I feel like part of the problem is that management wants staff that can do a wide range of tasks when it ends up creating a staff that can’t specialize in a small group of tasks.

I’ve seen plenty of times where people can operate well as a cog on a big machine, but fall apart when they have to work in roles that require a variety of skillsets. Larger engineering companies can typically create enough work for people to specialize in smaller tasks than smaller engineering companies.