Monday, February 10, 2025

What’s Next for HR in Manufacturing: Predictions for 2025

The dynamism of the HR function continues to grow, and a straight-jacketed approach still eludes solutions to challenges. Needless to say, mathematical approaches are not available for human problems, which form the basis of Digital solutions, which are increasingly making their way into avenues of work.

First, we need to understand what is changing in manufacturing to better understand what is next for HR in manufacturing.

Our country’s focus is to increase its manufacturing capacity from 15% uphill to better cater to its domestic needs. Today China is leading the pack @ 35% of global share and in spite of trade restrictions the goods manufactured are making inroads into the country through Southeast Asian countries that have an FTA with us.

Upskilling the Workforce for a Digital Future

To enhance our capability to manufacture it has become imperative for us to go digital thus IIOT and AIML are the keys to enhance speed, efficiency, productivity, quality, and effectiveness. A major transition is happening from manual work processes into automation thereby changing the need of skills for the employees engaged in manufacturing operations.

The current people force needs to be well conversant with the new ways of working and needs to be upgraded to be able to deliver the changing skills in the digital environment. The job market has extensively opened up after the pandemic and employees having first-hand exposure to manufacturing are being sought out by industry all around.

Having dealt with multiple technical intricacies and manpower, the skills of these employees can be easily adapted into design engineering, materials management, project management, quality, etc. and fitment is possible in all industries using similar principles and basics of engineering. Compensation offered is multifold with the benefits of flexi working and short work week.

Aligning Work Culture with Generational Expectations

We are in a developing economy and our social prosperity has still not gained maturity. Hence, the domestic and family needs urge to attain financial prosperity which becomes even more critical in joint families. Our values still connect us with siblings and parents and wherever necessary people like to work towards ensuring their well-being as well.

Organizations and HR can look at benchmarking their compensation at 57 – 66 percentile of the industry segment at all levels which can keep up with the inflation in our country which generally moves from 6-7% per annum. For growth in compensation, any earning over and above inflation is his/ her actual monetary growth.

On the other hand, Generation Z is clear about its objectives and is focused on having a clear demarcation between work time and personal/family time. They are committed to provide high-quality output in work hours and stretch only if extremely necessary.  Work-life balance involves being able to pursue hobbies and have quality time.

This attitude has given rise to gig-working where a person engages self only to the extent of availability of personal time for professional work simultaneously attending to other priorities. Gig–working also enables one to cater to multiple clients and earn more with larger effort in small time and use the earnings for having leisure.

Sustainability & EHS

Global warming has raised an alert on the changing environment worldwide. Trade restrictions to enable sustaining and improving the environment are now imposed by many countries through their legislations. Europe and America have made it mandatory that the suppliers are compliant on Sustainability for trade with them.

The severity disqualifies many suppliers to trade with them who are non-compliant. For our countries own sustenance SUSTAINABILITY of its environment and its resources is non-negotiable. Industry is alive to this need and wherever they have global interests and also otherwise have started exhibiting their keenness as necessary for survival of planet.

Resources and model as necessary for assorted needs of ESG are being put in place in organizations as an extension of EHS, CSR or otherwise as an exclusive activity. Annual financial report needs to include business activity on ESG as a mandatory compliance. HR will need to accordingly re-look at organizational adaptability to align with this social responsibility which was desirable earlier and now is mandatory.

Supporting Employees with Policies That Foster Growth

It is difficult for manufacturing organization’s HR to be able to support flexi working but wherever possible detaching offices from factory setups will help in implementing work practices adapted to nature of work.

Unlike earlier generations, the new generation demands a lot of respect and care even during the incubation in the corporate culture and can’t be pushed. Prohibitive policies only create more frustration and detachment leading to disengagement and ultimately separation.

A positive review of the vintage policies to keep in stride with the new workplace requirements is therefore need of the hour and needs to be re-looked and monitored constantly.

Incessant communication, interaction, and feedback mechanisms are required to be well embedded in the organizational process to be able to put to rest questions arising in curious minds before they become unmanageable.

While there are induction processes available to provide a smooth transition into an organization and its culture, the need is now increasing to work on the earlier generation to understand the changing environment and adapt to it quickly so that help can be made available to new employees and handholding be done to make them comfortable in the new environment. Operations will engage experienced people for sure, but time will have to be spent more on nurturing the teams than normal.

Thus for HR, people development focus must increase, and leadership & managerial development become the key. The programs and the refresher courses must be well tailored to be able to help employees acquire managerial & people development competencies that are necessary for their larger roles. 

Unlike in the past, if employees were left to swim alone in the new environment, the new generation needs support and guidance as they had stronger family support during their childhood and did not have an opportunity to navigate themselves. Therefore, Buddy schemes, mentoring schemes, etc. will gain a lot of traction and will have to be practiced consistently.

The tendency to take credit for performance achievements by superiors used to leave subordinates continued with work unhappy and frustrated. Meting out similar treatment does not work now, and appreciation must be provided to team members where right. The positive motivation thus provided in public forums in the presence of superiors goes a long way in retention as the employee feels more recognized and is willing to excel more and increases the benchmark.

The opportunity to represent external forums, lead challenging projects, and achieve laurels for the organization allows employees to be able to test the water with the external industrial environment, position themselves, and feel appreciated and recognized.

Final Words

“It’s all about people” and putting our basics right. People work for the organization and in turn, expect that the growth of the organization will lead to growth in their individual prosperity.

This link needs to be maintained. Where rewards are not commensurate to efforts, people are disengaged and become more vulnerable. Sharing rewards with employees – comes first – establishes a stronger foundation creates a strong bond and supports a good culture.

With countries Americas and Europe realizing that opening the World Market through WTO has allowed Asian countries China, India, etc. to grow multifold they will increasingly work towards protecting their economies, industrial enterprises, and society, and opportunities for overseas trade may become restricted.

The resources likely to go redundant thus (as visas will become difficult) will have to be gainfully utilized in domestic markets or other markets that will remain open like Middle East and Africa and HR will have a challenge to ensure that these resources are gainfully engaged.


Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click HereGoogle News– Click HereYouTube – Click Here, and LinkedIn– Click Here.

Editorial

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Deloitte, PwC, EY, KPMG Outpace Global Growth for India Divisions

The Indian divisions of Deloitte, PwC, EY, and KPMG...

EPS-95 Higher Pension Update: Less Than 1% Cases Settled So Far

Supreme Court Ruling and EPFO’s Higher Pension Rollout The Employees’...

Strong Job Growth and Salary Increases Expected in IT Sector

India's IT sector is on track for significant growth,...

Must Read

Wipro, Spice Money, DS Group React to Union Budget 2025- 26

On February 1, 2025, honorable Finance Minister Smt. Nirmala...

Thomson Reuters gets Ravi Rangaraju as Director- Regional HR India 

The world’s leading provider of news and information-based tools...

Grofers to cover COVID-19 vaccination cost for employees, families, contractual staff

Grofers to cover COVID-19 vaccination cost for employees, families,...

HCLTech to hire over 10,000 freshers in this fiscal year

India’s third largest IT services-providing company, HCLTech plans to...

Citigroup Inc to raise base pay for junior bankers – memo

Citigroup Inc will lift the base salaries of its...

IBM is hiring for various roles including Intern & HR jobs; Apply

An American multinational technology corporation, IBM is hiring for...

Related Articles

Manish Gour
Manish Gour
Manish Gour, Vice President and Head HR & Organizational Excellence at Larsen & Toubro, Heavy Engineering Division. Manish is a seasoned HR professional with rich experience of more than 30 years in Human Resources. Prior to L&T, he worked for organizations like Alstom, JCB, SM Dyechem, Crompton Greaves, Kores India, and Atlas.