Supply Chain Talent. Focus On Meaningful Work to Build Employee Satisfaction

The supply chain talent discussion in the middle of the COVID-19 pandemic is quite different from six months ago. As we work at home through online meeting formats, the work is the same, but the culture is quite different. However, there is a constant. Employee satisfaction drives better work outcomes. In our correlations of supply chain cause and effect, manufacturing companies with more satisfied employees have lower total costs and higher price to book ratios. Not only are costs lower, but corporate value increases.

While we may know this intrinsically, it is useful to remind ourselves that talent is not a cost, but an asset. I am unsure if we will be short 5%, 10%, or 15% of available and skilled workers in 2030, but I believe that with retirements and process shifts that the only constant is change. The goal of this post is to usher a warning: senior supply chain leaders (baby boomers) are more satisfied than Millenials and Gen X. European supply chain leaders are more satisfied than those in North America. Senior leaders are not doing a good job of passing the torch of knowledge and improving the job satisfaction of younger generations. Here I share some results from a recent study.

What Did I Learn From This Study?

1. Want a satisfied employee? The answer is to give them meaningful work. There is a strong correlation between job satisfaction and the belief by the individual that the work is meaningful.
2. Finding Skills Is An Issue. While finding the right skill set is an issue in both Europe and North America, Europeans are more satisfied with European graduates at an 80% confidence level. The most important attribute is problem-solving skills.
3. Foster Ownership. The best boss fosters ownership of projects and programs. This characteristic is more prevalent in European teams.
4. Be a Good Boss. Clear communication of strategy and direction by the boss correlates to job satisfaction. This is the most important factor in being a good boss. Less than 40% of business leaders are clear communicators. Most employees are not clear on strategy, and the network design work is not connected to business strategy plans. Companies are awash with vague terms like end-to-end planning, control towers, visibility without actionable definitions.
5. Technology Limitations Frustrate Gen X. North America is Less Patient Than Europe. The challenge with business executives understanding supply chain is universal across the continents, but the employees in North America, especially Millenials are frustrated with software capabilities. Someone aptly said to me this week, "I know more about the Pizza delivery for lunch than where my inbound freight will arrive at the factory."

Lora's Take

As I traveled the world and spoke to supply chain leaders and worked with supply chain teams, I believe that:

1. The quality of education in European universities is superior to that in North America. There is more rigor in building problem-solving skills and on-the-job skill-building.
2. North American teams have more burnout. Layoffs, mergers, and acquisition labor churn are higher in the States due to labor rules and regulations. This in combination with less vacation and time-off is an ongoing stressor.
3. Technologists are happier than business users. The issue is internal politics. As supply chains moved from local to regional to multi-national to global few companies defined governance well enough to reduce internal friction and politics. The reliance on spreadsheets and email foster passive-aggressive communication.
4. Analytical skills are in short supply. Critical positions include demand and S&OP planning. These require a strong skill set in problem-solving and internal influence management. Supply chain execution positions in warehouses and logistics are not experiencing the shortages. Universities need to focus on building planning skill sets.
5. Talent is the missing link. We are not doing a good enough job of transitioning supply chain understanding across generations. Likewise, we are not closing the gap with business leaders to understand the supply chain as a complex non-linear system. The lack of clear communication of strategy and the definition of meaningful work is a barrier in many companies.

As wildfires burn, and scientists push to find a COVID-19 vaccine, I believe that the supply chain matters more and more. I believe that great supply chain leaders are needed to improve corporate social responsibility and bring critical supplies like vaccines to the market. My plea? Let's focus on closing the gaps in job satisfaction and improving supply chain talent.

At the end of the day, supply chains are run by people for people. Talent continues to be the missing link for most. These are my thoughts. I welcome your ideas.