5 Challenges for HR in the Manufacturing Industry

In the whirlwind world of manufacturing, change is the only constant. With technology zooming ahead and the industry’s hefty impact on the economy, HR departments in manufacturing firms are in a race to keep up. They’ve got to adapt alongside the industry, their companies, and the folks on the factory floor.

Even though manufacturing is growing quickly, it’s not all smooth sailing. There are challenges along the way. It’s super important to help companies succeed, not just for their own sake but for the whole economy. Manufacturing creates a ton of jobs, about 11.7 million in America alone! So, HR teams need to figure out what’s making things tough in the industry and find ways to use new ideas to make things better. 

Understanding these problems is the first step to finding solutions. Let’s take a look at the challenges before we dive into some solutions!

Workforce Shortage

The manufacturing industry is facing a significant shortage of skilled workers, driven by various factors. These include a lack of graduates with STEM (Science, Technology, Engineering, and Mathematics) education, outdated perceptions of manufacturing workplaces as unsafe or lacking in innovation, and misconceptions among younger generations about the sector’s competitiveness and earning potential.

Despite the sector’s rapid financial growth, HR departments must urgently address the loss of human capital. With the average age of skilled workers at 56 and a large portion of the workforce set to retire in the next decade, replenishing talent has become a pressing concern. Without a skilled workforce, manufacturing companies will struggle to survive, let alone thrive, in the competitive landscape.

While manufacturing jobs offer attractive salaries, averaging around $77,500 per year, pay alone is not enough to attract workers as it once did. Additionally, the challenge lies in finding skilled workers who do not require extensive training and education. HR departments in manufacturing must actively work to address this workforce shortage to ensure the industry’s continued success.

Recruitment Challenges

Recruiting skilled talent is crucial for addressing the current workforce shortages in manufacturing. A staggering 80% of manufacturers recognize the urgent need to meet workforce demands over the next five years.

However, recruiting in the manufacturing sector comes with its own set of challenges deeply rooted in societal factors. Many manufacturing positions require highly specialized skill sets, limiting the pool of qualified candidates. Additionally, stagnant recruiting budgets and a lack of emphasis on college recruitment have exacerbated the issue. Compared to other industries, manufacturing has struggled to attract talent, especially given the evolving landscape of college curriculums and graduate expectations.

These recruitment challenges are evident in various departments, with 55% of manufacturers reporting shortages in R&D and marketing. To overcome these hurdles, manufacturing HR departments must adopt a market research-driven approach to compete with other industries, particularly startups. By emphasizing innovation and stimulating work environments, manufacturing companies can appeal to graduates and fill talent gaps effectively.

Retention and Attrition

Retaining highly skilled workers is a challenge faced by HR departments across industries, and manufacturing is no exception. With substantial shortages in its workforce and recruiting abilities, minimizing attrition is crucial for manufacturing companies. However, the industry often experiences high turnover rates as employees seek new opportunities.

This turnover is exacerbated by insufficient investment in employee growth and development, both professionally and personally. Stagnant pay packages, lackluster benefits, and poor work environments further contribute to the issue. Additionally, the advancing average age of the manufacturing workforce compounds turnover challenges.

Low Employee Engagement

Creating engaging work environments is essential for the manufacturing industry to leverage the power and insight of its workforce. Despite significant job growth in recent years, the sector’s employment engagement level is estimated to be only 25%, trailing the national average by 8%.

The sheer size of the manufacturing workforce spread across multiple locations and great geographical distances poses a unique challenge for HR departments. Without proper employee feedback and communication tools, engaging such a dispersed workforce becomes even more difficult. Establishing constant communication with trade unions, which is vital for bridging communication gaps created by distance, can help organizations engage their employees effectively.

Training and Development

While turnover and recruitment pose significant challenges, training and development are equally vital. HR must ensure all employees receive adequate training to stay updated with industry developments and prepare for future challenges.

Moreover, training and development foster personal and professional growth, leading to higher employee satisfaction and engagement. Alongside improvements in recruitment, retention, and worker engagement, effective training and development systems are crucial for the manufacturing industry to maintain its competitiveness globally.

6 Strategies to Overcome Manufacturing Challenges

Navigating the complexities of HR in manufacturing requires innovative solutions. At Culture Works, we understand the unique needs of the industry and offer tailored strategies to address common challenges. 

Workforce Shortage Solution: Attract Millennials

Manufacturing companies must actively appeal to millennials, who possess valuable technology skills. To combat the outdated perception of the industry, showcase modern manufacturing through immersive experiences like VR at career events, highlighting innovation and career opportunities.

Recruitment Challenges Solution: Streamline the Recruitment Process

Agile recruitment processes are crucial in addressing workforce gaps promptly. Lengthy and bureaucratic hiring procedures deter candidates. Utilize technology and feedback surveys to streamline recruitment, ensuring efficiency and attracting top talent.

Retention and Attrition Solution: Employee Empowerment

Empowering employees through feedback mechanisms fosters engagement and loyalty. Implement changes based on employee input to enhance job satisfaction and retention rates.

Low Employee Engagement Solution: Improve Culture

Enhance company culture based on authentic employee feedback. Understanding employee needs creates a more satisfying work environment, attracting and retaining talent.

Training and Development Solution: Eliminate Technology Gaps

Invest in digital workflow systems to enhance productivity and knowledge transfer. Identify and address technology gaps across all operational facets to ensure sustained competitiveness.

Need a Little Help Hiring the Right People?

Taking the time to hire the right people will have a host of benefits in the long run. Finding the best fit may not be as easy as a gut feeling and a round of interviews. Luckily, Culture Works is here to help.

At Culture Works, our team is focused on value and role alignment. Our team creates processes for your hiring manager to implement that make the hiring process efficient and effective. We carefully review and screen each candidate, administer customized assessments, and deliver value and role-aligned people to fit your needs.

Read on to learn more about what we do. Then, read on to learn how to build trust with your employees.