Conference Examining People Issues in the Auto Industry
23 March 1999
The Graying of the Auto Industry and the Shortage of Skilled Labor are Among the Topics Discussed At First-of-its-kind Conference Examining People Issues in the Auto Industry
DEARBORN, Mich.--(Automotive Wire)--March 22, 1999--And Solutions for Dealing with Changes in the Industry
The graying of the auto industry will create a major human resources dilemma for many auto manufacturers and suppliers over the next five years, according to experts attending a forum to discuss how changes in the auto industry will affect the role people will play and the skills they will need in the future.
"As many as 40 to 50 percent of the auto industry workforce will be eligible to retire in the next five years," stated Jeff Schmidt, a principal at Towers Perrin and an expert in strategy and organizational effectiveness. "Auto companies must decide if they will replace these retirees with similarly skilled workers or redesign their jobs and recruit more technologically advanced workers."
The aging workforce within the auto industry was just one of the topics discussed at the all day conference, "Connecting for Results - A Conference on Human Resource Issues for the Auto Industry," which was held at the Dearborn Inn, just minutes from downtown Detroit. The conference was co-sponsored by the Office for the Study of Automotive Transportation (OSAT) at the University of Michigan, which provides research and analysis to the auto industry, and Towers Perrin, one of the world's largest management and Human Resources consulting firms.
"This conference was long overdue," said David Cole, director of OSAT, which hosts three or four special topic conferences annually. "Over the years, we have looked at numerous issues that affect the auto industry. But for some reason, the industry has never viewed people issues as a top priority. I believe those attitudes will change following this conference."
Indeed, a number of provocative issues were discussed at the conference including how to contend with the shortage of skilled labor; integrating corporate cultures as a result of mergers and acquisitions; and implementing information sharing strategies to help improve performance.
"The shortage of skilled labor in the auto industry is a very serious problem," noted Mike Ponicall, Managing Director, U.S. Central Region at Towers Perrin and an expert on employee benefits. "Perhaps for the first time in decades, the auto industry must develop creative ways to recruit and retain skilled workers. And managers in the industry must ask themselves, what can I do to keep employees loyal and excited? Keeping employees empowered and motivated are two keys to meeting this challenge."
Schmidt concurs. "The shortage of skilled workers is partially a result of changes in work requirements as the industry moves from an auto parts or components mentality to a systems mentality," explained Schmidt. "Rather than simply manufacturing an auto part such as an odometer, suppliers are frequently being asked to manufacture a whole system such as the entire dashboard. As a result, many workers -- such as design engineers -- are being asked to expand their skills to meet these new work requirements.
"In essence, the automotive sector is transitioning from an industry of unskilled workers to an industry of knowledge workers. And they must compete with other industries for this skilled talent. One of the goals of this conference was to offer auto executives strategies and solutions for attracting and retaining these workers."
The conference featured "Stories from the Front" - personalized accounts from five industry leaders on actions they took to adapt to changes within their companies and the industry. Richard "Skip" LeFauve, recently retired Chairman and CEO of Saturn Corporation, talked about how he sought collaboration between unions and management to demonstrate to the industry that the two sides could come together for a common goal.
Kathleen Oswald, Senior Vice President of Human Resources at DaimlerChrysler; Kenneth Cameron, former NASA Astronaut and an executive at SAAB, and Richard Teerlink, recently retired chairman at Harley-Davidson, Inc. were among the executives that shared their personal stories.
"The Stories from the Front featured a number of key leaders within the industry," said Cole. "I hope the industry leaders attending this conference will leave with new ideas and strategies to help transform their companies into even more competitive global businesses."
In addition to leaders within the auto industry sharing their experiences, participants, many of whom are top executives within the auto industry, received insight from Human Resource executives from other major corporations including IBM, McDonald's and 3M.
This conference is the first in what is expected to be a series that address people issues within the auto industry. Asked, what he hoped to achieve at this first conference? Ponicall responded, "Perhaps the greatest result we can achieve from this conference is for human resources executives in the auto industry to recognize that they have an important role to play not only in adapting to the changes taking place within the auto industry but also in influencing those changes."
The Office for the Study of Automotive Transportation (OSAT) at the University of Michigan focuses on the future of the international automotive industry. Its overall objectives are to provide industry research and analysis, information resources and communication forums to the continually changing needs of the international automotive and automotive-related industries.
Towers Perrin is one of the world's largest management and Human Resources Consulting firms. It helps organizations improve performance and manage their investment in people, advising them on human resource strategy and management, organizational effectiveness, compensation, benefits and communication. The firm has more than 8,100 employees and 78 offices in 71 cities worldwide.