Fifteen Ways to Improve Employee Retention and Navigate the Skills Gap in Manufacturing

The manufacturing industry faces challenges with employee retention and ensuring workers have the right skillset to get their jobs done. A recent report from the Bureau of Labor Statistics found that as of June 2024, there were over 5 million jobs lost to layoffs, staff quitting, or discharges.

Navigating employee turnover and the skills gap is top of mind for manufacturing professionals today. With the right strategies, manufacturing leaders can foster a workplace where employees feel valued and skilled labor thrives. Here are some actionable tips for keeping your workforce engaged and bridging the skills gap effectively.

Tips to Keep and Retain Employees

• Improved Communication on the Shop Floor: Effective communication can make a huge difference for manufacturers. Regular updates, clear directives, and open channels for feedback all contribute to an efficient shop floor. Manufacturing software plays a crucial role in streamlining communication processes. By providing employees with a centralized place for communication, all team members have access to the same information simultaneously. The ability to visualize data and workflows not only enhances clarity but also empowers teams to make informed decisions quickly, driving productivity. Quickbase’s Shop Floor Management app can help streamline operations and optimize processes on the shop floor.

• Easy Access to Real-time Data on Manufacturing Equipment/Sensors: Having access to real-time data from manufacturing equipment lets employees make informed decisions on the fly, and pinpoint the root causes of issues. Dashboards provide visibility into key metrics, helping those on the shop floor to proactively address issues before they arise.

• Offering Training on Different Parts of the Shop Floor: Cross-training employees in manufacturing gives them the chance to learn how other areas of the shop floor operate. This allows for efficient shift coverage during busy periods, and enables employees to broaden their skillsets. Investing in employee training ultimately leads to higher job satisfaction, reduced turnover, and a stronger organization.

• Strong Culture of Safety: Working with complex and large pieces of manufacturing equipment inherently comes with risk. A safe work environment enhances productivity and improves overall employee wellbeing. Regular safety training and easy access to safety documentation equips employees to identify hazards and respond effectively. Consistent reinforcement of standards reduces accidents and injuries, and keeps businesses from falling out of line with safety regulatory bodies like OSHA. Through Quickbase’s Hazard Identification, Risk Assessment and Control app, manufacturers can proactively address safety concerns and how to avoid issues before they arise.

• Listening and Responding to Employee Feedback: Employees who feel heard and valued are significantly more likely to remain with a company long-term. Regularly conducting surveys, implementing suggestion boxes, and hosting open forums can provide key insights into where employees are happy with their jobs and what needs improvement. It’s crucial for management to then take that feedback and implement it, showing their employees that they understand their challenges.

• Clear Path for Professional Development and Growth: Employees need to see a future within their organization. Offering clear career pathways and professional development opportunities can motivate them to stay and grow within the company. Whether it's through mentorship programs or advanced training, showing a commitment to their growth can be a key motivator to stay within the company.

• Easy Access to Manufacturing Compliance Requirements: Compliance can be complex, especially in manufacturing, where businesses need to adhere to strict regulations. Centralizing compliance information helps teams stay informed and up-to-date on the latest regulations and best practices. This proactive approach prevents costly errors or penalties and creates a culture of accountability and responsibility. Quickbase’s OSHA Recordkeeping and Incident Reporting app helps centralize safety requirements and simplifies even the most complex of regulatory reporting.

• Consistent Recognition for Work Done Well: In the manufacturing industry, recognizing and rewarding hard work is vital for keeping employees happy. Acknowledgment boosts morale, productivity, and overall job satisfaction. Recognizing a job well done and celebrating milestones enhances teamwork and engagement, leading to a committed workforce. Prioritizing recognition helps to make employees feel valued, driving individual and organizational success.

• Clear Communication on Compensation and Benefits: Transparency regarding compensation and benefits is essential in the manufacturing industry to build trust among employees. Regular updates about changes in compensation structures allows employees to understand the full value of their jobs and how they’re contributing. Effective communication tools can enhance this transparency by streamlining information sharing and facilitating discussions, enabling teams to distribute updates, gather feedback, and address questions. This approach strengthens trust and boosts employee morale and engagement.

• Regular Check-ins on Employee Satisfaction: One-on-one check-ins on the manufacturing floor are vital for proactively identifying potential issues and finding ways to boost productivity. These sessions promote open communication between operators and supervisors, allowing operators to voice concerns and share insights. By prioritizing check-ins, manufacturing leaders can improve collaboration between employees and supervisors.

Tips to Navigate the Lack of Skilled Labor

• Offering Upskilling/Reskilling Opportunities for Employees: Investing in upskilling and reskilling your workforce is essential in the manufacturing sector, which regularly sees rapid technological changes and changing market demands. By prioritizing internal development and implementing comprehensive training programs, manufacturers can effectively address skills gaps, enhance productivity, and foster employee loyalty. This proactive strategy ultimately leads to a more resilient and competitive organization.

• Better Integration of Tools Like AI to Complement and Improve Employee’s Skills: AI technologies can enhance manufacturing employees' capabilities by automating repetitive tasks and providing valuable insights. They can manage routine activities like inventory tracking and quality control, allowing workers to focus on more complex tasks. Integrating AI into manufacturing improves efficiency and productivity, empowering the workforce to innovate and helping organizations respond effectively to market changes.

• Perks for Employees Who Learn New Skills: In the manufacturing industry, encouraging continuous learning is essential to stay current with technology and standards. By providing incentives like bonuses and extra time off for completing training, companies can promote personal growth and align employee development with business goals. This investment boosts motivation and skill enhancement, and leads to greater productivity and innovation in the workplace.

• Comprehensive Training Program with Clear Pathways Towards Learning New Skills: Well-structured training programs in the manufacturing sector are essential for skill building and workforce development. By providing clear learning pathways and specific steps for each role on the shop floor, manufacturers can help show employees where they can advance and learn more. This approach grows individual performance and boosts the overall efficiency and competitiveness of the organization.

• Offering a Development Plan for Employees to Clearly See Their Next Steps Towards Learning a New Ability: In the manufacturing industry, comprehensive development plans are essential for creating a skilled workforce that can adapt to changing demands. These plans should detail steps, milestones, and resources for employees to acquire new skills, helping them stay focused and motivated. By clarifying the path to skill development, organizations can enhance technical abilities and foster career progression and engagement.

Employee retention and the skills gap in the manufacturing industry is a challenge, and requires a dynamic approach to solve it. By improving communication, providing access to real-time data, and offering comprehensive training and development opportunities, you can create an environment where employees are motivated to stay and grow.