Frontline Talent of the Future Initiative 2024

4Why Talent Manufacturing is struggling with frontline productivity and stability driven by 5 root cause Sources: McKinsey analysis, McKinsey Talent Trends, McKinsey https://www.mckinsey.com/mgi/our - research/investing -in-productivity -growth , NAM Manufacturers Outlook Survey 2024 Q1 – NAM , Demand for frontline workers is outpacing supply and there is increased competition for talentTalent shortages1 Technical skills are lagging behind the pace of investment in digital & automation.Widening skill gaps2 Earnings below living wage1 are leading to attrition and workplace switching. Insufficient wages3 Supervisors often lack soft skills and are spending less than 1/3 of their time on people.Struggling supervisors4 Today’s frontline want a discernible career path, respond to inspiring leaders, value meaningful work, and seek more scheduling flexibility.Evolving worker needs5More than 71% of manufacturers cited the inability to attract and retain employees as their top primary challenge.37% of manufacturing employees from a recent survey are planning to leave their jobs in the next 3 -6 monthsProductivity growth is slowing, in developed economies it averaged 1% percent between 2016 -2022 compared to 2.2% between 1997 - 2002What the data tell us Only 5% of respondents in a recent McKinsey survey said their organizations have the capabilities needed to succeeded