5 Ways Manufacturers Are Tackling the Talent Shortage

Is your TA team struggling to fill open manufacturing roles? You’re not alone. Despite a 23% increase in the average manufacturing employee hourly wage in the last five years, more than 80% of manufacturing executives report difficulty filling open positions, according to Deloitte.

An aging workforce is part of the problem. Nearly a quarter of manufacturing workers are 55 or older, and more than 80% of manufacturing employees who leave their jobs do so due to retirement or health issues. Replacing these retiring workers is increasingly difficult due to manufacturing’s growing need for highly skilled employees. As manufacturing jobs become more complex, engineering skills, soft skills, and familiarity with technology are becoming more important.

As you compete for a limited number of candidates, how can you attract the best people for your business while increasing their skills and productivity?

Here are five tactics successful manufacturers are using to widen labor pools, reach more candidates, and outshine competitors in a tight labor market.

To replace retiring workers and build a strong workforce for the future, your recruiting efforts should emphasize job benefits that appeal to younger candidates. Both Gen Z and millennial employees have similar criteria for desirable jobs, including:

Flexible scheduling is one of the most effective ways to attract candidates, Deloitte reports. While options such as remote work aren’t feasible for all manufacturing jobs, many manufacturers are seeing success by offering split shifts, part-time jobs, job sharing, or the ability to easily swap shifts. Four-day work weeks are another popular option–one that nearly two-thirds of employees desire, according to Bank of America’s 2024 Workplace Benefits Report.

Both generations also value having a sense of purpose in their jobs. These candidates want to feel that their employer has a positive impact on the community and society as a whole. Promoting your organization’s commitment to environmental and social responsibility, such as progress toward reducing energy use or a transparent view of your supply chain, can appeal to younger generations.

Extending the same benefits to frontline workers and corporate employees is another tactic that can help attract top talent. More than 70% of manufacturers offer frontline employees benefits such as paid time off, predictable schedules, training and development opportunities, and wellness programs, a survey by UKG reports.

Manufacturers are seeing growing demand for skills like employee relations, customer support, simulation and software simulation, and cloud-based enterprise resource planning (ERP), according to research from Deloitte.

While demand for manufacturing technical skills, such as metal fabrication, is also on the rise, many skills essential to a new employee’s success can be gained from experience outside the manufacturing industry. Internal training programs can give your team the power to fill any skill gaps these valuable new employees may have.

Start by applying a soft skills-based approach to recruiting to expand your candidate pool and diversify your workforce. Rather than focusing on specific technical experience, create job descriptions that focus on skills like:

Skills gained in roles such as project management, logistics, warehousing, supply chain management, and construction typically transfer to manufacturing. Workers in hospitality, retail, and customer service also gain skills useful to manufacturers, such as working under pressure, communicating effectively, and maintaining quality.

Encourage candidates with suitable skills to apply by promoting your organization’s training and development programs that can help them succeed in the new role. Mentoring, online learning, or in-house training can help get new employees up to speed—but don’t stop there. Lay out a clear career path for open positions and provide ongoing opportunities for learning and development to help candidates along the way.

Partnering with local organizations can help you promote manufacturing careers to candidates who may not be aware of forward-looking opportunities in the industry. According to a Deloitte survey, 94% of manufacturers have formed one or more partnerships focused on attracting and retaining employees. Consider the following partner options:

K-12 schools, trade and technical colleges, and universities offer opportunities to educate students about manufacturing careers. Speaking at events or career days, or giving students tours of your facility, can put your brand on the radar for students considering their futures. These schools can also be a valuable source of training and development courses for your workers.

Local and regional economic development programs exist to help employers succeed, so they have a vested interest in helping you fill your pipeline with candidates. Explore assistance from these programs, like participating in job fairs and similar events.

Membership in industry associations helps publicize your employer brand to potential candidates. Seek opportunities for your leadership to take active roles in the organization or speak at events. Active participation raises your organization’s profile in the industry and promotes your thought leadership.

Proactively reaching out to candidates who may be underrepresented in manufacturing can greatly expand your talent pool. These demographics could include (but are not limited to) women, military veterans, candidates with physical disabilities, and justice-impacted individuals. Use social media, job listings, your website’s career page, networking groups, and similar outreach tactics to tailor your recruiting efforts to support a diverse and inclusive workplace. 

Given that approximately 80 million Americans have an arrest or conviction history, you can’t afford to ignore justice-impacted candidates. In a study by the National Association of Manufacturers, 82% of managers said justice-impacted employees were equally or more valuable to the organization than employees without criminal histories. Correctional facilities often provide training in manufacturing-related work, which can prime these candidates for success in the industry.

Candidates with differing physical abilities are another largely untapped labor pool. The growing use of computers, robotics, and other digital tools in manufacturing creates new possibilities for these candidates—helping you fill crucial roles with qualified talent.

Although nearly one in three manufacturing employees is female, women are still underrepresented in the industry. Data from the Center for Manufacturing Research show that the biggest hurdles standing between women and manufacturing jobs are lack of flexible scheduling (cited by 63%) and lack of childcare (cited by 49%). Offering more flexible work options, reimbursing childcare expenses, or providing childcare on-site could unleash a flood of female candidates by making it easier, especially for mothers, to balance work and family responsibilities.

The Manufacturing Institute has a variety of initiatives to help manufacturers diversify their workforces, including Heroes MAKE America (targeting military veterans) and Women MAKE America.

Manufacturing background checks help organizations mitigate risk in the workplace, comply with regulations, and ensure candidates are qualified for their jobs. However, outdated background check solutions involve slow, manual processes, causing unnecessary delays that could cost you scarce talent.

Your background check partner should be able to quickly complete the variety of screenings you need with AI-enhanced solutions and data collection, whether you’re hiring an assembly line worker, a sales rep, or an engineer. Most manufacturers will need everything from motor vehicle records (MVR) checks and criminal record searches to drug testing, employment verification, and education verification.

In addition to the range of searches offered, look for essential outcomes from forward-thinking partners like:

You’re undoubtedly modernizing your manufacturing facility to keep pace with changing times. To overcome the talent shortage, you need to update your approach to hiring, too. Revamping job descriptions to appeal to younger candidates, providing training and advancement opportunities, partnering with schools and other organizations, and recruiting underrepresented candidate groups can help you find the top talent you need.

Keeping your talent pipeline full could also mean rethinking your background check provider. Working with a modern background check partner like Checkr helps reduce delays so you can fill open positions quickly. Checkr’s proprietary data network and AI-powered technology deliver fast, accurate results. Our automated workflows reduce manual work for more efficient background checks. Plus, our built-in compliance tools help you automatically apply federal, state, and local compliance for each position and location, so you can hire safely and confidently to build a better workforce. Get better screenings built for the manufacturing industry by getting in touch now.

About the author

Karen Axelton writes about business topics and best practices. She has written hundreds of articles on business subjects, including background screening, hiring and employment trends, human resource management, and the use of technology in the workplace. Her work includes educational articles, e-books, white papers, and case studies.