Improving management and leadership performance remains one of the biggest challenges facing UK manufacturing companies, according to a survey of over 300 HR professionals published last week by the EEF (www.eef.org.uk); it says that addressing this could improve the productivity performance of the economy overall.

The survey also shows that such skills are in huge demand, with 59% of manufacturers saying the priority for growth is people management and leadership; it adds that while 85% of HR professionals believe that their firm’s managers are good in functional day-to-day work, they do not lead as part of their role.

Just 15% say that there is strong leadership at every level of the organisation, with managers creating a sense of purpose and direction for their team, while 46% believe that their managers do not make good role models (with 56% of them unable to recognise the need for change).

The EEF’s Lee Cattermole said: “As we enter the fourth industrial revolution, attracting, retaining and developing future leaders is going to be a key driver in companies’ ability to improve their productivity and overall
performance.”

To help companies assess their own management effectiveness, the EEF has launched a free analysis tool that will help professionals identify potential skills gaps while providing pointers on how to plan effectively for change.

Details can be found at the Web site (www.eef.org.uk/make-great).

Meanwhile, further data from the EEF shows that labour turnover has fallen, as workers decide to sit tight. This shows that the number of people leaving companies through resignation, redundancy, retirement or dismissal fell last year to 14% (from 16% in 2015).

The biggest drop can be seen among manual workers, where turnover fell from 17% to 12%. Smaller firms saw the lowest levels of staff turnover, with those employing 50 or under seeing a level of 10% compared to 17% for larger employers (251+ employees).

EEF chief economist Lee Hopley said: “These turnover figures reflect a number of diverse economic factors affecting employees and employers alike last year.

“These range from workers wanting to sit tight because of Brexit uncertainty through to firms looking to hold on to people in order to capitalise on the export boom coming from the weaker pound and the stronger outlook in overseas markets.

“That said, firms need to keep a close eye on productivity levels and ensure that they have the right culture and processes in place to keep employees motivated and focused.”