four considerations to consider when addressing retention issues.
Flex workers are key to the success of manufacturing operations. These organizations have a strong need for agility, so ensuring access to a robust pipeline of temp, seasonal workers and other contingent talent is critical to operational continuity. Without these resources, manufacturers would find it difficult to quickly respond to fast-changing business demands.
With talent scarcity a persistent challenge for many employers, however, retaining workers has become as imperative as procuring them. To ensure your business is perceived as an employer of choice, creating a compelling employee value proposition and a positive workplace experience are essential to nurturing workforce loyalty. While competitive compensation is always key to retention, you should consider additional critical factors when assessing your EVP, including the following areas.
Many manufacturing workers switch jobs when given a small raise. One survey found 43% of U.S. manufacturers report at least 20% in annual turnover. Wages alone, however, may not be the most alluring factor. Healthcare benefits are prized by workers in markets without government-provided coverage, for instance. The opportunity to earn overtime pay or extra shifts can also act as a strong incentive so make sure your business offers a variety of ways in which compensation is a good fit for job seekers.
Do contingent talent leave your organization after a brief tenure or do they choose to stay on for numerous assignments? Often times this is determined on whether the job is right for an individual’s skills. A worker may feel overqualified or underqualified, leaving him unengaged and dissatisfied. An inaccurate job description or misrepresentation during the recruitment process may be the culprit. Or the expectations of the worker may simply be unfulfilled. Whatever the cause, make sure you manage expectations well when hiring. Check that job previews accurately depict the work. Provide a transparent view of your company’s culture, policies and work life.
According to the study cited in Industry Week, 29% of manufacturing employees believe their skill set is redundant now or will be in the next 1 to 2 years, and 38% believe this will be the case in the next 4 to 5 years. This outlook results in tremendous uncertainty for workers, who may feel pressured to look for employment in other sectors. As they leave, they may take important skills that may still be relevant and needed in manufacturing.
The talent experience.
Finally, providing a satisfying talent experience for candidates or employees will enhance retention. If you already deliver an excellent workplace culture to employees, you should do the same for flexible talent. The most important consideration is to provide personalized attention to talent, thereby enhancing the hiring journey. Doing so elevates worker loyalty and improves retention over time. It may also help reduce costs if workers attach a value to the extra attention they receive from your organization.
What are the other critical issues your organization should monitor and support to enhance retention? You can learn more by downloading our “Four rules for retaining contingent workers in manufacturing” guide. Get this practical advisory and put our insights to work.