For manufacturers, finding employees with the right skills remains a significant challenge. Positions ranging from machinists and maintenance technicians to engineers and production workers can be difficult to fill, and competition for experienced candidates can be intense.

A proactive workforce strategy can help manufacturers meet this challenge. By reexamining how you and your executive team recruit, retain and develop employees — and combining competitive compensation with workplace flexibility and training opportunities — you can build a stronger, more sustainable talent pipeline.

Look beyond base pay

Competitive wages remain an important part of attracting skilled workers, but you can differentiate your manufacturing business in other ways. Signing bonuses, retention bonuses and performance-based incentives may help persuade candidates to accept an offer or encourage valuable employees to stay.

While compensation packages can be costly, employees value traditional benefits, such as health insurance plans and 401(k) plan matching contributions. To help manage these costs, proactively negotiate with existing providers and get quotes from competitors.

You also might consider offering “voluntary” benefits, including consumer goods purchasing services, life insurance and disability insurance. Employees usually pay for these benefits, though they might be payroll-deducted. Employers may be able to provide these programs to employees more economically than employees could obtain through traditional channels.

Review your EVP

Compensation is only part of what makes a workplace attractive. Also consider your employee value proposition (EVP) — essentially, the collection of financial and nonfinancial reasons employees choose to join and remain with an organization.

You can gain valuable insight by asking employees what matters most to them. Workers may place a high value on a respectful workplace, supportive supervisors, recognition for good performance, opportunities to learn new skills and a clear path for professional growth. A positive workplace culture can be especially important when competing employers offer similar wages.

Consider, too, how scheduling affects your ability to attract and retain workers. Although remote work isn’t practical for most production jobs, some employers may offer flexible start and end times, compressed workweeks or alternative shifts. Seasonal or part-time arrangements can also help fill certain workforce needs.

Develop talent from within

When skilled workers are difficult to find externally, developing existing employees becomes increasingly important. Cross-training your workers for multiple positions can broaden employees’ capabilities while giving you more flexibility when someone is absent, production needs shift or a key position becomes vacant.

Training can also improve retention by showing employees that you’re willing to invest in their development. Workers who see opportunities to acquire new skills and take on greater responsibilities may be less likely to look elsewhere.

Apprenticeships offer another way to build a pipeline of skilled workers. Rather than competing exclusively for experienced candidates, manufacturers can recruit people with potential and provide structured on-the-job instruction combined with technical education. Over time, this approach can help employers develop workers whose skills closely match their operational needs.

Create advancement opportunities

Your manufacturing business doesn’t need dozens of management levels to provide meaningful career-building opportunities. Employees can advance by mastering additional equipment, earning certifications, becoming team leaders, training coworkers or moving into more technically demanding roles.

The key is making those opportunities visible. Clearly communicating how employees can increase their skills, responsibilities and compensation can give them another reason to stick with your business.

Tailor your strategy to your workforce

There’s no single compensation or recruiting strategy that will solve every manufacturer’s labor shortage. What employees value can vary significantly based on age, occupation, location and individual circumstances. By combining competitive compensation with flexibility, training, career development and a strong workplace culture, manufacturers can improve their ability to attract skilled candidates while making better use of the talent they already have. Contact us for additional strategies to attract skilled workers and make better use of your existing talent.