In today’s competitive business world, leaders often ask, “How can we improve our processes without losing productivity?” Ultimately, the desired result is a high-quality product or service that drives customer purchasing, satisfaction and retention. For many of us, the “work smarter, not harder” mindset has been ingrained and passed down from generation to generation. As business leaders, we encourage the adoption of this same work ethic with our teams in hopes of producing a solid bottom line with high-yielding results with limited risks and losses.
Leaders should remember that leaning into advanced technology and automation does not automatically mean sacrificing human capital. Reducing human involvement in favor of machinery does not guarantee efficiency. Some of the best business models integrate people and technology interdependently to achieve the best outcomes and a sustainable workforce that enhances operations while increasing profitability.
The Workforce Challenge in Manufacturing
The manufacturing industry faces substantial workforce challenges. Research estimates that by 2028, there will be 4.6 million manufacturing jobs available, and yet only 2.2 million manufacturing roles will be filled. According to the U.S. The Bureau of Labor Statistics, the manufacturing industry experienced the highest average employee voluntary quit rates compared to the construction, mining, logging, hospitality and other service industries. The quit rate gradually increased through the years with employees citing lack of appreciation, training and growth opportunities as the main reasons for leaving.
High turnover comes at a price. Manufacturing companies lose millions in hiring and training new employees, and there is reduced productivity as new team members are onboarded and missteps because of knowledge. Like a domino effect, the negative impact seeps into customer satisfaction and retention, ultimately hindering growth. As leaders, we must ask ourselves: How can we create a work environment that attracts and retains a qualified workforce?
Building People First
At Cosmo Cabinets, we have adopted a people-first approach. Our guiding mantra, “We Build Our People,” is the basis for our business philosophy and operational strategy. We recognize that our people are our power, so we foster a workplace culture built on respect, empowerment and continuous development.
Our commitment is embodied in our core values, known as Cosmo C.A.R.E.S., which stands for Communication, Accountability, Reliability, Excellence and Safety. We practice these guiding principles daily through team meetings, events and training sessions, creating a culture where every team member feels supported, valued and heard.
We embrace a pull management style to better align with the needs of today’s workforce, especially millennials and Gen Z employees. Unlike traditional top-down or “push” management, where decisions and instructions flow downward, pull management encourages staff to take ownership and fosters autonomy and purpose. In this model, employees show integrity in their work and the company’s success because they actively engage in the process.
Beyond motivation that comes from a paycheck, our employees are driven by a sense of purpose and growth. They are constantly encouraged to maximize their work performance in a supportive, unbiased environment where supervisors guide and nurture their potential. As a result, we have experienced remarkable results, including a 35% increase in employee retention. When employees know their personal and professional growth is prioritized, they bring their best selves to work. This mindset benefits the company and our customers.
Human Capital & Technology: A Balanced Partnership
Our workforce is our most valuable asset. In an industry where technology and machinery are critical for efficiency, accuracy and productivity, it is easy to want to focus only on automation. However, technology is most effective when used to support the experience and knowledge of our workforce, not replace it. By prioritizing training and development, we equip our staff with the skills to operate advanced machinery with confidence and proficiency. This prioritization increases productivity and empowers employees to perform in diverse roles, facilitate cross-training and create pathways for career advancement.
The balance of partnership between human capital and technology allows us to achieve the best operational outcomes. The “Power of We” has taught us that when employees have the tools and training they need, they feel more engaged and connected to their work, resulting in higher productivity, better quality control and, ultimately, greater financial success.
A People-First Strategy for Sustainable Success
The bottom line is that our people bring our products to life. It is through our workforce that we create the high-quality cabinetry that becomes part of homes, offices and other essential spaces. The best business model is one that prevents the high costs associated with employee turnover while also fostering a culture that motivates people at their core.
We know that investing in our workforce is not just a corporate responsibility, it is a people-first strategy that directly impacts our financial performance. This approach is proven to meet today’s operational demands and position us for future success.
—By Umaesh Khaitan, Founder & CEO of Cosmo Cabinets