Published On: August 10th, 2023Categories: Employee Retention

As a manufacturing professional, you’re likely familiar with an all-too common challenge that persistently echoes from assembly lines to administrative offices: high employee turnover. This revolving door syndrome is far from a trivial inconvenience—it’s a serious obstacle, often standing in the way of operational efficiency, financial health and long-term growth.  

Why is this problem so significant? Turnover disrupts the harmonious rhythm of manufacturing operations, leading to unpredictability and inefficiency. The financial implications can be staggering, with the recruitment, onboarding, and training of replacement workers often costing thousands of dollars. Plus, it shakes up the social framework of a workplace, affecting morale and hindering the collective spirit that drives productivity. 

However, high turnover isn’t an inevitable part of the manufacturing sector. Rather, it’s a multifaceted issue that can be addressed, managed, and even transformed into an opportunity. In this article, we explore not only the challenges but also present five actionable and innovative strategies to significantly reduce turnover rates. You’ll walk away with five proven strategies that will empower your company to retain talent, maintain operational stability, and cultivate an engaged and productive workforce. 

Strategy #1 – Emphasize Employee Engagement  

When it comes to reducing turnover, the heart of your strategy should revolve around employee engagement. Disengaged workers can have a huge impact on productivity, with 37% higher absenteeism, 49% more accidents, and 60% more errors and defects. After all, a truly engaged employee is not just working for a paycheck but is invested in their role, actively contributing to the company’s success while seeking personal growth.  

Here are a few proven strategies to foster higher levels of employee engagement:  

  • Recognition and Reward: Don’t underestimate the power of a simple “thank you” or “great job!” Regularly acknowledging the efforts of your employees makes them feel valued and seen, boosting their job satisfaction. This can be done through formal recognition programs or casual appreciations during team meetings.  
  • Open and Honest Feedback: Constructive feedback is key to an employee’s growth and their sense of engagement. Regular check-ins or performance reviews allow for an open dialogue between managers and employees, highlighting strengths and areas for improvement. This approach fosters a culture of continuous improvement and makes employees feel like they’re part of the company’s growth journey.  
  • Work-Life Balance: In a demanding industry like manufacturing, it’s crucial to prioritize work-life balance to avoid employee burnout. Flexible work hours, adequate time-off policies and promoting a culture that respects personal time can help employees feel more balanced and less stressed.  
  • Career Advancement Opportunities: Employees are more likely to stay engaged when they see a clear career path within your company. This could include promotions, skill development opportunities or lateral moves to learn different aspects of the business. Show your employees you’re invested in their futures, and they’ll be more likely to invest their futures in your company.  
  • Inclusive Decision-Making: Engage your employees in decision-making processes where feasible. This could be as simple as seeking their input on work schedules or as significant as involving them in strategic business decisions. When employees feel that their opinions are valued, they become more committed to their work and the company’s vision.  

By making these strategies a core part of your company’s ethos, you’re not just mitigating turnover; you’re creating a more vibrant, motivated, and effective workforce. Remember, your employees aren’t just cogs in a machine—they’re human beings who thrive on appreciation, growth and a sense of belonging. Cultivating these elements is a winning strategy for any manufacturer looking to keep their best talent on board.  

Strategy #2 – Prioritize Training and Skill Development 

Companies that rise to the top in manufacturing are often the ones that prioritize their teams’ continual learning and skill development. Again, by investing in your employees’ professional growth, you signal your dedication to their future, directly increasing their loyalty and engagement. 

Here’s how you can effectively implement a culture of continuous learning:  

  • Establish a Comprehensive Onboarding Program: A well-structured onboarding program helps new employees understand their role, the company’s operations and its culture. It equips them with the tools they need to succeed, making them feel more confident and engaged right from the start.  
  • Implement a Mentorship Program: Pairing new hires or less-experienced employees with seasoned veterans can provide them with a rich resource for advice, learning and support. This one-on-one interaction fosters a culture of learning and sharing within the organization, promoting both personal and professional growth.  
  • Create a Skills Development Plan: For every employee, create a tailor-made development plan outlining their current skills, the skills they need to develop and a clear roadmap on how to get there. Again, this gives employees a clear growth trajectory, making them feel valued and invested in the company’s future.  

By making training and skill development a top priority, you’re investing in your employees’ futures, and in return, they’ll be more likely to invest in yours. It sends a clear message: “We believe in you. We’re investing in you. We want you to grow with us.” And in the end, this mutual growth forms the foundation of a strong, stable and successful manufacturing business.  

Strategy #3 – Foster a Positive Workplace Culture 

Creating a positive workplace culture isn’t just about installing a coffee machine in the break room or organizing the occasional team-building event. It goes much deeper than that, encompassing values, attitudes, goals and practices. It’s about building an environment where every employee feels seen, heard and appreciated.  

The significance of a strong company culture is evident when you consider the role it plays in job satisfaction, performance, and particularly, employee retention. People want to work in places where they feel connected, supported and valued, and a positive culture can create this environment.  

The Three Pillars to a Positive Workplace Culture  

One approach to building this culture is to encourage open communication. Regular team meetings, one-on-ones and open-door policies help employees feel heard and involved. When employees know that their voice matters, they’re more likely to be engaged and committed to their work.  

Shared values is another pillar of a strong company culture. These can be formalized in a mission statement, but more importantly, they should be lived out each day. From leadership down, everyone should understand and embody the company’s values, creating a united and harmonious workplace. 

Team building activities, while sometimes seen as just fun days out, can play a significant role in fostering a strong company culture. These events bring employees together, allowing them to interact in a relaxed and informal setting. This can lead to stronger relationships, improved communication, and a more collaborative and supportive work environment.  

An Additional Note on Culture  

Building a positive workplace culture isn’t an overnight task; it requires consistent effort, commitment, and most importantly, authenticity. However, the rewards are undeniable, as a strong culture is a key factor in retaining top talent, driving engagement and maintaining high levels of productivity. A business is not just a place of work, but also a community, and creating a positive, supportive community is a surefire way to reduce turnover.  

Strategy #4 – Implement Competitive Compensation and Benefits  

While money isn’t everything, it plays an undeniable role in employee retention. To retain your best talent, offering a competitive compensation package is a must—one that not only matches the industry standard, but also reflects the value each employee brings to your organization.  

Beyond a fair base salary, a comprehensive benefits package can be a significant deciding factor for an employee considering whether to stay with a company. These benefits could range from health and wellness programs, retirement plans, and life insurance, to less traditional perks such as flexible work arrangements, childcare support, and employee assistance programs.  

Moreover, consider offering performance-based incentives. These can take the form of bonuses, profit-sharing schemes or stock options. When employees know their hard work can result in tangible rewards, they’re more likely to stay committed and driven.  

But competitive compensation isn’t a one-size-fits-all solution. Different employees value different aspects of a compensation package, so it’s beneficial to have a degree of flexibility, allowing for personalized packages that cater to individual needs and preferences.  

Strategy #5 – Leveraging Staffing Partners to Improve Retention  

Reducing turnover and improving retention is a complex challenge that requires a multifaceted approach. Sometimes, getting a helping hand can make all the difference. That’s where staffing partners like LSI come into play. 

Staffing agencies are equipped with industry-specific knowledge, resources and expertise that can significantly enhance your retention strategies. We work as an extension of your HR team, offering a range of services that can support your retention efforts.  

What It’s Like Working With LSI  

Firstly, LSI can help you find the right people from the beginning. Our thorough vetting and selection process ensure that you’re hiring individuals who are not only capable and qualified but also a good fit for your company culture. By improving the quality of your hires, you’re setting the stage for increased retention rates.  

Beyond hiring, LSI can assist in implementing some of the very strategies we’ve discussed throughout this article. Whether it’s developing an effective onboarding program, offering advice on creating competitive compensation packages, or providing tools to boost employee engagement, LSI is here to support you every step of the way.  

Our commitment is to provide individualized attention to every client because we understand that each company has unique needs and challenges. With over three decades of experience and a never-give-up commitment to our clients, LSI is well-equipped to help you build a stable, engaged and high-performing workforce.  

Ready to Turn the Tide on Turnover? Partner With LSI Staffing! 

Employee retention is more than a human resources buzzword—it’s a critical element of business success, particularly in the manufacturing industry. Reducing turnover not only leads to cost savings but also fosters a more engaged, productive and fulfilled workforce.  

At LSI, we’re here to support you in this endeavor. With our specialized knowledge, extensive experience, and unwavering commitment, we can help you build and implement powerful retention strategies, ultimately boosting your staffing success. 

If you’re ready to improve your retention strategies or if you have any questions about the points we’ve discussed here, don’t hesitate to reach out. Our team is ready to help you tackle your staffing challenges head-on and pave the way for your company’s ongoing success.