Starting in 2020 with the arrival of the COVID-19 pandemic, the consumer goods industry has been forced to pivot several times. A gradual evolution toward the integration of AI-based technologies was turned on its head when consumer products and services suddenly had to be created and sold very differently. This unexpected overhaul of workforce composition and operations led to a stressful period from which consumer goods professionals are still recovering.
At ManpowerGroup, we recently issued the Consumer Goods 2025 World of Work Outlook report to share our data on how consumer goods workers feel about their jobs today, and whether the current crop of talent has the essential skills to adequately service the industry.
In our Talent Shortage research, we learned that while 73% of consumer goods employers are struggling to find skilled workers, their current employees are among the most disillusioned – with more workers than in any other industry saying they are considering new job opportunities. Additionally, consumer goods employees are less certain than others about the future. They are the most likely (36%) to say their current employer offers insufficient career growth opportunities.
While an easing of monetary policies and punishing inflation is likely to increase consumer spending this year, only the consumer goods organizations that are willing to continuously reinvent themselves will be well-positioned for long term success. Fortunately, consumer goods leaders recognize this. According to research by PwC, nearly half (42%) believe their companies will not be viable beyond the next 10 years without reinvention and Deloitte recently found that 72% are reevaluating product mix to drive profitable growth in 2025. However, the strategies behind these statements remain elusive.
Let’s examine the critical areas in which consumer goods companies must calibrate their workforces to optimize agility and rapid transformation, including prioritizing innovation, putting customer experience (CX) at the center of operations, building supply chain resilience, and hiring for sustainability.
Prioritizing Innovation
Once upon a time, consumer goods companies could rely on price increases to meet their revenue objectives, but with customers losing patience with inflation, a different solution is sorely needed. Consumer goods leaders believe that prioritizing product and service innovation could be the solution, but they can’t do it without giving the right individuals a license for creativity and the autonomy to make change.
Indeed, per the World Economic Forum, most employers (63%) worldwide say skills gaps will be their greatest innovation barrier through 2030. Organizations must rethink hiring processes to target creativity-oriented skills that are not only essential for the business today, but also for the reinvention of tomorrow.
Placing CX at the Center
CX cannot evolve at the speed today’s customers demand without the effective integration of AI-based technologies, data analytics, and omnichannel commerce. This means consumer goods leaders need to step up their efforts to hire the best technical talent both inside and outside the organization. And, according to our Talent Shortage research, CX enhancements require several difficult-to-find skillsets outside of technology, including sales and marketing and frontline customer service.
Collecting large amounts of customer data as part of CX is a sensitive endeavor, and as such, a CX focus also mandates a workforce schooled in aligning with other functions and working within cybersecurity and compliance guardrails.
Building Supply Chain Resilience
Consumer goods organizations have felt tremendous pain as a result of the global supply chain disruptions that began with COVID-19 and continue to this day. Bain & Companyfound that, in response, 80% of CEOs are shifting their supply chains to be closer to their customers. Similarly, McKinsey learned that 73% of global supply chain managers are dual sourcing to reduce supply chain risk.
But local sourcing has labor implications. For example, many manufacturing operations are already facing skills shortages. More local sourcing, while good for communities, is likely to worsen these. Furthermore, individuals must be upskilled and reskilled to take on the available production jobs in areas with new facilities. Therefore, building supply chain resilience also means looking out a few years and planning for workforce resilience.
Hiring for Sustainability
Consumer goods organizations are perhaps the most vulnerable to sustainability pressures. Not only do customers expect companies to manufacture and deliver products and services in an environmentally friendly manner, but investors are looking at ESG performance far more closely than they did in the past.
Additionally, our Green Business Transformation research uncovered that 75% of 18- to 25-year-old candidates say they will research an organization’s environmental reputation before accepting a job, and almost half (46%) believe what they find will impact their likelihood of choosing a particular employer.
Meanwhile, an information gap often prevents data about an organization’s sustainability practices from reaching customers. So, while 68% of consumer goods employers are actively recruiting for green jobs and skills across existing functions such as production and logistics, leaders must also engage in communications-related role creation in areas such as ESG reporting, sustainability measurement, and consumer education.
For more on the workforce considerations consumer goods leaders are facing in 2025, ManpowerGroup’s Consumer Goods & Services World of Work report explores the full impact of an increasingly diverse talent pool, changing workforce structures, digital transformation, and accelerating global change.
About the Author:
Julien Matalou, Global Vice President, Consumer Goods & Automotive for ManpowerGroup