April 1, 2024 Changing Dynamics Reshape Recruitment in Manufacturing

Manufacturers can tackle the rising challenges of securing talent by recognizing the changing patterns in hiring today.

By Bronwen Sisca, Executive Director, Talent Services, Sevenstep

Manufacturers face a challenging hiring market. Roughly 30% of sector jobs are unfilled, yet workers experience layoffs and frustrating job-hunting experiences. Where is the disconnect, and what can employers do?

The answer begins by recognizing a change in the hiring dynamic. Companies cannot assume candidates will line up for open roles, and workers cannot expect floods of job offers and pay increases as economic conditions keep wages and hiring in check. No party has the upper hand.

The result is not an even playing field – it is a disappearing playing field. In its place is a fragmented market where labor supply and job opportunities vary for every role. With that in mind, what follows are changing patterns based on today’s market and what employers can do to address them.

Skills Supply Gaps Create a Weak Link in the Productivity Chain

Employers are experiencing extreme variations in the talent supply for different roles. Likewise, engineering and technology skills are integral to many more roles than in the past. In our work as a talent solutions provider, we see first-hand how a changed market for skills requires an open mind.

For example, a client in central New York sought a mechanical engineering manager with a specialized skill set. The location was saturated, with many employers looking for similar talent. We foresaw challenges and worked with the hiring manager to allow the position to work from other places in the US. We eventually found a highly qualified candidate in Colorado, but the company president would not approve the location. 

After consulting with the hiring manager, we flew the candidate and his family to New York State, paid for their stay, met the team and showed him around. We suggested places to live in the area and connected him with a real estate agent. We engaged a vice president who spent a day with the candidate and his family. This effort convinced the candidate to move from Colorado.

This heavy push was worth the effort because the job was vital. If an organization hires 1,500 warehouse workers on time but leaves 50 skilled manager roles unfilled, the result impacts performance. Your recruiting strategy is only as good as its weakest link. Do not define it by your heaviest use of talent but by the unique needs of each type.

Salaries Break Free of Simple Employment Indicators

A rise in unemployment or layoffs will not necessarily boost the labor supply or reduce prevailing rates for all roles. Trends in talent costs vary by location, demand and skills. The proposed pay in a job requisition may bring different results than in past hiring efforts – even compared to a year or two ago.

For example, we received an opening for a service manager in a remote location at a salary based on a previous effort. When we reviewed market data, the prevailing rate for that role and location had risen by $20k. We assembled the data, screened six candidates to test the market and presented our findings to leaders. This led them to request higher compensation for the role to drive a successful hiring effort.

External data sources can trace the talent supply and prevailing rates. With specialized support and technology, employers can accurately align their pay to be competitive. Do not assume what worked last time will work this time. Analyze current conditions in detail.

Relationships, Not Help Wanted Signs, Bring Critical Talent Through the Door

Advertise a job. Receive resumes. Sift candidates to hire the right handful. That approach worked in the past but is not reliable today. Do not wait for candidates to come to you. Make an effort to meet workers where they are and build relationships to keep them in view when a hiring need arises.

Broad candidate attraction strategies make a difference. For example, we experienced a challenge hiring warehouse workers for a remote location. A virtual and grassroots location-based push was the answer. We posted fliers on cars and engaged with unemployment agencies, churches and supermarkets. The effort brought workers into a pipeline, influencing recruiting speed for that hiring effort and later campaigns.  

Active, targeted recruiting takes time. Start the sourcing process early for difficult roles and those requiring repeat hiring efforts. You will gain a speed advantage when hiring for challenging roles or volumes.

Putting it all Together: Break the Cycle of Fail and Improve

The market for manufacturing and industrial talent is fragmented. Get proactive and understand the skills you need and the conditions in the market. Focus on attracting talent, cultivating relationships and bringing them into your network.

These ideas are not unique to the sector, but as the old balances of power have given way, they are more important than ever.

Bronwen Sisca is a results-driven talent acquisition professional with 20 years of experience in recruitment, client delivery and customer success – primarily in support of large manufacturing and industrial companies. Her passion for solving complex hiring challenges is an asset. During her nearly 14 years with Sevenstep, she has scaled recruitment teams to support extreme surges in hiring, led the delivery of thousands of hires, and brought clients valuable insights using a data-driven approach to support significant business process changes resulting in more successful hiring programs.

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