Shift your labor strategy to attract and engage top talent
SPONSORED BY KRONOS INC.
Introductions
John FrehseManaging Partner
Terry KettererManager, Value Consulting
Why is this important?
56% skills of the current workforce do not match changes in company strategy
The struggle for top talent continues
45% when hiring for certain jobs, there are too few qualified candidates
43% lack of skilled talent in one or more of the company’s business lines
Source: Bridging the Skills Gap, Association for Talent Development, 2015
GROWING SKILLS GAP
“We have turned down or not even pursued certain projects because we do not have the qualified people to lead the projects.”
Top Executives are saying…
Manufacturing is failing to attract young skilled workers, like millennials
FUTURE OF WORK?
80% of manufacturing jobs are currentlyemployed by workers between the ages of45–65 years
Source: Skills Gap Study, Deloitte & Manufacturing Institute, 2014 | MFGDay.com
Training – I want to improveMeaningful Work – I want to make a differencePurpose – I want to feel valuedSocial Responsibility – I want to do ethical work
What they want?
And. I can do it now.
Marital Status in 2014MILLENNIALS’ PERSONAL CHOICES IMPACT CAREER GOALS
Millennial (ages 18-33)
Gen X (ages 34-49)
Boomers (ages 50-68)
Silents (ages 69-84)
Married
Separated / Divorced
Widowed
Never Married
28 4 68
19
10
41260
66
65 16
19
1
5
25% of 18 to 34 year-olds
living arrangement
32%living in
parent(s)’ home
Source: Pew Research Survey, Feb. 14-23, 2014
Millennials feel no need to rush into a jobMILLENNIALS UPBEAT ABOUT THEIR FINANCIAL FUTURE
So, how do you recruit and attract them?
Millennial
Gen X
Boomer
Silent
Earn/have enough now
Don’t earn/have enough now, will in future
Don’t earn/have enough now, won’t in future
Source: Pew Research Survey, Feb. 14-23, 2014
32 53 14
30
38
40254
45
38 30
15
Focus on what matters most
A Harvard Business Review study
found that organizations with
highly engaged employees
experience 22% greater productivity
Source: Harvard Business Review Study, July 2013
32.9%
40.4%
11.4%
5.0%6.8%
3.6%
40.3%
33.5%
11.2%
5.8%4.1% 5.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Very satisfied Moderatelysatisfied
Slightlysatisfied
Slightlydissatisfied
Moderatelydissatisfied
Verydissatisfied
Perc
enta
ge o
f Res
pond
ents
Client Normative Database
Job satisfactionIT’S NOT ALWAYS ABOUT THE MONEY
Trust and integrity
Visibility
Nature of the job
Career growth opportunities
Pride in company
Team members
Manager relationship
Source: Core Practice
63.4%55.8%
54.7% 54.4%
78.4%
58.6%52.4%
46.7% 45.6% 47.4%52.1%
60.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Enough time off Quality time off Fits in with yourfamily/social life
Flexible schedule Predictableschedule
Effective training
Perc
enta
ge o
f Res
pond
ents
Client Normative Database
How employees feel about work/life balance
Source: Core Practice
Employee engagement is more and more about visibility, flexibility, and a sense of control
Shift your labor strategy
This is supposed to get them excited?
Work Days 260Days Off 104Weekends Off (Full) 52Longest Break 2 days (52x)Max. Number of Shifts in a Row 5
120-40, Balanced, 1 X 3 Crew, 8-Hour, Fixed, Fixed, Every Weekend Off
Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals
1 8 8 8 8 8 - - 40Avg. 40
What if you tried this?
Work Days 173Days Off 191Weekends Off (Full) 52Longest Break 6 days (17x)Max. Number of Shifts in a Row 3
120-40, Balanced, 3 X 2-Crew, 12-Hour, Fixed, Rotating, Long Weekend
Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals
1 12 12 12 - - - - 362 - - 12 12 12 - - 363 12 12 - 12 12 - - 48
Avg. 40
8 hour shifts - 7 day coverage - awful!
168-42, Balanced, 4 X 3-Crew, 8-Hour, Fixed, Rotating Model
Work Days 273Days Off 91Weekends Off (Full) 13Longest Break 3 days (13x)Max. Number of Shifts in a Row 7
Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals
1 - 8 8 8 8 8 8 482 8 - - 8 8 8 8 403 8 8 8 - - 8 8 404 8 8 8 8 8 - - 40
Avg. 42
7 day coverage with 12 hour shifts – an improvement?
Work Days 182Days Off 182Weekends Off (Full) 26Longest Break 3 days (26x)Max. Number of Shifts in a Row 3
168-42, Balanced, 2 X 2 Crew, 12-Hour, Fixed, Rotating, Every Other Weekend Off
Crew/Week Sun Mon Tue Wed Thu Fri Sat Totals
1 - 12 12 - - 12 12 484 12 - - 12 12 - - 36
Avg. 42
168-42, Balanced, 4 X 2-Crew, 12-Hour, Fixed, Rotating SLB
Work Days 182Days Off 182Weekends Off (Full) 26Longest Break 7 days (13x)Max. Number of Shifts in a Row 4
Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals
1 12 12 12 12 - - - 482 - - - - 12 12 12 363 12 - - - 12 12 12 484 - 12 12 12 - - - 36
Avg. 42
7 day coverage with 12 hour shifts – night shift?
Source: Kronos Analytics product
The management team is staffing higher on Fridays in anticipation of absenteeism.
Source: Kronos Analytics product
Time off on Friday is on par or lower than other days. The plant is not experiencing a typical bathtub curve evident in many facilities.
• Serious idle time problem • Isolated Friday overstaffing
issues - costing $1,100,000 annually in idle time costs
• Employee morale on Fridays is down because employees have less chance to feel valued and achieve goals
• Kronos Core Practice Plug-In gave management visibility into labor statistics in a timely manner to make more informed decisions
• Reduced Friday overstaffing• Gave employees the right
ratio of work to employee allocated hours
• Although some idle time remained due to variable demand, the management team was able to reduce idle time by $924,000 annually
• An 84% reduction • Employees noted, “The days
went by faster”
SEE IT IN ACTIONShifting Your Labor Strategies
Diagnosis Solution Results
WORKFORCE MANAGEMENT DRIVES ENGAGEMENT
More control over work / life issues
Automation
Employee self-service
Shift bidding
Union compliance
Equitable schedules
Increase in year-over-year workforce capacity utilization by businesses
with leading scheduling capabilities 30%
Source: Aberdeen Group, Workforce Optimizations, Managing the Quality, Cost and Speed Paradox
Workforce Management gets you there
ENGAGE YOUR ENTIRE WORKFORCE
Too often, hourly workers are not engaged. And, for most, they are the bulk of your workforce.
is 37% worse for organizations with disengaged workers compared to engaged
And, employee engagement impacts more than you might think
ABSENTEESIM
[SAFETY INCIDENTS]are 48%
HIGHER
Brian S. Lassiter, Workers Are Mad As Hell: 14 Ways to Increase Employee Engagement, Performance Excellence Network (June 25, 2013), found at http://www.performanceexcellencenetwork.org/pensights/workers-are-mad-as-hell-14-ways-toincrease-employee-engagement/.
Think about how employee engagement can impact OEE
Source: Harvard Business Review Study, July 2013Source: www.oee.com
MOST EQUIPMENT IS UNDERUTILIZED
Typical Manufacturer OEE = 60%
World Class ManufacturerOEE = 85%
more productive Organizations with engaged employees are
REMEMBER
22%
Setup & AdjustmentsBreakdowns
Reduced SpeedSmall Stops
Production RejectsStartup Rejects
most common causes of equipment-based productivity loss
Impacted by engagementtypically the result of human interaction
Employee engagement is a
financial strategy for the future
$$
SKILLED TALENT
VISIBILITY
FLEXIBLE SHIFTS
LOYALTY MILLENNIALS
GROWTH
PRODUCTION
INNOVATION
Questions?
John FrehseManaging Partner
Terry KettererManager, Value Consulting