Putting Talent at the Centre An Evolving Imperative for Manufacturing 2025

Evolving worker needs Today’s frontline workers are looking for discernible career path. They respond to inspiring leaders, value meaningful work and seek 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 remotely.7 In fact, while these issues did matter to employees, they didn’t matter as much as employers thought they did. Rather, the top three factors employees cited as reasons for quitting were: 1. They didn’t feel valued by their organizations (37% cited this as one of their top three reasons). 2. They didn’t feel valued by their managers (36% cited this as one of their top three reasons).3. They didn’t 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, today’s 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 generations.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 important to manufacturing employees versus what employers think is importantFIGURE 3 Top/bottom margin area 8mmEmployees Employers0 -1 -2 -2 -1 0 +1 +2+1+2 Less importantSomewhat importantMost important Less importantMost importantSomewhat importantPoor health Access to technologyLiving in a desirable location Ability to work autonomouslyHaving caring and trusting teammates Learning new thingsValued by organization Valued by managerPotential for advancement Inadequate compensationLooking for a better job Sense of belonging Interesting workPoached by another companyWork-life balence Flexible schedule Ability to work remotely Starting a business Safety Meaningful workCare for familyManageable workloadEmployers 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: McKinsey & Company. (2024). Talent Trends Survey. Putting Talent at the Centre: An Evolving Imperative for Manufacturing 8