Putting Talent at the Centre: An Evolving Imperative for Manufacturing (McKinsey & Company)

Summary

• By 2030, 54% of the workforce in the advanced manufacturing sector will require training to meet evolving skill demands.p.3
• Pilot participants saw on average a 52% improvement in stability metrics, a 34% improvement in financial metrics and a 28% improvement in productivity and operational health and safety metrics.p.6
• The World Economic Forum's Future of Jobs Report 2025 predicted that 39% of workers' existing skill sets will be transformed by 2030.p.7
• Approximately 40% of middle managers report burnout, and 41% of workers feel their compensation is insufficient.p.9
• Industries globally direct 74% of investment towards labour and 26% towards invested capital (average 2010-2021).p.11
• Improving productivity and stability showed an average EBITDA impact of $17,000-34,000 per active employee.p.14
• 56% of the innovations viewed in the pilot were developed at the site level.p.25

Key insights

1. 37% of departing workers cited not feeling valued by their organizations as one of their top three reasons for quitting.p.8
2. 36% cited not feeling valued by their managers as one of their top three reasons for quitting.p.8
3. Western Digital in Thailand shifted 37% of its workforce to jobs at higher technical levels.p.16
4. Unilever Kilbourn reduced attrition by 68% and 81% of local management has come from intentionally developed roles.p.18
5. Flex has grown the number of apprentices by 20% since 2020 while increasing the participation of women to 25%.p.20
6. Aramco's AI matching tool reduced the overall time to fill by 43%.p.21
7. Unilever Kilbourn's rewards system boosted OEE by 16% and decreased product waste by 34%.p.23
8. At Haier, 95% of employees participate in creative proposals on the social platform.p.24