Since 2020, the manufacturing industry has seen a steady decline in staffing due to several factors, both obvious and not.
For instance, many manufacturing executives are blaming the recession for not finding the right people.
The manufacturing industry’s problems are nuanced, and we can write out an entire book detailing every problem. However, we see two major problems plaguing manufacturers. The first is…
1. The Labor Shortage is Real
Yes, you read that right. The labor shortage is real, and it’s affecting every industry, not just manufacturing.
According to the US Chamber of Commerce, the manufacturing industry lost roughly 1.4 million jobs at the start of the pandemic and continues struggling to fill these roles.
(Manufacturing is one of the worst industries affected by a labor shortage, with the other being wholesale and retail trade.)
A study done by Deloitte sees a shortage of a potential 2.1 million workers by the end of the decade.
Sadly, since the initial lockdown in the US, most workers sought more remote work. The Great Resignation showed that workers valued remote or hybrid work and would leave their position if not given the option.
Unfortunately, it makes sense for there to be a labor shortage in industries that require people to work on-site.
We’ve seen ways to overcome this shortage, including recruiting recent grads from high schools while relaxing the requirement for diplomas and GEDs, targeting veterans, poaching employees from local businesses, and relaxing drug testing for some decriminalized substances.
If asked, many owners or hiring managers would simply say, “no one wants to work.” That’s not entirely the case, as the US Chamber cites early retirement, household income increasing allowing for some to stop working, and an influx of new businesses opening.
Thinking “no one wants to work” is the wrong mentality; think about your organization, which leads me to the second problem.
2. Your Company Culture is Pushing Away Great People
While remote work has damaged hiring, we firmly believe your company culture could create more harm than good. The days of people wanting to work themselves to the bone are long gone.
We’re not saying you won’t find people willing to give you their all, but the landscape of how job seekers see themselves in the job market has changed.
It’s not all about money anymore. Working in a ‘toxic’ environment can lead to high turnover rates, ruin productivity, and make it harder to find the right people to work for you.
The company culture you created is hurting the best of the generation from which you’re trying to hire. Think about implementing some version of DEI, or diversity, equity, and inclusion.
One Solution is to Promote Camaraderie
We feel you rolling your eyes and thinking the worst. This isn’t about patting your employees on their back and handing out trophies. No, this is all about improving teamwork and engaging your team.
Promoting camaraderie starts with a few things, such as:
- Being more available
Have an open ear to your employees. If your staff has complaints, be honest and receptive to them. Keeping communication lines open between staff and leadership is crucial for engagement. - Holding your people accountable
If you’re a frequent reader of our Forbes content, then you know why accountability is a mainstay in our content. Accountability is essential and should be handled with extreme intensity. Put specific goals in place for staff, a documented timeline, and a designated OOE, or overall operations effectiveness. - Changing your work culture
A 2021 survey conducted by Deloitte and The Manufacturing Institute found that 63% of manufacturers see the benefits of implementing DEI as leading to hiring and retaining a talented and diverse group of people.
Develop Skilled Talent
Establish a program where you train your top employees to grow within your organization. Develop a career growth plan that describes what a new tradesman can expect for the next 12-24-36 months.
Money is one thing, but providing unparalleled opportunities and skill sets in the form of an apprenticeship program to grow is far more effective in generating interest and inspiring company dedication.
Provide the Best for Your Workers
Every industry struggles with finding the right people for the job, especially now that a recession (or something worse) looms over us like a dark cloud.
When hiring, you have to remember it’s a give and take. What will the candidate provide for you, and what will you provide them to ensure they are happy and stay with you.
Let’s discuss your manufacturing goals. Call (800) 743-0410 to speak with a manufacturing management expert.
