Recruitment in manufacturing: Biggest challenges in 2023

The manufacturing industry is facing a series of tough recruitment challenges in 2023. Despite a slowdown in activity during the pandemic, manufacturing has returned with a bang, and this has led to a significant demand for skilled labor.

However, employee turnover remains a primary concern, with organizations struggling to attract and retain talent. In this blog post, we'll explore the current state of manufacturing recruitment, the top factors contributing to recruitment challenges, and what manufacturers can do to improve their hiring strategy.

The current state of manufacturing hiring

The manufacturing industry is currently experiencing a high demand for skilled labor, with employers struggling to attract and retain qualified talent. Jobs announced in 2022 increased significantly to 350,000, up from 260,000 in 2021. This is partly due to more organizations reshoring their manufacturing processes, with 41% having reshored at least a part of their manufacturing operations between 2019 and 2021. The pandemic increased awareness around supply chain risk, leading manufacturers to move their operations closer to consumers.

As employers scramble to get their hands on top manufacturing talent, average wages have increased from $28.19 in 2020 to $31.57 in January 2023. Wages are likely to continue rising as government incentives come into effect, including $50 billion in funding for the development of the US semiconductor industry.

Other key areas like the automotive sector and green manufacturing are also expected to see extensive disruption in the near future, likely leading to skills gaps, rising wages, and increased automation.

Turnover remains a challenge

Despite the demand for skilled labor in the manufacturing sector, employee turnover continues to be a significant problem. In 2021, the manufacturing turnover rate reached 40%, signaling a significant loss of talent.

This is partly due to competitive wages offered by other industries, enticing workers away from their long-term employers as an economic downturn looms and inflation continues to rise. Studies show that manufacturing ranks lower than technology, health care, communications, energy, and financial services as candidates’ preferred sector.

Many workers in the manufacturing industry also face low job flexibility, with rigid or inconvenient schedules and limited opportunities for remote and hybrid work. This can be a deterrent for the 55% of employees who want hybrid schedules and prioritize a healthy work-life balance.

The current job market plays a role, with there being 1.92 job vacancies for each unemployed person in the US, giving job seekers more options and allowing them to be more selective.

4 approaches to smarter hiring

Improving your hiring strategy in the manufacturing industry is no easy task. We’ve researched the 4 best approaches that employers can take to overcome persistent challenges in manufacturing recruiting and attract the right talent.

1. Increase employee pay and benefits

To attract and retain top talent, manufacturers need to offer competitive pay and benefits packages. Higher wages, comprehensive healthcare coverage, and retirement savings plans can help employers stand out from competitors and motivate candidates to join their ranks.

2. Implement upskilling and reskilling programs

With advances in technology and automation, the skills required in manufacturing are constantly evolving. Employers can address this by implementing upskilling and reskilling programs to help their current workforce keep up with changing demands. This also helps employers fill skill gaps without having to recruit new talent.

3. Consider DE&I initiatives to cover talent shortages

Employers can expand their recruiting efforts to include underrepresented groups through diversity, equity, and inclusion (DE&I) initiatives. This can help companies access untapped pools of talent and attract new talent. Surveys reveal that 67% of US job seekers think a diverse workplace is important when looking for a job.

4. Offer flexible work arrangements to attract candidates

Many job seekers value flexibility, with 87% saying they would opt for a flexible work schedule if it were available. Employers can offer flexible schedules, part-time positions, job sharing, and other benefits to help attract candidates who may not find a traditional in-person role appealing. This can also help manufacturers retain their current employees who may be seeking a better work-life balance.

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If you’re unsure how to tackle the talent shortage in the manufacturing sector, connect with Adecco today. We’re experts at helping businesses like yours attract and retain top talent, as well as upskill current employees.