(Commonwealth)_ Fostering a robust Manufacturing and Production (M&P) sector stands as a pivotal strategy in addressing Sri Lanka’s prevailing economic challenges. Hence, it serves as a focal point in the scrutiny of Great Place to Work® in Sri Lanka. Despite its importance, the sector witnessed a 2.1% reduction in its contribution to the national GDP in 2023, amounting to an estimated 16.3%. This decline can be attributed to an array of economic hurdles, encompassing inflated costs, disruptions in global supply chains, import constraints, diminished export demand, tax revisions, shortages of skilled labor, and limited external financing. These factors collectively hindered production capacity, diminished competitiveness, and fueled discontent among the workforce.
Notwithstanding these adversities, the M&P industry persisted in upholding quality standards and displayed signs of recuperation, evidenced by an overall upward trend in the country’s Manufacturing Purchasing Managers’ Index (PMI), which concluded above 50 in December. The governmental efforts aimed at stabilizing the economy offer a glimmer of hope for the forthcoming year, albeit cautiously.
A paramount focus for surmounting these challenges lies in enhancing productivity within the sector. Central to this endeavor is fostering workforce engagement and retaining top talent, with a healthy workplace culture serving as the linchpin for sustained progress. The Study sheds light on current employee sentiments within the sector, presenting an opportunity for organizations to glean insights and take action, thereby unlocking the nation’s potential for a brighter future.
Great Place to Work, a globally recognized authority on identifying Best Workplaces, has undertaken this endeavor utilizing a rigorous methodology honed over three decades. Employing the ‘Great Place to Work for All’ methodology, the evaluation process places significant emphasis on trust and employees’ fulfillment of their human potential within their organizations, regardless of their backgrounds or roles. Furthermore, employees’ daily experiences of innovation, organizational values, and leadership effectiveness are also factored into the assessment.
The evaluation process consists of two primary components: the Trust Index© employee perception survey and the Culture Audit. The former, which accounts for 75% of the total organization score, gauges employee perceptions regarding trust, pride, and camaraderie within their workplaces. Only organizations achieving a minimum of 70% positive employee perception are considered for inclusion in the Best Workplaces studies. The Culture Audit, constituting the remaining 25% of the total score, evaluates the practices and processes implemented by organizations to enhance the employee experience. Listed organizations undergo thorough auditing to ensure the accuracy and validity of their inclusion in the Best Workplaces List.
Key drivers identified from the Trust Index employee survey include strong managerial role modeling and egalitarian treatment within organizations. These behaviors foster an environment of fairness and trust, crucial for nurturing high-performance cultures. Moreover, significant disparities exist between the Best and the Rest, with the former excelling in areas such as genuine leadership, fair treatment of employees, and empowerment culture. Notably, effective people practices and positive values instilled in managers contribute significantly to this differentiation.
Despite the notable strengths exhibited by Sri Lankan M&P organizations, opportunities for improvement persist. Open communication channels, fair performance systems, and the cultivation of a supportive organizational culture remain paramount. Amidst economic adversities, prioritizing individual well-being, fostering a shared sense of purpose, and nurturing camaraderie is imperative for sustaining workforce engagement and retention.
The challenges facing Sri Lanka’s M&P sector necessitate concerted efforts towards enhancing productivity and fostering a conducive workplace environment. Through initiatives aimed at promoting trust, fairness, and empowerment, organizations can position themselves as leaders in employee engagement and organizational performance, thereby paving the way for a resilient and prosperous future.
