With Baby Boomer retirements picking up steam, there's a staffing crisis looming on the horizon for the manufacturing industry. Manufacturers need to figure out how to entice younger workers who might not otherwise consider this type of work. Typically, HR is responsible for developing strategies for recruitment and retention as well as initiatives focused on company culture. Because the workforce has such a strong impact on driving value within the organization, however, other parts of the company -- in particular, operations, finance, and the C-suite -- should work together with HR to tackle the manufacturing talent crisis, starting with figuring out how to capture even a small percentage of the estimated 61 million members of Generation Z who are geared to enter the workforce.
To understand which talent management strategies HR executives are using today and uncover what Generation Z wants in a workplace, one recent study1 surveyed HR executives across the manufacturing industry about what they are doing today -- two years into the pandemic -- to attract and retain the youngest members of the workforce. It also gathered feedback from Generation Z employees currently working in manufacturing to find out what is getting them through the door in today's environment.
HR Executive Insights
Many of the HR executives who participated in the study specialize in recruitment, compensation and benefits, and diversity and inclusion. Talent is top of mind for this group and given the organization-wide lens on worker shortages in the last year, there's no doubt they are facing more pressure than ever to build a talent pipeline while nurturing their current workforce.
In fact, two of the top three challenges reported were both attracting and retaining Generation Z employees. Here's what HR leaders are doing to move the needle in those areas.
Top 5 HR Strategies for Attracting Generation Z
- Collaborating with local schools and colleges to develop programs and/or coursework focused on teaching technical skills related to manufacturing work
- Offering flexible job schedules ([such as] alternative shift schedules, flexibility to swap shifts when needed)
- Supporting apprenticeship programs that offer job experience and professional development
- Recruiting Gen Z individuals with nontraditional experience and providing the necessary education or technical training
- Providing competitive wages for [the] local market (geographically speaking)
Top 5 HR Strategies for Retaining Generation Z
- Actively building employee development programs for current employees
- Offering flexible job schedules ([such as] alternative shift schedules, flexibility to swap shifts when needed)
- Offering mentorship programs to allow younger employees to expand their knowledge
- Providing competitive wages for [the] local market (geographically speaking)
- Cross training current employees so they learn multiple skills / perform a broader set of tasks (i.e., multiskilling)
Generation Z Insights
The biggest takeaway from the study is that the members of Generation Z are looking not just for jobs, but for places where they belong, can develop career paths, and feel valued and trusted on the job. Flexible schedule options, employee reviews on Glassdoor, and pay rates may get these workers through the door. But it's just as important for the industry to continue to build out a modern, technology-focused experience to streamline onboarding, promote employee development programs, manage performance reviews, and offer employees access to the real-time information they need to make decisions that affect their work.
For example, the industry could do a better job of using Generation Z's preferred communication tools: these digital natives are accustomed to using mobile devices for many of their tasks, yet half of the Generation Z respondents reported having had mobile access to onboarding forms and HR documents when they were hired. Although most members of Generation Z prefer electronic communication options, they still place a high value on in-person feedback from their managers.
Organizations across all industries are trying to figure out how to accomplish more with fewer people. By driving recruitment and retention strategies to align with Generation Z's needs and interests, HR can better attract (and keep) the incoming workforce.