For 65% of manufacturers, attracting and keeping talent is their biggest business challenge*. With the skilled labor shortage persisting, turnover costs rising, and hiring competition intensifying, manufacturers are under more pressure than ever. Retention isn’t just an HR priority – it’s an essential business survival strategy.
The good news? You don’t need a huge budget to make an impact. There are proven, practical strategies that can boost retention and help you create a workplace where employees want to stay. Read on for actionable tips you can start using today.
The cost of losing frontline employees can equal up to 40% of their annual salary. For skilled and leadership roles, that cost can soar up to 200%. (Gallup) Poor retention ultimately affects the bottom line, leading to:
Increased hiring & training costs
Trickle-down burnout for remaining employees
Quality issues & production delays
Customer dissatisfaction & decreased profitability
According to the Bureau of Labor Statistics, annual turnover in manufacturing exceeds 30% in many regions.
Start with clear, accurate job descriptions – set expectations from the start.
Screen for attitude, reliability, and team fit – not just technical ability.
Use structured interviews – reduce bias and improve effectiveness.
Involve supervisors in hiring decisions – they know their teams best.
2. Onboard Effectively
Follow a structured onboarding process.
Communicate clear expectations from day one.
Pair new hires with buddies or mentors.
Ensure managers conduct regular check-ins during the first 90 days.
Employees often leave a new job within the first 45 days, typically for preventable reasons. (Forbes)
Regularly conduct a wage analysis to stay competitive.
Communicate pay philosophy clearly to employees.
Offer shift differentials or incentives for less desirable shifts.
Provide training and upskilling opportunities.
Outline clear pathways for career progression.
Celebrate employees who move up internally.
Employees who see a future with your company are far more likely to stay.
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Acknowledge employee contributions in intentional, meaningful ways.
Seek direct feedback from employees through surveys and roundtables.
According to the Manufacturing Institute’s Manufacturing Engagement & Retention Study, many of the top reasons employees choose to stay are related to a positive workplace culture, as outlined below.
Conduct exit interviews to understand why employees leave.
Use stay interviews to learn why they stay – and what they value.
Act on the feedback to improve retention strategies.
Ask us about our Workplace Forensics Report for a deeper look at what’s working well – and what’s not.
| Action Item | Priority |
|---|---|
| Hire for fit, not just skill | High |
| Improve onboarding process | High |
| Conduct regular wage benchmarking | Medium |
| Invest in employee development | High |
| Build a positive workplace culture | High |
| Implement exit and stay interviews | Medium |
Retention is an ongoing commitment, not a one-and-done effort. Start by focusing on one or two of the strategies from above this quarter. Over time, you’ll create a workplace where employees feel valued, supported, and motivated to grow. Investing in your people will help stabilize your workforce and drive better business results long term.
Too much to tackle on your own? HTI has you covered. From retention analysis and wage benchmarking to customized training and development programs, our team offers practical strategies and support tailored to your goals. Contact us today.
*Joint study by Manufacturing Institute and Deloitte