they standardize their machines and production systems across production sites.Previous research published by McKinsey in collaboration with the World Economic Forum13 found that understanding
97、 local labour market conditions is critical to determining an appropriate strategy.The research suggests there are four types of environments.1.2 Understanding your unique workforceUnderstanding local talent market conditions can help leaders make better talentinvestmentsFIGURE 6 Invest in stability
98、Focus on identifying a target talent segment and creating tailored value propositions by selectively investing in aspects that improve loyalty in that segment(e.g.childcare services,language training,corporate housing)and transparent talent development(e.g.individualized career maps,apprenticeship p
99、rogrammes,pay-forward compensation and benefits plans)to attract and retain talent for the long term Invest in distinctivenessFocus on selective investments that balance increasing productivity and creating a best-in-class working environment(e.g.modern facilities,Fourth Industrial Revolution automa
100、tion capabilities,flexible work arrangements,partnerships for technical training programmes)to attract and retain top talent from the growing market Invest in productivityFocus on deploying effcient processes and advanced technologies(e.g.artificial intelligence,automation,robots and cobots,augmente
101、d reality)and developing a workforce with advanced skills and capabilities to get the most out of these advanced production systemsEnd-product manufacturingManufacturing of end products using fabricated or semi-fabricated products Invest in transitionFocus on assessing strategic reasons to operate i
102、n the local context,partnering with institutions to reinvigorate local demand(e.g.governement funding or policy change,development of innovation centers)and preparing the organization for a new generation of talent(e.g.succession planning or aprenticeship programmes)to support the transition of the
103、local manufacturing environmentDeficitProjected labour supply-demandbalanceSurplusProjected labour supply growthIncreasingDecliningKey performance indicator(KPI)improvementsSource:McKinsey&Company.12Putting Talent at the Centre:An Evolving Imperative for ManufacturingTop 15 manufacturing labour econ
104、omies FIGURE 7Projected manufacturing populationgrowth 2023-30,%CAGRHigherLowerDeficitProjectedmanufacturing laboursupply-demandbalence,2030,trajectory case,%above/below2030 labour supplySurplus-2-1012-30102030405010203040ChinaUSSpainMexicoIndonesiaBrazilCanadaIndiaTrkiyeItalyPolandFranceGermanyJapa
105、nSouth KoreaInvest in productivityInvest in transitionInvest in stabilityInvest in distinctivenessAmericasAsia-PacificEurope,Middle East and AfricaSource:McKinsey&Company.Many economies,like the US and China,are facing productivity imperatives,where manufacturing labour shortages combine with a shri
106、nking labour pool to create fierce competition for labour.This compounds the difficulty of attracting skilled talent in sufficient numbers,while raising the risk that vitalskills and knowledge will be lost as experienced employees retire or leave.To mitigate the impact of labour shortages,manufactur
107、ers with sites that face a productivity imperative can prioritize two levers.The first is deploying efficient processes and advanced technologies;the second is developing and retaining a workforce with advanced skills and capabilities to get the most outof advanced production systems.Additionally,si
108、tes can seek to understand their overall employee value proposition(EVP)a comprehensive framework that outlines the unique benefits and experiences offered to employees in exchange for their skills,capabilities and contributions.Understanding how employees viewthe current EVP will allow the site to
109、make target investments.The company or site should also understand its overall performance on critical productivity metrics,including but not limited to labour unit productivity,overall equipment effectiveness(OEE)and yield.Likewise,it should understand how stability factors like absenteeism,turnove
110、r,vacancy rate and time tofill are impacting productivity metrics.Putting Talent at the Centre:An Evolving Imperative for Manufacturing13Questions leaders should ask themselvesBOX 2Do I understand the labour dynamics in the local talent market(s)I operate in?Do I know who my main talent competitors
111、are and how their EVP differs from mine?Do I know my main drivers of attraction and attrition?Do I know what our employees want and how desires differ across generations,job types and locations?Do I know how my maturity level across the six talent capabilities compares to my peers?Do I understand th
112、e value associated with improving specific stability metrics,for example:time to fill,absenteeism and turnover?Additionally,the company or site should garner a comprehensive understanding of its overall maturity in each of the six capabilities mentioned earlier:work design and safety,talent planning
113、,attraction and onboarding,talent development,talent effectiveness and culture and experience.This means knowing where they are ahead of the curve and behind it,but it goes further the site should determine,based on the market and strategy,where to focus its efforts.These puzzle pieces come together
114、 to allow companies and sites to understand the value ofimproving productivity and stability metrics.Fromthere,they can craft a holistic set of initiativesthat enable them to use various levers that can improve talent stability and overall businessperformance.McKinsey research has found that improvi
115、ng productivity and stability could help companies realize significant value.The average earnings before interest,taxes,depreciation and amortization(EBITDA)impact observed was in the range of$17,000-34,000 per active employee.McKinsey found that the investment required to implement these initiative
116、s typically generates a return of three to five times the initial investment within one to twoyears.Improved stability and productivity generate meaningful valueFIGURE 8Average EBITDA impact per medium-skilled workerThousand dollars per active frontline US FTE per year1Total value per FTEStability v
117、alueProductivity value12-175-1717-34Sources of valueCost of covering shiftsRecruiting costsTraining costsProductivity lost during vacancyNew employee ramp-up lossSupervisor productivity lossProductivity lost from low engagmentSkills mismatchOrganization with 60,000 frontlineemployees that can.Decrea
118、se attrition by 5ppIncrease engagment by 12ppCould see over$300 million of capturable annual savings(+0.8pp EBITDA margin)Note:1.FTE=full-time equivalent;pp=percentage points.Assumes average salary of$63K used for US;$40k used for EU(not including overtime or benefits).Turnover of 33%per year.Time t
119、o fill=28 working days,work week=5 days.Contribution per FTE=S&P500 median gross margin per FTE.Source:McKinsey analysis;Society for Human Resources Management(SHRM)estimates of times spent on HR activities(e.g.interviews);BLS.Putting Talent at the Centre:An Evolving Imperative for Manufacturing14Bu
120、ilding the workforce with proven frontline innovations 2The Frontline Talent of the Future Initiative aims to identify talent innovations from the worlds highest-performing sites,with a clear focus on the people doing the frontline work.It seeks to provide answers to the toughest questions around ta
121、lent strategy.This chapter explores how participants in the initiatives pilot programme have done that,telling the stories of the innovations these leading sites have deployed.A talent initiative modelled after the Global Lighthouse NetworkIn keeping with the Global Lighthouse Networks tradition of
122、collaborating with frontrunner organizations,the initiatives pilot programme involved a partnership with nine leading companies known for exceptional people and talent programmes.It aimed to uncover the strategies and investments that have led them to beat the odds and see outsized improvements in p
123、roductivity and stability.Each site shared its motivations for investing in a talent transformation and the talent innovations that enabled performance gains in key metrics.Sites with inspiring talent transformations were selected for visits,allowing adeeper understanding of their innovations.Frontl
124、ine innovators across the globe prove talent innovation can have direct impact on productivity and stability.Pilot participants spanned geographies and industriesFIGURE 9CPGIndustrialsOil and gasSites participated in pilotfrom 10 companies13Sites visited8Number of feedbacksessions companyleaders and
125、 academics80Number of talentinnovations identified61Site locationsSource:World Economic Forum.(2024).Putting people first:a new imperative for manufacturing.https:/www.weforum.org/stories/2024/12/manufacturing-industrial-sites-talent/.15Putting Talent at the Centre:An Evolving Imperative for Manufac
126、turingFrontline Talent of the Future pilot participants demonstrated that there is no silver bullet or one-size-fits-all approach for solving talent.Rather,each site faced unique challenges and overcame them by investing in different innovations and capabilities.Consider the following examples:2.1 I
127、nvestments in capabilities must match local talent strategyWestern Digital in Prachinburi,Thailand faced a significant technology shift in the hard disk drive industry,which necessitated a focus on efficiency as the site resized its operations.While the highly technical nature of the industry made f
128、inding skilled talent difficult to begin with,the sites rural location compounded the challenge.When circumstances required a radical business transformation,including investment in Fourth Industrial Revolution technology,automation and intelligent work re-design,the site was pressed to upskill its
129、workers and maintain a high engagement level.Itpartnered with universities and technical institutes to develop technical skills training,shifting 37%of the workforce to jobs at higher technical levels but it went further to assist workers and maintain engagement.Recognizing the importance of helping
130、 employees expand their skills portfolio,the site took a unique approach by offering classes such as baking,e-commerce,and hair styling.The sites efforts yielded improvements in engagement(14%)and held theattrition rate steady amid difficultcircumstances.CASE STUDY 1Western Digital Prachinburi,Thail
131、andFlex in Althofen,Austria,is known for a high mix of technically complex products that require an extremely skilled and engaged workforce to produce.Already,fierce competition for talent is compounded by its rural location.To address this,the site focused heavily on attraction,engagement and reten
132、tion.This included building a talent pipeline by investing in high school programmes and apprenticeships,increasing the number of apprentices by 20%.They also created a programme to upskill workers from non-traditional manufacturing backgrounds.To increase engagement,the site worked to develop manag
133、ers skill sets while providing clear career development pathways.These efforts led to a 7%increase in the rating of direct managers.CASE STUDY 2Flex Althofen,Austria There is no silver bullet or one-size-fits-all approach for solving talent.Rather,each site faced unique challenges and overcame them
134、by investing in different innovations and capabilities.16Putting Talent at the Centre:An Evolving Imperative for ManufacturingUnilevers Kilbourn,Chicago,USA,saw an opportunity to address evolving workforce preferences and enhance performance.They embarked on a people transformation journey focused o
135、n improving retention,engagement and operational efficiency.The site implemented performance-driven rewards and recognition that created shared goals and an“always-on”Gemba philosophy to enable continuous dialogue.Theyalso addressed a critical aspect of employee feedback by implementing a transparen
136、t and flexible scheduling app.Additionally,improved retention by creating development opportunities with a flexible,dynamic organizational structure.These efforts led to a 48%improvement in absenteeism while OEE increased by 16%.CASE STUDY 3Unilever Kilbourn,Chicago,USA2.3 Innovative talent investme
137、nts across sixcapabilitiesThe initiative revealed that leading companies are investing in talent across the six capabilities mentioned earlier in this paper:work design and safety,talent planning,attraction and onboarding,talent development,talent effectiveness,and culture and experience.When compan
138、ies couple these investments with total employee compensation packages appropriate for their industry and location,they see productivity and stability improvements that greatly outpace their peers.This chapter presents insights gathered from site visits all over the world,offering a detailed look at
139、 proven,innovative solutions with the power to shape the future of frontline talent.2.2 Multinationals must also localize talent strategyLocalizing a talent strategy may feel daunting to multinationals who operate in many countries and regions.In some ways,localization may run contrary to ways of th
140、inking motivated by efficiency of scale.Efficiency goals drive companies to centralize many teams and create global policies.Yet global measures of efficiency may not be what matters most when it comes to solving locally for talent.An essential question emerges,then:what missed opportunities might b
141、e realized with a localized strategy?Localization requires strong local HR and operations teams with thorough knowledge of local markets;moreover,these teams must have the autonomytobe proactive and reactive to local market movements.Unilever embodies localized investment to meet different market im
142、perativesOne of the initiatives pilot participants,Unilever,embodies this approach.The company gives site leaders and local HR the flexibility to implement local solutions that fit their sites unique needs.Unilevers Tianjin,China plant sought a new and sustained approach to attract and retain talent
143、,particularly in a context of rapid business growth and digital transformation.They focused on attraction,onboarding and talent development.Their talent acquisition tool helped increase the number of applicants by 567%while their onboarding booster programme improved new employee retention by 19 per
144、centage points.CASE STUDY 4Unilever Tianjin,China Localization requires strong local HR and operations teams with thorough knowledge of local markets.These teams must be proactive and reactive to local market movements.17Putting Talent at the Centre:An Evolving Imperative for ManufacturingOperating
145、in a highly competitive talent market with high attrition risk,Unilever Kilbourn initiated a process that systematically reviews and revises the plants organizational structure every six months to create roles that align with current business needs and the available talent pool.A focus on developing
146、 opportunities in various roles across all levels of the organization has retained top talent,to the extent that 81%of local management has come from intentionally developed roles.The site has also seen a large improvement in employee retention,with an attrition reduction of 68%,attributed to this n
147、ewfound ability to create development opportunities in a flexible and agile way.CASE STUDY 5Unilever factory implements agile and continuousorganizational restructuring USAA digital control room fundamentally shifted the work of operators away from repetitive manual jobs.The new approach integrates
148、automation,redesigns shopfloor process flow,engages touchless WIP(work in process)control,and incorporates industrial IoT(IIoT)signals and alerts into a command centre.The initiative improved OEE and reduced flow disruptions,boosting labour productivity by 21%;likewise,it reduced equipment failure d
149、iagnostic times from two hours to 10 seconds with over 90%accuracy.Machine learning(ML)/AI-enabled predictive maintenance provides operators and technicians with prescriptive solutions,allowing for faster response time.The command centre has contributed to achieving a 91%engagement score.The system
150、provides both operators and technicians with an upward career path 46%of job roles have been redefined,with 37%shifting upward to involve higher skill levels.CASE STUDY 6Western Digital uses a digital control room totransform operator roles Thailand Reimagining frontline work is crucial to create sa
151、fe,productive workspaces and processes.Leading companies are redefining what it means to work on the frontline.They are linking talent requirements to a future technology roadmap.Job roles and organizational structure are updated regularly to meet evolving needs,with augmentation,automation and outs
152、ourcing deployed appropriately.Technology is used to augment workers,reducing their time spent in manual,repetitive or dangerous tasks;meanwhile,a strong safety programme proactively identifies and mitigates risks.Employees have easy access to tools and resources that support mental and physical wel
153、l-being.Work design and safetyPutting Talent at the Centre:An Evolving Imperative for Manufacturing18Understanding the organization and site-level needs for frontline talent and matching demand and supply through dynamic scheduling are crucial actions.Talent planning in manufacturing focuses on unde
154、rstanding both organizational and site-level needs for frontline talent in the future.The most advanced sites layer skill-mapping(the process of identify the skills required for each role/position and the skills of every available employee)with their talent attraction and employee development plans,
155、using innovative approaches that coordinate analysis and implications with strategic planning,integrating human resources analytics across all talent processes.They prioritize finding ways to address workers desire for flexibility,implementing advanced approaches to labour schedules(e.g.self-schedul
156、ing systems)to respond to changing demands and employee preferences while optimizing productivity.HR collaborates with business leaders to align people strategies with overarching organizational goals.Based on evolving strategies,job roles and responsibilities are regularly updated through ongoing r
157、edesign efforts,such as job audits.Finding and onboarding the next generation of shop-floor talent are crucial steps.Best-in-class organizations are continuously searching for qualified candidates through diverse channels;meanwhile,they maintain a prequalified candidate pool for key positions.They e
158、nsure that screening and hiring processes are fair and involve operational managers,often using automated tools and panel interviews.New hires undergo structured onboarding programmes to integrate into the company culture and develop necessary skills,withsupervisors incentivized to improve performan
159、ce and retention.Regular check-ins(e.g.at intervals of 30,60 and 90 days)are often managed by a partnership between supervisors and HR.Driven by the need to provide increased flexibility for workers,especially new parents,Haier developed a novel“virtual industrial engineering system”that creates cus
160、tomized work instructions by position based on the product,the number of employees available and the available employees skill levels.Using AI algorithms,the system allocates tasks and assigns workers to stations to balance the line.It can generate new work instructions within three seconds,allowing
161、 flexibility to continuously rebalance the line.Operator satisfaction has improved,and the system has significantly reduced the daily workload of industrial engineering(IE)engineers,freeing them from tedious work to focus on higher-value tasks.The system helped Haier achieve anoverall line balance r
162、ate improvement from 65%to85%.CASE STUDY 8Haier COSMOPlats dynamic line balancing affords scheduling flexibility ChinaSchneider Electrics Chennai site used digitized competency management system enables planning for global,regional and site-level competency needs while offering assessment and develo
163、pment tools for workers.Given the broad range 11 technologies in technical competency with 131 sub-technologies,along with nine domains in digital competency covering 25 job codes the tool helps managers identify priorities,set detailed plans,and choose the most critical technologies for current and
164、 future operations.The system also maps employee competencies and provides visibility on skills across sites,facilitating the borrowing of talent when business needs arise.Schneiders“Be Green”metric was implemented to ensure at least two experts in critical competency levels at each site,supporting
165、redundancy and process stability.The company has achieved 100%dual coverage for digital competencies at their sites.CASE STUDY 7Schneider Electrics competency management system enables smart talent planning IndiaTalent planningAttraction and onboardingPutting Talent at the Centre:An Evolving Imperat
166、ive for Manufacturing19Facing challenges in attracting talent to its rural site,Flex expanded its traditional apprenticeship programme,which enables students aged 15 or 16 to enter a four-year programme and specialize in electrical engineering,mechatronics or metal techniques.It blends academic lear
167、ning with professional training.Investments in the programme have allowed Flex to grow the number of apprentices by 20%since 2020 while increasing the participation of women to 25%.CASE STUDY 9Flex offers apprenticeship programme for young talent AustriaUnilever Pouso Alegre,aiming to expand employm
168、ent opportunities to disadvantaged population groups,partnered with the Center of Reference of Social Assistance(CRAS)to solicit job candidates especially women,refugees and underrepresented groups.This intentional hiring effort sought to overcome factors that had presented obstacles to these groups
169、,including requirements for specific job knowledge,minimum education levels,language requirements and minimum prior experience.The companys traditional hiring process took up to three months,precluding people in vulnerable situations who could not wait that long.Unilever designed a pilot programme t
170、hat set aside dedicated job openings and accepted applications in multiple languages.They shortened the hiring process to one month,during which candidates received a cost-of-living stipend while onboarding.A training programme,built in conjunction with a local technical high school,enabled candidat
171、es to learn basic job skills,along with mathematics and Portuguese.The pilot hired 20 people and was so successful that Unilever embedded the process into recurring business.The programme provides access to a wider talent pool,reducing vacancies and improving diversity including increasing the numbe
172、r of Black workers by 50%,the number of female workers by 9%and the promotion rate of Black workers by nearly 40%.Programme participants have alsohad a lower turnover rate than the larger worker population.CASE STUDY 10Unilever develops a hiring programme for disadvantaged socioeconomic backgrounds
173、BrazilPutting Talent at the Centre:An Evolving Imperative for Manufacturing20To streamline the hiring process and optimize talent attraction,Aramco implemented an Al matching selection and forecasting tool.By filtering resums and accurately aligning candidate profiles with the organizations needs ba
174、sed on analysis of large data sets,the tool highlights potential hires with skills anticipated to be in demand.For example,it flagged digital and instrumentation technician candidates with expertise in emerging technologies,ensuring strategic hiring decisions.This refined process has not only enhanc
175、ed the quality of new hires but has also improved operational efficiency.It reduced the overall time to fill by 43%;meanwhile,new hire satisfaction percentage rose by 36%,reaching a 99%satisfaction rate.CASE STUDY 11Aramco uses AI Matching to optimize talent selection Saudi ArabiaBuilding distinctiv
176、e capabilities for operators and supervisors is crucial.Due to rapid innovations in technology,its crucial to have a robust approach to reskilling.Additionally,leading companies make sure to measure the return on investment(ROI)in learning programmes regularly to inform future strategies.They often
177、partner with universities,technical schools and governments to develop strong training methods and programmes.They focus on creating multi-skilled employees and measuring the coverage of critical skills across their sites.When development is combined with skill mapping to identify and document both
178、technical and non-technical skills required for each role,leaders are increasingly finding ways to improve the quality of training and learning outcomes while reducing the total time required.The maintenance team at Unilevers Pouso Alegre site was overwhelmed,focused primarily on reactive basic main
179、tenance.They restructured job responsibilities and created the role of technical operator with an aim of providing autonomy operators by reducing their dependency on maintenance.The operators with a high degree of technical aptitude received three months of training.To provide additional opportuniti
180、es,especially for women,the company partnered with Senai,a technical school,and offered scholarships in automation,mechatronics and mechanics.Scholarship recipients attended nightclasses for one year before becoming technical operators.Unilevers various initiatives have created upward mobility into
181、technical careers indeed,technical operators now represent about 12%of the operators on the floor.The programme has increased OEE by 4%,reduced breakdowns due to basic conditions by 42%and decreased maintenance activities by 35%.It has promoted 10 technical operators.Overall,it has enhanced skills,i
182、mproved efficiency and encouraged a culture of continuous improvement and autonomy.CASE STUDY 12Unilever develops technical operators programme BrazilTalent development21Putting Talent at the Centre:An Evolving Imperative for ManufacturingAramco designed a gamified training programme to improve trai
183、ning while addressing workforce safety and process skills gaps among a sites young workforce.The programme provides an immersive,multi-player,collaborative space offering 60+certified courses covering operational requirements as well as elements of leadership,onboarding,safety and well-being.The inv
184、estment allowed for a 43%reduction in operating expenses(OpEx)by reducing the need for training-related travel and in-person training sessions.The training enables operators and technicians to safely and successfully perform preventive maintenance to essential equipment under rigorous conditions,sim
185、ulating real-life scenarios that cannot be replicated in a classroom environment,and without having to shut down production.The initiative has improved maintenance technician competency,reducing the maintenance backlog by 11%.CASE STUDY 13Aramco implements gamified training Saudi ArabiaFacing challe
186、nges in finding and hiring talent with the right skill set,Western Digital collaborated with a university to develop a multidisciplinary curriculum for its employees.The curriculum was optimized to develop skills for digitized manufacturing,with competencies in areas such as software,database,ML/AI
187、and advanced mathematics.Western Digital co-designed specialized tools such as IIoT sensors and software for frontline upskill/reskill training in conjunction with universities and suppliers,enhancing workforce competency and labour productivity.Participating professors provide onsite training,and p
188、articipating employees can earn academic credit towards a degree.Through this initiative,Western Digital has increased its frontline workers trained in IIoT fundamentals by49%while boosting the number of employees promoted due to upskilling and reskilling by26.8%.CASE STUDY 14Western Digital builds
189、a digital leadership essentials programme ThailandManaging performance for operators and supervisors that drives the right behaviours to achieve performance aspirations.Leaders in talent effectiveness use digital solutions to enable clear visibility of hour-by-hour performance metrics mapped to spec
190、ific goals and engage in performance-oriented huddles.They recognize and reward employees based on performance linked to overall business goals and use automated processes to track time and attendance.Frontline workers receive coaching focused on how they impact organizational success;meanwhile,mana
191、gers are trained to provide effective coaching and feedback.Managers and supervisors spend the majority of their time on the shop floor coaching their teams.Talent effectivenessPutting Talent at the Centre:An Evolving Imperative for Manufacturing22Kilbourn implemented a creative,performance-based re
192、wards system designed to energize the workforce through gamification and a rewards structure built around a monthly point system designed to comply with collective bargaining agreement rules.Employees are rewarded for achieving common site goals,shift goals and individual goals;points can then be re
193、deemed for gift cards.The site has introduced bi-weekly town halls,during which site leadership shares updates regarding factory performance and awards points for best-performing shifts.These gatherings encourage friendly competition and provide a venue for sharing improvement ideas.This has not onl
194、y boosted engagement but also sparked innovation across the factory floor.The results have been transformative.OEE has been boosted by 16%,product waste has decreased by 34%,employee engagement has increased by 26%,revenue per employee increased by 36%and absentee rate has improved by 48%.CASE STUDY
195、 15Unilever Kilbourn implements creative performance-based rewards USAHaier has revolutionized frontline worker payroll with its innovative salary accounting system,replacing an old paper-based payroll model that was time-consuming,error-prone and a source of frequent employee dissatisfaction.The ne
196、w digital solution integrates with the manufacturing execution system to automatically gather data on output and attendance.The system uses facial recognition to identify employees and calculates employee salary based on output,quality and safety,with additional credits for innovations.Employees can
197、 see exactly how their salary was calculated,which increases transparency.The system has helped to increase employee satisfaction by 10 percentage points.CASE STUDY 16Haier COSMOPlat deploys an innovative approach to salary accounting ChinaIts essential to understand and define a compelling EVP.Cult
198、ure and experience leaders use a multichannel approach to ensure robust two-way communication between employees and leaders within a psychologically safe environment that facilitates a culture of openness.They cultivate lively,inclusive communities through activities that promote connectivity and de
199、ep connection.They have structured diversity,equity and inclusion(DE&I)programmes with clear key performance indicators(KPIs)in place to advance diversity(e.g.gender,geographical,racial),equity and inclusion,career development and mentorship.When employees exit,leading organizations deploy surveys t
200、o track reasons for departure,using feedback for talent management improvements.Nestl set out to create a safe and inclusive work environment for deaf and hard-of-hearing employees,both by retrofitting machine alerts that relied on audio signals to include visual elements and by implementing several
201、 measures towards education and integration.Nestl developed a comprehensive training plan,which includes courses in basic Portuguese,mathematics and financial management.To ensure the integration of deaf employees,the company hired a full-time Brazilian Sign Language(BSL)interpreter,offered BSL clas
202、ses to all managers and supervisors,and translated all training and communication intoBSL.The site has trained over 200 employees in BSL,creating a more inclusive environment for the roughly 6%of employees who are deaf or hard of hearing.CASE STUDY 17Nestl Garoto chocolate factory supports deaf and
203、hard-of-hearing employees BrazilCulture and experiencePutting Talent at the Centre:An Evolving Imperative for Manufacturing23Haier has tapped into the creative energy and experiential capital of its own workforce by implementing a dynamic social platform that allows employees to share and upload ide
204、as for innovations and factory improvements.Ideas can earn their originators corresponding creative points that equate to financial rewards.A unique feature of the system is that employees can propose ideas pertaining to areas outside of their department,bringing fresh,cross-departmental perspective
205、s.Moreover,all employees can view ideas on the social platform and can interact with ideas by“liking”them.This networking element has compounded the submission of excellent ideas,with 95%of employees participating in creative proposals.Over 500 ideas were submitted last year,achieving a combined cos
206、t savings of$1 million.Employees can receive approximately 30%of the cost-saving value of an idea once it isimplemented.CASE STUDY 18Haier COSMOPlat implements a social platformfor employee innovation ChinaPutting Talent at the Centre:An Evolving Imperative for Manufacturing243Once an organization u
207、nderstands its workforce at a given site,it can incorporate talent investments into a standard process that mirrors what companies do for capital expenses.Frontline talent takes a local approach,and the initiatives pilot programme showed this clearly.Indeed,most of the innovations viewed in the pilo
208、t(56%)were developed at the site level.Of course,talent investments deserve attention from corporate leaders,and operationalizing talent investments throughout the network likely requires a quarterly review process for talent investments where business cases are presented and prioritized based on im
209、pact.However,its vital for headquarters to create an approval and authority structure that enables sites to manage their investments locally.Ideally,this would include different levels of authority based on the investment to create enough flexibility that entrepreneurial leaders can implement quick
210、fixes without undue red tape.For talent innovation to become ingrained in investment strategy,companies must be able to demonstrate clear benefits,which is why its crucial for companies to measure returns on talent investment.All pilot sites were able to tie productivity and stability impact to thei
211、r talent innovations.Unfortunately,this is the exception rather than the norm measuring impact from talent-related investments like a new training programme is uncommon.Sites should begin by identifying the leading and lagging indicators for each investment,along with estimating the return on the co
212、st of implementation.3.1 Create a structured talent investment processWay forward:Operationalizing frontline talent investment The right processes and teams are required todrive investment in talent.Meeting the evolving people-centered imperative means transforming the mindset around talent and reco
213、gnizing it as an investment rather than a cost line.The natural next question is how to shape and operationalize that investment.Thischapterexplores the way forward:creating a structured process and building a cross-functionalteam.For talent innovation to become ingrained in investment strategy,comp
214、anies must be able to demonstrate clear benefits,which is why its crucial for companies to measure returns on talent investment.25Putting Talent at the Centre:An Evolving Imperative for ManufacturingInvesting in talent requires a dedicated cross-functional leadership team that works to build solutio
215、ns with,not for,the frontline.One of the barriers that emerges amid attempts to implement change is the idea that talent is a concern that belongs to particular domains or to HR only.The reality,however,is that HR,operations,logistics,engineering and other functions all need to come together to driv
216、e talent innovations.Critically,all of the sites visited in the Frontline Talent of the Future Initiative prioritized employee involvement in ideation.Theyve created means and mechanisms to solicit,curate and implement ideas that originate with the workers closest to frontline processes.Theyve used
217、idea collection tools,town halls and/or other meetings that facilitate dialogue,along with events like“hackathons”to bring employees together to solve problems.Doing this requires a cross-function team of HR,operations,logistics,engineering,finance and technology leaders who are dedicated to impleme
218、nting frontline change.A crucial element is robust dialogue with workers to collect feedback during implementation and continuously adjust.Progress on operationalizing talent as an investment is limited so far.Even companies at the vanguard of the quest to transform the talent landscape have only be
219、gun to realize the potential of whats possible.Many of them do not have formal talent investment approval processes or infrastructure.However,they have all begun to turn the theoretical into the empirical by connecting their innovations directly to impact.Any organization seeking to transform should
220、 begin by measuring the results of talent innovations.This means identifying KPIs,measuring quantifiable metrics and digging in to find the evidence of ROI.The initiative has revealed that there is much more to do when it comes to defining how organizations determine the ROI on investing in talent.L
221、ikewise,there is room for progress in how they evaluate trade-offs between various potential investments so as to best suit their operating context.3.2 Building a cross-functional teamPutting Talent at the Centre:An Evolving Imperative for Manufacturing26Conclusion and next stepsThe Frontline Talent
222、 of the Future Initiative has reinforced that the future of production is all about people believing in them,investing in them and supporting their path forward into a redefined worldof work.Its true that the production system is undergoing a radical transformation,fuelled,in many ways,by accelerati
223、ng advances in digital technology.Yet despite these changes and perhaps even because of them this moment calls for a renewed focus on the frontline workers who comprise the beating heart of industry.This renewal is predicated on a fundamental mindset shift from viewing talent as a cost to understand
224、ing talent as a vital investment.Companies that commit to this transformative mindset shift open the door to the kind of talent innovations it will take to attract,engage and retain the frontline workers of today and tomorrow.While the Frontline Talent of the Future Initiatives pilot programme has r
225、evealed important lessons,it is still in its early days,and there is a great deal of work to do.The search is under way for organizations that have developed a truly excellent process for governing frontline talent investment.There remains a great deal of potential to bring more structure to operati
226、onalizing talent investment manifesting in the kind of robust,rigorous processes that so many companies have in place for capital investment.Is your company a frontline talent innovationleader?The Global Lighthouse Network will serve as the initiatives framework for continuing to explore frontline t
227、alent.If you believe you have achieved world-class performance with distinction in talent transformation,consider applying for the cycle that opens in May 2025.More information is available via the Global Lighthouse Network.27Putting Talent at the Centre:An Evolving Imperative for ManufacturingAppen
228、dix:Findings from the Frontline Talent of the Future pilot Talent spotlightsThe authors would like to recognize three of the pilot participants who were selected by an independent expert panel as“talent spotlights”.Their stories,innovations and overall impact were selected as exemplary examples of t
229、alent transformation.Moreinformation on their stories is available on theFrontline Talent of the Future webpage.Haier COSMOPlat Hefei,ChinaTABLE 1SiteChange storyTalent innovationsDescriptionImpactHaier COSMOPlat Hefei,ChinaHaier Hefei faced significant challenges due to the expansion of its product
230、 range into diverse industries like automotive and health equipment.This expansion demanded new talent and added complexity to frontline employee management.Likewise,it increased the need for employee satisfaction.To address these challenges,Haier implemented a series ofinnovative solutions focused
231、on talent development,process optimization and employee experience.Personnel dynamic planning systemCreates customized work instructions based on employee skills and productrequirementsImproves efficiency,reduces operator workload and enhances employeesatisfaction An increase of 25 percentage points
232、 inpersonnel matching degree An increase of 21 percentage points in production line balance rate A decrease of 4 percentage points in standard operating procedure(SOP)Preparation timeThanks are extended to the companies and sites that participated in the Frontline Talent of the Future Initiative Pil
233、ot:Aramco Yanbu,Saudi ArabiaThe Coca-Cola Company Ballina,IrelandFirst Solar Chennai,IndiaFlex Althofen,AustriaFortune Brands Innovations Nogales,MexicoHaier COSMOPlat Hefei,ChinaNestl Vila Velha,BrazilWestern Digital Prachin Buri,ThailandUnilever Kilbourn,Chicago,USAUnilever Pouso Alegre,BrazilUnil
234、ever Poznan,PolandUnilever Tianjin,ChinaSchneider Electric Chennai,IndiaEach company who participated shared their learnings and the impact from implementing talent-focused innovations.The following appendix summarizes the challenges they sought to overcome,their talent innovations and the impact of
235、 each innovation.28Putting Talent at the Centre:An Evolving Imperative for ManufacturingHaier COSMOPlat Hefei,China(continued)TABLE 1SiteChange storyTalent innovationsDescriptionImpactHaier COSMOPlat Hefei,ChinaHaier Hefei faced significant challenges due to the expansion of its product range into d
236、iverse industries like automotive and health equipment.This expansion demanded new talent and added complexity to frontline employee management.Likewise,it increased the need for employee satisfaction.To address these challenges,Haier implemented a series of innovative solutions focused on talent de
237、velopment,process optimization and employee experience.Skill evaluation and developmentEvaluates employee skills across job types and certification levelsCombined with competitions and a digital skill matrix,encourages talent development and improves training effectiveness An increase of 27 percenta
238、ge points in the proportion of high-skilled talents A 30-day decrease in training period A$12,000 decrease in total training costSocial platform forinnovationEncourages employees to share ideas and innovationsFacilitates a culture of innovation and improves operational efficiency A 415%increase inco
239、st savings A decrease of 10 percentage points in time lost due to equipment breakdownFrontline employeesalary accounting systemProvides transparency into salary calculations and enables employees to understand how to improve their performance An increase of 10 percentage points in employee satisfact
240、ion A 28-day decreasein salary accounting cycle A decrease of 3 percentage points in data error rateWestern Digital Prachin Buri,ThailandTABLE 2SiteChange storyTalent innovationsDescriptionImpactWestern Digital Prachin Buri,ThailandWestern Digitals Prachin Buri plant faced significant challenges due
241、 to a technological shift and a shortage of skilled labour.To overcome these challenges,the site embarked on a transformation journey focusing on automation,intelligent work redesign andemployee upskilling.AI-powered operational transformationTransitions operators from repetitive manual tasks to man
242、aging automated processes anddigitaldashboardsIncreases job satisfaction and improves operational efficiency A 108%increase in the ratio of jobs redesigned andimproved A 34%decrease in quality alerts related to man-machine-method A 75%increase in degree of work process automationEmpowering the front
243、line workforceSmart maintenance reducing equipment failure diagnosis time from two hours to 10seconds Predictive maintenance shift from fixed-time schedules to performance-based maintenance,improving efficiency and employee engagement A 110%increase in degree of work analytics intelligence A 99.9%de
244、crease in time to slot failurediagnosisEmpowering remote teamsCombined IIoT,agile practices and remote knowledge-sharing to create a flexible and efficient remote workforce A 100%increase in young talentretention29Putting Talent at the Centre:An Evolving Imperative for ManufacturingWestern Digital P
245、rachin Buri,Thailand(continued)TABLE 2SiteChange storyTalent innovationsDescriptionImpactWestern Digital Prachin Buri,ThailandWestern Digitals Prachin Buri plant faced significant challenges due to a technological shift and a shortage of skilled labour.To overcome these challenges,the site embarked
246、on a transformation journey focusing on automation,intelligent work redesign andemployee upskilling.Developing digitalleadersDevelopment of multidisciplinary curricula for Fourth Industrial Revolution manufacturing through university collaborationsEnhanced workforce competency and labourproductivity
247、 A 200%increase in hours invested in training per employee A 49%increase in frontline workers trained in IIoT fundamentals and technology adoption A 26.8%increase in the number of employees promoted due to upskilling andreskillingBuilding a strong talent pipelineEnhanced talent attraction and onboar
248、ding through partnerships with universities and a focus on sustainability-related projects A 1,033%increase in internship applications A 500%increase innumber of events and engagement activities A 16%decrease intime-to-fill daysUnilever Kilbourn Chicago,USATABLE 3SiteChange storyTalent innovationsDe
249、scriptionImpactUnilever Kilbourn,Chicago,USAUnilevers Chicago site faced significant challenges due to a shift in consumer preferences,evolving workforce preferences and declining performance.To address these challenges,they embarked on a people transformation journey focused on improving culture,em
250、ployee engagement and operational efficiency.Performance-driven rewards and recognitionRewards employees for meeting factory KPIs anddemonstrating desiredbehavioursEncourages a culture of accountability and performance excellence A 48%decrease inabsenteeism A 16%increase inoverall equipment effectiv
251、eness(OEE)A 34%decrease in finished goods business wasteEmpowering employees through flexible schedulingMobile app that enables employees to access and manage their schedules,reducing scheduling errors and improving work-life balance A 100%reduction in grievances related to scheduling errors A 75%de
252、crease in work hours toscheduleAdapting to change:a dynamic organization structureFlexible organizational structure that is continuously evaluated and adjusted to meet the needs of the business A 600%increase in new positions created A 33%increase in top talent retentionCultivating a culture of cont
253、inuous improvement andengagementCulture of continuous improvement that encourages employees to identify and address problems on the shopfloor A 50%decrease insampling waste A 33%decrease in line C start-up loss A 100%decrease ingiveaway waste30Putting Talent at the Centre:An Evolving Imperative for
254、Manufacturing Pilot participantsAramco Yanbu,Saudi ArabiaTABLE 4SiteChange storyTalent innovationsDescriptionImpactAramco Yanbu,Saudi ArabiaAramco,a global energy leader,embarked on a transformative journey to address the challenges associated with the evolving energy landscape.The transformative jo
255、urney focused on attracting and retaining skilled talent,along with enhancing operational efficiency while drivingsustainability.Digital upskilling programmes and citizen developmentImplemented low-code/no-code platforms and targeted training to equip frontline engineers with digital skills Led to i
256、mproved efficiency,reduced costs and increasedinnovation.A 553%increase in value creation and cost optimization initiative benefits An increase of 60 percentage points in use cases developed by employees with no programming background A 34%decrease inenergy costGamified training programmes to enhanc
257、e competency andskillsImmersive,multi-player training experiences to enhance skill development and engagement for young employees,resulting in improved competency,reduced training costs and increased efficiency An improvement of 11 percentage points in backlog in site maintenance queue A 43%reductio
258、n intraining OpEx An improvement of 19 percentage points in training time(physical/virtual ratio)Young Leaders Advisory Board(YLAB)A dedicated board to support talent development andengagementMotivates young employees to share ideas and contribute,leading to increased employee satisfaction,retention
259、 andinnovation An increase of 14 percentage points in young employeesretained A 45%increase in overall Gen Z attraction A 39%increase in overall satisfaction ofGen ZAI matching to optimize talent selectionAI-powered matching tool to streamline the hiring process and improve candidate quality.Identif
260、ies top talent,resulting in faster hiring,improved candidate quality and increased employee satisfaction.A 43%decrease in time to fill A 36%increase in new hire satisfactionMeta brain genAI to enhance productivityGenAI powered tools to empower frontline workers by assisting with complex tasks,leadin
261、g to increased employee productivity,satisfaction andretention An increase of 59 percentage points in employee productivity(timesavings)A 33%increase in employee satisfactionInnovation portal to encourage frontline ingenuityPlatform to submit,discuss and implement innovative ideas Facilitates a cult
262、ure of innovation and recognizes employee ideas,leading to increased innovation,cost savings and employeeengagement An increase of 85 percentage points in the percentage of innovation ideas implemented A 25%increase in ROI of innovative ideas implemented A 71%increase in number of patents graduated
263、fromportal31Putting Talent at the Centre:An Evolving Imperative for Manufacturing Flex Althofen,AustriaTABLE 5SiteChange storyTalent innovationsDescriptionImpactFlex Althofen,AustriaFlex Althofen,a leading manufacturer of medical devices,recognized the need to adapt to an increasingly competitive ma
264、rket and evolving technological landscape.To remain competitive,they embarked on a transformative journey focused on talent development,process optimization anddigitalinnovation.Building a strong talent pipelineYear-round programme training apprentices in various technical and business areasOver 1,0
265、00 graduate apprentices ensuring a pipeline of skilled talent A 20%increase in the number of hiredapprenticesTrainee to technicianA six-month programme to develop employees into highly qualified techniciansEnhances career prospects and strengthens the future workforce A 28%increase in the number oft
266、rainees A total of 82%of candidates who rate the candidate journey positively A 60%decrease inattritionEfficient talent acquisitionCollaborative applicant tracking system streamlining the hiring process,allowing for quicker decision-making and a better candidate experience A 267%decrease intime to f
267、ill A 600%decrease in time to react tocandidates A 40%increase in candidate satisfactionNurturing future business leadersPartnership with a local high school to offer industry-specific training,improving time-to-fill and reducing the need for external training A 30%increase in the number of students
268、 in the industry high school Strategic workforce planningCompetency model promotes continuous development by tracking skills and providing targeted training to meet current and future needs An 11%increase in customer satisfaction Creating a positive and inclusive workplaceSupportive community to dev
269、elop managers and boost employee satisfaction andretentionEncourages knowledge sharing and provides mentoring andcoachingOffers workshops for personal and professional growth and specialized training for new managers to help themsucceed A 7%increase in the rating of directmanagers A 44%increase in w
270、omen in leadershiproles32Putting Talent at the Centre:An Evolving Imperative for ManufacturingFortune Brands Innovations Nogales,MexicoTABLE 6SiteChange storyTalent innovationsDescriptionImpactFortune Brands Innovations Nogales,MexicoFortune Brands Innovations Mexico plant faced challenges related t
271、o culture,talent development and operational efficiency.To address these challenges,they implemented a series of initiatives focused on creating a positive work environment,upskilling employees and improving operational performance.Developing futureleadersProgramme that provides training and develop
272、ment opportunities for employees,including a job board to facilitate career progression and Lean Six Sigma training to improve problem-solving skills An 88%decrease inattritionCultivating a safety-first cultureSafety culture initiative that involves all employees in accident prevention and investiga
273、tion A 100%decrease insafety incidentsAll associates process preparation(3P)Initiative that involves all employees in the development and improvement of processes A 14%increase inOEECreating career pathwaysClear career path for hourly associates,with defined training and expertise requirements for e
274、ach level A 71%increase in internal promotionsNestle Vila Velha,BrazilTABLE 7Site Change storyTalent innovationsDescriptionImpactNestl Vila Velha,BrazilNestls Brazil factory faced the challenge of integrating deaf employees into its workforce.To address this,they implemented a comprehensive approach
275、 focused on inclusive communication,training anddevelopment.Inclusion of deaf and hard-of-hearing employeesNestls Brazil factory,Garoto,has hired a sign language specialist to implement a training programme for hearing employees to learn sign language.Additionally,they have developed a comprehensive
276、 training curriculum for deaf employees that includes courses in basic Portuguese,mathematics and financial management.234 people trained in Brazilian sign language 0 voluntary attrition among deaf employees 16 percentage point increase in successful performance evaluationsChocolates UniversityThe p
277、rogramme trains employees annually in chocolate technology,ensuring the retention of technical expertise within theiroperations while supporting employees professional development.A total of 306 students trained including,five being deaf and hard-of-hearing students A 34%increase in certified studen
278、ts A250%increase in certified deafstudentsQualityChampion GarotoThe programme encourages employees to participate in food safety and quality excellence initiatives throughout the factory.Launched in 2023 with certification of four deaf employees A total of 81 projects implemented bystudentsGender ba
279、lance initiativeTargeted initiatives and programmes,such as the“Empowered”initiative,prepare women for leadership roles and create equal opportunities for employees of all genders.A 26.4%increase in gender neutral workstations A 36.5%increase in women in leadershiproles33Putting Talent at the Centre
280、:An Evolving Imperative for ManufacturingSchneider Electric Chennai,IndiaTABLE 8Site Change storyTalent innovationsDescriptionImpactSchneider Electric Chennai,IndiaSchneider Electrics Chennai plant faced challenges in attracting and retaining talent,particularly in specialized roles like methods,mai
281、ntenance and automation.To overcome these challenges,they implemented a comprehensive talent strategy focused on upskilling,reskilling and employee engagement.Empowering talent development with data-driven insightsA digital platform that assesses and develops employees based on standardized processe
282、s and future skill requirements A 30%increase in technical competencies A 41%increase in digital competencies A 30%decrease in cost of poor qualityDeveloping future leaders from the frontlineA programme to identify and develop frontline operators for white-collar rolesAddresses talent scarcity and b
283、oosts internal mobility A 38%increase in employees who moved to white-collar roles An 8%decrease inattritionCultivating a culture of internal mobility and growthA platform that connects employees with open positions across the company,facilitating internal mobility and career development A 220%incre
284、ase inexported talent A 20%increase inimported talentAccelerating technical careersA programme that enables employees to pursue specialized technical careersInvolves a rigorous assessment process and focuses on developing talent with high potential to generate globalimpact 56%less attrition among te
285、chnical experts compared with rest of populationDriving innovation and engagement through digital platformsProgramme that encourages employees to participate in continuous improvement initiatives through the“Idea+See I Do”schemePromotes a culture of innovation and empowers employees to contribute to
286、 thecompanys success A 16%increase incost savings A 2.6%decrease in velocity of feedbackUnilever Tianjin,ChinaTABLE 9Site Change storyTalent innovationsDescriptionImpactUnilever Tianjin,ChinaUnilevers Tianjin plant faced challenges in attracting and retaining talent,particularly in a context of rapi
287、d business growth and digital transformation.To address this,they implemented a series of innovative talent solutions focused on career development,employee engagement and digital transformation.Future-fit career journeyA comprehensive career development plan that includes leadership development,cro
288、ss-functional upskilling and well-being initiatives A 12%increase in employee satisfaction survey score An increase of 26 percentage points in employees promoted through programmesAI-powered talent acquisitionA digital recruitment platform thatuses AI to streamline the hiring process and improve can
289、didate experience A 567%increase in candidate attraction for annual recruitment plan34Putting Talent at the Centre:An Evolving Imperative for ManufacturingUnilever Tianjin,China(continued)TABLE 9Site Change storyTalent innovationsDescriptionImpactUnilever Tianjin,ChinaUnilevers Tianjin plant faced c
290、hallenges in attracting and retaining talent,particularly in a context of rapid business growth and digital transformation.To address this,they implemented a series of innovative talent solutions focused on career development,employee engagement and digital transformation.Dynamic digital capability
291、enhancementA comprehensive training system that uses digital tools to enhance employee skills in data analysis,visualization and interpretation A 100%increase in training hours per FTE per year An increase of 35 percentage points in certified digital engineersTailor-made new hire onboarding boosterI
292、nitiative aimed to improve the new employee onboarding experience by addressing orientation insufficiencies and plain onboarding experiencesConsisting of three projects:“Doraemon Buddy-up”,“Line Manager Bible”and “All-in-One Toolkit”An increase of 19 percentage points in new employee retention rate
293、within one year A 7%increase in satisfaction survey score for line managersIndustry-wide talent acceleration ecosystemA global talent ecosystem that facilitates internal mobility and career development across the organization An increase of 48 percentage points in vacancy fulfilment from internal pi
294、peline A 100%increase in new employee satisfaction survey score for onboarding programmeUnilever Pouso Alegre,BrazilTABLE 10Site Change storyTalent innovationsDescriptionImpactUnilever Pouso Alegre,BrazilUnilevers Brazil plant faced challenges in attracting and retaining talent,especially in a compe
295、titive market with evolving consumer needs.To address these challenges,they implemented a series of innovative talent solutions focused on employee development,engagement,and diversity and inclusion.Developing future leadersA programme to develop senior operators into team leaders,focusing on soft a
296、nd hard skillsAims to increase autonomy and reduce the workload of the leadership team.A reduction of 20 percentage points in operational tasks previously handled byleaders All team leaders received trainingElevating team performanceA programme to improve team performance by focusing on discipline,p
297、rioritization and timemanagementBased on Stephen Coveys book,The 7 Habits of Highly Effective People,aiming to enhance decision-making,communication and teamwork An increase of 3 percentage points in employee engagement surveyEnhancing technical expertiseA programme to train technical operators in t
298、hree key areas:technical development,operational procedures and cybersecurityAims to improve operational efficiency and reduce reliance on maintenance teams A reduction of 35 percentage points in transfer activity from maintenance to technical operators35Putting Talent at the Centre:An Evolving Impe
299、rative for ManufacturingUnilever Pouso Alegre,Brazil(continued)TABLE 10Site Change storyTalent innovationsDescriptionImpactUnilever Pouso Alegre,BrazilUnilevers Brazil plant faced challenges in attracting and retaining talent,especially in a competitive market with evolving consumer needs.To address
300、 these challenges,they implemented a series of innovative talent solutions focused on employee development,engagement,and diversity and inclusion.Black Panther:promoting diversity and inclusionA programme to promote diversity and inclusion by hiring people from vulnerable groups,involving a complete
301、 overhaul of hiring processes to ensure true inclusion An increase of 33 percentage points in hiring of underrepresented groups An increase of 25 percentage points in hiring retention An increase of 15 percentage points in internal promotion rateHealthier U:promoting employee well-beingA programme t
302、o promote healthy habits and raise awareness about chronic diseases and risk factorsSupports nutrition and promotes physical and mental well-being A 44%increase in the percentage of people beingactiveDestaques programme:recognizing and rewarding excellenceA transformative initiative that recognizes
303、and rewards employees who excel in leadingprojectsPromotes a culture of innovation and continuous improvement A160%increase in project savingsUnilever Ponznan,PolandTABLE 11Site Change storyTalent innovationsDescriptionImpactUnilever Poznan,PolandUnilever Poznan in Poland faced challenges in attract
304、ing and retaining top talent,especially in a competitive market with evolving consumer needs.To address these challenges,they implemented a series of innovative talent solutions focused on employee development,engagement,and diversity and inclusion.Empowering through internal expertiseApplies intern
305、al expertise to design and deliver training programmesFacilitates a culture of knowledge sharing and empowers employees to develop their skills A 7%decrease in attrition An increase of 15 percentage points in career development rate of shop floorworkers An increase of 25 percentage points in career
306、development rate of office workersData-driven decision-makingEngages Microsoft Power BI to create data-driven insights and optimize work processesImproves operational efficiency and employee satisfaction A 14%increase in OEE A 36%decrease in waste per ton of produced product A 15%decrease in energy
307、use permillion pieces36Putting Talent at the Centre:An Evolving Imperative for ManufacturingUnilever Ponznan,Poland(continued)TABLE 11Site Change storyTalent innovationsDescriptionImpactUnilever Poznan,PolandUnilever Poznan in Poland faced challenges in attracting and retaining top talent,especially
308、 in a competitive market with evolving consumer needs.To address these challenges,they implemented a series of innovative talent solutions focused on employee development,engagement,and diversity and inclusion.Harnessing AI to optimize workflowsUses automated solutions to free up employees time for
309、higher-value tasks and equip them withfuture-ready skills through AIsolutions A 56%reduction in cleaning-in-place(CIP)operation time onfocusarea A 29%decrease in water usage per CIP cycle onfocus area A reduction of 5 percentage points in unplanned downtimeTalent transformation:single to multi-skill
310、edFocuses on developing a multi-skilled workforce by providing multiple career paths and training opportunities for employees An increase of 22 percentage points in the ratio of multi-skilled operators An increase of 43 percentage points in the ratio of multi-skilled technicians37Putting Talent at t
311、he Centre:An Evolving Imperative for ManufacturingContributorsAcknowledgementsSydney Alabaster Engagement Manager,McKinsey&Company Project Fellow,the Global Lighthouse NetworkThomas Bohne Founder and Head,Cyber-Human Lab,University ofCambridgeHenry Bristol Associate,KKR Capstone,USA Cameron Carr Chi
312、ef Strategy Officer,FlexChen Lucheng Chairman and General Manager,COSMOPlatLaure Collin Senior Vice-President,Human Resources,GlobalSupply Chain,Schneider ElectricPaul Cumbo Founder and Owner,PJC EditorialMemia Fendri Content Curation and Operational Excellence Lead,Advanced Manufacturing and Supply
313、 Chains,World Economic ForumJennifer Han Chief Product Supply Chain Officer,Foods,UnileverFaisal Haroon Head,Manufacturing Management,NestlJackie Jung Vice-President,Global Operations Strategy andCorporate Sustainability,Western DigitalZongchang Liu Chief Data Officer,Foxconn Industrial Internet Jor
314、ge Rascon Vice-President,Operations,Security&Emtek,Fortune Brands InnovationsBenjamin Schnfu Initiative and Community Lead,World Economic ForumSatchie Snellings Specialist,Programming and Communications,World Economic ForumBart Talloen Executive Fellow,World Economic ForumFederico Torti Initiatives
315、Lead,Advanced Manufacturing andSupply ChainsFrancesca Zanolla Lead,Strategic Integration,Artificial Intelligence,World Economic ForumWe are grateful to our colleagues at McKinsey&Company who provided research and thought partnership,including:Tim Bacon,Enno de Boer,Yueyang Chen,Keyshawn Felton,Will
316、Godwin,Ezra Greenberg,Eric Leon,Randy Lim,Nick Lopez,Robert Malongo,Marino Mugayar-Baldocchi,NickRyniak,Rahul Shahani and Amira Tobasi.We would also like to thank the companies that participated in the Frontline Talent of the Future Initiative pilot:Aramco,The Coca-Cola Company,First Solar,Flex,Fort
317、une Brands Innovations,Haier COSMOPlat,Nestl,Schneider Electric,Unilever and Western Digital.ProductionLaurence Denmark Creative Director,Studio MikoWill Liley Editor,Studio MikoCat Slaymaker Designer,Studio MikoTyler Freeman Associate Partner,Co-Lead,Frontline Workforce ofthe Future Service Line,Mc
318、Kinsey&CompanyDylan Lambert Associate,McKinsey&Company;Project Fellow,Centre for Advanced Manufacturing and Supply Chains,World Economic ForumBrittany Means Associate,McKinsey&Company;Project Fellow,Centre for Advanced Manufacturing and Supply Chains,World Economic ForumLead authorsPutting Talent at
319、 the Centre:An Evolving Imperative for Manufacturing38Endnotes1.Bureau of Labor Statistics.(2024,1 August).Productivity and Cost,Second Quarter 2024 Press release.https:/www.bls.gov/news.release/archives/prod2_08012024.pdf.2.Moutray,C.and M.F.Holland.(2024,8 January).NAM manufacturers outlook survey
320、:Fourth quarter 2023.National Association of Manufacturers.https:/nam.org/wp-content/uploads/2024/01/Outlook-Survey-December-2023-Q4.pdf.3.McKinsey talent trends US survey,October 2024.4.Perez,F.,J.Salguero,D.Lambert,H.Bristol,et al.(2024).Is your frontline workforce strategy right for where you are
321、?McKinsey&Company.https:/ Economic Forum.(2025).Future of Jobs Report 2025.6.Ibid.7.De Smet,A.,B.Dowling,M.Mugayar-Baldocchi and B.Schaninger.(2021).Great Attrition or Great Attraction?The choice is yours.McKinsey Quarterly.https:/ and J.Salguero.(2024).From hire to inspire:Gettingand keepingGen Z i
322、n manufacturing.McKinsey&Company.https:/ and B.Schaninger.(2023).Stop wasting your most precious resource:Middle managers.McKinsey&Company.https:/ Smet,A.,B.Dowling,M.Mugayar-Baldocchi and B.Schaninger.(2021).Great Attrition or Great Attraction?The choice is yours.McKinsey&Company.https:/ of Labor S
323、tatistics.(2024,1 August).Productivity and Cost,Second Quarter 2024 Press release.https:/www.bls.gov/news.release/archives/prod2_08012024.pdf.12.McKinsey talent trends US survey,October 2024.13.Perez,F.,J.Salguero,D.Lambert,H.Bristol,et al.(2024).Is your frontline workforce strategy right for where
324、you are?McKinsey&Company.https:/ Talent at the Centre:An Evolving Imperative for Manufacturing39World Economic Forum9193 route de la CapiteCH-1223 Cologny/GenevaSwitzerland Tel.:+41(0)22 869 1212Fax:+41(0)22 786 2744contactweforum.orgwww.weforum.orgThe World Economic Forum,committed to improving the state of the world,is the International Organization for Public-Private Cooperation.The Forum engages the foremost political,business and other leaders of society to shape global,regional and industry agendas.