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Today’s manufacturers face a pressing challenge: enhancing the experience of their frontline employees. In addition to being the core of operations, these workers are often responsible for safety, productivity, profitability and efficiency on the factory floor. Addressing the demands of this changing workforce requires more than immediate fixes; it calls for a longer-term engagement and development strategy that goes beyond traditional incentives like pay increases or benefits expansion. What key skills should frontline leaders have to help them thrive today and in the future, especially when it comes to creating a purposeful employee experience? A critical opportunity lies with the executives who manage these frontline leaders.
Frontline leaders: The untapped catalyst for elevating the manufacturing employee experience
Frontline leaders are key touchpoints for daily interactions and play a significant role in shaping the workplace experience. Their influence can either attract or deter talent, depending on how effectively they foster a positive work environment and inspire their teams. But how can manufacturers better harness this potential to improve the workplace experience?
To explore this, PwC and the Manufacturing Institute conducted a survey of key manufacturing roles including team leaders, department leaders, plant managers, operations managers, human resources (HR) professionals and executive leaders to identify the skills and characteristics frontline leaders should have to succeed. The results invite manufacturers to rethink traditional approaches and to explore new possibilities. For example, 64% of overall respondents say a positive employee experience significantly reduces attrition rates. However, more than half (56%) rate their frontline leaders as “moderately” or “not at all effective” in shaping the overall employee experience of hourly frontline workers. Only 17% say their frontline leaders are "extremely effective," pointing to an opportunity for growth.
Frontline leaders have room to grow in shaping the employee experience
*Note: Response to ‘unsure’ not shown.
Q: In your opinion, how effective are frontline leaders in shaping the overall employee experience of hourly frontline workers?
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
Inside the numbers: How leadership roles and company size shape employee experience and retention
There is a notable connection between creating a positive employee experience and reducing turnover — and this connection becomes even stronger as companies grow. Larger organizations, in particular, are seeing the benefits, with 68% of companies with over 1,000 employees reporting that a positive frontline employee experience significantly reduces attrition. In addition, 63% of smaller companies (those with fewer than 100 employees) say the same. For businesses looking to expand, focusing on employee experience early on can be a smart move, laying the foundation for long-term retention and stability.
Positive employee experience reduces turnover as companies grow
Q: In your experience, how does a positive employee experience impact frontline attrition rates?(Response to ‘It significantly reduces attrition rates’.)
PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
Interestingly, this connection is most evident among frontline-adjacent roles (e.g., plant manager, team leader or supervisor, department manager and HR professional). Almost three-quarters (74%) of those working closest to frontline leaders say a positive employee experience significantly reduces turnover rates, compared to 61% of executive leaders. While executive leaders may not engage with frontline employees daily, they help shape the organization’s vision and culture. By understanding the link between employee experience and turnover, executive leaders could be better positioned to provide frontline leaders with the resources needed to enhance the employee experience — ultimately reducing turnover, boosting retention, and fostering a more engaged workforce.
Frontline-adjacent, manufacturing execs differ on how much positive employee experience impacts turnover
Communication, emotional intelligence and technology skills: Imperatives to future-proofing frontline leadership
With time and responsibility pressures facing frontline leaders — from retention challenges and absenteeism to stepping into leadership sooner than in the past — supporting them with the right resources and strategies is crucial. The big question for manufacturers now: What key skills should frontline leaders have to help them thrive today and in the future, especially when it comes to creating a purposeful employee experience? The survey reveals three skills that stand out: communication, emotional intelligence and technology proficiency.
Communication: An underdeveloped skill
There is a gap in communication skills among frontline leaders. Nearly eight out of ten (77%) respondents rate clear communication as extremely important in creating a positive employee experience. Yet only 29% of respondents rate frontline leaders as having advanced or expert communication skills, while 54% rate them as intermediate. Boosting communication skills could offer manufacturers an immediate, actionable opportunity to foster a more engaged and motivated workforce. Indeed, PwC’s 2024 Workforce Radar Report notes that transparent communication is key to trust, as the organization suffers if leadership behaviors and company strategies are misaligned.
Communication key for frontline leaders in shaping employee experience
*Note: Response to ‘unsure’ not shown. Total may not add up due to rounding.
Q: Please indicate the level of importance for the following factors frontline leaders use to create a positive employee experience. (Response to ‘Clear communication’.)
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
Moments where communication can make a positive difference in the day of a frontline employee include daily standups, one-on-one meetings, and team meetings. Let’s look at them one by one.
Essential communication skills for frontline leaders in defining moments
Mastering key communication skills during these defining moments can turn interactions into powerful resources for team engagement, trust-building and development.
Frontline EQ: A critical but overlooked skill
Emotional intelligence (EQ) — the ability to understand, manage and navigate emotions effectively — plays a crucial role in effective communication. While many respondents recognize the importance of effective communication, they often overlook that EQ is important to achieving it. EQ can help frontline leaders navigate daily challenges, handle stress and lead with empathy. Emotionally attuned leaders communicate more clearly, reducing misunderstandings and enhancing team dynamics. By reading the emotional dynamics at play, leaders can foster clearer, more compassionate conversations that strengthen team relationships and drive better outcomes.
Despite its importance, only 36% of respondents recognize EQ as one of the most important skills for the current success of their frontline leaders, and just 22% of manufacturing executives assess their current frontline leaders as advanced or experts in this area.
Most frontline leaders possess emerging emotional intelligence skills
*Note: Response to ‘unsure’ not shown. Total may not add up due to rounding.
Q. How would you assess the general proficiency of your frontline leaders in the following skills?(Response to ‘Emotional intelligence’.)
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
Given how closely frontline leaders work with their teams every day, building stronger emotional intelligence presents a compelling case for upskilling.
Here are some key areas of EQ that frontline leaders can develop
Training frontline leaders in these capabilities can dramatically improve their emotional intelligence, resulting in more effective leadership, better team dynamics and stronger organizational performance.
Technology and digital literacy: A transformative skill
While technological advancements could bring substantial changes to manufacturers, they also offer a path forward. A sizable 82% of respondents are gearing up for major technological overhauls, and 45% plan to implement AI in the next three years. At the same time, 67% expect resistance from employees who are comfortable with the way things are now.
A majority of frontline leaders lack advanced - level digital literacy skills
*Note: Response to ‘unsure’ not shown. Total may not add up due to rounding.
Q. How would you assess the general proficiency of your frontline leaders in the following skills?(Response to ‘Digital literacy’.)
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
According to PwC’s 2024 Global Workforce Hopes and Fears Survey, more than half of workers feel there is too much change happening at once, underscoring the need for strong leadership to manage these transitions effectively.
Top executives will often need to rely on frontline leaders with strong tech skills to streamline operations and act as champions of change, guiding their teams through transitions and positioning their organizations for longer-term success. Indeed, according to PwC’s Global Workforce Hopes and Fears Survey, transformation plans are unlikely to succeed unless employees understand and help drive change.
To make sure frontline leaders are prepared to take on this pivotal role in driving digital transformation, manufacturers can focus on upskilling them in key areas.
Key skills to help frontline leaders guide teams through tech shifts
These strategies can empower frontline leaders to become catalysts for a smooth digital transition, helping to bridge the gap between new technology and a workforce that may be hesitant about change.
Accelerating the way forward: Investing in frontline leaders’ development
The findings suggest that manufacturers are at a critical crossroads. They can stick to business as usual and risk missing opportunities to enhance the workplace experience or take the proactive route by investing in training to upskill their frontline leaders — particularly in communication, emotional intelligence and digital literacy.
It’s clear that training matters. As our research shows, more than three quarters (76%) of manufacturing leaders agree that adequate training plays an extremely important role in empowering frontline leaders to create a positive employee experience.
Adequate training is essential for creating a positive employee experience
Note: Response to ’Unsure’ not shown. Total may not add up due to rounding.
Q. Please indicate the level of importance for the following factors frontline leaders use to create a positive employee experience. (Response to ‘Adequate training’.)
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
Nearly two-thirds (63%) of respondents implement annual targeted training and development programs for their frontline leaders. While this is a strong starting point, there’s room to do more. Increasing the frequency and quality of trainings around the skills you require today and the skills you’ll require over the coming years could help make sure that leaders stay adaptable and ready to face the evolving challenges of the modern manufacturing environment.
Most manufacturers train their frontline leaders once per year
Q. How often do you implement targeted training and development programs for your frontline leaders?
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
At the same time, more than six in ten (61%) companies recognize the value of leadership accelerator programs and currently implement them or are considering and planning to implement them. These programs can fast-track leadership development, equipping frontline leaders with the skills they require to succeed. However, 16% of companies have never considered implementing such programs, representing a missed opportunity to leverage the potential of frontline leaders in driving engagement and retention efforts.
The path forward is clear for those looking to stay ahead and foster a thriving workforce. Frequent, high-quality, personalized programs that enhance both leadership skills and technical proficiency among frontline leaders can unlock this underutilized resource, significantly improving the workplace experience.
Getting the foundation right to develop your frontline leaders and keep your valued workers
While training frontline leaders plays a significant role in creating a positive employee experience, our research suggests there are foundational strategies manufacturers can leverage to retain their valued talent. These approaches support leaders in keeping their valued employees by addressing the broader needs and preferences of the frontline workforce.
Competitive compensation stands out as the most effective retention strategy, with 93% of respondents identifying it as critical. In a competitive labor market, offering attractive pay packages remains one of the most compelling ways to keep talent engaged and committed. Compensation is often the first measure employees consider when weighing their options, making it essential for manufacturers to stay competitive in this area to avoid losing valuable workers.
Additionally, mentorship and coaching programs show significant promise in supporting retention efforts. These programs are widely supported, with 64% of respondents recognizing their value. However, there’s a notable difference in how various executives perceive their importance: while 69% of those working closest to frontline leaders advocate for mentorship as a key retention tool, only 59% of executive leaders share this view. This disparity suggests an opportunity to bridge the gap in leadership perceptions, promoting mentorship as a core part of talent development across the organization.
Another standout finding: every HR professional surveyed believes recognition and awards are essential to retaining frontline workers. Recognition not only boosts morale, but also helps employees feel seen and appreciated for their contributions. Whether through formal awards programs or more informal, discrete acknowledgments, taking the time to recognize frontline workers’ efforts can create a stronger connection between employees and their workplace. Additionally, it's important to note that employees like being thanked in different ways. Some employees prefer to be privately thanked, valuing a more personal and direct approach, while others prefer to be thanked in a more public setting, enjoying the collective acknowledgment from their peers. Understanding and catering to these preferences can enhance the effectiveness of employee recognition programs.
Effective talent retention strategies according to manufacturers
Q: Which of the following strategies do you believe is effective for talent retention at your organization?(Select all that apply.)
Source: PwC and MI Frontline Leader of the Future Survey, Q3 2024; base 107
With a helping hand, frontline leaders can boost the manufacturing employee experience
The future of manufacturing depends on more than innovations in technology or changes in pay structures. The development of effective frontline leaders, particularly in communication, emotional intelligence and digital literacy, represents a promising and largely untapped avenue for shaping the workplace experience.
Forward-looking manufacturers who invest in leadership development today will not only address current workforce challenges but also position themselves to thrive in the competitive, rapidly evolving manufacturing landscape.
About the study
In Q3 2024, PwC and MI conducted a study within the manufacturing industry by conducting interviews and surveys with 107 executive leaders, middle managers and frontline leaders across a range of company sizes and industrial classifications. Results were aggregated to develop insights and themes that serve as the basis for the above recommendations.
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Adam Gerstein
Principal, Workforce Transformation, Employee Experience Transformation Leader, PwC US
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