The petrochemical-rich nations in the Arab Gulf have long studied the decline of other resource-oriented economies — victims of what economists refer to as “Dutch disease”. GCC nations have thus far avoided the symptoms. But while the intricacies of long-term inoculation are a matter for seasoned academics, one important step is the diversification of national output. For example, many Gulf nations have government programs aimed at boosting the manufacturing sector.

In Saudi Arabia, it is called the National Industrial Strategy. The United Arab Emirates (UAE) has Operation 300bn. And Qatar ran the Qatar Manufacturing Strategy from 2018 to 2022. But building capacity and competitiveness is not without its challenges. One of these is skills gaps. In Qatar alone, manufacturers could have as many as 20,000 jobs on offer between 2022 and 2030 with nobody qualified to fill them. Competitive manufacturing organisations need prudent strategies, tightly run operations, and well-designed processes. Behind it all are innovative human professionals armed with a range of technical and soft skills.

Recruiters are on the hunt for qualified professionals. But not just for the technical knowledge they hold. Communication skills are critical — after all, what use is knowledge if you are unable to tell others about it in a clear and concise way? Troubleshooters and problem-solvers are not an inevitable byproduct of technical training either. Nor are other crucial aspects of manufacturing professionals such as safety awareness and attention to detail. The problem is that today’s well-rounded employees know they are market rarities. They can therefore pick and choose who gets to leverage their talent. So, Middle East manufacturers need to get strategic if they are going to fulfil their staffing needs.

The Modernisation Mandate

The modern employee wants to work for a modern company. That means one that is focused on the employee experience, technology, and sustainability. In an Epicor survey of frontline manufacturing workers, 60% said they would accept a pay cut to work at a more technology-driven factory, and 61% said the same of an employer that was focused on sustainability. In a seller’s labour market, GCC manufacturing enterprises must look to the needs of those sellers to attract and retain their skills. Legacy machinery and wasteful processes will act as drains for existing talent and repellents for potential recruits. A refresh of outdated equipment and procedures therefore yields a double benefit. It helps with productivity and helps to attract the best workers.

Another boon to both attraction and retention is the prospect of professional development. Upskilling is nearly always a sound investment that makes an employee more effective in their current role and, in their eyes, becomes a stepping-stone to future roles. If a manufacturer decides to invest in digital technologies like automation, ROI will greatly hinge upon the robustness of training in the new system. Depending upon business requirements, this training can be on-the-job, on-site, or off-site. Online courses can even be taken at home.

Listen up

Reforming enterprises must look to the work environment, as it continually emerges as a morale factor among manufacturing workforces. Factors in this category include workplace practices such as the amount of paid leave — holidays, sick days, and other personal time. They include the presence of flexible working, where employees have at least some control over their daily schedule, whether through the dictation of their own hours or through the blanket offering of a shorter working week. Companies will commonly find that employee engagement improves with the addition of non-monetary perks such as complimentary lunches, travel or vehicle allowances, and incentive schemes.

Open-door policies and empathetic leadership are indispensable. Not only is feeling heard an integral part of feeling valued, but if you are building a team for innovation and competition, your investment would be wasted if those talented people were not sharing their ideas freely and often. Once their ideas have been heard, assessed, and, in some cases, implemented, it is important to ensure that employees have access to the right tools to do their job optimally. Professionals who look for more modern factories in which to work do so because of the frustration that comes from being held back by technology. So, up-to-date equipment is worth the investment.

With the ideal elements in place, it is advisable to remember that they may not remain ideal. Keep the door open and keep on listening. Employees — especially the talented ones you have assembled, thanks to your new approach — are best placed to tell you when the gears are starting to grind. Obviously, identifying and fixing safety issues should be top of the agenda. But talented employees will also periodically come up with ways to improve processes, the sharing and assessment of which should also be a top priority. In our survey, among those respondents who considered themselves “heard” 74% also felt more engaged and effective and 71% said they would be more likely to share ideas in the future.

Keep on keeping on

Listening cultures have long had a reputation for being the source of innovation and competitiveness. Skilled employees understand their job, their industry, and even their customers. That is contextual knowledge that should not be squandered, so successful companies should never allow their listening cultures to stagnate. In our study, 64% of manufacturing leaders claimed high morale at their organisation while just over half (52%) of the frontline workers that report to them said the same.

To be ready for the diversified, resilient, sustainable economies of the future, GCC manufacturers must ensure they have the right skills in the right place. Good communicators and clever problem-solvers will be attracted by upskilling opportunities and great work environments. And they will stick with listening cultures. A talented workforce is what will set future manufacturers apart from manufacturers that will not be part of the future.  

Opinion Piece: Vibhu Kapoor, Regional Vice President - Middle East, Africa & India, Epicor

linkedin.com/in/vibhukap