How to Navigate Hiring in the Manufacturing Industry
Talent Acquisition, more commonly known as recruiting, can be a challenge in any industry. However, in my decade-plus of concentrated recruiting experience, I’ve found sourcing employees in the manufacturing industry to be the most challenging. Why is finding quality candidates in the manufacturing space so tough? In my experience, this can be for a variety of reasons, including, but not limited to, workforce shortages and challenging perceptions of careers in the manufacturing industry. According to a report by the National Association of Manufacturers (NAM), 4.6 million manufacturing jobs will be available by 2028. 2.4 million of those jobs will go unfilled due to a lack of suitable workers. While this certainly presents a challenge for manufacturers looking to grow and expand in the coming years, it also offers an opportunity for innovative, proactive manufacturing employers to adopt effective recruiting strategies that will set them up for long-term success in an increasingly competitive environment.
Let’s breakdown why the challenge exists and a few ways to combat it.
Why is it so difficult to hire quality candidates in a manufacturing setting?
The manufacturing industry is facing a huge shortage of skilled and qualified candidates. This is due to a variety of factors, and it starts far down the talent pipeline. Schools are pushing 4-year degrees more than ever, and blue-collar fields like robotics, automation, and skilled trades are being left behind. Additionally, the NAM report predicts that by 2033, 2.8 million open manufacturing jobs will be from current workers retiring. With a population of employees aging out and no younger workers lining up to fill their space, this is causing a large skills gap in America that hiring leaders in the manufacturing space feel the impacts of each day.
On the other hand, manufacturing jobs face a branding problem. There’s a perception that jobs in this industry aren’t as lucrative or progressive, which further exacerbates the pipeline issues highlighted above. These perceptions impact students exiting high school, causing them to steer away from careers in the manufacturing industry. Pair this with perceptions that manufacturing careers offer less opportunity for career growth and transferable skill development, manufacturers face an uphill battle recruiting young people entering the workforce. While these are perceptions, not necessarily reality, the impacts on manufacturing recruiting remain the same.
Further, competition in the manufacturing industry is one of the highest of all industries. Manufacturing companies face competition not just domestically, but also globally, which forces them to keep labor costs manageable which can limit investment in employees.
How can manufacturers overcome recruiting challenges?
Unlike other industries that can temporarily absorb positions into other roles, having an unfilled position in a manufacturing environment can disrupt your entire business operation. Having a staffing partner, either internal or external, can allow you to build your talent pool and have candidates on the bench, prepared to step in when you’re ready to hire.
Focusing cost savings on supply chain management, efficiencies, and other overhead expenses will allow you to invest more in your employees, which as a result will assist you in attracting and retaining quality talent. By investing in your employees, you work against the negative perceptions I outlined above, and as a result, you can establish your business as an employer of choice. Reports have shown that Generation Z values flexibility and strong company values more than any prior generation. A strong, employee-centric workplace brand and policies that match can help reach and engage this generation of young workers.
In a previous blog, I discussed the importance of upskilling. This approach applies to the manufacturing industry, too! Create a development plan for all positions on your manufacturing floor which allows your employees to grow and develop professionally. Having this plan in place will give your employees something to work towards and keep them from feeling stagnant in their position. According to a study by Glassdoor, organizations with strong onboarding plans improve new hire retention by 82% and productivity by over 70%. So, make sure you have an onboarding plan in place. If an employee feels undervalued and not supported right out of the gate, they will not stay with your organization for long. A strong and defined onboarding plan will make employees feel like they have a home with your company and a sense of belonging.
Win the Competition for Talent
The good news is that there are so many other strategies and approaches that can be implemented to counteract the challenges faced by manufacturing employers in this complex economic environment. One thing is for certain, manufacturers that are proactive and intentional in their hiring strategies will emerge victorious in the battle for talent. If you are looking to implement a proactive and effective talent acquisition strategy, get in touch!
