77% manufacturing firms facing challenges in filling frontline manager roles: UKG survey

An overwhelming 96 percent of organizations find their state's current labour laws and regulations effective in fostering a favourable working environment for the manufacturing industry.

Among manufacturing organisations, 77 percent find it more challenging to fill frontline manager roles compared to non-manager roles, according to a survey conducted by HR solutions provider Ultimate Kronos Group (UKG).

Moreover, 84 percent of manufacturing employees (32 percent strongly agree, 52 percent agree) acknowledge that there are two separate cultures in their company: one for frontline workers and one for everyone else, said the study, which surveyed 314 HR leaders in India-based manufacturing organisations to gauge the impact of labour supply, labour laws and compliance on operations.

A significant 94 percent of manufacturing employees (51 percent strongly agree, 43 percent agree) affirm that their company is actively trying to provide more flexible work arrangements for frontline workers. However, 69 percent of employees (31 percent strongly agree, 38 percent agree) feel that their organisation is not doing enough to take advantage of mobile technology to support the frontline employee experience

Impact of labour laws and compliance

In the fiscal year 2019-20, amid the peak of the pandemic, the Parliament enacted four new labour codes. These codes consolidated a network of 29 central labour laws and encompassed the Code on Wages, 2019; the Industrial Relations Code, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; and the Code on Social Security, 2020.

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Despite this, certain states are still in the process of formulating and publishing rules to implement these codes, given that labour is subject to the jurisdictions of both the Union government and individual states.

An overwhelming 96 percent of organisations find their state's current labour laws and regulations are effective in fostering a favourable working environment for the manufacturing industry. Regarding year-over-year changes in compliance costs in the past 12 months, 75 percent of organisations noted small changes, 50 percent reported a moderate increase and 25 percent indicated a significant increase.

The survey included manufacturing organisations from different Indian states, with the breakdown as follows: Andhra Pradesh (10 percent), Bihar (11 percent), Gujarat (14 percent), Haryana (10 percent), Karnataka (15 percent), Maharashtra (32 percent), Tamil Nadu (15 percent), Telangana (6 percent), Uttar Pradesh (13 percent), West Bengal (7 percent), and Other (3 percent).

Frontline employee experience 

According to the study, 52 percent of Indian manufacturing organisations have adopted flexible scheduling practices, empowering employees with the autonomy to set shift availability, swap shifts, or extend working hours.

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Other key offerings include 51 percent of the organisations prioritising employee well-being through wellness programmes, 49 percent of the organisations extending financial wellness benefits such as earned-wage access and same-day pay, 39 percent utilising an employee communications mobile app, 34 percent offering hybrid or remote-work options and 34 percent of the organisations emphasising predictable work schedules. Additionally, 27 percent of the organisations provide paid time off and 44 percent offer training and development opportunities.

“As we navigate the intricate landscape of Indian manufacturing, our survey unfolds a narrative of progress and people-centric innovation. A compelling 52 percent of manufacturing organisations have embraced flexible scheduling practices, underscoring our commitment to empowering frontline workers. This not only provides them with autonomy over their work hours but also signifies a pivotal step towards a more agile and employee-focused industry.

Furthermore, the resounding 96 percent endorsement of the effectiveness of state labour laws in fostering a positive working environment amplifies the collaborative spirit driving the manufacturing sector's success,” said Sumeet Doshi, Country Manager at UKG India.