People and profitability: A time for change


Oct 06, 2009

In May 2009, Deloitte, the Manufacturing Institute and Oracle jointly conducted a national survey of manufacturing organizations to assess the future importance of, and current performance of, “people management practices” relative to business success.

These manufacturing organizations were also asked to identify the top drivers of their future business success, and to comment on talent shortages experienced today and expected within the next two to three years. The report indicates an ongoing talent challenge facing manufacturing organizations and a continued need for them to embrace new and progressive talent strategies.

The key findings of the report are:

  • A shortage of specific skills persists
  • A high-skilled, flexible workforce continues to be recognized as critical to business success
  • The most profitable companies consistently assign a higher importance to talent and people management practices compared to the least profitable companies
  • Significant gaps exist between the future importance of people management practices compared to current performance

Even during this period of significant economic challenge, the importance of careful talent management to business success is resounding. The largest gaps between future importance of people management practices and current performance are found in the following categories:

  • Strategy
  • Talent acquisition
  • Talent development
  • Performance expectations
  • Technology deployment

In particular, large companies perceive large performance gaps relative to the importance they assign to technology deployment in support of talent management.   

To read the full report, click here.