Attract New Talent in Manufacturing by Doubling Down on the Employee Experience
Manufacturers are struggling to fill entry-level and mid-level jobs, despite offering starting wages that are double the federal minimum wage. Although this labor shortage is a daunting challenge, employers may be able to attract new workers by focusing on employee wellness.1
Even with entry-level salaries of $15.55 an hour compared to the national minimum wage of $7.25, executives in the industry struggle to find workers to do the work. Over 80% of manufacturers said attracting and keeping a quality workforce is a top focus.2
Some misconceptions among younger generations that manufacturing jobs are outdated and lacking in career growth, paired with a competitive job market in other industries, may be part of the reason employers are unable to fill open roles.
Since salaries and benefits are among the top reasons employees look for a new job,3 companies should create employee-first cultures to attract top talent and offer more competitive packages.
Employees who are part of a company’s employee-first culture are more likely to be engaged in the mission, and the company can also offer outstanding benefits to further support their well-being.
Build a Changing Workforce
Bringing in new talent is crucial as a majority of the older workforce retires.4
Manufacturing companies should take advantage of this generational shift in the workforce by refreshing recruitment efforts to attract a new generation of workers. Millennials and Gen Z tend to view manufacturing careers as outdated and less flashy than other industries. These generations are also accustomed to a digital-first world, and they may feel manufacturing lacks the innovation and technology they’re looking for.5
Manufacturing employers may be able to combat misconceptions and meet modern workforce expectations with employee-focused features such as workplace flexibility, assistance for financial stability and personalized benefits.6
Adopt an Employee-First Culture to Attract New Workers
An employee-first culture includes enhanced benefits and a greater focus on the well-being of employees as individuals to ensure they feel supported, valued and treated as an integral core part of the company. This culture supports two-way communication and collaboration throughout the company instead of a closed, top-down hierarchy. Some key characteristics of an employee-first culture may include greater collaboration, a strong company mission, incorporating employee feedback and more.7
An employee-first culture backed by improved benefits may be a differentiating factor for manufacturing companies looking to fill roles. (As we mentioned earlier, salaries and benefits are among the top reasons why employees look for new jobs.)
To win top talent, manufacturing employers should build competitive compensation and benefits packages that meet employees’ wants and needs.8 For example, 61% of Gen Z want the option to get paid every day.9
Support Employees’ Financial Well-Being With On-Demand Pay
Providing an on-demand pay benefit may help employers attract new workers as it shows their support for the financial well-being of their employees. According to a 2020 DailyPay survey, employers offering DailyPay fill open positions in half the time compared to employers that don’t,10 which may give them a hiring advantage over their competition.
With the current state of inflation offsetting pay increases,11 employers need to offer more in their benefits packages. According to data from a recent Harris Poll commissioned by DailyPay and Funding Our Future, 75% of workers have struggled to pay their bills due to recent price surges.12
In addition to helping attract and retain employees, on-demand pay can help improve employees’ overall financial wellness and empower them to better manage economic uncertainties.
Attract more workers with on-demand pay. Book a demo today.
This post is part of a larger series, so check back soon for more insights into the Manufacturing industry.
All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial, business, accounting, securities, tax or legal advice, or other professional advice by DailyPay. No fiduciary obligation or duty exists or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.
1 https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-diversity.html/#the-problem:DailyPay, 2020
2 https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-and-the-manufacturing-institute-big-gains-in-perceptions-of-us-manufacturing-as-innovative-critical-high-tech.html:DailyPay, 2020
3 https://www.cnbc.com/2021/08/19/pwc-survey-65percent-of-workers-are-looking-for-a-new-job-could-get-higher.html#:~:text=Workers%20say%20their%20top%20reason,or%20on%20a%20hybrid%20schedule:DailyPay, 2020
4 https://www.pewresearch.org/fact-tank/2021/11/04/amid-the-pandemic-a-rising-share-of-older-u-s-adults-are-now-retired/#:~:text=In%20regard%20to%20specific%20age,claim%20Social%20Security:DailyPay, 2020
5 https://www.weforum.org/agenda/2020/01/attracting-gen-z-technologys-role-in-the-war-for-talent/?DAG=c1&gclid=CjwKCAjw14uVBhBEEiwAaufYx2J0ffDWxMAhj66Q-ipQLzNOWBptvWB0FItTM2acWRxR086rAoWgxBoCIo0QAvD_BwE:DailyPay, 2020
6 https://www.amwins.com/resources-insights/article/the-bottom-line-of-benefits-for-a-5-generation-workforce:DailyPay, 2020
7 https://www.honestculture.io/blog/employee-first-culture:DailyPay, 2020
8 https://www.randstadusa.com/business/business-insights/talent-acquisition/how-to-attract-manufacturing-workers/:DailyPay, 2020
9 https://fortune.com/2022/07/05/gen-z-wants-daily-paycheck-pros-cons/:DailyPay, 2020
10 https://www.dailypay.com/insights/pay-different-reimagining-employee-pay-in-light-of-the-covid-19-pandemic/:DailyPay, 2020
11 https://www.forbes.com/sites/johnbremen/2022/04/07/why-salary-increases-do-not-keep-pace-with-inflation/?sh=68878db27533:DailyPay, 2020
12 https://www.dailypay.com/resource-center/blog/gas-prices-inflation-impact-employees/:DailyPay, 2020
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