Proactive Technologies Report – June, 2022

___________________________________________________________________________

The profit from, and value of, most worker’s labor comes from task-based work, so all inputs that drive workers to high-performance, high-capacity output are investments.

___________________________________________________________________________

As discussed in many articles in past issues of the Proactive Technologies Report, although labor costs are considered direct costs from an accounting standpoint, they should be more importantly considered as an investment in the operation’s overall level of competitiveness. Operations may vary as to the level of return on investment from labor, but each worker’s cumulative expertise gained while employed becomes an asset to the operation akin to intellectual property and, therefore, wages and compensation paid to develop a worker are an investment. Read More

In the 1990’s, investors started to look at the National Security Agency’s and Central Intelligence Agency’s “key-word search” capabilities used to scan millions of documents from around the world for specific words and phrases to expand their intelligence gathering reach. They saw applications of this technology in the civilian world, including scanning the mounds of resumes and employment applications employers had to filter in order to find a few new-hires. On the surface, this seemed to be a godsend.

Soon employers and employment candidates saw what the developers of this technology did not. The technology first had to count on employers having accurately designed job descriptions in consistent formats, using standardized terms, words and phrases to describe pre-hire knowledge, experience, skills and abilities of interest. The fact was reality couldn’t have been farther from this, with job descriptions written 50 years prior, written precisely for someone the employer wanted to hire (not so reflective of the actual job requirements), or cut & pasted from a handy library resource. Read More

In short, the report led one to believe that employers overall wanted to make pay fairer, but one got the impression that there was no clear path. It is difficult in this environment to talk about raising workers wages without shareholders mounting a revolt. But with the reported shorted of skilled labor, the difficulty in training workers with a lean staff and no structure, strategy or record keeping, etc. an area of compromise has to be reached. If not, skilled workers will not apply, or stay, and the shareholder profits will definitely be affected. It is the “bullet that needs to be bit” to get the economy working like it did so well post World War II when everyone felt they had a chance at doing well for themselves and their family.

One easy-to-set-up, easy-to-implement, low investment/high return strategy for paying workers for the documented value the employee has accumulated has been discussed in previous Proactive Technologies Report articles, most recently “A Pay-for-Value Worker Development Program – Fair to Management and Workers, and Effective Too!” and previously in “Pay-For-Value Employee Programs.”

Developing each worker should be a linear process in spite of inputs from all direction. A person is selected based on closeness of fit with established criterion. The person is then trained on the units of work for which they will be responsible. Once proficient, the person routinely performs these tasks – evaluated at some point based on set criterion for their level of performance and, in some cases, compensation is assigned accordingly. Feedback on how to improve performance is given and additional incentivized development goals can be assigned to drive work performance even higher. Read More

For decades employers have been laxed in their need to develop the most productivity and worker capacity from their workforce. It became more a hunt for “bodies“ than for developing more skilled workers. Most employers like to think that their in-house programs for training workers, once hired, meets their needs, but scratching the surface in most cases proves that there is very little structure, no plan, there is no documentation, and no sense of purpose. For most employers, people are hired, they are paired up with one of the existing workers and, hopefully, the existing subject matter expert will transfer expertise to the new worker to a level that, one day, might be recognizable.

Some companies that are struggling with high turnover, and/or a surge of growth, see many of these workers can get lost in the shuffle. Some continue to hire more “bodies” who then wait for someone to train them to do something. Workers that could have been star performers are let go because there is no structured way to measure the outcome of the training process to anyone’s satisfaction. Then again, many workers leave employers when they discover that there is no way to improve themselves in the job classification. Read More

Proactive Technologies will be working with SK Food Group associates to set-up and implement structured on-the-job training programs for new-hires and incumbent workers for positions such as Maintenance Systems Technicians, Packaging Technicians and Quality Control – many of which to be registered as apprenticeships.

We look forward to working with the associates of SK Food Group!