Insights

Increasing Job Retention Within the Manufacturing Industry

May 22, 2025

Many industries are experiencing job retention issues due to various factors. The manufacturing industry has been hit particularly hard and is a top 5 industry in terms of employee turnover. The most common reasons for employees leaving jobs are due to other opportunities with:

Higher-paying opportunities or better benefits,
Clearer paths for career progression, and
More effective management systems.

Employee retention is a difficult skill for many businesses to master. However, as employee turnover (also known as “attrition”) across the nation continues to increase, businesses that have acquired the skill of retention within the workplace will become even more prevalent within the market.

The Current State of Attrition

High attrition will not only cause a business to suffer in the short term while it looks for individuals to fill the open positions, but it can also prevent new employees from wanting to join the company, as it could be considered a potential concern if a company cannot keep employees. According to Gallup, which performed a survey across the United States, 50% of individuals are watching or actively seeking a new job.

It is important for businesses to obtain the knowledge and skills on how to reduce employee turnover, especially during this volatile time, to ensure there are fewer financial implications, zero to little effect on morale and performance, and uphold the reputable brand and positive implications the market has on the business. If businesses are unable to be willing to hear the feedback of what is currently being stated within the market, it may find that projects, profits, and upcoming sales may take a larger hit than expected, as attrition may accelerate past expectations due to employees being willing to quit without another job lined up.

Job-seeking individuals want a greater work-life balance and better personal well-being, increased income or benefits, and greater stability in a new job.

Steps Toward Employee Retention

A manufacturing company can incorporate the results found through Gallup’s survey by looking at their work model and deciding what is not working for the company based on what employees or individuals in the market are saying. Individuals, per the survey, want a better work-life balance and better well-being. Companies can take this information and look at the various opportunities within the industry that help bring the desired employee benefits to their company.

Industry 4.0

For instance, the manufacturing industry has started Industry 4.0. This Industry 4.0 is increasing automation and smart factories; this allows individuals to rely on technology when needed. Rather than an employee working 60 plus hours a week, a machine can complete the same items in half the time. This timesaving implementation may be costly for businesses in the beginning due to the large startup costs but will pay the businesses back in tenfold. Having better employee morale, as its employees are able to better manage schedules, both work and personal, create more confidence in employees as they know the machine can do some of its work; they can then be more focused and produce better results with items that the machine cannot.

Implementation of better machines and machines that can help reduce an employee’s tasks will improve the tasks that a machine cannot complete, as well as improve the employee’s well-being. Many manufacturing tasks cause individuals to stand for extended periods, do repetitive motions that cause strain, and require excess knowledge of machines and how to constantly monitor the machine to ensure low downtime. By reducing these stressors, this will allow individuals to feel more confident and reduce mental exhaustion.

Company Culture

Another way manufacturing companies can improve overall workplace morale and performance is by creating a culture that acknowledges the challenges that work-life balance brings and have intentional leadership. Companies can implement open-door policies, mentorship programs, or compressed workweeks, allowing employees to feel comfortable and responsible at work results in happier employees.

Intentional leadership ensures that those at the top are looking at those at the bottom as equals and trying to make decisions that benefit everyone within the company and not just a particular group. Mentorship programs allow individuals to have a support system within work that can help them improve and grow within their career, giving them a sense of ownership over their career at the company. Companies are also improving overall well-being by implementing compressed workweeks; this is another way that companies are allowing the workers to make the best decision for themselves to own their schedule. These workweeks give employees a sense of individuality and freedom that many companies do not provide. If someone works best by completing 12-hour workdays four days a week, rather than five 8-hour days, companies should honor and encourage that, as the company will only reap rewards from that employee’s better efficiency and morale.

Keeping employee turnover, or attrition, low during this very volatile time is not easy for many companies. What currently sets companies apart from others are practices like increasing employee morale, creating work-life balance, and implementing technology. It is not easy to retain employees and have 100% job satisfaction, but it is also not impossible.

Please reach out to a member of our Manufacturing & Distribution team for more information on the topic outlined above. For more information regarding our Manufacturing & Distribution experience, visit our Manufacturing & Distribution industry page.