9 Reasons Employee Retention Matters in Manufacturing
One of the biggest struggles for any manufacturer is attracting and retaining talent. It’s no secret that there’s overwhelming demand for skilled labor, and even those able to acquire it need to work hard to keep it. Manufacturers capable of retaining employees over the long term stand to benefit tremendously. Long-tenured teams translate to better productivity, efficiency, and culture — all of which benefit a manufacturer’s bottom line.
Some ways employee retention plays a positive role in manufacturing are:
- Familiarity with production. Familiarity with the factory’s processes translates to all-around positive results. From proactive solutions to better product quality, success is rooted in employees who know the fundamental workings of the plant.
- Efficiency through routine. When employees live and breathe a particular production standard, they become extremely efficient in maintaining throughput and quality.
- Loyalty to employer. Skilled manufacturing talent is always at risk of being poached or persuaded to switch careers. Employers with the foresight to empower and enable their teams will be rewarded with loyalty that creates stability.
- Development opportunities. Employees who stick around are more adept at learning, growing, and improving not only their skillset but peripheral skills as well. Give employees the ability to develop, and they will.
- Transcendent knowledge. As with upskilling, employees who acquire knowledge are more likely to use it. Having transcendent knowledge means more capable employees who understand how to apply themselves beyond the task at hand.
- Lower cost of retention. Turnover is expensive. From talent acquisition to training, manufacturers can lower their investment in human capital by retaining teams longer. Tenure costs less and produces better results.
- Top-down company strength. When employees have a longer tenure with the company, promoting from within becomes easier. High-level employees with tenure know how the company works from the bottom up, which makes them better top-down leaders.
- Industry and market insight. Staying with the same company gives employees the chance to familiarize themselves with the sector and market. This creates a better understanding of product, process, and the company, through and through.
- Stronger culture. Teams that stick together, grow together. It becomes easier for teams to develop trust and respect for each other — all of which culminate in a smoother-running factory, staffed by people who share a connection and care about what they do.
While many of these benefits are ubiquitous across any company that prioritizes talent retention, they’re especially important for manufacturers. Producers face employment challenges from every angle, including identification, acquisition, development, and promotion. Retention plays a key role across the board. The ability to keep a team is a fundamental first step in maximizing its potential, to reap all the benefits listed above.