In early 2024, ETQ surveyed 750 senior-level quality professionals across the US, UK and Germany who were asked about their views on quality in the workplace. The goal was to collect real-world feedback on the trends, issues and challenges that affect quality professionals in those markets. Responses provided valuable insights into the current state of quality management. They came from several industries, including heavy industry, electronics, medical devices, pharmaceuticals, food and beverage, chemicals, logistics, automotive and aerospace.
Behind every C-suite initiative to manage brand reputation or operational efficiency should be a focus on quality.
When safety and quality are compromised, the consequences can ripple through an organization, from the financial impact of a product recall to the ramping up of regulatory auditing — not to mention the loss of consumer confidence and loyalty. The ETQ survey findings reveal some alarming trends in this area, with 73% of organizations experiencing a product recall in the past five years and nearly half (48%) reporting an increase in recalls during that time.
Additionally, 46% of companies surveyed report between 11 and 20 safety incidents annually, indicating that persistent on-site challenges are impacting workforce safety. This has a knock-on effect on product quality. Supply chain pressures and widening skills gaps further complicate these issues, making it essential for organizations to adopt proactive measures to address ongoing challenges.
Across all industries, the financial burden of recalls is substantial, with costs varying by region. In the UK, 50% of companies reported spending between £8 million and £39.9 million ($10.5m-$52.2m) to address their most recent recall. In Germany, 41% faced costs between €10 million and €49.99 million ($11.1m-$55.7m). Similarly, 39% of US firms reported expenses between $10 million and $49.8 million.
Does it have to be this way? This trend could indicate that many companies are not fully utilizing the advanced tools and processes available. Many of which could help identify and prevent these costly recalls. The cost of poor quality can increase dramatically, meaning early investment in the correct quality management technology makes all the difference in a business’s bottom line.
Beyond the direct financial losses, recalls have an operational and reputational impact. According to survey respondents, 35% of respondents stated that recalls cause damage to brand reputation. Additionally, 34% saw decreased customer satisfaction, while 32% faced delays in product introductions.
For some survey respondents, operational excellence is also impacted by product recalls. Other consequences included increased remediation costs (29%), plant shutdowns (30%), and even workforce layoffs (26%). This highlights the broad-reaching implications of product recalls, suggesting a critical need for enhanced recall prevention strategies.
Safety Issues as a Quality Concern
Safety issues within the workplace don’t just affect workers. Any manufacturer plagued by issues in this regard will see a knock-on effect on quality.
Prevalence of Safety Incidents
Even with the correct protocols in place, safety remains a significant concern for organizations across all industries. According to our survey, 46% of respondents report experiencing between 11 and 20 safety incidents annually. 17% saw even higher rates: 21 to 30 incidents per year. These findings show that persistent safety issues can lead to widespread consequences if not addressed promptly.
Consequences of Unaddressed Safety Issues
Unresolved safety issues will not go unnoticed. Not only does this put employees at risk, but it could also attract greater scrutiny from the relevant regulatory bodies. Organizations should expect additional visits and tests, the implementation of stricter quality control measures, and the expectation of increased audits. With systemic safety issues that put workers and customers in harm’s way, organizations may be compelled to recall products, leading to operational delays, supply chain disruption, and reputational damage.
The longer these issues persist, the more detrimental their effects become. Negative media coverage can reach far and wide, leading to a loss of brand trust. Safety incidents can stifle revenue growth and negatively impact employee morale. If there are frequent issues that go unaddressed, it may indicate a deeper systemic quality problem for the organization.
This chain of events highlights the critical need for proactive management of safety concerns to mitigate risks and maintain organizational health.
Factors Driving Increased Safety Issues
Automation and Worker Training
Automation continues to enhance efficiency and productivity for many organizations. The result is a workforce that’s facing the pressure to adapt at speed, too, often with imposed limitations that threaten shop floor safety. Whether that means working collaboratively with robots, integrating the Internet of Things into workflows, or getting used to smart machinery, it can be difficult to keep up.
Financial pressures often limit the training workers receive on new machines. Additionally, to meet the fast pace of market demand, some organizations might choose to bypass certain safety procedures. Without the proper tools in place to monitor employee health, check the status of machines, or catch potentially dangerous non-conformances, these important elements can slip under the radar.
Workforce Dynamics
An evolving workforce dynamic has crept up in manufacturing. Within industries that value and rely on a skilled and engaged workforce, high staff turnover rates and the increasing use of temporary or contract workers become more than a staffing challenge. What was once an HR headache has become a safety nightmare.
As of 2023, the average tenure of a manufacturing employee is just three years, with half of new hires leaving within the first 90 days. This has led to an industry-wide loss of experienced personnel, which negatively impacts quality, efficiency and productivity.
To fill staffing gaps, many companies turn to temporary workers. However, the rush to meet demand often means training falls short. This, combined with a decreased understanding of long-understood and respected protocols heightens the potential for safety incidents. Together, these factors reflect the importance of balancing technological advancement with a stable workforce environment that includes comprehensive safety training for all employees.
Addressing Safety and Quality Concerns
To address both surface and systemic safety issues, organizations should look to technology. With the right tools, it’s possible to improve worker and product safety while increasing quality.
Utilization of Connected Frontline Worker Technology
Modern industries require the mobilization and adoption of modern solutions. To fully address safety and quality concerns at the shop-floor level, organizations must leverage the latest technology. This empowers workers to take ownership of the tasks needed to improve operational outcomes.
One solution gaining traction is the use of connected frontline worker technology. These devices provide workers with real-time updates, help them prioritize tasks and reduce downtime.
If workers encounter problems, they can instantly connect with subject matter experts or team members remotely, enabling faster, more effective problem-solving.
With AI-powered data monitoring and predictive analytics integrated into these processes, there is an opportunity to forecast when and where potential issues could arise. This allows workers to take preventative action before problems escalate into a larger issue.
Currently, 52% of organizations report that frontline workers have access to devices providing them with the data necessary to support decision-making. Survey findings, however, show that more can be done. Only 33% of companies equip plant workers with the full suite of technologies required for maximum efficiency. As the survey’s safety reporting suggests, expanding access to these technologies could be crucial for improving safety and quality.
There are other benefits, too. Wearables and Internet of Things (IoT) devices can enhance worker health and safety. They can monitor vital signs, exposure to hazards, and environmental conditions — such as temperature and ventilation. These technologies foster worker engagement, loyalty, and satisfaction through ongoing attention to health and well-being.
Together, connected worker technologies address safety and quality concerns while creating a more empowered, productive workforce.
Specialized Training Programs
Specialized training programs tailored to specific roles and skill levels can enhance worker performance, reduce safety incidents, and improve overall productivity. This approach equips employees with the necessary skills and helps close critical knowledge gaps identified through AI-based workforce intelligence.
Moreover, training fosters employee satisfaction and retention. A 2022 Society for Human Resource Management survey showed that 76% of employees would be more likely to stay with a company that offers continuous learning. This highlights how specialized training not only boosts key performance indicators but can also strengthen employee loyalty.
A Focus on Safety Benefits the Entire Organization
The survey shows that product recalls and safety incidents still pose significant financial and operational challenges for organizations. With a wide-reaching effect on brand reputation, customer satisfaction and employee morale, this isn’t an area to be ignored. The prevalence of these issues shows how important it is to take proactive measures to enhance safety in the workplace.
Adopting connected technology will be part of this solution. Used alongside specialized training programs and data-powered hiring solutions, this empowers business leaders to make informed decisions. Integrating advanced technologies such as AI, wearables and IoT devices will be key to enhancing safety and quality in manufacturing.
