Industry 4.0, also known as the Fourth Industrial Revolution, has manufacturing organisations transforming through the use of digital technologies like the cloud, automation, and AI. As industry leaders continue their efforts to automate sophisticated production processes, there is an opportunity to bring this innovation mindset to workforce management too.
Whilst Industry 4.0 technologies continue to offer means of revolutionising operational efficiency, it remains vital that manufacturers cultivate an engaged workforce that is prepared and excited to participate in transformation. Additionally, modern workforce management capabilities can improve operational efficiency by enabling skill-based scheduling, optimizing labour allocation, and reducing compliance errors. In this way, workforce management solutions are a strategic enabler for Industry 4.0 processes.
The value workforce management brings to employee engagement
Developing an dedicated team of employees is important for maintaining the proper skill sets that keep production environments running smoothly. Even as advanced AI solutions begin to automate increasingly complex planning processes, manufacturers require people to be in the right place at the right time. The need for sophisticated workforce management technology becomes even more apparent for organisations that want to build resilience.
Better employee experience is crucial for retaining skilled workers and can improve productivity. Research from Gallup finds that highly engaged teams see a 78% reduction in absenteeism, 21% less turnover for high-turnover organisations and increases of 14% in productivity and 23% in profitability.
How workforce management technology impacts employee retention
The quality of workforce management technology plays a pivotal role in employee engagement and can contribute to their decision to seek alternative employment opportunities. According to a recent Ricoh study, European employees have voiced concerns about their employers’ technology adoption rates:
- 42% feel that their organisation lags, impacting overall job satisfaction
- 28% workers cited working conditions and their employee experience as a reason they would look for another job
- 24% of employees noted the quality of technology software and technological devices as a leading contributor to them seeking alternate employment
These findings suggest workforce management technology can have a direct impact on an organisation’s ability to attract and retain talent.
Meeting frontline worker expectations for sophisticated scheduling
Retaining manufacturing talent hinges on effective workforce management practices. The majority of employees in production sites can be classified as frontline workers, or deskless employees, who operate away from desktop and are on the go throughout their working day. These employees increasingly expect flexible working arrangements such as options for flexible shifts and schedule variations, and they want instant access to these capabilities.
Common issues like short notice shift changes and delays in leave approvals can have a significant impact on attrition. Employees want to have a say in their schedules, and this is why half (50%) of frontline workers cite the lack of flexibility and work-life balance as a leading motivator for attrition. Providing this capability can be challenging when production environments depend on tight timelines.
Whilst many manufacturers may currently use a system to manage employee schedules, manufacturers are recognising the need for more sophisticated scheduling options to build flexibility. 82% of manufacturing leaders plan to invest in new scheduling technology in the next 3 years.
“What manufacturers are finding is that there is a need for more sophisticated scheduling, demand-based scheduling and skill-based scheduling,” Gordon Gilkison, Head of EMEA, WorkForce Software.
How modern payroll impacts Industry 4.0 goals
It should not serve as a surprise that pay is the number one priority for employees and that simple discrepancies in pay can have a significant impact on how a person feels about their employer. Production sites experience some of the most complex scheduling, time and pay requirements as unions, collective bargaining agreements, national, country specific and local regulations all have an impact on employee pay. Often, legacy time capture systems are not equipped to meet this level of complexity.
As Industry 4.0 technologies push manufacturers to create flexible workforces the kind of work a single employee is responsible for, and thus the pay requirements per shift, may changes. That’s why the importance of advanced workforce management systems that can automate complex pay rules will grow as organisations adopt new technology. Likewise, bolstering retention rates.
The advantage of synchronising workforce management and AI
As the manufacturing industry embraces AI within production systems, workforce management technologies become not just helpful but essential. These solutions provide critical insights into staffing needs and shift capabilities that, when combined with production data, create a powerful decision-making engine.
Organisations that integrate these complementary technologies gain a dual advantage:
- Nimble response time to market fluctuations whilst also anticipating future workforce requirements before they become urgent.
- By positioning workforce management as a strategic partner to AI-driven production initiatives, forward-thinking manufacturers will create a synchronised ecosystem where human and technological resources are aligned.
“AI is a tool that transforms an organisation at the core, but in reality, we need a people strategy to even apply AI the right way,” Henrik von Scheel, Originator of the 4th Industrial Revolution, SD Worx.
This advantage depends on a robust foundation of quality data and fundamental systems. Advanced workforce management solutions offer a means of tracking and analysing key data points such:
- Absence management
- Engagement levels
- Fatigue prevention to limit burnout risks
- Absenteeism rates
These metrics help identify pain points and forecast and facilitate demand projections, streamlining workforce planning. Organisational agility depends on systems that can automate how and when employees with the right skills are assigned to sudden needs.
Closing Thoughts
The integration of workforce management solutions is a significant step for manufacturers that want to maximise operational excellence in the Industry 4.0 landscape. By embracing advanced technologies, optimising workforce management strategies and prioritising employee experience, manufacturing organisations can navigate the complexities of Industry 4.0 effectively, enhance operational efficiency and foster a culture of agility and innovation.
You can find more information on this approach 4.0 in our webinar Resilient Workforce Strategies in the Era of Industry 4.0, featuring Henrik von Scheel, originator of the Industry 4.0 concept, along with Gordon Gilkison, head of WorkForce Software’s EMEA region, and Gille Sebrechts, executive committee member at SD Worx.
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