New Year, New Employees: How to retain them all year long (Manufacturing Edition)
Ah, January. The time of year when gym memberships skyrocket, forklifts hum with renewed purpose, and your facility welcomes a fresh batch of new team members. It’s an exciting time! But while everyone’s focused on hitting their goals for the new year, your goal as a manufacturing leader is clear: keep production running efficiently and safely, meaning you need to keep your new hires engaged, motivated, and committed for the long haul.
So how do you ensure your new hires stick around? We’ve got some practical tips to keep your workforce happy and productive on the production floor, in the warehouse, or anywhere in your facility.
1. Start with an intentional, thorough onboarding process
70% of new hires decide whether a position is the right fit within a month, and nearly 30% decide in the first week (BambooHR). Better make it count. On top of that, the average cost of replacing a new employee is around 20% of their annual salary (Scribd). So for an assembler making $17.82 an hour, you could be throwing a minimum of $7,400 down the drain in a year.
Picture this: Your new operator shows up on Day 1 and finds their workstation unprepared, with no instructions or clear point of contact - the line bottlenecks as a result of having to stop for unplanned instruction. A structured onboarding process tailored to your manufacturing environment sets the tone for success. Assign a buddy or mentor, provide clear safety training, and make sure the rest of your team knows the plan. Bonus points if you throw in a company-branded water bottle or hat—small touches can leave a big impression.
2. Communicate clearly, frequently, and proactively
Paving a two-way-street is critical in creating a sustainable workplace culture. Employees whose managers clearly communicated their roles and responsibilities were 23% more likely to stay with an organization, while employees who felt uncomfortable giving upward feedback to managers were 16% less likely to stay (WebMD).
Miscommunication on the plant floor can impact safety and productivity. Regular huddles, shift meetings, and open-door policies go a long way in making employees feel heard, valued, and more importantly - know how to safely and effectively do their job. Encourage feedback, whether it’s about shift schedules, workflow efficiency, or the breakroom tea.
If a team member seems disengaged or frustrated, don’t wait for the problem to resolve itself. Have a conversation, listen to their concerns, and see what changes can be made. Often, small adjustments—like tweaking a schedule or reassigning tasks—can make a big difference in retaining talent. Proactive communication can help identify and resolve underlying issues before they escalate.
Learn about HTI's "Shop Floor Tours", implemented at manufacturing facilities.
3. Provide opportunities for growth
9 out of 10 millennials say professional development or career growth opportunities are very important to them in a job and "career growth opportunities" is the number one reason people give for changing jobs (Gallup).
No one wants to feel like they’re stuck on the same assembly line forever. Offer cross-training opportunities, certifications, and clear pathways for advancement. Whether it’s moving from a machine operator to a team lead or transitioning into maintenance roles, showing employees they have a future with your company is a game-changer. Highlight growth in skill sets, operational knowledge, and leadership capabilities.
4. Foster a positive workplace culture
Yes, competitive wages and benefits matter, but don’t underestimate the power of a positive culture. Celebrate team milestones, host regular gatherings and company experiences, and encourage collaboration. Promote teamwork, employee recognition, and a strong focus on workplace safety. A little camaraderie can go a long way in making your plant a place people enjoy working.
Scenario:
Employee #1 is making $17.82 per hour. They receive a one dollar per hour raise, costing the employer $2,080 in a year. This employee does not have a trusting relationship with their supervisor, is frustrated with a particular coworker not pulling their weight, and recently called out due to car trouble, resulting in deducted attendance points.
Employee #2 is also making $17.82 per hour. This employee has daily 5-10 minute check-ins with their supervisor as well as daily team huddles. Over the course of one year, this employee's supervisor gifts them a coffee gift card ($10), branded work gloves ($9), a gas gift card ($25), cupcakes for the team ($20) and a gift card to their favorite restaurant ($50) on their birthday, in addition to receiving certificates and company-wide recognition at every tenure milestone during their first year (30, 60, 90 days, 6 months, and 1 year). Total cost to employer: $114.
Again, this doesn't mean competitive wages can fall by the wayside. If Employee #2 receives the same wage increase as well receives the above mentioned 'gifts', their employer is looking at a $2,194 investment. The cost to replace disgruntled, disengaged Employee #1? $7,400. You do the math.
5. Be flexible when you can
Flexibility in manufacturing might look a little different than in an office setting, but it’s still important and it's absolutely doable. Consider offering rotating schedules, optional overtime, or wellness programs that fit your employees’ needs. Showing you care about work-life balance (even in a 24/7 operation) can go a long way, especially considering the significance that GenZ and Millennials place on this (Deloitte). Focus on scheduling strategies that promote employee well-being while maintaining operational efficiency.
Even if your new gym membership flops, HTI won't.
Retention isn’t rocket science, but it does take intentional effort. By investing in your team’s happiness, safety, and growth, you’re not just reducing turnover—you’re building a loyal, productive workforce that keeps your operation running smoothly and optimally.
Here’s to 2025 - A year of engaged employees, streamlined shifts, and maybe even a break room coffee upgrade. Cheers!
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