HR for production

Content:

• The strategic gap in production
• HR as a strategic partner – even in manufacturing
• What this means in concrete terms
• A real-life example
• Conclusion: HR must go where value is created

Industrial companies are under enormous pressure: digitalization, skills shortages, volatile markets, and new generations with changing expectations. While HR has long been a strategic partner in many organizations, one area is often left out – production. Yet manufacturing employees are the backbone of value creation. It is time to think strategically about HR in this area too.

The strategic gap in production

93% of recruiters have difficulty finding new employees for physically demanding jobs – especially in industry, skilled trades, and services [1]. At the same time, there is a clear discrepancy between what HR considers important and what blue-collar employees actually expect: 

• HR focuses on leadership, benefits, and employer image.
• Blue-collar employees want job security, proximity to their home and simple processes. 

This gap is not only communicative, but also structural: many companies lack a clear strategic orientation for their HR function – especially in production-related areas. Only 27% of respondents see their HR organization as a strategic partner, while over 60% perceive it as an operational service provider [4].

HR as a Strategic Success Factor

HR strategy has become pivotal. In today's industrial landscape, HR's role is no longer just about filling vacancies; it must also preserve operational capability and serve as the bridge between humans and technology. Upskilling and continuous training are essential as evolving technologies are transforming job roles. Building a credible employer brand that highlights the unique aspects of industrial roles and appeals to skilled workers in shift-based or specialised work environments is equally vital. 

Companies that invest early in these areas will not only attract new talent, but also enhance retention. Another key component is change management. Every technological innovation represents a cultural shift, and success hinges on engaging people from the outset. HR can mediate between technical teams and the workforce, reducing misunderstandings and fostering acceptance. Looking beyond Germany's borders can also help — international recruitment can fill critical gaps and bring in new expertise.

HR as a strategic partner – even in manufacturing

According to studies, 72% of companies cite talent gaps as their biggest business challenge [2]. At the same time, only 35% of HR departments use digital technologies and only 30% use data analysis to identify personnel challenges at an early stage. In addition, the HR function in manufacturing companies is often underfunded, operationally overloaded, and strategically underrepresented. In manufacturing in particular, there is a lack of clear objectives, digital tools, and measurable HR metrics [3]. These figures make it clear that HR needs to reposition itself—with a strategy that also reflects the reality of production.

What this means in concrete terms

1. Develop a separate HR strategy for production HR can no longer just “go with the flow.” A dedicated target vision for manufacturing is needed – with clear roles, processes, and technologies. This starts with analyzing existing systems and ends with a roadmap that also takes the reality of work into account. HR organizations must reposition themselves in a field of tension between pressure for efficiency, talent shortages, and AI transformation [4]. 

2. Digital tools that are actually used QR-based training access directly at the workplace or mobile feedback apps make HR tangible – even without a PC workstation. 45% of blue-collar employees want to apply for jobs on the go, 35% without a cover letter, while 84% of HR managers continue to insist on complete application documents [1]. 

3. Participation instead of directives Workshops with production management and the works council create acceptance and genuine relevance. Surveys show that the works council and trade unions are significantly more important to blue-collar workers than HR assumes [1]. Companies that focus on participation and change management at an early stage are more successful in implementing HR initiatives [2].

4. Rethinking employer branding Personal recommendations and the Federal Employment Agency are the most important recruiting channels—social media is often overrated [1]. Campaigns must take place where the target group really is—and with messages that reflect their reality. 

5. Targeted use of data and technology Companies need to upgrade their HR functions technologically to enable strategic personnel planning, further training, and the use of AI [2]. Only companies with clear HR KPIs and digital infrastructure will be able to retain their blue-collar workforce in the long term [4]. Many companies are already rethinking their HR structures, particularly with regard to data-based management and strategic personnel planning [3].

A real-life example

In a medium-sized company, we worked with HR and IT to introduce a self-service solution that works even without PC access—via terminals and mobile devices. The result: less administrative work, more transparency, and a noticeable reduction in the workload for the HR department. At the same time, it became clear that the works council is not an opponent of digitalization, but an important partner. When it is involved at an early stage and can understand the benefits for employees, viable solutions emerge – even in complex co-determination contexts. “HR goes production” therefore means that HR is becoming bolder, more strategic, and closer to manufacturing. Digital transformation is not an end in itself, but a means of making the world of work in production fit for the future – with people at the center. And this is exactly where we at p78 come in: with expertise in SAP SuccessFactors, a deep understanding of HR processes, and the ambition to rethink HR in industry. Not as an administrative unit, but as an enabler for modern production environments.

Conclusion: HR must go where value is created

HR can no longer be thought of as merely administrative. Strategically integrating the blue-collar workforce not only strengthens employees, but also the future viability of the company. The research is clear: an HR strategy is needed that is on par with technology that also works in blue-collar environments and with processes that enable genuine participation. Only when HR reaches production can it truly fulfill its claim as a strategic partner – and ensure that “blue collar” no longer remains gray, but becomes visible as part of a modern, co-creative working world.

Sources:

• [1] Onlyfy by Xing (2023): Blue-Collar-Studie – Episode 11 der „60 minutes NEW HIRING“-Reihe. www.onlyfy.com/de/blog/60-minutes-new-hiring-episode-11/
• [2] BCG & WFPMA (2023): Creating People Advantage 2023. www.bcg.com/publications/2023/creating-people-advantage
• [3] McKinsey & Company (2024): HR-Monitor 2024. www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/hr-monitor-2024
• [4] Kienbaum & SAP (2024): HR-Strategie- und Organisationsstudie 2024. www.kienbaum.com/de/publikationen/hr-strategie-und-organisationsstudie-2024/