This article first appeared in Digital Edge, The Edge Malaysia Weekly on March 13, 2023 - March 19, 2023

The manufacturing workforce has been adopting new technologies for more than two centuries, and as the industry finds itself amid the Fourth Industrial Revolution (IR4.0), workplace transformations are happening on an unprecedented scale. With an influx of more than 2.7 million industrial robots in use worldwide, technologies and automation are significantly shifting the skill profiles of tomorrow’s jobs.

From the evolution of typical site managers, who are expected to be skilled in process engineering and change management, to production employees needing the know-how in traditional manufacturing disciplines and new areas of digital expertise, shop-floor demographic arithmetic demands show that manufacturers cannot have a robust talent strategy without a focus on diversity, equity and inclusion (DEI).

Driven by artificial intelligence, machine learning, advanced robotics and automation, advanced analytics, the Internet of Things (IoT) and more, the industry has created a demand for professionals who function as key enablers of smart factories and developers of the collaborative human-machine workforce.

New digital-led roles such as data scientists, robot controllers and production exception handlers have set this generation of diverse talent apart with their ability to understand both new technologies and the manufacturing landscape.

There is a need for a strengthened talent pipeline, which is critical to also building a strong manufacturing ecosystem powered by small and medium enterprises. The diversity of ideas and cultures in the workplace often bolsters employer-employee relationships, enabling manufacturers to improve the more fundamental factors like innovative decision-making, business efficiencies and marketplace impact.

Building the groundswell in talent diversity, manufacturers’ efforts in (up)skilling production teams saw the players democratising knowledge while providing more equitable access to growth opportunities.

Providing exposure across the operations, also through mentorship, graduating talents are placed based on competencies and needs matching with the view of taking on senior roles over time, allowing the retention or improvement of tacit knowledge within the organisation.

In manufacturing, talent pipeline strategies today need to consider both the retirement of seasoned manufacturing workers and societal attitudes that expect companies to do more to retain and retrain their current workforce.

According to the Department of Statistics Malaysia, overall gender equality improved to 71.4% in 2022 from 70.9% in 2019. To encourage female leadership in the traditionally male-dominated industry, many manufacturers — Jabil included — nominate women internally and externally for various recognitions in the manufacturing space.

For instance, Jabil’s highest-ranking female executive serves as the company’s senior vice-president and chief information officer, who has in turn spearheaded programmes such as “Mentoring Women in Tech” and “Train for Hard-to-Acquire Skills”. The company also empowers women in decision-making roles, as reflected in the unique three-pack model. Representing the business, operations or finance, this three-person team provides valuable oversight in the effective delivery of customer experience, operational excellence and governance.

On the other side of the talent spectrum, younger workers have different expectations and understanding of careers in manufacturing — many are unaware that the industry is becoming increasingly high-tech, providing highly advanced, transferable skills.

Manufacturers need to feature the industry in a different light through a focus on science, technology, engineering and mathematics (STEM). For instance, public and academic partnerships with local government and technical/vocational schools, delivered through a tailor-made and application-based syllabus, give the next generation a perspective on the “manufacturing renaissance” that is taking place through digital transformation.

A finding from McKinsey & Co shows that companies ranking highly for ethnic/cultural diversity on executive teams were more likely to have industry-leading profitability. More importantly, it demonstrates that the inclusion of highly diverse individuals — defined beyond gender such as age/generation, people with disabilities, professional and social background and global experience — can be a key differentiator among companies.

To mainstream diversity, best practices include starting at the top, measuring impact, setting goals and communicating them.

In 2021, Jabil added “equity” as a focus area to create a workplace where everyone has growth opportunities. We also embraced “people analytics” by applying data analytic methods in human resources and constantly listening to the needs of employees. Today, Jabil facilitates disability education and awareness to increase employment and development opportunities for people with disabilities.

Additionally, DEI policies, strategy updates and resources are accessible to all and integrated into recruiting programmes and talent management strategies. Alongside its ambitions of realising the future of manufacturing, the company’s goal is to have 25% of leadership positions held by women and to roll out more than 40 established programmes for persons with disabilities by 2026.

By reconsidering people strategies such as strengthening inclusive cultures paired with (up)skilling programmes and leveraging DEI principles, manufacturers will be better positioned to build the next-gen workforce for business agility and resilience.

S J Tan is the managing director of Jabil Penang, a manufacturing services company that offers design, production and product management services

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