Talent management in the manufacturing industry

Andreas Mühlbauer,

Strategic personnel development to combat skills shortages

There is a lack of qualified personnel in large parts of the economy, and the shortage of skilled workers is now one of the biggest business risks for companies. The reasons for this can also be found in the manufacturing companies themselves, as personnel development only played a subordinate role here for a long time, if at all.

© pixabay.com/geralt

However, personnel development has become a decisive factor in filling vacant positions with suitable employees. With the right software, industrial companies can tackle these challenges strategically and achieve success quickly.

The shortage of skilled workers has long affected all sectors. However, the biggest problems in filling vacancies affect industrial companies. According to the DIHK Skilled Workers Report, 54% of manufacturing companies have problems finding suitable staff for vacancies. A more detailed look reveals that machine tool manufacturing (71%), mechanical engineering as a whole (61%), vehicle manufacturing (65%) and manufacturers of electrical equipment (60%) are particularly affected by the shortage of skilled workers. According to IG Metall, social developments such as demographic change are one of the causes of the skills shortage; however, companies are also largely to blame for the problems themselves. "Many have understood too late that qualified skilled workers and school leavers are no longer simply waiting to be hired by them in large numbers as they used to be," explained Wolfgang Lemb from IG Metall back in 2022. According to him, qualified personnel development is practically non-existent in many companies.

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Focused approach to personnel development

Personnel development is a strategic factor, firstly to train specialist staff and secondly to ensure the long-term qualification of the workforce with further training measures. The latter is also relevant for industrial companies in view of regular audits that check whether employees have all the necessary certificates, for example. "However, personnel development cannot be done on the side, but must be focused on by HR," says Ingo Schütte, Lead Sales Organizations & Partner Management at perview systems. The software company offers a talent management suite for employee development in order to meet the challenges and needs of companies when it comes to personnel development.

Strategic personnel development is essential in order to take targeted action and overcome the skills shortage. HR management must implement key measures such as building and maintaining skills within the workforce, rolling out assessment rounds and monitoring training measures. Appropriate software can provide effective support here.

Special challenges for manufacturing companies

However, manufacturing companies face the challenge of really integrating all employees into the digital processes of personnel development software. "In production, employees generally don't have access to a computer. They often don't even have a company email address," says Schütte. It is therefore not possible for these employees to maintain their own digital personnel files, upload certificates themselves or book suitable seminars, for example.

Software for employee development in the manufacturing industry must therefore have a management self-service function. "Managers can then digitize everything that concerns the employee in employee meetings," explains Schütte. If managers also discuss suitable further training measures with their employees during the meeting, they can book these directly using the relevant software. "This way, it's not just vague plans, but the target agreements for the development of a specialist, for example, are implemented directly," emphasizes Schütte.

Employee authorizations are linked to skills

With an appropriate software solution, competence and skills management can also be implemented effectively. Which employee has which skills and which of their certificates will expire soon is so crucial for industrial companies because certain authorizations are linked to them: certain skills and corresponding proof are required to operate the various machines. It is an advantage if the software solution creates transparency here and provides a quick overview. "A qualification matrix can be used to clearly display which skills are required and which are available," explains Schütte. Such a feature also makes work easier for auditors in general. Audits run smoothly, more efficiently and faster as a result.

Skills management becomes particularly effective when the tool used not only provides a transparent overview, but also takes over steps automatically. For example, automatic notifications about expiring certificates significantly simplify the work for managers and HR managers and help to ensure that employees do not suddenly find themselves without a current certificate - Schütte: "In the most extreme case, they would then no longer be able to do their job, literally from one day to the next." The software should also automatically update which seminars employees have attended and which skills and qualifications they have acquired as a result.

Make well-founded personnel decisions with the help of the software

Personnel development software can also make a valuable contribution to personnel decisions. If the required soft and hard skills can be set for individual positions with prioritization and, if necessary, characteristics, personnel decision-makers can determine exactly which qualifications are required for the position in question. "The skills matrix for individual employees can then also be used to directly identify who in the workforce is suitable for the vacancy and which training measures may still need to be carried out," explains Schütte. This applies not only to hard skills (training, foreign language skills, etc.), which can be verified in the form of certificates, but also to soft skills (empathy, communication skills, etc.), which are documented on the basis of assessments by different people. Internal recruiting is thus considerably streamlined by a software solution; however, the system also supports external recruiting in the same way.

"Companies not only need to know which skills they need, but also which skills are already available in the workforce," emphasizes Schütte. In view of the shortage of skilled workers, this applies more than ever, as there is simply a lack of external applicants for many positions in the industry. The further development of employees that the company has already recruited is therefore all the more important. In addition, companies increase their innovative strength and thus their competitiveness through the continuous and tailored further training of their employees. "Qualified employees ultimately produce better products and also offer better services," says Schütte.

In the manufacturing industry, targeted personnel development is a crucial step in overcoming the shortage of skilled workers. However, this cannot be managed as a mere secondary task, but must be approached strategically. Suitable software can help to effectively support personnel development and achieve faster success by transparently managing competencies and skills and automating on-boarding, off-boarding and cross-boarding processes. This leads to more efficient workflows and supports well-founded personnel decisions. Strategic personnel development, supported by a suitable software solution, is therefore essential for industrial companies to successfully meet the challenges of the skills shortage and ensure long-term success through efficient HR work.

Julia Kowal, editor for Wordfinder

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