August 30, 2023 Strategies for Employee Retention and Recruitment

Adapting more effective employee retention and recruitment strategies can help manufacturers overcome today’s labor shortage.

By Leigh Rozelle, G&A Partners

Recent labor shortages have intensified recruiting and retention challenges within the manufacturing industry, which had more than 500,000 unfilled positions in June according to the U.S. Bureau of Labor statistics.

In part, the industry’s recruiting and retention challenges are due to an outdated perception of an industry that continues to quickly evolve thanks to advanced digital technologies. Additionally, many manufacturers are reluctant to adapt more effective employee retention and recruitment strategies.

But examining your retention strategies and revamping your recruitment efforts can play a major role in reducing turnover and hiring workers who are a good fit for your company – and more likely to stay long term.

Why employee retention matters & how to improve it

Turnover can take a significant toll on your workforce. When experienced workers leave, institutional knowledge is lost and the workload for remaining team members increases until new employees are hired and fully trained. Even losing newer employees takes its toll by negatively impacting employee morale.

Investing in retention not only saves you money – the cost of replacing an employee ranges from one-third to two times the employee’s annual salary – but it helps create a more productive and engaged workforce. Taking a proactive approach to employee retention and showing your workers how much you value them is critical for manufacturers who want to retain top talent.

Here are 6 strategies to help manufacturers improve employee retention:

• Evaluate compensation: Often as companies seek to attract candidates, they increase wages for open positions but fail to extend those increases to their current employees. Doing so, though, will show your employees you value them. It also ensures you’re competitive within the industry and with other industries that compete for similar talent.
• Expand your benefits offerings: Today’s workers are seeking benefits that take a more holistic approach to well-being, including financial, mental, and physical health and wellness. An expanded package that offers a variety of options will also appeal to a diverse workforce that can span up to five generations.
• Revamp onboarding: If you’re routinely losing new hires shortly after they’re on the job, it’s time to reexamine your onboarding program. Set the tone on day one by defining your company’s culture, mission, and expectations. Provide resources and training they need to feel successful and develop a plan for the first 30 or 60 days.
• Ask for feedback: Asking your employees for feedback is an effective way to improve retention, as they are on the front lines and often have suggestions. The key, however, is to ask and listen. Acknowledging their feedback and making changes will show employees you value their opinions.
• Build in flexible options: Hybrid and remote work options are enticing candidates across industries, but remote work may not be feasible for most manufacturers. To compete, get creative. Design shifts that start earlier, provide a longer midday break, and end later in the day, or offer a 4-day-, 10-hour work schedule.
• Offer career pathing and development opportunities: Develop a clear and enticing career path for employees and to entice job candidates who may not have the qualifications yet or are looking for a career change. Investing in their development shows employees they are appreciated and also provides them opportunities to excel and achieve continued success.

Attract a wider pool of talent with creative recruiting

With stronger retention efforts in place, you can now implement recruitment strategies that help attract a wider pool of talent and find candidates who are a good fit for your company, which also contributes to improved employee retention.

Here are 4 strategies that can boost recruiting in the manufacturing industry:

• Market yourself: Use social media channels and your website to showcase what’s unique about your company. Clean and bright facility? Family-oriented culture? Put it on display. You can also help potential job candidates envision themselves at your company by sharing employee stories or behind-the-scenes videos of a typical day.
• Connect with local high schools and trade schools: Visit schools in your area so students can learn about your company and the opportunities you offer. Show students how they can develop and advance within your company, and consider promoting apprenticeships at trade schools.
• Post openings to unique job boards: Casting a wider net will expand your reach and help you attract more candidates, so consider advertising your positions on job boards that are specific to manufacturing and industrial industries, in addition to more popular sites such as Indeed.
• Implement a paid referral program: Chances are, your employees or recently retired workers know a potential job candidate for your next opening. A paid referral program is a win-win for current employees and the company, plus it helps your employees feel valued and appreciated because they have a role in who they work with.

Leigh Rozelle brings 10 years of experience in the Human Resources industry to her role as senior recruiting specialist at G&A Partners, where she is passionate about helping businesses find and retain the best talent for their needs.

Subscribe to Industry Today