Bridging the Industrial IoT Talent Gap: Proven Hiring & Training Tactics

While many industrial firms have launched smart factories and other digitally enabled projects, most still struggle to attract qualified talent. With U.S. unemployment hovering near a 50‑year low, skilled workers are scarce across all sectors.

The shortage is especially severe in manufacturing. A fourth‑quarter survey by the National Association of Manufacturers (NAM) found that 64% of manufacturers cite finding qualified workers as their top business concern. For small‑ and midsized manufacturers the figure exceeds 70%, and Forrester Research reports that 97% of field‑service managers in the sector struggle to source talent.

Increasing wages alone is not a lasting solution. A 2018 study by Deloitte and the Manufacturing Institute shows that higher pay can only offer a short‑term fix, as the competitive wage war drives employees to seek better‑paying roles elsewhere. Managing partner Martin Davis of DUNELM Associates stresses that companies must consider not just salaries but also benefits, culture, and growth opportunities to become truly attractive employers.

Prioritize Skills Over Credentials When Hiring

In the broader tech landscape, companies increasingly look for talent that can code, analyze data, or secure networks, even if they lack a formal degree. Industrial firms should adopt a similar mindset. According to the Harvard Business Review, the most successful digital‑transformation teams focus on potential and teamwork rather than academic pedigree. Hiring candidates with associate degrees, military experience, or vocational training can fill critical gaps.

Tech giants are already embracing this approach, recruiting developers without bachelor’s degrees. Yet many industrial firms still place heavy emphasis on undergraduate credentials, notes Irene Petrick, senior director of industrial innovation at Intel.

Balance External Hiring With Internal Upskilling

Relying solely on external hires can undermine existing staff and stall transformation, argues Petrick. When companies bring in outside experts, they risk not building internal capabilities. Meanwhile, ServiceMax’s digital‑transformation director Sumair Dutta explains that training a technician can take up to two years. A practical approach is to teach employees the most common issues in‑house and reserve on‑demand training for niche topics.

Be Patient With Digital Projects

Industrial‑IoT, digital‑transformation, and Industry 4.0 buzzwords often promise rapid change, but cultural shifts typically take years. Petrick cautions that many firms expect a 12‑ to 18‑month payback period—an unrealistic horizon for many upgrades. A phased approach—implementing new tech, retooling infrastructure, and refining processes—helps align expectations.

When measuring return on investment, don’t focus solely on quantifiable metrics. Some benefits, such as improved customer relationships or streamlined supply‑chain interactions, may emerge over a longer horizon.

Secure Workforce Buy‑In for Digital Initiatives

According to IHS Markit, personnel challenges contribute to the high failure rate of IoT projects. Alex West, senior principal analyst, notes that about half of IIoT pilots fail at the proof‑of‑concept stage, and the failure rate remains steady during deployment, costing firms substantial capital with little payoff.

Markit recommends securing support from senior executives and functional leaders, while encouraging staff to view IIoT as an augmentation rather than a threat. PwC’s Reggie Walker emphasizes that executive sponsorship must be active, visible, and engaged—beyond mere lip service.

To win worker support, Petrick urges leaders to collaborate with teams in redefining processes. “Ask them, ‘How does this tool make your job better?’ Manufacturing operations and employees need to co‑evolve,” she says.