As the manufacturing industry continues to expand around the world, many companies are taking steps to maintain adequate numbers of skilled labor to support this growth. There are expected to be shortages in the industrial sector, due to high demand for quality manufacturing workers. While selective recruitment has always been at the pinnacle of success in manufacturing, having a succession plan can help to build upon the human capital resources your business has. It’s far more cost effective to create a succession plan to develop the skills and knowledge of existing employees than to continually recruit new employees. This is based on the following factors.

• Current employees have proven their loyalty to your manufacturing business, your clients and objectives.
• New hires require months, sometimes years to bring them up to full productivity vs. current employees who are already working at this level.
• Current employees are already part of your corporate culture that allows them to succeed in your industry.
• Promoting from within can support the retention of the most skilled and dedicated employees, giving your employees a reason to stay on board and work hard.
• Succession planning focuses recruitment efforts for entry level assignments, which are generally less costly than mid-level or management roles.

While there are obviously more benefits to developing a corporate succession plan, these are the areas that most companies are concerned with. Here are some ways to start creating a workable succession plan for your manufacturing business.

1. Evaluate your current corporate structure to identify key leaders, high performing employees, as well as gaps in skill-sets and industry knowledge – as they apply to company objectives. Conduct observations of important assignments, updating them and your current job descriptions.
2. Start developing your high performers into tomorrow’s leaders with on-site employee development programs and mentoring networks. Schedule ongoing evaluations and have team leaders report progress.
3. Establish an employee performance measurement system to give employees realistic and attainable goals for their careers. Provide this plan to each employee and review on a quarterly basis. Use valuable incentives to encourage all employees to participate.
4. Reward employees who go beyond their call of duty in their daily jobs, or reach important quality and safety metrics. Support those who wish to earn advanced degrees by providing generous tuition reimbursement programs and flexible work schedules.
5. Rapidly move top performance employees up the corporate chain of command. Give them the support and compensation they need to be successful.
6. Create an attractive corporate culture and use professional recruitment services to bring on the best new hires for entry level assignments. Stress the importance of performance from day one.

You’ll find that your succession plan will evolve over time and this is OK. Manufacturing is also in a period of revolution with the introduction of more employee management tools and technology. Utilize these resources to enhance your performance programs and continually communicate succession planning to your employees.

If you are looking to find talented workers for your manufacturing business, contact the staffing experts at Davis Staffing.