Employees are the backbone of any company. Nowhere is this more true than the manufacturing industry.
Statistics show there are 15.7 million employees in the manufacturing sector in the United States, accounting for 10% of the total workforce. But employment levels have been on a downturn over the last decade, and 89% of manufacturing executives believe there's a shortage in the industry.
The numbers show there is a growing number of job openings in this sector, especially in the wake of Covid-19.
Hiring employees in manufacturing has its share of challenges. When companies in this sector seek to hire, they are often looking for skilled workers for highly specialized positions.
And with the turn toward technology and automation being used to streamline processes within manufacturing plants, the need for highly skilled and educated workers is only increasing.
So how does a company that focuses on manufacturing and production sway potential job seekers?
This article will seek to help companies learn strategies to boost their new hire rates and discuss how to find the best employees for manufacturing positions.
There are several reasons why the manufacturing industry struggles to find potential candidates.
Knowing what these challenges are can help hiring managers combat them and increase the number of valuable candidates in the job pool.
Here's a list of some of the top struggles companies face when trying to find the best employees for open manufacturing positions.
An Aging Workforce
One of the biggest contributors to why manufacturing companies are facing a worker shortage is the number of current employees who are nearing retirement age.
Workers who have held positions for a long time are vacating those spots. Many younger people in the job market are leaning toward more tech-friendly positions and may believe factory work isn't the kind of job they want.
Companies need to cater to younger applicants and demonstrate how manufacturing positions can fit their lifestyles.
Negative Public Perceptions
People who might make great candidates shy away from manufacturing jobs because they believe them to be boring, repetitive, factory work.
Or they worry that an increase in outsourcing overseas and the likelihood of automation becoming more prevalent in the industry means a lack of job security.
Women and minorities are much less likely to apply for manufacturing positions based on some of these perceptions. Companies need to make a conscious effort to shift those perceptions.
Automation and AI
Part of the negative public perception tied to the manufacturing industry has to do with the increase in the use of advanced technologies, automation, and AI on the factory floor.
Studies estimate that 400,000 jobs were lost in U.S. factories between 1990 and 2007 as a result of automation, and experts believe another 2 million could be at risk before 2025.
Companies must embrace new technology to streamline their processes and gain efficiency, but they must maintain a balance and ensure potential candidates understand that automation creates different opportunities within the manufacturing sector.
Competition For Skilled Workers
Many manufacturing positions require a specific skill set, and the problem for many companies looking to hire is a global shortage of skilled workers.
With so many open positions across the industry, and not enough young people choosing to enter the workforce and learn the skills needed to succeed, there is stiff competition between manufacturing companies.
This means employers need to focus on methods to upskill employees and provide on-the-job training programs for new hires.
With a "blue-collar shortage" that doesn't seem to be going away, and a global worker shortage resulting from the economic effects of the covid-19 pandemic, employers must rethink how they recruit new employees.
Hiring and recruitment strategies must reflect the rise of applicants using virtual means as a tool to search for work.
On top of harnessing the power of social media and the internet, employers must take a fresh look at traditional recruitment methods to ensure they’re making the most of every avenue available to them for sourcing candidates.
Every possible method for communicating open job positions should be utilized, but must be used efficiently to ensure time and money are not being wasted on outdated or ineffective techniques.
Below are some tips and methods employers should take advantage of when retooling their recruitment methods.
1. Market Your Roles Well
If companies expect to find candidates to fill open positions, they must market those jobs effectively.
There are numerous ways to get the word out that your company is hiring, and in this advanced age of technology, the methods available are only increasing in volume.
Here are some ways to market openings and ensure you hire the best employees for manufacturing positions.
2. Employee Referrals: Get Current Employees on Board
One of a company's best sources for potential candidates is current employees, who already know how a company runs.
Employee referrals are one of the most guaranteed methods for finding successful candidates to fill open positions, and employees hired through this method are more likely to stay on after hiring.
For companies to implement a great referral program, current employees need to be engaged. There are a few ways companies can ensure participation in the process and get a positive result to help hire the best employees for manufacturing through referrals.
Companies should build employee referrals into their culture. A great way to do this is by including mention of the importance of referrals during the onboarding process.
Giving new employees information on how and why they should participate in referring candidates during their training lets them know it’s encouraged and expected.
A great way to drive participation from current employees is to offer some form of incentive for referring potential candidates. Cash awards are always a good driver, but companies could also offer non-cash incentives, like event tickets, gift cards, or extra paid vacation days.
Get creative and poll employees to find out what would be an exciting reward. Or create some competition by sharing results or having inter-department contests to see who can refer the most candidates.
3. Offer the Best Benefits
In today's economic environment, job seekers are looking for more than a paycheck.
Companies that offer a comprehensive benefits package have a much greater chance of attracting potential workers, and many people actively looking for employment won't even consider a job offer that doesn't come with health insurance.
To attract the best employees for the manufacturing industry, employers should make sure their offerings are top-notch.
4. Streamline the Application Process
Once a potential candidate decides to apply for a position with your company, they must make it through the application process.
Studies show that over 30% of applicants won't bother to apply if the process takes longer than 15 minutes. That's why employers need to revisit and revamp their application process.
Having a streamlined process will help companies find the best employees for manufacturing instead of scaring them away with lengthy and outdated applications.
5. Maintain a Good Digital Presence
There’s no doubt that modern job searches start online, 64% of candidates research a company online before deciding to apply for a position.
Maintaining a strong online presence is vital for companies competing for candidates in today’s digital environment. So where does this online research lead people when they search the internet for a company?
The answer is mostly to online job boards like Glassdoor and Indeed. These sites not only list job openings, but they allow users the opportunity to leave reviews about anything from the application, to the interview process, and even reviews from current or past employees.
This creates a sense of transparency that workers expect today, but it can be a potential problem.
If companies don’t take the time and effort to effectively manage their online presence, they will struggle to find the best employees for manufacturing.
6. Look Over Your Job Descriptions
The job description is the first stop for most job seekers, so companies need to ensure the correct language and format are used throughout. A good job description can sway a candidate to apply, while a bad one can send them looking elsewhere very quickly.
Here are some tips for writing a great job description that will help companies find the best employees for manufacturing.
7. Consider a Hiring Agency
For companies that don’t have the time or people power for recruitment, a hiring agency is a great way to find potential candidates who will make the best employees for the manufacturing sector.
A hiring agency takes a lot of the leg work off the company itself and can be a great resource for companies that need to hire many employees quickly.
Hiring a staffing agency can help employers find qualified and even highly skilled employees without the company having to spend time and resources on performing the work themselves.
There are a variety of options available for companies to choose from when selecting a staffing agency. Some will provide temporary workers and others will hire employees on a temp-to-hire basis.
Hiring agencies are experts when it comes to recruitment, and companies can provide them with details on what type of employees they are seeking, including necessary skillsets, degrees, or technical training.
The great part about utilizing a temp-to-hire structure is that it allows companies to observe how an employee performs before offering them a permanent position with the company. This allows both employer and employee to get a feel for how they fit together before making an official offer of employment.
Utilizing a hiring agency can save employers money in the long run, especially when they need to fill many positions or need employees on a temporary basis.
Most hiring agencies take on the cost of performing pre-employment testing, background checks, and drug screenings for candidates before they ever submit them for a position.
We've covered the basics of how to source and engage potential candidates during recruitment, and the many ways employers can get their job listings in front of the right audience.
But what about the qualities and characteristics of those employees? Companies should have a clear idea of what to look for in candidates to ensure they can find the best employees for a manufacturing company.
Below is a list of some qualities employers should look for in a potential hire.
Manufacturing companies need employees to be successful, and the current labor environment has created unique challenges related to recruitment.
Companies need to be proactive and dedicated when it comes to sourcing potential candidates. It should be a task that never stops, even when positions are filled.
Having an organized recruitment strategy, utilizing social media and virtual job boards, and paying particular attention to the tools made available to job seekers should be a constant for companies.
Things change quickly in the workplace, and the labor market changes as well. Manufacturing companies need to address the challenges around hiring, including new ones that have arisen over the last decades and challenges that may arise.
Technology and automation have become vital for manufacturing companies, both in the field and regarding recruitment.
With the right tools, strategies, and attention, manufacturing companies can ensure a strong and vital workforce that will help them succeed now and in the future.