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Lifting productivity: Why investment in talent and technology must go hand in hand

-David O’Connor, Head of Emerging Markets, The Learning Wave

In the evolving landscape of the manufacturing sector in New Zealand, the adoption and successful implementation of smart technology are undeniably key drivers of productivity.

However, without parallel investments in upskilling the workforce, the potential gains from such technological advancements may be left unrealised.

At a recent industry event, a business owner shared their experience of raising significant capital to introduce cutting-edge technology in their food manufacturing business.

The implementation, however, came to a halt as it became clear that the existing staff lacked the necessary skills to operate the new systems, which led to multiple challenges to meet production requirements.

This scenario raises the question: Is this an isolated incident, or a reflection of a broader trend where businesses overlook the critical need for workforce readiness in their technology strategies?

Investment in both areas —developing your talent and adopting the new advanced technologies— must be seen as complementary rather than separate business strategies.

Business leaders must ensure that their HR and training teams are fully integrated with their Operations and IT efforts, creating a seamless approach to lifting staff capability that aligns with technology implementation plans.

When these efforts are given equal priority, they create a cycle where skilled and engaged workers drive technological adoption, and in turn, the technology enhances the capabilities and productivity of the workforce—a win-win situation.

One client likened their smart technology experience to “buying a Ferrari but then handing the keys over to kids on their learner’s license in full knowledge that they would crash it’.

While this analogy might be an apt description of their workforce’s current skill level, it also serves as a cautionary tale for business owners.

The cost and potential setbacks of implementing advanced technology without a focused and skilled workforce can be significant and detrimental.

For New Zealand’s Manufacturing Sector to fully capitalise on the financial benefits of technology, it must be supported by a skilled and adaptable workforce. Talent and technology must go hand in hand.

In a recent article, Sean Gear offered valuable insights into what a successful 21st-century vocational education system could look like, if we dare to think differently. One of his key points was the need for a system that fully integrates technology and future skills, prioritising digital literacy, critical thinking, and adaptability as core components of all training programs.

This vision requires significant investment in technology infrastructure and professional development to equip training providers with the tools to deliver these essential skills effectively in the workplace.

New Zealand, with its relatively small ecosystem, presents a unique opportunity for closer collaboration between systems/technology providers and training providers.

By working together, they can offer businesses comprehensive solutions that ensure talent and technology are valued equally. Bridging this gap between talent and technology will not only lead to more successful technology implementations but also drive a more skilled, innovative, efficient, and sustainable manufacturing industry in New Zealand.

The future of manufacturing hinges on the seamless integration of advanced technology and a skilled, adaptable workforce.

Investing in the upskilling of your people is not just essential—it’s the key to unlocking the full potential of your technology investments.

 

 

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