According to a new report from Gartner, companies rolling out digital tools for factory workers will not reap the full benefits unless they focus more on people than technology.

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“Successful implementation of these initiatives is key to overcoming labor shortages, revitalizing the frontline workforce and reinventing the employee value proposition in manufacturing for a new generation,” said Simon Jacobson, Vice President Analyst at Gartner.

Gartner outlines three levels of value that companies can get from connected factory worker programs. The first level is all about saving money by making day-to-day operations more efficient. The second level comes from using data to improve processes and help workers grow their skills. The third and most important level is shifting to a people-first strategy that supports long-term success by focusing on training, career growth, and flexible work options.

Gartner says that connected factory workers—who use digital tools to make factory work faster, safer, and smarter—can play a big role in helping companies localize manufacturing and expand capacity. However, without a clear focus on workforce development, companies could miss out on the biggest gains.

To reach the third level of value, companies need to invest in:

• Talent pipeline development: Updating job descriptions and making it easier for employees to move into new roles based on their skills and interests.
• Formal skills training: Creating ongoing training programs that build both technical and people skills using tools that are easy to access.
• Career pathing: Showing workers what their future at the company could look like and what it takes to move up.
• Radical flexibility: Giving frontline workers more flexibility in how and when they work, even though many companies are still hesitant to do so.

“Organizations that involve their frontline associates in shaping smart manufacturing are more likely to exceed expectations,” said Jacobson. “This approach ensures that the workforce is engaged, skilled, and prepared for future challenges.”