Welcome to another MM (Manufacturing Monday for all you first-time readers)! Today, we’re diving into the crucial topic of talent acquisition and retention in manufacturing.
The manufacturing talent gap remains a hot-button issue when discussing industry trends. Deloitte’s recent analysis highlights talent as one of the top five key trends for 2025, alongside AI and GenAI, Supply Chain, Smart Operations, and Clean Technology. Let’s explore why talent continues to be a challenge and how automation can help address this issue.
Manufacturing Talent Landscape
The current talent landscape in manufacturing is characterized by these trends:
- July 2024 marked the first month since May 2021 where manufacturing unemployment exceeded job openings.
- The quit rate in manufacturing dropped to 1.6% in September 2024.
- U.S. labor participation rates have been declining for over two decades.
A striking statistic from a 2024 Deloitte and Manufacturing Institute study reveals that 1.9 million manufacturing jobs could go unfilled over the next decade if talent challenges aren’t addressed. This number is staggering and underscores the urgency of the situation.
Retention Challenges
Retaining talent is just as crucial as acquiring it. Consider these facts:
- 60% of U.S. manufacturing HR leaders report that replacing one skilled frontline worker costs between $10,000 and $40,000.
- 56% say employee turnover significantly impacts their bottom line.
- The “cost of turnover” KPI is conservatively estimated at $25,000 per role.
3-Tiered Talent IA Strategy: Hire, Engage, Retire
Let’s break down automation opportunities into three core areas:
Hire
In the hiring phase, automation can revolutionize the recruitment process. By automating job postings across multiple platforms, companies can reach a wider pool of candidates more efficiently. AI-driven resume screening can quickly identify top candidates, saving recruiters countless hours of manual review.
Automated interview scheduling can streamline the process, reducing back-and-forth communications and improving the candidate experience. Finally, streamlined onboarding procedures can ensure new hires are integrated smoothly and efficiently into the organization, setting them up for success from day one.
Engage
Once employees are on board, automation can significantly enhance their engagement and productivity. Automating learning and development tracking allows for personalized growth paths and ensures employees are continuously improving their skills. Efficient management of travel, expenses, and time-off requests reduces administrative burden and improves employee satisfaction.
Implementing AI-powered chatbots for employee inquiries can provide instant, 24/7 support for common questions, freeing up HR resources for more complex issues and improving overall employee experience.
Retire
As employees move on, automation can ensure a smooth transition. Automating IT offboarding processes safeguards company data and assets while ensuring departing employees have a positive final experience. Collecting and analyzing employee feedback through automated systems can provide valuable insights for continuous improvement of processes and workplace culture.
Streamlining payroll management and benefits adjustments during the offboarding process ensures accuracy and timeliness, reducing potential disputes and maintaining positive relationships with former employees.
Innovative Talent Opportunities
Pushing the envelope of automation in manufacturing talent management reveals transformative possibilities, and it stands to be seen who will capitalize on them now and who will wait and see. However, it seems certain that these approaches will become widespread over time.
AI-driven sentiment analysis can now predict optimal shift patterns by analyzing employee feedback and performance data, while machine learning models can create ideal team compositions by matching individual skills with production demands. These technologies promise to align workforce management more precisely with both organizational needs and employee preferences.
Personalized AI-powered onboarding and training platforms represent the next frontier of employee development. By adapting to individual learning styles and career goals, these systems can create tailored training programs that incorporate virtual reality, interactive modules, and real-time feedback.
Such platforms not only accelerate skill acquisition but also help companies build a more adaptable and engaged workforce prepared for rapid technological change.
The U.S. manufacturing sector has a real opportunity to address its talent challenges. With these automation strategies, we can work towards closing the 1.9 million person gap and revitalize American manufacturing. The technology is ready — it’s up to us to implement it effectively.
Integrating Automation into your talent strategy in 2025? Schedule a consultation to get started.
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