In the manufacturing sector, the struggle to recruit and retain talent is a critical issue for businesses. According to the National Association of Manufacturers, 65% of manufacturing leaders identify attracting and retaining employees as their primary business challenge. Going a step further, a UKG Workforce Institute report finds that 76% of manufacturers are struggling to fill critical labor gaps.
Turnover is also a significant hurdle, with more than half of manufacturers experiencing an annual turnover rate of 20% or more, according to the same UKG Workforce Institute report. Understanding the factors influencing frontline employees’ job choices and retention is essential for manufacturers to develop effective recruitment and retention strategies.
The Impact of Commutes on Employee Recruitment and Retention
One crucial area to examine is the “commutability” of manufacturing facilities, meaning how easy it is for employees to commute to the location and how large the pool of available talent is within a reasonable distance. According to a recent report from Employbridge, the location of the workplace was selected by 13% of U.S. hourly employees who work in industrial roles in manufacturing or logistics as one of the top three factors they consider when choosing a job.
Poor commutes can also be a significant factor in job turnover. The Employbridge report highlights that 16% of employees reveal the reason they left their last job was due to the commute because they found a job closer to home/in a better location.
Evening and night shift employees are the backbone of manufacturing operations, but in many communities, transit services often do not cover off-peak hours adequately. Some transit agencies in major cities are attempting to offer more round-the-clock service, but this is not always feasible in remote areas where many facilities are located. Organizations in rural and suburban areas face distinct transportation challenges because regions are frequently poorly linked to major transportation networks.
Employees who do not own a vehicle but live in areas with limited public transportation access often rely on expensive options like ride-sharing services to get to work. This lack of reliable and affordable transportation can hinder manufacturers from reaching skilled workers in their hiring region. While it is not possible to change the facility location, manufacturers can implement other solutions for making their workplace more attractive from a commuting perspective.
Expanding Recruitment by Improving Commutes
In a competitive job market, manufacturing companies must go beyond traditional recruitment strategies to attract and retain top talent. By addressing potential transportation challenges and helping to ease the burden placed on employees, manufacturers can expand their recruitment efforts and improve retention rates.
Manufacturers in rural and suburban areas can investigate various innovative transportation solutions to support their workforce such as:
- Partnering with local governments and transit authorities to extend bus routes
- Subsidize the cost of public transportation
- Offering complimentary shuttle services for employees to the facility
- Providing subsidies or reimbursements for carpooling, ridesharing, and even biking
- Leveraging mobile communication technology to help employees identify potential carpool partners and facilitate such arrangements
- Ensure onsite parking facilities are free of cost for employees and have dedicated spots to charge electric vehicles
Investing in infrastructure that supports alternative transportation methods can greatly improve a company’s employability factor. Another option for manufacturers could be to explore the feasibility of providing company-owned shuttle buses that operate during off-peak hours. This would ensure that employees who work evening and night shifts have safe and reliable transportation options.
These solutions are not all inclusive and certainly not one-size-fits-all so it’s critical for each organization to develop their own strategy. When considering the implementation of such programs, it is important to gather feedback directly from employees, potential employees, and former employees to understand their commuting challenges. Hosting an engagement or pulse survey, facilitating a focus group, or asking about this topic during exit interviews are three potential methods for gathering such intelligence. With this insight, a manufacturing organization can implement solutions that will meet the specific needs of its local talent pool.
Emphasizing Social and Environmental Responsibility
Employees increasingly prioritize social and environmental consciousness, making it essential for manufacturers to highlight their commitment to these values. By emphasizing modern technologies and sustainability initiatives, manufacturers can differentiate themselves and appeal to environmentally aware candidates.
With carbon footprint reduction goals central to global agendas, manufacturers have the opportunity to demonstrate their commitment to sustainability.
Single-occupancy vehicles significantly contribute to greenhouse gas emissions, particularly during commutes. The rising cost of fuel further complicates commuting, making sustainable transportation solutions essential. Options like carpooling, company shuttles, and public transit partnerships can reduce environmental impact.
Using advanced technologies not only improves efficiency but also appeals to eco-conscious employees. Integrating electric vehicles, investing in renewable energy, and implementing smart energy management systems are powerful recruitment tools.
Conclusion
In conclusion, addressing commute challenges is a critical component of improving recruitment practices and employee retention in the manufacturing sector. By providing affordable transportation options and emphasizing social and environmental responsibility, manufacturers can create a more attractive work environment for current and potential employees. Investing in these areas can lead to reduced turnover rates, lower recruitment costs, and a more stable and productive workforce.
