November 7, 2019

Manufacturing businesses are experiencing many challenges such as skilled labor, project management, the implementation of technology, and system usability.

A common problem is that businesses in the manufacturing industry are experiencing a labor shortage, so it is very important that manufacturing businesses budget correctly for the shortage.

Keep reading to learn more about the 4 HR functions your manufacturing business needs to adapt for a smoother operational running of your company.

How Important is HR in the Manufacturing Industry?

HR is a key pillar to the success of manufacturing industries, because to ensure your business can overcome the challenges threatening the industry, you need to make sure you have a skilled workforce.

“HR can also help to ensure that staff are retained and create value and performance-based reward systems. Another important role that HR plays in manufacturing businesses is that they are able to create better recruitment processes, on-boarding training, and training, which can help to eliminate the skills shortage gap altogether,” says Charlie Bailey, a spokesperson from THEGOODESTATE.

So, what are the HR functions that your business needs?

1. Recruitment

The most important part of HR in your manufacturing business is recruitment and finding the right people for the job.

However, finding talent in the manufacturing industry can be difficult, because younger generations aren’t as interested in these roles. According to a Deloitte/Manufacturing Institute study, the skills gap may leave 2.4 million manufacturing positions unfilled between 2018 and 2028.

It is becoming increasingly important for HR to provide high-quality recruitment processes in order to attract the talent to fill these roles.

2. Compensation Packages

Workers are expecting more than a basic wage, they require incentive programs and compensation packages. For example, a job hunter might be looking for a manufacturing job that also provides benefits, perks, and bonuses.

This is a critical HR function that can help to ensure your business attracts the best talent, which in turn makes more money for your business than you lose.

3. Training

Training is an important HR function that can ensure your employees remain engaged with their work and feel proud to be part of your manufacturing business. It also helps to show your employees that you value them and are willing to invest in them and their skills.

Job training, mentoring, coaching, career development, tuition reimbursement, motivational speakers, and volunteering, are all great ways HR managers motivate a workforce and help to improve productivity.

4. Appraisals

Another important HR function is employee appraisals because they also help to ensure employee engagement is high. Appraisal programs can be designed to fit specific manufacturing businesses, so that your employees feel valued, which is very important for employee retention.