Employees – Manufacturing’s Biggest Asset
Manufacturing has significantly changed over the past decades. In fact, today’s manufacturing facilities would be nearly unrecognizable to workers from the last generation. The type of jobs have changed dramatically as well, which has pushed companies towards altering the relationships they have with their employees, especially since there is a continually shrinking pool of qualified workers. If companies want to be effective in the modern market, they must move past simply hiring employees and towards bringing in team members who are passionate about their company’s advancement.
Most employees in the modern manufacturing workplace feel very confident in their job security. Approximately 92% of those employed at the most successful companies say that their bosses wouldn’t conduct any lay-offs unless it was a final resort. That response is more positive than people in other well off companies which are experiencing faster growth, and have been impacted less by the drastic decline of oil prices.
Those who work for top employers in production and manufacturing also feel that their companies are looking into their best interest during positive economic times, with about 82% responding that they receive a reasonable share of revenues.
It isn’t simply generosity that drives these companies to inspire a positive workforce. It is the skills, which are crucial to modern manufacturing that give knowledgeable professionals the leverage needed to demand more benefits of their employers.
High engagement, low turnover
Employees with feelings of purpose and pride in their employers are another area where the top manufacturing employers surpass their peers. 93% of employees in those companies said they are proud of their job accomplishments, while 94% also say that they feel good about the company’s contributions to the community.
This employee-centric approach has also benefited employers by producing an average turnover rate of only 7.2%, which is far lower than industry average; 13% according to the Bureau of Labor Statistics.
Maintaining a low turnover rate will be a substantial advantage to manufacturers in coming years. While manufacturing is expected to create 3.5 million jobs in the next decade, the low number of skilled workers can potentially leave 2 million of those positions unfilled. To add to the problem of the skill shortage, the industry is facing the challenge of an aging workforce in the US and the increasing cost of labor in Asian countries that leads to “insourcing” jobs that were sent overseas in the past.
With these things in mind, the manufacturing and production industries aren’t just leaders in exceptional HR policies. They are at forerunners of an industry that needs to develop a high-trust environment in the workplace to remain competitive in the coming years.