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The Converging Wheels of Manufacturing

The Converging Wheels of Manufacturing

India’s manufacturing industry is experiencing significant growth, with promising opportunities for manufacturers in India and South-East Asia, even as the global supply chain is disrupted due to war and the pandemic. This growth is driven by robust demand at the domestic level, increasing investments, policy support from the government, and higher reliance on the sector globally.

However, there is still much work to be done in the manufacturing industry to ensure a fair and effective workplace. While the industry has shown an increase in employee engagement over the last five years, it still stands at 81%, ranking among the lowest. As a result, organizations need to support their business with a robust people strategy to maximize the opportunities the market offers in the coming times.

Manufacturing Industry Today

According to the latest data, Best Workplaces outperform the industry on crucial differentiators by an average of 11%. Great People Managers, Pride, Credibility, and Camaraderie, are among the aspects converging to similar importance levels, with sustained engagement levels despite an industry drop of 2%. The gap between Best Workplaces and the industry has increased equivalent to pre-pandemic levels, and hence it’s even more essential now for workplaces to teach practices of Best Workplaces.

As India transforms into an on-shore manufacturing hub, organizations must focus on creating a fair and effective workplace culture. Fairness and respect at the workplace have observed the highest growth over the last five years, with an increase of 8% and 6%, respectively. Focusing on these aspects and creating a culture of fairness and respect is essential for making your workplace effective. By investing in their people and prioritizing fairness and respect, manufacturers can maximize the market’s opportunities and succeed in the coming times. Organizations that can achieve this will be better equipped to navigate the challenges of a rapidly changing market and succeed in the long run.

The manufacturing industry has consistently reported low levels of employee engagement across all aspects, with a 3% lower perception than other industries. The current state of the industry in 2023 shows that the difference between manufacturing and other sectors ranges from 1% to 5%, with the highest distinction in employee perception of impartiality (5%) and the least in the corporate image (1%) and personal job (1%).

Even the highest-scoring workplace culture aspects, including corporate image, justice, team, private employment, and competence in the manufacturing and production (M&P) industry, are 2% below average compared to other sectors.

Areas of Improvement

Despite this, employees in the manufacturing industry report the highest positive experience on pride, justice towards personal aspects, and management competence in running a business. However, areas of improvement for the sector remain fairness at the workplace and leadership behaviors that enable the involvement of everyone in decision-making, candid communication, and delivery of promises.

Although the above remains true, blue-collar and white-collar workers have unique needs; Best Workplaces acknowledge and actualize them. As a result, employees at the Best Workplaces in both groups report higher experiences (+8% and +7%, respectively) than others.

The three facets of fairness that require prioritization include impartiality, justice, and equity. Detachment by managers, fair treatment regardless of an individual’s age, gender, race/caste, and sexual orientation, and equity in treatment, compensation, and opportunities for recognition.

Way Forward

To move forward in 2023, the manufacturing industry must prioritize fairness as it is the lowest-scoring and most significant differentiator. Best workplaces outperform the industry by 6% and others by 9% on fairness. Experiencing fairness at the workplace results in the increased motivation of 22% and 16% higher intent to stay. Among all aspects, most fair organizations differentiate utmost on impartiality by 28%.

The manufacturing and production industry should commit to fairness. Three action items to create an impartial workplace include:

Despite the testing times and mid of the company’s transition, PGP Glass ensured all possible ways to retain employees by implementing practices that enable a fair work environment, such as being an equal opportunity employer, having zero tolerance for any form of discrimination and harassment, and having a whistle-blower policy. The company also focuses on competence and connection as they define an effective leader.

At best workplaces, 10% more employees respond positively to management that shows competence in running the business and builds authentic connections at the workplace. In addition, organizations that focus on fairness and effective leaders observe a significant rise (+8%) in the overall workplace sentiment of employees.

The manufacturing industry must build a fair, transparent workplace to retain and motivate employees. This includes having fair/bias-free practices and ensuring that managerial behavior is aligned with employee needs. Along with competence in providing business results, leaders must focus on building authentic connections and demonstrating care for people consistently.

To know more about the manufacturing industry’s workplace culture, download our detailed report Here.