Worker attraction and retention: Manufacturing industry playing catchup

The challenges of attracting and retaining employees have never been more front and center for employers, yet the discussion often is frustratingly general—with little focus on what specific industries should do to address the concerns of their workers.

A new study from TeamSense dives into the specifics of manufacturing jobs and the challenges they face during the Great Resignation. The report, “2022 Trends & Forecasts: Human Resources in Supply Chain & Manufacturing, How Industry 4.0 Will Play Out,” was written by TeamSense experts who have a background in the manufacturing world. TeamSense provides digital solutions for employee engagement and management, and the new report suggests a number of ways to improve the use of technology.

The report’s authors noted that the COVID-19 pandemic and its effects on the workplace has taken place in a time of technological upheaval and change, and outline several different avenues for improving the connection between employer and employees.

“Manufacturing 4.0 started on the manufacturing floor,” said co-author Sheila Stafford, “but it has yet to reach the human resources aspect of a business, which, let’s face it, are the backbone and currency of any business. The pandemic deeply affected hourly workers in many ways, most of all cutting away critical communication channels between them and their employers. The fallout of these last two years has created a power shift between employee and employer.”

Meeting employees where they are now

The report noted that manufacturing has struggled to stay abreast of the latest trends in employee communication and HR processes—at a time when employees have increasingly valued being heard and feeling connected.

“There are many hourly worker processes that remain laborious, outdated and paper-intensive such as attendance, tracking COVID symptoms, sick days, onboarding, exiting and team announcements,” the report said. “Updated systems are needed to reach this population easily and quickly for emergencies and high stakes standard operating procedures, such as incident reporting.”

Some specific steps were outlined to address communication issues, including:

• Develop a communications plan for the hourly workforce.
• Invest in new technologies to attract, retain, and empower employees.
• Update employee materials such as handbooks to include use of mobile phones.
• Streamline communication processes, consider replacing voicemails, emails, or other old communications systems with texting services, for quicker and more direct communication.

Bonuses cost less than turnover

The report outlines a reality check for employers: hiring bonuses have become an effective, perhaps even essential, tool for improving workforce stability during the Great Resignation. The study noted that substantial signing bonuses for new employees are common across a range of industries.

Bonuses also can retain workers. “In December 2021, Tyson Foods earmarked $50 million to pay 80,000 of their frontline worker’s year-end bonuses. Tyson used this as a way to acknowledge the sacrifices their workers made to keep “the country well fed and the company strong” during the pandemic,” the report said. “They also invested in those hourly workers by providing medical, dental and vision insurance, vacation and other benefits.”

The report also noted changes in regulatory climate and support for unions, noting that the trend is toward increased union organizing. “Public support for unions has reached 68%, according to polling by Gallup, a level not seen in half a century,” the report added.

What do workers want?

In addition to better pay and communication, the report said workers want to feel empowered in areas such as scheduling and paid sick leave. Flexibility is important to workers, it noted: “They also want their managers to be flexible when unexpected events outside of work arise, such as sickness or transportation challenges.”

Attitudes towards employment differ among different age groups: younger workers expect companies to support smart phone use, for example. In addition, younger workers expect employers to be good corporate citizens:

“Millennials and Gen Z’ers care whether their employers are philanthropic, ethical and environmentally sustainable,” the report said. “Consider starting or increasing charitable contributions to organizations that are meaningful to the employees and the industry. Organize volunteer opportunities or donation collections for employees to participate in.”

The bottom line is for companies to value the humanity of their workers, the study said: “Your business is not a business without the workers who make your product. Get to know who they are, so they feel heard and seen.”