Want to improve manufacturing employee experiences? Here's how.

The manufacturing industry is facing a critical juncture. While demand is surging and technology is rapidly advancing, a significant challenge looms: talent. Attracting and retaining skilled workers is becoming increasingly difficult, threatening growth and innovation in this vital sector. A proactive and modern talent strategy is no longer optional; it's essential for manufacturers to thrive in today's competitive landscape.

Key Challenges in Manufacturing Talent Acquisition

Manufacturers are grappling with a complex set of challenges in attracting and retaining the right people:

• Labor Shortages and High Turnover: The industry is experiencing significant labor shortages, with companies struggling to fill open roles. High turnover rates exacerbate this issue, disrupting production and increasing recruitment costs. In 2021, the manufacturing turnover rate reached 40%, signaling a significant loss of talent.

• Competition for Skilled Workers: Skilled workers are in high demand across industries. Manufacturing must compete not only with other manufacturers but also with sectors like technology, healthcare, and finance that are often perceived as more attractive by younger generations.

• Outdated Perceptions: Manufacturing jobs are often misperceived as low-skilled, monotonous, and physically demanding factory line work. This outdated image deters many potential candidates, especially younger workers who are unaware of the industry's technological advancements and diverse career paths.

• Aging Workforce: The manufacturing workforce is aging, with many experienced workers nearing retirement. This impending retirement wave threatens to create a significant skills gap and loss of institutional knowledge. More than 10,000 workers per day are estimated to turn 65 between now and 2021.

• Evolving Skill Requirements: Modern manufacturing is increasingly reliant on advanced technologies like automation, robotics, AI, and data analytics. This shift demands new skill sets in areas like design engineering, software programming, and systems administration, creating a gap between the skills of the existing workforce and the industry's evolving needs.

• Candidate Experience and Engagement: Slow hiring processes, poor communication with candidates, and limited interviewer availability create bottlenecks and negatively impact the candidate experience. "New hire no-shows" are also on the rise, further disrupting staffing stability.

• Workforce Flexibility Expectations: Many job seekers, especially younger generations, prioritize work-life balance and flexible work arrangements. The traditionally rigid schedules and limited remote work options in some manufacturing roles can be a deterrent.

Best Practices for a Modern Manufacturing Talent Strategy

To overcome these challenges and build a robust workforce, manufacturers need to adopt innovative and forward-thinking talent strategies:

• Enhance the Employee Experience: Focus on improving the frontline employee experience to boost retention and attract new talent. Key areas include:

  • Making Employees Feel Valued: Recognize and appreciate employee contributions and create a culture of respect and value.

  • Fostering Belonging: Ensure employees feel integral and welcome members of the team.

  • Empathy and Support: Be empathetic towards employees' personal needs and lives.

  • Growth Opportunities: Encourage employee growth through training, mentorship, and career advancement opportunities.

  • Prioritize Safety and Well-being: Maintain a safe working environment and prioritize employee health and safety.

• Offer Competitive Compensation and Benefits: To attract and retain top talent, manufacturers must offer competitive salaries, comprehensive healthcare, retirement plans, and performance bonuses.

• Invest in Upskilling and Reskilling: Implement robust training programs to equip the existing workforce with the skills needed for advanced manufacturing technologies. Offer apprenticeships, on-the-job training, and tuition reimbursement to support continuous learning and development.

• Promote Work-Life Balance and Flexibility: Explore flexible work arrangements where feasible, such as flexible schedules, part-time positions, or job sharing to improve employee satisfaction and attract candidates seeking better work-life balance. Over half (55%) of manufacturers already allow workers to take personal time on short notice.

• Embrace Technology in Recruitment: Modernize recruitment processes by leveraging technology to streamline applications, automate tasks, and enhance candidate communication. Utilize mobile-first application processes and integrated Applicant Tracking Systems (ATS).

• Redefine Perceptions through Marketing and Branding: Actively combat outdated perceptions of manufacturing by showcasing the industry's modern, technology-driven reality. Highlight diverse roles, innovation, career growth opportunities, and the industry's positive impact.

• Enhance Candidate Engagement: Create a positive and engaging candidate experience through personalized communication, faster response times, and streamlined processes. Build a robust talent pipeline by nurturing relationships with potential candidates.

• Diversify Recruitment Efforts: Expand recruitment efforts to include underrepresented groups through Diversity, Equity, and Inclusion (DE&I) initiatives. Partner with community colleges, technical schools, and diverse job platforms to reach a broader talent pool.

• Create Informative and Engaging Job Descriptions: Move beyond bland task lists and create job descriptions that paint a picture of the role, highlighting the exciting aspects of modern manufacturing and the company culture.

• Implement Employee Referral Programs: Leverage the existing workforce by creating employee referral programs that incentivize employees to recommend qualified candidates from their networks.

• Develop Comprehensive Onboarding Programs: Invest in onboarding programs that go beyond basic orientation to create a sense of purpose and belonging for new hires, develop job-related skills, and build confidence in their roles. A meaningful onboarding experience is correlated with lower employee attrition in the first 90 days.

• Designate Employee Experience Leadership: Appoint a dedicated leader or team to monitor and enhance the employee experience, ensuring that employee needs are understood and addressed.

The future of manufacturing hinges on talent. By proactively addressing the challenges and embracing modern talent strategies, manufacturers can build a skilled, engaged, and future-ready workforce that drives innovation, productivity, and sustained success in an evolving industry. Those companies that prioritize talent strategy will be best positioned to thrive in the years to come.