Building the Workforce of Tomorrow: Strategic HR Insights From Manufacturers

In this survey report, senior HR leaders in the manufacturing industry share how they plan to take the lead and tackle key challenges in 2025.

Introduction

The manufacturing industry is at a crossroads, with HR leaders playing a critical role in addressing workforce challenges and driving strategic transformation. This report, based on insights from 1,000 HR leaders in the manufacturing sector, explores the top pain points, innovative solutions, and strategic objectives shaping the future of talent acquisition. 

From tackling skills gaps and employee retention to leveraging digital tools for talent acquisition and operational efficiency, manufacturing HR teams are evolving to meet the demands of a rapidly changing industry.

Keep reading to learn how HR leaders are overcoming challenges and positioning their teams as key drivers of ROI, scalability, and long-term organizational success.

Insight 1

Quality of hire and employee experience define HR’s strategic focus for 2025

As the manufacturing industry evolves, HR leaders are focusing on innovation and data-driven strategies to address workforce challenges and drive organizational growth.

Key HR performance indicators for manufacturers 

HR leaders in manufacturing are prioritizing metrics that directly impact workforce quality and stability. Quality of hire is cited as their most important KPI, reflecting its central role in ensuring effective talent acquisition and workforce performance. Employee turnover rate and employee engagement score are also key measures, underscoring the need to retain skilled employees and maintain high levels of workforce engagement in a competitive labor market.

Strategic focus areas for 2025

Looking ahead, manufacturing HR leaders are concentrating on three critical areas to meet future workforce needs. Leveraging AI for recruitment is the top priority, as advanced tools streamline hiring processes and improve decision-making. 

Enhancing the employee experience follows closely, highlighting the importance of fostering engagement, satisfaction, and retention. Coming in third, preparing for the future of work and evolving employee expectations further emphasizes the need to adapt to changing workplace dynamics and employee needs. 

What is the most important question manufacturing HR leaders should be asking as they plan for success in 2025?


Metrics for future improvement

In line with their strategic focus, HR leaders are prioritizing improvements in metrics that impact hiring outcomes and workforce stability. Quality of hire is again the most emphasized (ranked #1 by 47% of respondents), as it directly influences recruitment success and long-term organizational performance.

Employee retention rate (22%) and background check and screening efficiency (9%) round out manufacturers top 3 areas for improvement, reflecting the importance of minimizing turnover and ensuring streamlined, effective hiring processes.

What this means for employers

  • Focus on hiring quality and retention: Prioritize metrics and initiatives that improve the quality of hires and reduce turnover to build a skilled and stable workforce.
  • Leverage AI for recruitment innovation: Invest in AI-driven tools to optimize hiring processes, enhance decision-making, and reduce time-to-hire.
  • Enhance employee experience: Foster engagement and satisfaction through targeted initiatives that align with evolving employee expectations and workplace needs.
  • Track and improve key metrics: Regularly evaluate metrics like quality of hire and retention rates to measure the success of HR initiatives and guide future improvements.

Insight 2

HR leaders embrace AI and tech solutions despite barriers, highlighting their strategic value

As the manufacturing industry faces workforce challenges and increasing demand for efficiency, HR leaders are leveraging new technology to streamline hiring and improve decision-making.

Top AI hiring solutions recommended by manufacturers

AI-powered tools are at the forefront of technology adoption in manufacturing HR. Resume screening (29%) emerges as the most recommended application by hiring managers, enabling HR teams to handle high volumes of applications efficiently while identifying top candidates. 

Automated background check data collection (18%) and data-driven retention strategies (18%) also rank highly, emphasizing the importance of leveraging technology to improve both recruitment accuracy and employee retention.

Which AI-powered hiring tools are most recommended by manufacturing HR leaders?


What’s stopping technology adoption?

Despite its benefits, technology adoption in manufacturing HR faces notable barriers. Resistance to new technologies is the most significant obstacle noted by HR leaders, highlighting the challenge of gaining organizational buy-in. 

Budget limitations and difficulties in customizing solutions to meet specific hiring needs further hinder adoption. These barriers underscore the need for targeted investments and tailored solutions that align with organizational goals while addressing operational concerns. 

Best communication channels for reaching top candidates

Manufacturing HR leaders find company websites and career pages to be the most impactful communication channels for hiring, followed by email and text messages. In contrast, social media and video communication are considered less effective, reflecting the need to focus on direct and practical outreach strategies that resonate with the industry’s workforce.

What this means for employers

  • Adopt AI for efficiency and retention: Focus on AI-driven tools like resume screening, background checks, and retention analytics to streamline hiring and improve workforce stability.
  • Overcome adoption barriers: Address resistance to technology by demonstrating ROI, providing training, and ensuring solutions are customizable to meet specific industry needs.
  • Optimize communication channels: Prioritize company websites, career pages, and direct communication methods like email and text to effectively engage with candidates.

Insight 3

Upskilling, hands-on training, and retention strategies are critical for HR success in 2025

As the manufacturing industry evolves with automation and an aging workforce, strategies like upskilling programs, hands-on training, and retention initiatives are crucial for meeting workforce demands and ensuring greater HR impact in 2025.

Widening the talent pool and reducing time-to-productivity

Expanding the talent pool is a critical focus for manufacturers, with upskilling opportunities (24%) identified as the most impactful strategy for attracting new talent. Automating repetitive HR tasks through technology and AI (19%) is also a significant priority, reflecting the industry’s commitment to leveraging innovation for operational efficiency. Creating hybrid work environments for applicable roles (17%) further supports efforts to attract a diverse and flexible workforce.

What do manufacturers believe will have the biggest impact on widening their talent pools in 2025?


Increasing upskilling opportunities
Automating repetitive HR tasks with technology and AI
Creating hybrid work environments for applicable roles

To reduce time-to-productivity, hands-on training is manufacturers’ preferred strategy (ranked #1 by 40% of respondents), enabling employees to gain practical experience and integrate quickly into their roles. Complementary initiatives such as mentorship programs (15%) and continuous evaluation (14%) provide ongoing support and feedback, fostering skill development and long-term retention.

Addressing employee attrition

Employee attrition remains a pressing concern, with skills gaps emerging as the most significant factor impacting high turnover rates for manufacturers. The mismanagement of candidate expectations also contributes to turnover, underscoring the importance of clear communication and alignment during recruitment.

Additionally, a lack of job security and career advancement opportunities impacts retention, highlighting the need for robust development pathways and a focus on employee stability. 

What challenges need your attention in 2025?

Looking ahead, employee retention was identified as the biggest challenge for manufacturing HR teams, reflecting the need for strategies that prioritize workforce stability and engagement. Managing employee skills gaps and addressing the impact of automation and robotization are also critical objectives, as the industry adapts to technological advancements and their implications for the workforce.

What do manufacturers predict will be their top HR challenges in 2025?


What this means for employers

  • Invest in upskilling and training: Expanding training programs and upskilling initiatives can address skills gaps, attract diverse talent, and reduce time-to-productivity.
  • Enhance recruitment and retention strategies: Clear communication during hiring and offering career development opportunities can help manage candidate expectations and reduce attrition.
  • Leverage technology for efficiency: Automating repetitive HR tasks and implementing innovative tools can widen the talent pool and support hybrid work environments.
  • Prepare for automation’s workforce impact: Proactively manage the effects of automation by aligning workforce planning with technological advancements and providing training to adapt to new roles.

Insight 4

Competitive compensation, candidate experience, and modernized practices drive talent attraction and retention

In the manufacturing industry, fostering a positive candidate and employee experience is pivotal for attracting and retaining top talent, particularly as workforce expectations evolve. 

What makes a strong Employee Value Proposition (EVP)?

Competitive compensation remains the cornerstone of employee value propositions in manufacturing, reflecting its importance in attracting talent in a competitive market. Career development opportunities rank as the second most important benefit for prospective candidates, signaling employees’ desire for clear pathways to growth and skill advancement. Work-life balance rounds out the top three, emphasizing the increasing demand for flexible and supportive work environments that align with personal well-being.

What employee value do manufacturers say has the biggest impact on winning high-quality candidates?


Candidate experience is a hiring priority

Candidate experience is viewed as an essential component of hiring strategy, with 75% of manufacturing HR leaders rating it as “important” or “very important.” This overwhelming consensus highlights the role of a seamless, transparent, and engaging recruitment process in shaping an organization’s ability to attract top talent. Only a small percentage (6%) consider candidate experience unimportant, underscoring its broad relevance to successful talent acquisition efforts. 

How to engage candidates from younger generations

Manufacturers are increasingly focused on attracting younger talent to address workforce aging and fill critical gaps created by retiring employees. Offering upskilling or apprenticeship opportunities is the most recommended approach by our survey respondents. These programs can give your team a leg up by speaking to younger employees’ desire for skill development and career growth. 

Implementing technology preferred by younger workers, such as digital tools for collaboration and communication, and modernizing workforce management practices are also top priorities by manufacturing HR leaders looking to align with the expectations of a younger, tech-savvy workforce.

What strategies do manufacturing HR leaders most recommend to win over candidates from younger generations?


Offer upskilling or apprenticeship opportunities
Implement technology preferred by younger workers
Modernize workforce management practices

What this means for employers

  • Enhance your EVP with career growth and flexibility: Competitive compensation is essential, but integrating career development opportunities and work-life balance into your benefit offerings will create a more compelling value proposition for candidates.
  • Prioritize candidate experience: A strong focus on candidate experience during recruitment builds trust, strengthens employer branding, and improves hiring outcomes.
  • Engage younger talent with modern strategies: Investing in upskilling programs, adopting preferred technologies, and modernizing workforce practices will attract and retain younger workers, ensuring a future-ready workforce.

The takeaway

To tackle the unique challenges in manufacturing, HR leaders recommend prioritizing strategic talent acquisition, workforce retention, and bridging skills gaps through upskilling and apprenticeship programs. 

As manufacturers modernize their hiring flows, leveraging AI-driven tools can streamline hiring processes, enhance efficiency, and attract tech-savvy talent. And, by focusing on employee engagement, flexibility, and aligning workforce strategies with automation, HR teams can drive organizational success and resilience in a rapidly evolving industry.

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Checklist: Manufacturing background check strategies for faster hiring

Find out which screening tools, like AI-powered solutions, have the biggest impact on manufacturers’ hiring success.

Survey methodology

All data found within this report is derived from a survey conducted by Checkr online via the survey platform Pollfish. In total, 1,000 senior HR leaders in the manufacturing sector were surveyed. This survey was conducted in November 2024, and all respondents were asked to answer all questions as truthfully as possible and to the best of their knowledge and abilities.

Disclaimer

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.

Additional resources

Checklist: Manufacturing Background Check Strategies for Faster Hiring

How to Choose a Background Check Provider for Hiring at Scale