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Today, as promised, our newsletter, the third and final part of this series, "Manufacturers Month October 2021", will be taking a look at the "Biggest Changes and Present Challenges" that Covid-19 continues to bring to our local industries.

 

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Parts I and II

 

If you were able to read Parts I and II you are aware that the Lebanon Valley Economic Development Corporation (LVEDC) has been participating with many other economic development corporations throughout the State since 1997 in a State-wide Calling Program. The current Program is called ENGAGE! The program is designed to encourage one-on-one visits with County businesses. These visits allow the staff a chance to lend a listening ear, share resources and gauge the needs of the business community.

 

These visits also lend an opportunity to see how companies were faring since the on-set of Covid-19 up until now. Four basic pieces of information were gathered. It was very interesting to hear the answers to these questions:

 

I) Number of Employees

II) Number of Open Positions

III) Supply Chain Issues

IV) Biggest Changes since Covid-19.

 

While these seem like very basic pieces of information, they frequently opened conversation that spoke to generalized concerns, specific issues, challenges, and opportunities that each Company was experiencing unique to them. It also gave us here at the LVEDC, Lebanon's leading Economic Development Corporation, additional insight into the common challenges that are being faced daily and knowledge of solutions being utilized.

 

Our intent in sharing this information is that it will become a catalyst for more regular open communication across the different sectors of industry, encouraging the sharing of daily challenges and solutions. This has already begun as we have received positive and encouraging remarks since the publication of Parts I and II. 

 

As you recall, Part I addressed the workforce shortage challenges and the fall-out that occurs when trying to run production lines or multiple shifts while only partially staffed. It addressed solutions employers have used, including building a welcoming and culturally appropriate environment, increases in starting wages/equalizing the wages within their facilities, upgrading benefits, bonuses, and increased recognition and valuation of their employees. Despite these industry wide changes, many employers are still having a tough time attracting and retaining staff. There are no easy answers or quick fixes as there are many reasons for this on-going trend.

 

Part II looked at how the supply chain disruptions were affecting our local companies and the creative solutions that some were implementing to combat the disruptions.  

Part III. BIGGEST CHANGES AND PRESENT CHALLENGES

Shift in Perspective of Values

 

When the Covid-19 Pandemic lock-down disrupted our lives, economy, and every corner of the globe, the entire world went quiet. In that space of unprecedented silence, people everywhere took the time to re-evaluate their lives, relationships, time-commitments, dreams, jobs and careers. Many persons re-evaluated their previous choices and values to see if they still held relevance in a life that could at any time be cut short by Covid-19.

 

These soul-searching evaluations resulted in a major shift in perspective for millions. People began searching for a sense of meaning and value. They recognized their desire to be in more control of their time. Some people with no career path, future growth, or who felt undervalued, chose to switch careers or retire.

 

Still others decided to write "that book", pursue a passion project or start their own business. 2020 recorded the highest number of Entrepreneurs ever, "According to the Census Bureau, more than 4.4 million new businesses were created in the U.S. during 2020 — the highest total on record. For reference, that’s a 24.3% increase from 2019 and 51.0% higher than the 2010-19 average. Half a million new businesses were started in January 2021, alone. Data from our most recent B2B survey shares how and why new small business owners took the leap over this past year, and why many may reap the benefits." (1)

 

Some decided to tighten their belt and ride out Covid-19 due to fear of the virus. This mindset is revealed by the fact that savings reached an all-time high in the US during the worse of Covid-19. (2)

Fall-out from this nationwide evaluation has led to what many experts are calling the "Great Resignation" or "The Big Quit". This is the ongoing trend of employees voluntarily leaving their jobs, from spring 2021 to the present, primarily in the United States. (3)

In addition, hearing about the uptick in Covid-19 deaths daily made many single parents and care-takers of persons with compromised immunity systems wonder and worry about who would take care of their children or loved ones if they would contract Covid-19 at work and pass away from it. To protect their children or their loved ones, many of these single parents and caretakers have yet to return to the workforce. Statistics show that women and persons of color have been impacted the most. Now, those that would like to go back to work are facing the lack of adequate childcare. This, is not only a local concern, but a nationwide challenge. Although fear is not often spoken about, it is a very real driver influencing the culture of the workplace.

 

How is all this fear and fall-out affecting the mental health of the workforce?

Mental Health in the Workplace

An article written in the Harvard Business Review titled "It’s a New Era for Mental Health at Work" by Kelly Greenwood and Julia Anas states regarding the high prevalence of mental health challenges in the workplace, "Mental health challenges are now the norm among employees across all organizational levels. Seventy-six percent of respondents reported at least one symptom of a mental health condition in the past year, up from 59% in 2019. While that’s not surprising due to the many macro stressors, it supports the notion that mental health challenges affect nearly all of us on a regular basis". (4)

 

Trust, Respect, Loyalty and Communication:

4 essential parts of any relationship

 

One Plant Manager that I spoke with shared some powerful insights into how the lack of open face to face communication negatively impacted the mental-health of their employees and ultimately the company.

 

They noted historically there had "always been a divide in communication between management and employees" and when Covid-19 restrictions were put into place, the tension in the facility quickly became palpable. They said that the lack of open communication and having no outlet for the employees to discuss and resolve concerns and issues, led to a raise in fear, resentment, anger, and animosity toward management. These employees, feeling unheard and cut off from management, turned to each other for support. One negative impact was that rumors started to abound within the facility.

 

It was only after open communication was re-established and a meeting was called to address the concerns and fears that the anger toward management abated and the rumors subsided. Although the environment within the facility is not quite where it was pre-covid-19, it is much better than it had been when the "open communication" component was eliminated for health and safety concerns.

 

This astute manager's insights are supported by Jennifer A. Williams, an Executive Coach and Relationship Strategist; (Jennifer specializes in leadership, team building, and emotional intelligence).

She noted:

 

"Some direct consequences of poor communication in the workplace for teams are:

• Strained employee relationships

• Ineffective project development and work habits

• Poor employee morale

• Lack of respect for each other or management

• Gossip and backbiting

• Wasted time and resources

 

As shared by SHRM, the Society for Human Resource Management, in “The Cost of Poor Communications,” a survey of 400 companies with 100,000 employees each cited an average loss per company of $62.4 million per year because of inadequate communication to and between employees. That number is per company!" (5)

 

A final insight from this local manager revealed the importance of open communication. When a disgruntled employee leaves, an employee that felt unheard and consequently under-valued, that employee takes their "negative experience" with them out into the community. That narrative can go anywhere. The company will often develop a reputation as an "unfriendly employer that does not treat it's employees well". In instances like these, the concern was raised about how these irrefutable perceptions impact the ability to fill open positions.

Another Plant manager spoke to this concern. He stated that his company has raised wages, added incentives, bonuses, educational classes, and helped with transportation issues for his employees. However, he felt that if the employees did not feel recognized and valued, that the higher wages would not keep them there long-term. He stated while all these upgrades played a part in being able to hire additional employees, building loyalty among them once they were part of the company was the bigger challenge. He noted that loyalty is a two-way street and building trust is a big part of the process. He stated it starts with open communication, and the willingness to hear an employee's concerns and challenges.

 

This dedicated plant manager started actively working to create that sort of supportive environment. First, he hired additional HR staff and worked closely with them, and second, immediately started investigating complaints/concerns with the intention to have them resolved with 48 hours. He realized through experience that silence often triggers fear and distrust so in the interim, all parties involved are kept up to date on the findings.

 

The experiences of this manager and the others that were interviewed, combined with the national trend of persons leaving their jobs voluntarily, has led me to believe that the shift in perspectives and values that took place during the enforced lock-down has fundamentally changed the way millions of people now look at life. These changes in perspective are still being defined meaning that many of these millions are still coming to terms with these changes and how these changes are going to affect their lives long-term.

Where does that leave the employer, that is doing everything they can to attract potential employees and retain the ones they already have?

 

Maybe the answer lies in understanding the magnitude of this shift in perspective and how multi-dimensional that it is. For one, there is definitely a power change between employers and employees. Employers historically held the power, often with the mentality of "My way or the highway". Many persons, when they were laid off due to being a non-essential worker, learned that they were capable of living on far less financially. They actively embraced a simpler more sustainable lifestyle. These persons when in a job that they may view as unfulfilling, no longer fear the "highway" but instead look to it as a path to build another way of living.

 

These factors, in addition to the ones discussed previously only cover the commonly acknowledged ones. The reality is that for everyone who is evaluating their life right now, there are a multitude of additional personal factors that will determine their final decision of whether they go back to work full-time, part-time, never or leave a present job.

 

Many of these factors are outside of an employer's control. It can seem like the only options employers have is to continue offering a supportive work environment that actively addresses these on-going concerns for present employees while waiting for the tight workforce market to loosen up.

Vaccine Mandate

 

Another concerning change has to do with the impending vaccine mandate that will affect companies having over one hundred employees. This mandate, if enforced will affect a staggering eighty-four million full and part-time employees nationwide.

 

Our interviews showed that regardless of whether the employer was in favor or not of the mandate, all of them had the same concerns, "How do they enforce the mandate? Where do they get the extra resources, money and staff to oversee what employees are vaccinated or have tested negative when they come to work? How do they do this, especially between shifts? How does the company absorb that additional expense and time when many are already working with less than an ideal number of staffing? What happens to their (perishable) products when they do not have enough employees to run lines or deliver their products in a timely manner because the employee has been sent home due to lack of vaccination?

 

In early November this mandate was temporarily paused by multiple federal appeals. (6) This pause was then supported when a three-member panel of the 5th US Circuit Court of Appeals in New Orleans cited "grave statutory and constitutional" concerns about the mandate. (7)

 

In preparation for the implementation of this mandate, one employer took an informal poll among his employees. His intention was to find out how many were vaccinated and how they felt about a mandatory vaccination enforcement.

 

He was dismayed to learn that 50% of his workforce stated they will walk off the job if a vaccination becomes mandatory. Being a food manufacturer, and having multiple contracts outside of the State, he was understandably concerned about not being able to meet his obligations. His frustration was heightened by knowing that if he did not enforce the mandate, and would allow employees to work unvaccinated, he could be fined $14,000+ per employee per incident.

 

The future impacts from this vaccination mandate have yet to be realized.

 

Conclusion

In summary, the past 18 months of Covid-19 has created incredible challenging times nationally across the U.S. and here locally in Lebanon County. Daily, obstacles arise stretching thin resources, time, management and employees who are already feeling the strain. Despite the challenges, many of these obstacles have been met successfully head-on through-out the pandemic.

 

I believe this is due to the collective experience, wisdom and dedicated hard work of our local industry leaders. Everyone spoken with was determined to continually and actively look for ways to keep their workers safe while at the same time meeting their business obligations. If history is any indicator of what the future holds, with all the positive changes being made going forward, many industries will bounce back stronger than they were pre-Covid-19. In large part due to the healthier dynamic of valuation, trust and loyalty being built with open communication, which has at times been missing in the viewpoint of many millions of potential employees.

 

(1) https://www.salesforce.com/blog/small-business-pandemic-entrepreneurs/

(2) https://www.statista.com/statistics/246268/personal-savings-rate-in-the-united-states-by-month

(3) https://news.harvard.edu/gazette/story/2021/10/harvard-economist-sheds-light-on-great-resignation/

(4) https://hbr.org/2021/10/its-a-new-era-for-mental-health-at-work

(5) https://blog.heartmanity.com/consequences-of-a-lack-of-communication-in-the-workplace

(6) https://deadline.com/2021/11/federal-court-issues-stay-biden-vaccination-mandate-large-companies-1234869432/

(7) https://nypost.com/2021/11/12/court-affirms-pause-on-biden-vaccine-mandate-for-private-companies/

We would love to have additional input from companies and businesses we were not able to visit with. If your company would be interested in having one of us stop in or would like a copy of our previous newsletters, Part I and Part II, please contact mkulbitsky@lvedc.org.

 

Out of respect for your time, we will work hard to keep the meeting under an hour.