Workforce Challenges in 2025: Takeaways from a People & Culture Focused Panel Discussion

Workforce challenges will continue to have a significant impact on manufacturing and supply chains. So, during Sunland’s 2025 Voice of the Customer Event, it was important to take the opportunity to learn from our customers and industry leaders to understand how their organizations are approaching these challenges. The following is a recap of the key themes and takeaways from the panel discussion moderated by Sunland’s VP of People & Culture, Diane Lowman with panelists including:

• Sheila Oliver, Director of Operations – Cleva North America
• Marcia Holland, Director, Business Operations – Panasonic
• Vicki Peek, Executive Vice President – FGP International, Inc.
• Bill Church, Senior Executive Advisor to Postmaster General – USPS

The discussion highlighted a disconnect between management perceptions and employee realities, particularly regarding feedback, clarity of expectations, and connection to the company’s mission. They also explore strategies for improving engagement through communication, empathy, wellbeing initiatives, thoughtful AI implementation, addressing generational differences, and providing childcare support.

Key Themes and Ideas:

1. Declining Employee Engagement & the Importance of Clarity and Connection:

• Gallup research reveals a decline in employee engagement, specifically regarding “clarity of expectations at work and feeling connected to the company’s mission and purpose.”
• When it is hard to find a job, employees are more likely to be actively disengaged. A plausible explanation is that people become very unhappy when they are trapped in a job they do not like.
• Bill Church (USPS) observed that investing in technology without addressing employee engagement led to no return. This highlights that technology alone is not a solution; people need to be connected to the mission.
• Leaders need to get on the floor and connect with employees.

2. The Perception Gap Between Managers and Employees:

• Significant discrepancies exist between how managers perceive their leadership and how employees experience it. For example, “50% of managers strongly agree they are giving feedback to their direct reports every week, while only 20% of individual contributors strongly agree their managers does so.”
• Vicki Peek (FGP International, Inc.) noted that leaders often “assume everyone knows our expectations,” leading to communication breakdowns. Mutual commitments to collaborate effectively and hold accountability helps maintain productivity.

3. Employee Wellbeing is Crucial for Retention and Productivity:

• Employee wellbeing is at a low. Only 50% of U.S. employees are thriving in their overall lives.
• “Thriving employees who rate their current and future lives positively are less likely to miss work because of health issues and are less likely to seek another job.”
• Organizations are recognizing the importance of employee wellbeing, offering benefits such as EAPs, financial wellness classes, legal support, volunteer opportunities, and business impact groups (Marcia Holland, Panasonic).
• Creating a culture where personal life is prioritized is essential. Celebrating professional and personal accomplishments is important along with providing ample PTO.

4. AI Adoption: Challenges and Opportunities:

• Employee adoption of AI is lagging behind investment and expectations. “Seven in ten employees say they never use AI, while one in ten say they use it at least weekly.”
• “Perhaps even more telling, the number of employees who say they feel very prepared to work with AI dropped by 6% points in this period.”
• Leadership is enamored by AI, and they are leveraging it to implement throughout the organization. HR uses AI to support the interview process.
• It’s important to communicate that AI will help employees rather than replace them (Bill Church, USPS).
• Caution around data privacy is important when implementing AI.

5. Bridging Generational Gaps:

• Perception and value differences across generations can create challenges.
• Work ethics across generations can cause friction.
• Rather than pointing fingers, bring the generations together in round tables.
• It’s an opportunity to blend the generations. Younger generations can teach on the use of technology. One panelist shared an example of their organization launching an internship program with rotation through the organization which provided a valuable opportunity for employees to learn from interns.

6. Childcare Crisis and the Need for Employer Support:

• Parents miss an average of 11 work days per year due to caregiving issues.
• “Parents ranked a childcare benefit as their #1 choice for employer perks, outranking unlimited PTO and 401(k) matching.”
• “68% of working families say they’ve made a career change due to caregiving issues.”
• “85% parents would be more likely to stay with their current employer if caregiving benefits were provided.”
• Childcare is a source of increasing work disruptions.
• Look at the whole organization with empathy and care to support (within compliance). Understand what people are facing and provide that flexibility to show that you care. Do not dismiss this challenge. Parents want to be at work and not face this tension.
• Consider maternity and paternity leave and parental care days for taking care of parents.

7. The Power of 1-on-1 Connections:

• One-on-one connections are critical for building relationships and trust.
• “Canceling meetings means to the team that they are not important” (Vicki Peek, FGP International, Inc.).
• Build open relationships, be intentional, and make time.
• One-on-ones to share insight and gauge emotional support needed.

Actionable Strategies and Recommendations:

• Improve Communication and Transparency: Leaders need to actively communicate the company’s mission and vision, cascade these values, and ensure employees understand their roles and expectations.
• Address the Perception Gap: Gather regular feedback from employees through surveys, 360 reviews, and open forums to understand their experiences and adjust management practices accordingly.
• Invest in Employee Wellbeing Programs: Offer a comprehensive suite of benefits and programs to support employee wellbeing, including EAPs, financial wellness resources, and opportunities for volunteering and social connection.
• Strategically Implement AI: Provide training and support to help employees adopt AI tools effectively. Emphasize how AI can enhance their work and ensure that data privacy concerns are addressed. Explain that AI will HELP them complete their job.
• Foster Intergenerational Understanding: Create opportunities for employees from different generations to collaborate, learn from each other, and share their perspectives. Round tables to bring the generations back together.
• Offer Childcare Support: Provide childcare benefits, flexible work arrangements, and parental leave policies to help working parents balance their work and family responsibilities. Understand what people are facing and provide that flexibility to show that you care.
• Prioritize 1-on-1 Meetings: Make time for regular one-on-one meetings with direct reports to build relationships, provide feedback, and address any concerns. You are important, and what is getting in your way?

The discussion provided valuable insights into the challenges and opportunities facing organizations seeking to improve employee engagement and wellbeing. By implementing strategies like the ones shared by the panelists, companies can create a more thriving and productive workplace. To learn more about trends & challenges in the supply chain and logistics industry, click to read “Highlights from the ‘State of Logistics’ Panel Discussion at Sunland’s 2025 Voice of the Customer Event.”