The manufacturing industry is the backbone of America. At the start of the COVID-19 pandemic, when much of the sector ground to a halt, the entire nation focused much of its attention on manufacturing workers’ safety and well-being as critical manufacturing businesses got back to work.
The unique skill requirements of specific manufacturing jobs mean there is often a mismatch between talent and job openings. That makes recruitment and retention an important focus for managers and executives across the sector. Here are steps you can follow to retain and recruit top talent at your manufacturing company.
According to PayScale, the median manufacturing worker earns $15.47 per hour. Depending on where they live, their lifestyle, and their families’ needs, that could contribute to a comfortable household income or leave workers working hard to stretch every paycheck dollar until the next payday.
Many payroll systems allow workers to choose between paychecks and direct deposit, but you can offer a lot more without adding any ongoing costs. The Payactiv benefit includes Earned Wage Access (EWA), where employees can access a portion of their paycheck before payday as long as they’ve worked the hours. Payactiv costs $0-$5 per pay period for employees, depending on the employer program, and is free for employers.
If someone needs extra cash for a car repair to get to the plant or is short on rent money, for example, Payactiv is an ideal alternative to payday loans, credit cards, and high-cost debt. Payactiv can also help employees avoid the late fees and stress that come with missed payments. EWA isn’t a loan. It’s access to income that has been earned but not yet paid.
In addition to the core EWA benefit, employees who enroll in Payactiv can utilize an entire financial wellness platform at no extra cost. This includes bill pay tools, discounts, financial education resources, and financial counseling services, among other features.
Tech-savvy workers are never far from their smartphones outside of working hours. The Payactiv app that workers can use for near-instant payments after a long shift includes built-in budgeting tools. After a financial counseling session or two, they will be armed with the knowledge to make better budgeting decisions and turn financial stress into financial stability.
Learn more: Absenteeism at Work Due to Financial Stress
In addition to the financial benefits for workers, employers find Payactiv leads to lower attrition and absenteeism, which are major costs for large manufacturing operations. Turnover can be especially challenging if your employees have competitive, in-demand skills also required by other local manufacturers.
Outside of financial support with Payactiv, look at your company’s culture as a source of employee loyalty. Making workers feel cared about, promoting workplace safety, and fostering a fun environment will keep your team coming back for more than a paycheck.
Hiring well is one of the best ways to fight attrition. That could mean looking at more than just skills when hiring. If you pick a new hire that’s a good fit with your culture but needs a little extra training, it could work out far better in the long-run than picking someone with the right skills and the wrong attitude.
When promoting a position that you’re struggling to fill, you can do more than simply cast a wide net and hope someone qualified finds the job posting online. Many manufacturers find success in developing promising candidates that don’t yet have the skills for the role.
When employers post a job and interested applicants don’t have the right skills, it can be frustrating for everyone involved. For example, if someone with warehouse experience applies for a job on an assembly line, they may not have the right skills on day one. But with the right combination of training and on-the-job experience, someone with the right attitude and aptitude could quickly become an asset to your business.
Bureau of Labor Statistics data found that 1.4 million manufacturing jobs were lost in March and April 2020 as the pandemic began to rage through America. While that means there could be a new wave of hiring opportunities with the right skill set, it also means there are plenty of eager people ready to train for the right job with a great employer.
Happy workers are more likely to stick around and contribute to your business’s success. Learn how the Payactiv financial wellness platform can improve worker loyalty without any costs for your company.