Manufacturing, oil and gas, chemical processing—the industrial sector finds itself facing an aging workforce on the brink of retirement. In the oil and gas industry, 41% of workers are 45-65 and over, with 77% planning to leave the industry.[1] In manufacturing, that figure is even higher with over 51% of employees falling into the 45 to 65+ age bracket.[2]

This demographic shift raises concerns about brain drain—the loss of valuable knowledge and expertise as experienced workers retire. In fact, the Manufacturing Institute reports that 97% of firms express concern about brain drain, with nearly half “very concerned” about the issue.[3]

And no wonder, knowledge gaps are estimated to cost large businesses $47 million per year due to missed opportunities, frustration, time wasted, and delayed projects.[4] So what can companies do to combat this loss of critical knowledge and expertise?

The two-fold role of Competence Management

One strategy is to offer experienced workers flexible work arrangements, such as part-time or reduced hours, to encourage them to stay in the workforce instead of retiring.

Another strategy involves providing training opportunities. In fact, 63% believe in-house learning and development can provide a solution.[5]

And that’s where Competence Management comes in.

When it comes to stemming the brain drain, the role of Competence Management is two-fold:

#1. Helping the older workforce

Competence Management is not just about keeping workers up to date with the latest technology on the factory floor. Workers nearing retirement might feel undervalued without enough challenge or if they sense their skills are lagging. By offering professional development opportunities, you can empower them to build their skills and feel more confident and engaged in their work.

#2. Helping the younger workforce

With decades of hands-on experience in problem-solving, operating specialized machinery, and navigating evolving processes, senior workers bring a wealth of wisdom and expertise to the table. They’ve witnessed technological advancements firsthand, weathered shifts in market demands, and honed their skills through countless challenges, making them invaluable assets to any manufacturing team.

Yet worryingly, many employers aren’t tapping into this valuable resource before these workers retire:

• 57% of baby boomers admit to sharing less than half of their job knowledge with their successors.
• 21% haven’t shared any knowledge at all.
• Only 18% feel they’ve passed on all their expertise.[6]

Mentorship programs can bridge this gap, allowing experienced workers to pass on their skills to new employees. Competence Management can provide the framework— capturing the expertise of the retiring workforce and transferring it to the younger generation.

Putting usability first with TenForce

Implementing a competence management system can help you tackle the challenges of an aging workforce head-on. But there’s a catch. Success hinges on how easy and accessible it is to use. Especially in manufacturing, where such a large proportion of employees are aged 45 to 65+, having an easy-to-use tool is key.

This is where TenForce shines.

With its user-friendly interface and intuitive navigation, getting to grips with TenForce is easy. And automated alerts and reminders help keep employees on top of their tasks and training schedules.

And, when it comes to managing competence in your workplace, with TenForce you can:

• Plan and execute employee training effectively.
• Keep track of the skills required in your workplace and automatically detect gaps.
• Maintain a centralized view of all your employees’ skills.
• Monitor competence tracks with real-time analysis and advanced dashboards.
• Automate the scheduling of refresher training and certification renewals.

When it comes to tackling the brain drain, selecting the right competence management system is important. With a focus on simplicity and accessibility, TenForce supports companies with an aging workforce, helping knowledge, skills, and expertise flow from one generation to the next.

Find out for yourself by watching our on-demand Competence Management webinar.

References

[1] Global Energy Talent Index, airswiftgeti, 2020, https://www.getireport.com/.

[2] Lightcast Labor Market Data, Lightcast 2023, https://lightcast.io/about/data.

[3] The Aging of the Manufacturing Workforce, The Manufacturing Institute, 2019, https://themanufacturinginstitute.org/research/the-aging-of-the-manufacturing-workforce/.

[4] The Workplace Knowledge and Productivity Report, Panopto, 2021, https://www.panopto.com/resource/valuing-workplace-knowledge/#Report

[5] The Global Energy Talent Index

[6] Boomers Staying in—and Returning to—the Workforce, Express Employment Professionals, 2019, https://www.expresspros.com/Newsroom/America-Employed/New-Express-Poll–Boomers-Staying-in-and-Returning-to-the-Workforce-.aspx