4 MIN. READ
Recovery is finally in sight for the manufacturing sector. However, many still struggle with meeting production goals due to a widespread labor shortage. Finding qualified workers continues to be difficult, so companies should focus on improving employee retention in manufacturing.
Understanding the Labor Shortage
As of June 2022, there were 793,000 unfilled positions in the U.S. manufacturing sector. Manufacturing jobs opening have hovered at historic levels since the COVID-19 recovery took hold, hitting a high of more than one million unfilled roles in April of 2022.
The pandemic made an existing problem worse. This sector has seen its workforce age and retire, and replacing these workers has been difficult. Younger employees have different career expectations. Plus, few are interested in manufacturing. Factories also have to compete with warehouses for hiring.
In consequence, it is difficult to maintain production levels. Some facilities struggle with revenue growth. Unfortunately, these problems will only get worse as we could have 2.1 billion manufacturing jobs unfilled by 2030.
Employee Retention in the Manufacturing Sector
Manufacturers are facing unique challenges to say the least. It is an industry where attendance can be problematic before employees resign. There is often a lack of visibility over human capital problems.
The high turnover rate translates into high training costs. Also, there are issues with quality and productivity when new hires struggle to catch up.
The following strategies can improve employee retention in manufacturing.
1. Focus on Communication
Creating an environment where managers check in with employees can shed some light on human capital issues. Trust and loyalty are important. Plus, workers need to have clear goals. A workplace where communication is valued will make it easier to discuss issues.
2. Offer More Flexibility
More people than ever are working from home. However, there is a misconception that work cannot be flexible in manufacturing.
It is possible to offer a better work-life balance. Cross-training employees to do more than one job can make scheduling more flexible. Some places are also offering more paid time off. A four-day workweek is another option to think about.
3. Create More Thorough Training and Onboarding
A high turnover rate means training new people all the time. Some manufacturers have shortened their training process to cut costs. However, that is a costly mistake, as new hires often do not feel confident in their roles. They do not have the support they need to grow and succeed.
The onboarding process is a predictor of success. Proper training can help new hires do well. A mentor program can also make them feel like they belong. It is important to establish correct expectations about the job from the start as well.
4. Develop Growth Opportunities
Retention will go up if people can see a future with their current employer. Thus, it is important to offer ongoing training opportunities. A talent management program can help employees set career goals and achieve them. Internal hiring opportunities will also make a difference.
5. Emphasize a Shared Vision
A shared vision for the long-term can bring a team together. It will make employees feel that they are part of something bigger. Job satisfaction will increase if people feel that what they do is meaningful.
6. Rethink Hiring with Employee Retention in Mind
A diversity program can help with attracting a wider range of talents. People will be more likely to stay if the workplace feels inclusive.
For instance, women currently represent 30% of manufacturing jobs. A more inclusive hiring process could help recruit workers in underrepresented categories.
Getting help from a staffing agency is another option to consider. An agency that specializes in filling manufacturing positions can identify the employees who are more likely to stay and succeed.
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Editor's Note: This article was originally published in August of 2021. It has been updated to reflect new statistics on U.S. manufacturing job openings.
