By David Hall
Workforce productivity contributes to manufacturing success. By empowering and engaging employees at all levels, you can boost morale and transform your company's performance.

The backbone of any company is its employees.  Both experience and a large number of studies clearly show that companies benefit when they invest in and empower their employees.  When workers are vested in their own development and in the vision and development of their company, the overall operation benefits in terms of morale, commitment, creativity, competitiveness, and growth.  We find that integrating human resources (HR) practices with the company's mission, direction, and goals -- and investing in continued staff development -- leads to increased worker productivity, higher quality products, improved employee relations, and greater customer satisfaction.

When we help small manufacturers deal with workforce-related issues and problems, we're looking to help them develop a flexible, holistic, high-quality HR program.  By that we mean a comprehensive program that balances technology and production with HR practices or policies that optimize communication among employees, training and educational opportunities, and worker health and safety.  And we're especially interested in programs that encourage and facilitate worker involvement in decision-making processes, link skills and knowledge, and recognize and reward employee performance.

Unfortunately, for most small companies, long-term goals that focus on employee skills and communication take a back seat to responding to customers' needs and meeting a weekly payroll.  Small companies also often have difficulty finding and keeping good workers.

But it's not just a lack of time, money, or staff that keeps a small manufacturer from making employee development a top priority.  In many cases, small companies simply don't have the information they need to change their current practices and tap into the full potential of their work force.

What's the first step?
First, we try to let small businesses know that they're not alone.  More than half of the companies in the U.S. have fewer than 50 employees.  Most of these companies have struggled with workforce development issues and, through those challenges, have helped pave the way in identifying and developing sound, integrated HR practices.  The Manufacturing Extension Partnership (MEP), both nationally and through its Oregon Manufacturing Extension Partnership (OMEP), which is located in White City at Rogue Community College's Workforce Training Center, is focused on the unique needs of small firms. OMEP has an integrated knowledge and technical network that these companies can tap into. 

Benchmarking can be very helpful in determining how well a company's HR policies are working.  It often points to specific problems or areas for improvement and can give us, and the manufacturer, a sense of the overall health of the work force in conjunction with the overall health of the company.  From that analysis, we usually can suggest a series of steps that will help a company become more holistic and people centered.  In brief, benchmarking helps identify workforce development practices and strategies that will be of greatest benefit to a manufacturer and its employees and customers. 

In addition to benchmarking, companies may want to consider conducting a more comprehensive needs assessment to identify workforce-related strengths and weaknesses (or areas for improvement), i.e., Quick View or High Performance Workplace "Self Assessment".  Needs assessments help companies get a handle on how they function, as a whole and within certain departments or divisions.  In assessing workforce development and productivity, we usually suggest evaluating management practices, training and development, health and safety, recruitment, compensation, and employee relationships.

Various tools are available to help identity what does and doesn't work in developing employees' skills and potential and in building a high-quality, high-performance company.  These benchmarking and assessment tools also can help a company correlate HR practices with a variety of outcomes, such as turnover, output, sales, and profits.  Many of the tools available involve administering a comprehensive questionnaire that covers a broad spectrum of topics, such as employee communication, education and training opportunities, and benefits and incentive packages or programs.  Some tools also include interviews with small groups of managers and shop floor workers in an effort to gather more details about the company's operations.

Some benchmarking and assessment tools can be done by in-house staff and/or with assistance from your regional OMEP Field Engineer.  In most cases, though, companies probably will want to find someone with special training to conduct more comprehensive assessments, usually someone with an occupational development background and some technical background.

Companies can contact the Oregon Manufacturing Extension Partnership (OMEP) in Southern Oregon at (541) 826-7555 for more information about HR benchmarking and assessment tools and resources.

An ongoing process
An interesting problem facing companies today--even with extensive downsizing nationwide--is an apparent lack of trained, experienced workers. We hear this all the time.  And what we try to tell companies is that building and maintaining a strong work force is an ongoing process. As part of that process, management needs to go beyond simply looking for the "right" workers for current projects.  The company needs to commit to developing and promoting a variety of human resources policies and practices that actively engage workers in the company and their jobs.  The goal of this approach is to build a climate of co-ownership in which employees at all levels are involved in the operation, direction, and success of the company.
Companies can achieve this goal through any number of strategies that have been shown to build a strong employee base.  Prepare and motivate employees by recruiting for the appropriate skills and providing comprehensive orientation, training, and development.  Align compensation and benefits packages with performance objectives and develop a reward or incentive program.  Involve and empower employees by tapping into workers' knowledge and creativity, trying the team approach to problem solving, and giving teams or individuals decision-making authority or responsibilities.  Encourage information-sharing by asking workers for input on how to improve a certain production, shipping, or other task, and by promoting discussions between management and workers on the floor.  Share the risks and rewards as well as the responsibility for improving the company's performance, products, and competitive edge by developing a profit-sharing program.  Boost employee morale and commitment by offering options such as flex time, job sharing, or telecommuting, all of which recognize the importance of personal and family time.

Other steps to help improve workforce development and productivity include employee training, education, involvement, and recognition.  An educated and engaged work force improves a company's market responsiveness.  Tap into, develop, and reward workers' skills, motivation, problem-solving abilities, and capacity for improving your company's competitive advantage.  On-the-job training can take many forms.  Supervisors or skilled workers can provide one type of hands-on training.  In-house training also may involve rotating employees through different jobs or tasks to enhance their skills.

Getting assistance
Juggling increased orders and trying to meet the resulting worker and production needs are challenges most manufacturers face at some point.  Those who have met that challenge have tried a number of solutions.  For example, companies may want to access agencies or organizations that can provide management, technical, and other staff.  We also recommend contacting state-based placement agencies, which often serve as "one-stop career centers."  Such agencies are well positioned at both the state and local levels to help companies fill staffing needs.  OMEP Field Engineer and RCC/Workforce Training Center can assist in developing short term and/or customized training that is designed to meet a company's specific needs and unique requirements. These and other resources may also be useful in building a strong work force when companies are just starting out or going through a transition.  A good starting point for small companies seeking assistance is to contact David Hall at 541-826-7555 or call 1-800-MEP-4MFG.