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Large manufacturing operations have significant labor needs. From the back office to the engineering department to the production floor to the sales team (and all points in between), these organizations can require a steady, reliable pipeline of new hires and existing team members to run their operations.
These needs haven’t diminished in an era where more manufacturers are adopting automation, robotics, and digitized processes. While some jobs have been made easier and certain roles allocated to more strategic tasks, labor-sensitive industries like manufacturing continue to have a steady, ongoing need for labor. In fact, advanced manufacturing operations may now require skilled individuals at all levels of the organization.
Meeting these labor challenges may not be easy in the current business environment. Skilled labor shortages, changing workplace demographics, and increasing pay rates may all present modern obstacles for companies that used to hang out a physical “Help Wanted” sign and wait while the job applications funneled in.
Internet job boards may have made it easier for job candidates to find open positions, but the facilitated process has also increased competition among companies with a steady need for new hires. As that competition heats up, manufacturers may need to increase pay rates and offer better benefits packages, both of which could drive up overall operational costs.
6 Tips for Employee Recruiting and Retention
Large businesses in the labor-reliant manufacturing sector may be planning labor increases over the next 12 months. Often driven by positive trends like geographical expansion, new product lines, and/or new customer acquisition, these labor increases may come with added financial pressure and, in turn, a reassessment of operational capabilities.
The good news is that there are steps that hiring managers and recruiters in the manufacturing sector could take to mitigate some of this risk and grow their labor forces in 2025. Here are six tips that manufacturers could use to attract and retain talent:
1) Explore technology and automation that reduces reliance on manual labor.
The typical manufacturing facility still relies on manual processes to get products designed, developed, and sold. The more manual processes, the more labor is needed to manage them while also introducing the possibility for human error. Robotics and automation could help ease some of this burden, with some of the options including robotics process automation (RPA), manufacturing execution systems (MES), and Industrial Internet of Things (IIoT) platforms.
2) Adopt technology that attracts tech-savvy job candidates.
Younger generations of workers are tech-savvy “digital natives” who are used to having the latest and greatest technology tools right in their palms. Attracting and retaining these job candidates requires modernized tech platforms (e.g., mobile business banking, AR/AP platforms, and computer-aided design software) that free up team members’ time to focus on higher-level problem-solving and creative thinking.
3) Consider non-traditional sources of new recruits.
The labor market is a diverse place made of many different types of potential employees, some of which manufacturers may not have previously considered. Workers with a military background, for example, may have leadership experience and strong work ethics that would align well with the manufacturing environment. And when given a second chance, ex-offenders may prove themselves to be productive, loyal employees. Individuals with disabilities are another often untapped source that could perform various types of work—from quality control to assembly line tasks.
4) Set up a mentoring program.
The manufacturing setting may be the perfect place to pair “veteran” workers with younger employees to share insights, teach lessons, and impart knowledge. These arrangements can be formal, informal, or a blend of the two. Fun fact: When mentoring is done right, it can lead to a two-way information flow, with veteran workers also learning a thing or two from the younger hires they’re paired with.
5) Partner with area colleges and universities.
Trade schools, community colleges, and universities may all be fertile recruiting grounds for large manufacturing firms that rely on a steady stream of employees. For example, companies could work with the institutions to establish internship and apprenticeship programs, sponsor engineering and technical courses, and/or participate in career fairs. The benefits are twofold: Manufacturers could both cultivate young talent, and begin building out a workforce that aligns with their specific needs.
6) Look for new ways to enhance your workplace culture.
The shared beliefs, attitudes, and behaviors that shape a company’s work environment and workplace culture have become a hot topic for companies across all industries. By fostering a positive, engaging, and understanding work environment, manufacturers could help motivate team members and reduce turnover. For example, employee recognition programs that offer tangible rewards and flexible work options that support a good work-life balance may positively impact productivity, employee retention, and operational costs.
Measure HR Performance, Adjust Accordingly
In the current business environment, human resources is not a “set it and forget it” process. As Baby Boomers continue to retire, more automation is adopted, younger candidates enter the workforce, and manufacturing requirements shift, HR departments must evolve right along with them.
Whether you’re offering more attractive compensation rates, experimenting with flexible work arrangements, or offering new professional development opportunities, these and other strategies may be measured, assessed, and adjusted as needed. And if something isn’t working, it may be time to test out a new strategy or process.
The Takeaway
By embracing modern technology, focusing on the employee experience, and exploring untapped sources of new employees, manufacturing HR departments could navigate the current labor market challenges while also preparing their organizations for the future.
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