According to recent figures from the Bureau of Labor Statistics (BLS), the average manufacturing turnover rate over the past several years was nearly 40%. The BLS also predicts that up to 2.5 million manufacturing jobs will remain unfilled. This has a negative impact on the quality of products being manufactured and puts pressure on profit margins for these organizations.
Problems with employee retention present significant hurdles for manufacturing companies. Understanding why this issue is happening and what can be done to turn it around is critical.
Breaking it Down
Turnover problems are not limited to manufacturing and light industrial firms. Organizations in all industries are faced with retention challenges. We all remember the ‘Great Resignation’ that peaked on the tail end of the Covid pandemic. At its height, nearly 50 million workers quit their jobs. Many of those positions are still being filled today. Manufacturing companies share in this continuing trend, as they have seen some of the most significant increases in workers quitting their jobs.
According to a recent Pew Research Center report, at least one-third of workers in general, quit their jobs for three primary reasons:
- Low pay
- No opportunity for advancement
- Feeling disrespected
These factors also apply to light industrial firms, along with workplace safety and schedule flexibility. You could argue that safety and flexibility are even more critical since industrial employees cannot work from home.
The Impact When Employees Leave
There’s more than one way for an employee to leave a company, and each has a distinct impact on the organization.
Some employees may physically show up for work but do the bare minimum, a behavior known as ‘quiet quitting.’ This trend gained attention during the pandemic and can have a significant negative effect on productivity—potentially as damaging as an employee physically leaving the company.
When an employee resigns, the organization faces additional challenges. Beyond the immediate loss of a team member, the company loses the knowledge and experience the departing employee brings, which can be substantial depending on their tenure. Resignations can also impact morale, lowering employee engagement and potentially causing a domino effect of turnover.
Overall, employee departures come with financial costs, including sourcing, hiring, onboarding, and training replacements. These costs are compounded by potential errors or quality issues as new hires learn the job.
Helping Workers Stay
While some factors related to why an employee leaves may be unavoidable, steps can be taken to put plans in place that tip the scales in favor of them staying.
- Safety and Wellness. Manufacturing workers are under more stress than ever in jobs that require a focus on safety. Mental health, well-being, and work-life balance are needed, as is a safe working environment. From wellness programs to safety programs to more flexible scheduling and mental health support, creating a culture where worker well-being is prioritized can increase retention and job satisfaction.
- Pay and Growth Opportunities. Two reasons many workers joined the great resignation were a desire for better pay and more growth opportunities. Considering a bump in hourly wages could help you improve retention. Creating a career path that gives existing employees a tangible way to advance can improve job satisfaction.
- Invest in Training. Invest in the employees you have, and you’ll spend less on finding new ones. Consider instituting upskilling and reskilling initiatives to help existing workers gain new skills and help you promote from within. If workers see manufacturing and light industrial jobs as career opportunities rather than rote jobs, they’ll likely stay.
Turn Challenges into Opportunities with Summit Staffing
By looking closely at your organization, you can recognize where minor adjustments or significant changes need to be made. The sooner these issues are addressed, the quicker turnover can be reduced and productivity improved. In an economy where competition increases almost daily, the risk of not acting is one you truly cannot afford.
Whether you need temporary, seasonal, or long-term support, our expertise ensures you find skilled candidates who are the right fit for your team. Let Summit Staffing help you reduce turnover and maintain productivity—connect with us today to explore how our hiring solutions can drive your success.
