6 Strategies to Help Manufacturers Win the Hiring Wars
There’s no sugar-coating it. It’s tough out there for manufacturers on the front lines of the hiring wars. We are in an unprecedented hiring-and-retention situation in this country. The Great Resignation numbers just keep climbing. According to CNN, 47.4 million people left their jobs in 2021. That’s a lot of open positions and a lot of people out of work. You’d think it would be a hirer’s market. It’s just the opposite.
“54% of U.S. manufacturers are finding it difficult to attract skilled workers to get the job done. That’s up from 38% before the pandemic.”
Companies in all industries are feeling the hiring pain, but manufacturing is getting hit especially hard. IndustryWeek reports that 54% of U.S. manufacturers are finding it difficult to attract skilled workers to get the job done. That’s up from 38% before the pandemic. Competition for skilled workers to fill all of those jobs has never been more intense. And that competition isn’t just coming from other manufacturers. It’s also coming from other industries, like transportation, warehousing, even retail.
Hiring is only one part of the challenge. It’s also about retention. From a study by the Workforce Institute at HR solutions company UKG, manufacturers are getting “ghosted” by workers who simply don’t show up for their shifts. A shocking 68% of manufacturers said they let employees go because of it between January and March 2021.
So, what’s going on? Instead of the Great Resignation, you might call it the Great Reassessment. As Industry Week puts it, workers aren’t just reassessing what they do for their 9-to-5 and walking out the door, they’re also thinking about where they do it and why they do it. People have streamed out of the workplace in record numbers because they want more. More pay, more flexibility, more benefits, more meaning and more happiness.
Manufacturers who understand that is the key to winning the hiring wars. Let’s look at how to put that into practice when you’re trying to hire and retain employees.
What manufacturers can do to hire and retain workers
Here are six strategies to help you attract and keep the people you need to get the job done.
1. Open your company purse strings. To borrow a line from Cuba Gooding Jr., show them the money. With McDonald’s paying more than $20 an hour to flip burgers, it’s tough to compete with that. But look at what your competition is paying and match it, or if possible, exceed it. Job seekers today are ultra-choosy, and a high salary is one of the most important weapons in your hiring arsenal.
2. Cast your net wider. Do you have a background check that excludes people who have had felonies or other arrests? Would you consider hiring a retiree? How about someone with special needs? From the same Workforce Institute study, 62% of manufacturers have hired or considered hiring people with special needs, 56% have hired retirees, and 52% are considering hiring people who have been incarcerated. You may not have considered this talent pool in the past, but there are great advantages to hiring people who traditionally have trouble getting a break. Increased loyalty is a big one.
3. Work with schools to train and recruit students. The National Law Review points out that an entire generation of manufacturing workers is getting ready for retirement, and younger workers simply don’t have the skills to take up the mantle. By training students and those just out of school, you’ll be creating a pool of new employees who have the skills to get the job done in your workplace. This, in turn, will help reduce the skills gap that separates your new hires from your seasoned veterans and retirees.
4. Rethink your benefits. Your benefits package is especially important in luring Great Resigners back into the workplace. As we said, many people have quit their jobs because they’re looking for something more, and benefits are a big part of that. Robust health care that doesn’t cost an arm and a leg is a must. But think outside the box, too. Industries like retail and hospitality are luring younger workers by offering to pay off their student debt, cover childcare expenses and grant generous PTO.
5. Invest in upskilling and training. This is vital for retention, but it’s important for hiring, too. If your candidates know you are committed to your current employees’ futures, giving them the opportunity to learn new and valuable skills, it’s a big plus. It shows you’re in it for the long term, not just hiring a warm body to fill a hole on the line. For your employees who are already on the job, upskilling and training can increase their engagement exponentially. One of our clients recently put a new training program in place for longtime employees and awarded certificates when they completed the course successfully. Engagement went through the roof, along with employees’ pride of achievement. A benefit for you, along with happier, more engaged employees, lies in cross training your people. That way, if and when an employee “ghosts” you on a shift, you’ll have a pool of qualified people to step in and do the job.
6. Consider your efficiency. Are your machines breaking down frequently? Are there stoppages on the line? The same client of ours that invested in training and upskilling realized that their employees were continually frustrated with snafus on the line day in and day out. Correcting those problems and making your operations as efficient as possible gives employee satisfaction a boost and helps with retention. Also, it’s crucial to involve employees at all levels, from the corner office to the line on the shop floor, in the process of improving your operation’s efficiency. People with varying viewpoints of the job bring a variety of opinions and ideas to the table.
At USC Consulting Group, we’ve spent more than 50 years helping companies improve employee engagement and realize greater efficiency in their operations. Ready to talk about what we can do for you? Give us a call.
