Focus on Job Quality Through Automation to Reduce Employee Turnover
Fast Company suggests companies should focus on improving the employee experience through automation rather than solely trying to cut labor costs.
CEOs are frequently concerned with employee retention, seeking ways to reduce turnover and keep top talent. Fast Company argues that the approach should shift from merely trying to retain employees to building workplaces they don't want to leave.
High employee turnover is common in manufacturing, particularly in low-wage, repetitive roles. Some sectors, like consumer electronics contracting and food processing, see annual turnover exceeding 100% in certain positions. Many companies budget for this expected churn.
Fast Company proposes that automation strategy development should begin by examining employee turnover. Instead of asking "What can we automate?", the question should be "What are the jobs people keep leaving?". These are often repetitive, physically demanding, and ergonomically challenging tasks that employees are unwilling to perform long-term.
Automation should aim to eliminate undesirable tasks. The most effective automation solutions not only reduce labor costs but also increase the value of remaining employees. As routine tasks disappear, employees can transition to more demanding roles, acquire new skills, and advance their careers.
Employee commitment stems from feeling invested in by the company. Properly designed automation can be a significant people investment, creating safer jobs, more meaningful career paths, and a culture where employees choose to stay.