Five Lessons For HR Practitioners In 2023

Taking cues from the manufacturing floor

Like many Americans this year, I recently started a new position, assuming my current role as Chief Human Resources Officer (CHRO) of Novolex—a global manufacturer of diverse and sustainable packaging products and solutions—just a few months ago. But after more than 20 years in human resources, much of which was spent at manufacturing companies, I have consistently seen how workers on the plant floor can serve as an indicator of broader employee expectations and drive change all the way to the C-suite. 

As we look ahead to 2023, we know that the competitiveness of the job market is not going away any time soon. The increasing demand for talent is especially evident in the manufacturing industry, where an estimated 2.1 million manufacturing jobs will be unfilled by 2030. We also know that leaders are clued in to these shortages, with 77% of surveyed manufacturers expecting ongoing challenges in workforce attraction and retention in the years to come, according to a study conducted by Deloitte and The Manufacturing Institute.

These challenges are not unique to the manufacturing industry. Companies around the country are grappling with the need to attract, retain, and train workers that can adapt to new ways of working, especially as we look to the future of work where digital skills, self-leadership, and flexibility will be essential.

To prepare workforces and companies, I will share the cues that I am taking from our frontline manufacturing workers, who comprise the majority of our 10,000 employees at 57 manufacturing facilities, and the five key lessons they offer for how to best engage employees and new talent. These indicators serve as a path forward for how HR practitioners in all industries can plan for workforce trends in 2023.

1. Early Engagement Makes a Big Difference

Turnover numbers drastically decrease after an employee has met their six-month mark, which means that driving engagement is especially important during an employee’s onboarding period. HR practitioners must plan for this when developing new hire orientations and resources. Investments in learning and development—from entry-level workers to managers, and all the way up to the C-suite— can also make a big difference. Employees need to know on day one that they have opportunities to learn new skills, grow their professional abilities, and advance their careers at your organization.

HR leaders must engage often with new hires to understand not only what is going well, but also any frustrations they may have when starting in their new role. These checkpoints will help you build relationships with new hires and understand areas that need improvement within your onboarding plans. As we know, turnover and attracting new talent is expensive, but by investing in engagement upfront, employees or prospective workers will feel like they are part of the lifeblood of a company, rather than a small piece, thus driving attraction and retention.

2. Ambiguity is No Longer Acceptable

We have lived through a tumultuous few years, with hybrid office procedures constantly shifting, personal responsibilities changing, and workers taking on new roles within or outside of their companies. HR practitioners need to establish a continuous drumbeat of touchpoints, including one-on-one meetings between HR, management, and employees. We have found that through roundtable meetings with managers and opportunities for the C-suite to connect with employees of all levels, we can establish continuous conversations across the entire company. Ensuring employees have opportunities to be updated and for their opinions to be heard is important. Leadership from the top plays a key role here. For instance, as Covid restrictions eased, our Novolex CEO led by example, eagerly returning to the factory floor to engage in person with our frontline workers. 

A proactive engagement strategy will ensure that existing employees know they are being included in the decision-making process, while also providing transparency regarding new policies and the rationale for why certain initiatives, goals, and exceptions are being set. Attracting new employees can also be driven through this approach, as we see that many people interviewing for new positions are looking for clear communication of company policies around return-to-work, professional development opportunities, and available benefits. 

3. From Entry Level to C-Suite, Employee Needs Have Many Similarities

I often get asked how I can lead a team that manages a diverse workforce—from hourly frontline workers, to line managers, to corporate employees and C-suite executives. The truth is, though the manufacturing workforce’s day may look different than those sitting at a desk, their needs have many similarities. Everyone wants to have a job that they enjoy, coworkers who are supportive, and to work for a company that shares their values and desire to try new things.

This propensity for shared needs across the workforce is powerful and means that HR practitioners should be taking cues from entry-level workers, new hires, and hourly workers. It also means that those touchpoints and leadership skills are especially critical for gaining a deep understanding of what those needs are, and how they may be changing.

4. Communicate How You Will Win Together

HR practitioners need to make sure that companies are not just valuing employees, but that the employees know that they are valued. At Novolex, we announced in September a new award plan called the Broad-based Employee Award Plan or “BEAP.” This plan offers a payout to eligible employees, from the factory floor to the corporate offices, should there be a change in ownership. The exact amount will be based on any increase in valuation of the company over time. Our BEAP is personally funded by Novolex Chairman and CEO Stan Bikulege and the company’s shareholders, led by Apollo, demonstrating the buy-in from leadership in engaging our employees.

Finding ways to demonstrate long-term commitment by rewarding employees, whether it’s through payment programs, benefits, transparent promotional processes, or other avenues, is critical to engaging employees. We all work together, and we must also win together.

5. Understand that You Can’t Engage a Workforce Alone

The best HR practitioners know that we can’t successfully attract and retain employees alone. You need support from leaders across the organization. At Novolex, we have invested in Leadership Skills Training to make sure our leaders, at all levels, understand the importance of engaging our workforce.

Of course, ensuring our employees feel like a part of the employee family, as we call our Novolex workforce, is also very important. That’s why we partnered with an external consultant to bolster our diversity, equity, and inclusion (DEI) strategies. This partner helped us conduct focus groups around the globe with participants at all levels in the company to truly understand where we needed to focus our efforts. Although DEI has always been a focus for us, engaging an expert helped us get from planning to executing strategies much faster.   

HR practitioners can lean on each other to recognize where they need to bring in issue-specific experts, and we must communicate the need for C-suite executives to include employee engagement when planning for resource allocation in 2023.

Lisa Dulski was appointed as CHRO for Novolex in August 2022 and now leads its global human resources organization. Dulski has more than 20 years of strategic human resources experience, serving in human resource leadership roles at Apex Tool Group and Newell Rubbermaid.  Connect Lisa Dulski