6/21/21-BottomLeaderboard- SHRM

Employee Retention: Keeping a Strong Workforce in Uncertain Times

Press Release from Peak Performance, Inc.

Since the recovery of The Great Recession (2007-2009), U.S. manufacturing companies have been suffering from a shortage of labor, accompanied by a skills gap. The labor shortage stems in part from the coinciding retirement of Baby Boomers and the relative lack of enthusiasm towards skilled-labor jobs from younger generations. Couple this with an accelerated rate of technological advances that outpaces employees' skills and we have a deficiency in our manufacturing workforce. It is estimated that by 2030, 2.1 million manufacturing jobs will go unfilled.

While 2020 employment figures are not the norm, the ranking of turnover by industry is not that significantly different from previous years. For instance; Leisure & Hospitality is the worst-performing industry for turnover in 2020 with a whopping 131% turnover rate, however, it is typically the industry with the most turnover even outside of the 2020 pandemic. The top 3 worst performing industries are Leisure & Hospitality, Professional & Business Services, and Construction. The best performing industries are Government, Financial Activities, and Manufacturing. Even with a better than average turnover rate of 44%, manufacturers are struggling to fill jobs and retain employees and this continues as a disturbing trend. Over the last five years, the turnover rate has an increasing trajectory.

 

Why do Employees Leave?

Usually, an employee is dissatisfied with their current job or they may be complacent at work, but feels better opportunities exist elsewhere. The competitive market for employees wanting to work in a manufacturing environment is fierce with many companies offering sign-on bonuses, higher pay, and opportunities for advancement, making the environment ripe for employees to jump ship. It's been said many times that employees don't quit jobs, they quit supervisors, and while oftentimes, unsafe conditions or low employee morale are given as reasons for leaving, these conditions usually stem from poor supervision.     

Conquering Turnover

Employers in the manufacturing industry are fighting a fiercely competitive war for talent and one of the most effective ways to win is by employee retention. By keeping the employees you have, companies mitigate costs that come with high turnover. According to the Society of Human Resources, the cost of employee turnover is $4,130/hire. When employees stay long term, they improve their skills, which improves the quality of your product. And, there really is no substitute for the level of aptitude and understanding of your processes that comes with years of service. This culminates in a higher productive employee and a reduction in overall manufacturing costs.

Recruiting, Selecting, and Hiring the Right Talent for the Position

Too often we hear the same story of new employees coming through orientation and by lunch, 40% are walking out the door. Using accurate and predictable screens for recruiting will eliminate that continuous cycle. AccuRecruiter can improve first-time selection success by actively screening applicants and reducing the number of wrong hires which are costly to a company.

Insufficient and Inconsistent Onboarding of New Employees Can Create a High Turnover

An individual skills assessment with a custom onboarding plan can provide new hires relevant and applicable information while identifying different needs for the emerging workforce versus an incumbent worker. Often for the ease of it, we require all employees regardless of experience and skill to attend the same training. Today, we have the ability to create custom paths fitting an onboarding plan to the individual's needs and skill level.

Training for Success

In addition to making professional development more feasible, employees are more likely to pursue professional development when supervisors make specific recommendations. Keep in mind that when you invest in professional development, you’re not just investing in the growth of that specific employee — you’re also improving the level of talent present in your existing workforce. It’s one of the best win-win situations. In 2019, the average employer spent $1,308 per employee on training. Industry is recognizing human capital as an asset and realizes that continuous investment in your employee's knowledge, skills, and abilities pays off in the long run.

Keep Them Engaged

When employees feel like they have access to successive opportunities, it’s much easier to stay engaged. Creating a path to more opportunities improves motivation — you’re not just at work to check the boxes that day, you’re there to move your career forward and work towards long-term success.

Let Peak Performance be Your One-Stop Training Provider

With PEAK Workforce Training Center employees, supervisors, and training coordinators get one central place to manage all training-related activities. That means they’ll spend less time on administration and more time being productive. For Human Resource Managers, PEAK Workforce Training center gives real-time visibility into their team’s activities with the ability to easily download and export information so compliance reporting with confidence is easy.

Our annual subscription plan to the PEAK Workforce Training Center includes 13 self-paced, online courses and a personal profile and dashboard to see transcripts, badges, and certificates. The PEAK Workforce Training Center will upskill your employees leading to higher employee retention, improved safety performance, and increased productivity while saving you time and creating a remarkable employee experience.

Ready to take the next step? Schedule a free consultation with our PEAK Workforce Training Center Specialist.

Companies Mentioned in this Press Release: