W H I T EP A P E R Images:Getty Images Contents Foreword Executive summary Understanding the evolving talent imperative 1The key to talent strategy: viewing the frontline as an investment 1.1(Re)invigorating your approach to talent investment1.2Understanding your unique workforce 2Building the workforce with proven frontline innovations2.1Investments in capabilities must match local talent strategy 3Way forward: Operationalizing frontline talent investment 3.1Create a structured process253.2Building a cross-functional team26 Conclusion and next steps Appendix: Findings from the Frontline Talent of the Future pilot Contributors 38 Endnotes39 Disclaimer This document is published by theWorld Economic Forum as a contributionto a project, insight area or interaction.The findings, interpretations andconclusions expressed herein are a resultof a collaborative process facilitated and ©2025 World Economic Forum. All rightsreserved. No part of this publication maybe reproduced or transmitted in any formor by any means, including photocopying Foreword Fernando PerezSenior Partner and Leader,the Frontline Workforce Kiva AllgoodHead, Centre for AdvancedManufacturing and Technology isn’t at the heart of production. Peopleare. Putting people at the center is not a new idea,but technology has undeniably transformed industryand continues to do so, which means this imperative effective people strategies are 2.2 times more likelyto outperform their peers. Yet many still treat talentas a cost rather than an investment. It’s time to shiftto a perspective that views frontline workers as key Currently, a gap exists between business ambitionsand the frontline talent needed to achieve thoseaims. By 2030,54% of the workforcein theadvanced manufacturing sector will require trainingto meet evolving skill demands. As former leadersin production, we’ve heard “people first” countless Organizations that embrace this mindset– offering not just fair wages but opportunities fordevelopment and connection – will lead the future ofproduction. Imagine a workforce where employeesproudly say, “I belong. I contribute. I have a future This is the focus of theFrontline of the FutureInitiative, a World Economic Forum initiative incollaboration with McKinsey & Company. Thisinitiative explores how investing in talent innovationcreates a win-win: boosting business outcomes Why is the frontline talent challenge so acute?At a basic level, workers often struggle to earn aliving wage, especially in developing economies.According to McKinsey & Company, 40% offrontline workers in manufacturing face financialinsecurity, driving high turnover. Even in higher- Have we solved the talent challenge? Not yet. Butwe know this: the organizations that truly invest intheir people today will own the industrial future. Joinus as we explore what it means to build a better path As a result, talent retention has become one ofthe biggest challenges for industrial organizations.A McKinsey study shows that companies with Executive summary People, rather than technology,remain the true heart of industry. While there has long existed an imperative to keeppeople at the centre of production, that imperativehas and continues to evolve as industry undergoesfundamental transformations.A new age ofintelligent operations has emerged – and while itrequires new skills, it also creates new opportunities shortages, widening skill gaps, evolving workerneeds, struggling supervisors, and insufficient Leading organizations are pioneering afundamental shift: viewing frontline talent not as acost, but as an investment comparable to capital.Research shows that companies typically spendthree times more on talent than capital equipment, TheGlobal Lighthouse Network, a WorldEconomic Forum initiative, co-founded in 2018with McKinsey & Company, and counselledby an advisory board of industry leaders,hasdemonstrated technology’s transformative potentialin manufacturing. Yet human workers remain Success requires locally tailored strategiesand investment in six core capabilities beyondcompensation: work design and safety, talentplanning, attraction and onboarding, talent Research conducted for this paper found thatleaders take three critical steps: 1) they setaspirational strategies after understanding theproblem, 2) they invest in talent innovations, and3) they build the holistic workforce operatingmodel at the corporate and site level todrive and sustain impact. While even leading The Frontline Talent of the Future Initiative addresses this challenge by identifying globalsuccess stories and creating an actionable playbookfor talent strategy. The initiative launched a pilotwith 10 companies and at 13 sites across the globeto identify leading talent innovations. Initial resultsdemonstrate positive impact: pilot participants In 2025, the Global Lighthouse Network willdeepen its focus on talent by including additionaltalent-related innovations and solutions in itsframe