Topping the list of risks most likely to disrupt supply chains is the availability and quality of LABOR. This was true around the world, with the exception of Latin America, where regulation was the reason at the top of the list. "Among respondents who identify labor as a significant issue, almost two-thirds are primarily concerned about the availability of well-trained labor. Indeed, though the level of concern varies somewhat, a shortage of high-quality employees remains the top issue among those concerned about labor, regardless of their company's size or location. Among those concerned about labor, labor cost is their biggest worry; only 3 percent of them cite labor disruptions and less than 1 percent of this group cite diseases or pandemics." Despite this few executives said they had formal program to access the risk and fewer still said they had plans to mitigate the risks.
This is the challenge to pro-active HR departments. Get your executives to understand the "people" issue of supply chain problems. What are the disruption possibilities in your industry? Feeling them already? What are the possible solutions to this disruption?
- Better hiring?
- Better and more training?
- Better sourcing of candidates?
- Better retention?
- Changes in technology to remove more "bodies" from the equation?
Of course to make this argument the HR executive needs to understand supply chain management for their industry. If you can't make your suggestions in terms the executives can buy into then they will not listen.
But this is your chance to make a major impact on your company.