Offering competitive benefits and career development enhances manufacturing employee retention. Retaining skilled labor enhances productivity and operational efficiency.

Employee retention helps manufacturing firms safeguard institutional knowledge, experience, and proficiency. Keeping seasoned employees supports workflows and reduces hiring, onboarding, and training costs.

Importance of Manufacturing Employee Retention

Retaining skilled manufacturing employees preserves their deep understanding of stringent safety protocols, equipment, and complex processes. These factors contribute to workplace safety, operational efficiency, and product quality.

Investing in manufacturing workforce retention supports operational stability, efficiency, productivity, and product quality. The activities foster safety, motivation, engagement, and accuracy to help maintain the firm’s competitive edge.   

Impact of Low Manufacturing Employee Retention Rates

Low employee retention rates negatively impact manufacturing firms in these ways:

  • Disrupted production schedules: Consistently onboarding and training new hires lowers efficiency and productivity.
  • Decreased morale: Consistent workforce changes reduce team cohesion, contributing to feelings of overburden and demotivation.
  • Greater departures: Seasoned employees who leave take away years of hands-on experience, problem-solving, and understanding of the firm’s operational nuances.
  • Elevated costs: Higher recruiting, onboarding, and training costs impact the bottom line.

Reasons for Manufacturing Employee Turnover

The main causes of manufacturing employee turnover include the following:

  • Inadequate compensation: Employees who feel their income and benefits do not reflect their knowledge, skills, and contributions often pursue better-paying jobs. Regularly reviewing and adjusting compensation packages helps resolve the issue.
  • Job dissatisfaction: Employees might dislike the work environment and tasks or have coworker conflicts. Improving job design, supporting a positive work culture, and helping resolve issues can solve these problems.
  • Limited career advancement: A lack of growth opportunities encourages employees to find jobs elsewhere. Developing employee career plans and offering professional development can help.

Competitive Benefits Enhance Manufacturing Employee Retention

Benefits packages help determine where manufacturing employees decide to work. Offering competitive benefits shows employees’ time, knowledge, skills, commitment, and long-term growth potential are valued. 

The most desirable manufacturing employee benefits include:

  • Performance bonuses 
  • Health insurance
  • Mental health support programs 
  • Short- and long-term disability insurance
  • Life insurance
  • Retirement plan with a company match 
  • Generous paid time off (PTO)
  • Career development opportunities 
  • Financial education and services 
  • Paid family leave
  • Childcare assistance 
  • Tuition reimbursement 

According to a 2023 study conducted by the Manufacturing Institute and Colonial Life, 79% of respondents agreed that the more employees understood their benefits package, the more they felt cared for by their company. These results emphasize the role of competitive benefits in enhancing manufacturing employee retention.

Career Development Opportunities Enhance Manufacturing Employee Retention

Helping manufacturing employees develop career paths and offering training and development opportunities strengthen employee retention. Demonstrating organizational progression and offering relevant training encourage employee commitment and long-term loyalty. 

Manufacturing programs for local students

Consider implementing programs for local high school juniors and seniors and higher education students to generate interest in manufacturing careers: 

  • Maker fairs and annual events: Get students excited about making robots, participating in maker camps, and working with 3D printers. Offering maker fairs and annual events such as Manufacturing Day encourages the development of machining and programming talent.
  • Company visits and interactive programs: Let students visit the manufacturing firm and make something to take home. Offering something to design and etch with a laser lets them see, touch, and leave with a tangible item.
  • Education on earning potential: Help students understand the earning potential in the manufacturing industry. Many roles pay $80,000 to $100,000 or more annually.
  • Emphasis on career development opportunities: Share the professional growth opportunities for students talented in design and using machines to create products. Some of the jobs they might qualify for could exist in the future. 

Manufacturing apprenticeships

Offering manufacturing apprenticeships encourages workers to learn the basics and gain hands-on experience while earning income. Developing knowledge and competencies encourages apprentices to secure employment with the firm after program completion.

Best Practices to Create a Manufacturing Employee Benefits Package

These best practices can help manufacturing employers develop a competitive employee benefits package:

  • Review the firm’s budget to determine how much can be allocated toward employee pay and benefits.
  • Conduct regular compensation audits to determine wage changes, incentives, and bonuses.
  • Focus on the firm’s recent growth level and whether employee compensation aligns with the job duties.
  • Communicate the benefits during onboarding so employees understand them.
  • Train employees to use their benefits.
  • Provide contact information for questions about employee benefits.
  • Internally advertise employee benefits.
  • Provide a resource for employees to find information about their benefits.

Tips to Develop Manufacturing Employee Career Paths

These tips can help manufacturing employers work with employees to develop career paths:

  • Focus on what excites the employee
  • Create a vision of the future with the manufacturing firm 
  • Emphasize long-term learning and growth
  • Develop manufacturing-related competencies and technological use 
  • Prioritize continuous skill development for expanded earning potential 
  • Diversify the employee’s career options 
  • Promote structure and validation
  • Increase the employee’s contributions, results, and organizational value 
  • Promote independent learning
  • Stress the importance of overcoming challenges 
  • Create career trees with short branches that lead to other branches
  • Share job descriptions that include problem-solving to attract innovators 

Partner with a Manufacturing Recruitment Firm

Working with The Ōnin Group helps manufacturing firms strengthen workforce stability, increase revenue, and drive the bottom line. We analyze each firm, provide talent solutions, and help build a workforce strategy focused on company and employee success. The results include stronger job performance, improved retention, and a better employer brand. 

As a manufacturing recruitment firm, The Ōnin Group focuses on elevating the staffing experience and redefining what working together means. We use personalized guidance, top tools, and our award-winning culture to match motivated job seekers with employers of choice. We collaborate with candidates and clients to build creative, informed solutions to the most complex workforce challenges.

As part of a certified Minority Business Enterprise (MBE), The Onin Group is a staffing partner uniquely equipped to offer specialized solutions addressing the challenges of building a diverse manufacturing workforce. As our enterprise’s primary Strategic Supplier Alliance, our capabilities are backed by our strong national resources and deep commitment to people. 

Is Your Staffing Partner the Right Fit?

Not all staffing providers are created equal. The wrong partner can lead to high turnover, inefficiencies, and missed opportunities. Ask the right questions to protect your business.

Discover the 10 essential questions that will help you evaluate your staffing partner.

 

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