Resources available to help recruit, retain employees
The shortage of labor, especially skilled workers, is a chronic lament in manufacturing. As technology and markets have evolved, the knowledge and qualities workers need to be successful have shifted.
The workforce has changed too, as younger employees replace retirees. New strategies and resources are needed to ensure prospective hires possess the right skill set and that employers are prepared to recruit, develop and retain productive, satisfied workers.
As of August 2023, the manufacturing sector was battling to fill a gap of 616,000 workers (the difference between the number of open jobs and the number of unemployed people), according to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics.
This gap won’t disappear any time soon. A study by Deloitte and The Manufacturing Institute (MI), Taking Charge: Manufacturers Support Growth with Active Workforce Strategies, found that half of the 3.8 million jobs expected to open between 2024 and 2033 will remain vacant.
Thus, it’s no surprise that attracting and retaining talent is the primary business challenge for 65% of respondents in the 2024 First Quarter Manufacturers’ Outlook Survey by the National Association of Manufacturers (NAM).
To recruit and retain employees, consumer packaged goods firms and other manufacturers have adopted a variety of tactics, including:
- Automating processes
- Prioritizing ease of use
- Establishing competitive compensation and benefits programs
- Enhancing company culture
- Offering clear paths for advancement, and
- Supporting opportunities for students and young professionals to learn about career opportunities in manufacturing.
Automating processes
Automated technologies can improve efficiency and productivity while allowing employees to shift to less tedious or physically taxing tasks. Using automation to address labor force shortages has been a success, according to 2023 Sustainability and Technology – the Future of Packaging and Processing, a report from PMMI, The Association for Packaging and Processing Technologies.
With costs declining and ease of use soaring, robotics are a popular automation tool, especially for end-of-line tasks such as case packing and palletizing. Cobots, automated guided vehicles, and mobile robots are automating an ever-growing range of up- and downstream processes.
Automation also accelerates demand for digital competency as operations become more complex and information from smart connected devices and systems needs to be integrated and analyzed. Workers with knowledge of simulation and simulation software are especially sought after.
Today’s machines are equipped with more intuitive human/machine interfaces. In many cases, operators can access visual aids and tutorials to expedite setup, operation, troubleshooting and maintenance.
At the same time, end users are shifting some monitoring, troubleshooting, repair, maintenance, and training duties from in-house personnel to the original equipment manufacturer (OEM), often relying on remote support and predictive maintenance.
Compensation and culture
Competitive compensation is key to successful recruitment and retention. However, it should be noted that Gen Z employees look also consider cultural factors such as the potential for career development and advancement, schedule flexibility, the chance to do meaningful work, relationships with coworkers and caring leadership, according to a report from McKinsey & Company, From Hire to Inspire: Getting — and Keeping — Gen Z in Manufacturing.
Factors like work-life balance, opportunities for advancement and a commitment to sustainability also influence workers from other age groups.
There has been movement toward more flexible schedules, including part-time and full-time positions, a four-day, 36-hour work week and start time and shift length flexibility.
Early introduction
“The solution for a prosperous future, in any industry, is the next generation,” notes another PMMI report, Building an Effective Talent Strategy for the Packaging Industry. So, employers need to publicize the company’s story and engage with students.
Providing experiences is key. This can be something as simple as an open house, participation in community events or sponsorship of a school robotics team or summer camps to more involved co-op programs, apprenticeships and internships. Such efforts typically depend on partnerships with technical colleges, industry associations, universities, state and regional economic development agencies, K-12 schools and organizations.
Partners also can help address training and upskilling needs for existing staff.
Recruiting and retention
To attract talent, manufacturers work with partners, participate in local job fairs and boost engagement via videos and social media. Other tactics include communication that humanizes the recruitment process and acknowledges that employees’ work is meaningful.
Best practices cited in the Building an Effective Talent Strategy report include clearly communicating job duties, streamlining the interview process and communicating with candidates every three to five days.
Job offers should not necessarily be predicated solely on knowledge and skills. For many jobs, a candidate’s behavior, attitude and motivation are better predictors of success, according to the report.
The report suggests looking in other industries for talent and recommends giving an edge to passive candidates over active (unemployed) candidates because it typically takes 11 interviews to find the right active candidate and only four to find the right passive candidate. Often, passive candidates not actively seeking a new opportunity can best be identified through an in-house or third-party recruiter. It’s also important to consider internal candidates.
Retention may be even more critical because of the time, effort, and expense involved with hiring and training replacements and the cost of related productivity losses. The Building an Effective Talent Strategy report notes that retention starts with a smooth onboarding experience that makes newcomers feel welcomed and supported and sets a positive tone for a long-term relationship.
Successful retention initiatives range from competitive wages and gain sharing to regular career discussions and additional benefits like referral or retention bonuses. PMMI’s Sustainability and Technology report also notes that automating low-skill tasks can positively impact turnover.
Nearly half (47%) of the Deloitte/MI study respondents indicated that flexible work arrangements help employees achieve the desired work-life balance. Also, according to the report, employees who feel they can acquire skills that will be important in the future are 2.7 times less likely to leave the organization in the next 12 months.
PMMI resources
The MI organizes MFG Day — National Manufacturing Day on the first Friday of October each year to encourage manufacturers to provide plant tours to students, parents, teachers, and guidance counselors from K-12 schools. Some states and regional entities also organize events.
Late in 2023, SME launched the Manufacturing Imperative – Workforce Pipeline Challenge, a three-year pilot program with 25 community and technical colleges. Its goal is to supply 75,000 qualified manufacturing workers. Elements of the program include a labor analysis of local, regional, and state needs; development of strategies to attract new populations (particularly under-served and under-represented groups); and implementation of programs, curricula, and certifications to develop skilled individuals.
Workforce development is integral to the services PMMI provides for members and nonmembers. Options include the TechEd 365 course Troubleshooting Packaging Machinery, which is available online in English and Spanish.
The PMMI Mechatronics Certifications program consists of a series of tests based on industry-developed skill standards. It is recognized by the U.S. Department of Labor and MI’s Skills Certification System.
The program seeks to narrow the skills gap by:
- Helping employers assess workers for core skills.
- Guiding schools in developing curricula to prepare students for the manufacturing workforce.
- Providing a career pathway for students looking for rewarding careers in advanced manufacturing.
PMMI’s OpX Leadership Network offers online courses to help brand owners and their OEMs solve common operational challenges. Topics include:
- Factory Acceptance Testing.
- Request for Proposal.
- Total Cost of Ownership.
- Overall Equipment Effectiveness.
Tom Egan is vice president of Industry Services for PMMI.
