Fluctuations are part of any economic territory, however, they pose significant challenges to the transport and manufacturing sector.
According to a joint research project from Crowe LLP and Forbes, 55% of manufacturing companies report they are currently dealing with major volatility within their organisations . When it comes to dealing with unstable environments, strategic workforce management is a key tool, not just for growth but for survival.
In this article, we’ll explore how logistics and manufacturing companies can harness innovative workforce strategies to adapt and thrive when faced with profound economic uncertainties.
Implementing flexible staffing models
Flexible staffing is a great place to begin. Implementing part-time, temporary, or contract workers allows organisations to respond quickly to fluctuations in demand without incurring the long-term costs and commitments associated with full-time employment. This approach lets companies scale their workforce up or down as needed, optimising resource allocation and reducing operational costs.
Outsourcing logistics services or specific areas of manufacturing also offers additional scalability and cost-effectiveness. Partnering with third-party service providers, for example, allows logistics companies to gain access to specialised expertise and infrastructure without bearing the burden of maintaining in-house operations. Such strategic outsourcing lets companies concentrate on their core competencies while using external resources to help boost efficiency and flexibility.
The advantages of these flexible staffing models extend beyond mere cost savings. They also enable companies to manage uncertain economic conditions with agility. For instance, during economic downturns, companies can quickly adjust their resourcing levels to align with reduced demand without resorting to layoffs or sunk costs due to underutilised drivers and fleet.
Similarly, during periods of rapid growth or seasonal peaks, organisations can augment their workforce with temporary or contract workers to meet increased demand without over-committing resources. In this respect, implementing flexible staffing models is not just a short-term strategy but a long-term investment in organisational resilience and adaptability.
Upskilling and reskilling initiatives
Training programs play a central role in keeping a workforce adaptable and proficient in the face of shifting industry dynamics. Given the rapidly changing technological landscape, the need for upskilling and reskilling initiatives is more important than ever.
The National Retraining Scheme (NRS) highlights the importance of upskilling and reskilling initiatives in preparing the workforce for the future economy. The NRS aims to address structural changes in the labour market, such as the implementation of AI and automation. Along with this, it highlights the growing need for lifelong learning and training as people stay in the workforce longer and change careers more often.
In the coming years, technological change in manufacturing and logistics is only set to become more profound. With the UK government having recently passed the Automated Vehicle Act, for example, it looks to be on the horizon that driverless vehicles will fill the roads of the UK supply chain. And where will that leave your haulage company’s drivers?
As for the manufacturing sector, the NRS reveals that…
- 31% of manufacturers expect some low-skilled jobs to be displaced in the next five years due to technological development.
- 22% anticipate some mid-skilled roles will be displaced.
- 12% foresee that even higher-skilled roles may be displaced.
And 54% of logistics businesses expect to see skills shortage by 2024
It’s an issue that covers all skill levels in all industries to some degree or another – and reskilling is the answer.
Securing the future
According to a McKinsey study, effective reskilling tends to bring a productivity uplift of 6 to 12 percent, underlining the tangible benefits of investing in such programs. McKinsey’s research also suggests that nearly every worker in the UK needs some form of reskilling, with about 94 percent of today’s workforce lacking the full suite of skills they’ll need in order to perform their jobs well over the coming years.
By aligning training programs with emerging skill demands and industry trends, companies can keep their employees agile, adaptable, and capable of meeting any evolving job requirements. McKinsey’s analysis also indicates that about 75 percent of reskilling cases make sound economic sense for UK manufacturers, highlighting the positive financial returns associated with these kinds of initiatives.
Further to specific productivity boosts, upskilling and reskilling programs contribute to organisational agility by nurturing a culture of continuous learning and innovation. Employees who are equipped with the latest skills and knowledge are better positioned to drive process improvements, identify opportunities for innovation and contribute to their company’s overall competitiveness.
Promoting cross-functional training
Cross-functional training equips employees with a diverse skill set, enabling them to pivot seamlessly between roles as business needs change. This versatility improves operational efficiency while reducing the need for layoffs during economic downturns, as employees can be redeployed to areas where their skills are most needed.
McKinsey’s research highlights the importance of cross-functional training in optimising resource allocation and maximising employee potential. With manufacturers and logistics companies providing employees with opportunities to develop skills beyond their primary roles, they create a pool of talent capable of addressing a wide range of challenges and opportunities.
Much like upskilling, cross-functional training contributes to a culture of continuous learning and skill diversification within organisations. Employees who are encouraged to expand their skill sets are more engaged, motivated, and adaptable to change, improving employee retention and strengthening their company’s ability to innovate.
Building a resilient organisational culture
With the turmoil that technological and economic shifts can bring, change management principles play a fundamental role in creating resilient organisations. These principles provide a structured approach that helps companies deal with the often profound impact change can have on an organisation and its employees.
The 4 key principles of change management are as follows:
- Understanding
To implement effective change, it’s important to grasp all aspects of the change, including what it entails, how it will be implemented, and, perhaps most importantly, why it’s necessary in the first place.
- Planning
This involves securing high-level sponsorship for the change project and identifying opportunities for broader involvement from stakeholders.
- Implementing
During implementation, everyone involved must understand their roles and responsibilities. This may involve addressing training needs, appointing ‘change agents’, providing organisational support and setting clear success criteria.
- Communicating
Effective communication helps everyone involved understand the reasons behind the change, feel positive about it, and know how to contribute to its success.
Central to all of this, of course, is leadership. Effective leaders inspire and motivate employees, guiding them through periods of change with clarity and vision. Additionally, communication strategies that promote transparency and open dialogue create a sense of trust and alignment among employees – boosting engagement in the process. With engaged employees far more likely to embrace change and adapt to new challenges, keeping them firmly in the loop at all stages is a key aim.
Strategic workforce planning using predictive analytics
Predictive analytics let manufacturers and logistics companies forecast future talent requirements based on historical data and market trends. Through careful analysis of key metrics such as employee turnover rates, skill gaps, and market demand, organisations can identify potential staffing shortages or surpluses, then develop proactive strategies to address them.
Smoothing a volatile curve
Change is coming – however, it doesn’t need to hit your business with any undue ferocity. From flexible staffing models and reskilling initiatives to cross-functional training and leveraging predictive analytics, manufacturers and logistics companies can secure the operational efficiency of their workforce.