Manufacturing employees confirm benefits equally important as salary

Strengthened by healthy domestic investment and targeted government incentives, the U.S. manufacturing industry is in the middle of a resurgence. This is welcome and exciting news, particularly after the experience of recent years that proved our nation’s over-reliance on foreign manufacturing could leave the country vulnerable to unforeseen production, distribution and supply chain disruptions, as well as unpredictable political developments.

In response to these hard lessons, leading manufacturing organizations have begun reshoring their operations to the U.S. as well as relocating their domestic operation facilities to maximize cost savings or meet the requirements of government-provided incentives like the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).

This resurgence not only increases potential earnings and market share for these organizations, but it also creates thousands of employment opportunities for skilled U.S. workers. The downside, however, is the industry’s continuing challenge of hiring and retaining top talent to meet operational demands.

With ever-increasing demand for labor but a seemingly limited supply of qualified candidates, manufacturing organizations must reconsider their approach to benefits, total rewards packages, and employee engagement to ensure they can both competitively attract new talent and satisfy existing talent.

Purchasing Power recently published the 2024 Manufacturing Financial Wellness eBook, an overview of the manufacturing industry and findings from a survey of industry employees, their state of financial wellness and their sentiments toward their roles, their professional development and their benefits. Overall, employee optimism remains high as workers are aware and confident of their market value, yet they also expressed concerns about financial stress along with a strong interest in personal development and growth.

The key takeaways and insights from the survey offer informed recommendations and strategies that manufacturing HR leaders and their organizations can deploy to emerge as an employer of choice and to strengthen recruitment efforts.

Understanding the stress employees face today

The ongoing labor challenge in the manufacturing industry is certainly making an impact in the day-to-day challenges employees face in the workplace. Nearly 4 in 10 employees report being asked to take on new or different tasks or to handle multiple jobs at once. Sixty-eight percent also confirm they are working additional hours as a result of the skilled labor shortage, and 14% are working those extra hours at regular pay.

While having the opportunity to increase their paycheck with overtime may seem appealing for many manufacturing employees, consistently staying late at work can have negative impacts on their personal lives. Survey findings reveal that the stress stemming from workplace challenges affects manufacturing employees’ lives outside of work emotionally (65%), physically (59%), mentally (57%) and financially (50%).

To avoid employee burnout, employers must identify ways to effectively address these stressors while continuing to source and secure new talent. Investing in company-paid training programs and securing and promoting enhanced voluntary benefits can demonstrate to employees that their employer is both actively concerned and responsive to their personal needs and wellbeing.

Place greater value on professional development

Purchasing Power’s survey data found that 7 in 10 manufacturing employees are committed to pursuing continued work in the field, and roughly the same amount feel their skills are in high demand in the marketplace – a compelling reason to remain in the manufacturing sector.

Yet to advance their careers and personal growth, many of these employees are eager for professional development opportunities, both for their technical skillset – such as forklift training, management of CNC machines, higher-end licenses, etc. – as well as higher-level skills including data analytics, supply chain operations, robotics and soft managerial skills that aren’t normally associated with their role.

And while the majority (69%) of employees said they are encouraged to complete additional training certifications to master such skills – nearly 40% reported their company pays for additional certifications or skills training — only 13% confirmed they receive additional compensation for completing these programs. This suggests that ongoing training is considered more of a job requirement and not viewed as a benefit.

Instead of relying on slim teams to handle multiple jobs or work conducted beyond the standard 40 hours a week, employers should take the opportunity to emphasize and incentivize professional development, working to grow their teams from the inside out and reduce these burdens on employees.

Look to identify advanced training and education opportunities that can lead to advancement in the employee’s career – and compensating them for their time and investment. This will pay off in a more highly skilled workforce, a stronger connection and engagement with employees, and a greater degree of long-term job satisfaction, employer appreciation and loyalty.

The same can be said about the industry’s overarching approach to voluntary benefits offerings.

Recognize the importance of voluntary benefits

When architected correctly, voluntary benefits that support overall employee health and wellbeing – including financial wellness – can demonstrate tremendous value and promise to both the employee and employer. Considering that an overwhelming 87% of manufacturing employees say that benefits are just as important as salary, HR teams should pay close attention to the programs they offer.

Despite being in strong demand by employers, manufacturing employees face many of the financial wellbeing challenges that are common to the U.S. workforce. Nearly 70% of manufacturing employees have less than $1,000 in savings, which presents serious concerns as the average cost of an unexpected or emergency expense is $1,700 and rising 16% per year, according to BusinessInsider.com (June 26, 2023).

Related: Top employers discuss the future of financial wellness

Per the eBook findings, these employees revealed strong interest in voluntary benefits. Among benefits not currently offered by their employer, they report they are most interested in low-interest installment loans, bill payment programs, medical deductible financing and employee purchase programs. All these desired benefits point directly back to the financial challenges and stressors manufacturing employees face and the opportunities for employers to help address them.

For example, with the right balance of benefit programs and resources in place, employees experiencing financial hardships could turn to an employee purchase program to secure a responsible, disciplined, and transparent way to acquire the essential household products and services they need. At the same time, this practical voluntary benefit can help employees reduce their immediate financial stress and open the door to explore opportunities for long-term financial planning.

It all comes down to employees

The reshoring of U.S. manufacturing presents a great opportunity for key industry players to see maximized growth in the year ahead. Still, the organization’s ability to recruit and retain skilled talent to meet market demand may be the deciding factor between sink or swim. It’s imperative for manufacturing HR teams to place employee recruitment and retention efforts at the highest priority.

Listening to employee sentiments about their work and their personal financial circumstances, employers are enabled to explore voluntary benefit solutions that help ensure employees feel supported, more secure and empowered to be successful both on the job and in their homelife — much of which can be accomplished through a modernized, inclusive, and tailored approaches to employee benefits.

Assad Lazarus, Chief Commercial Officer at Purchasing Power