Dr. Chris Mullen, Ph.D., is executive director The Workforce Institute at UKG, which curates strategies for great workplace experiences.
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One of the most important things we've learned since the beginning of 2020 is that we must have a strong U.S. manufacturing sector to provide greater assurance that we can access the goods we need in a timely way, regardless of global pressures pushing international supply chains to the brink. And the key to a strong manufacturing sector is a strong workforce, of course.
Recently, my company's research showed that 87% of manufacturers are struggling to fill critical labor gaps—a 38% hike over the prior year—and although production demand holds strong, the number of hourly shifts worked in manufacturing has degraded slowly but steadily since February 2022. This labor gap combined with a continued increase in job growth, as reported by the July BLS report, means that a full recovery in the labor market will continue creating a shortage in parts and forcing many plants to cut employees or hours.
This doesn’t mean recovery is at a full stop, though. The same study from my company shows close to 9 in 10 manufacturers experienced year-over-year growth, and 2 in 3 specifically increased revenue. But for an industry that’s been trying (and failing) to close the talent gap for years, the coupling of labor challenges with supply constraints remains a daily concern for most manufacturers.
Manufacturers have been upping their retention strategies for years in trying to engage skilled workers, yet employee and manager resignations are both on the rise. My company's research shows half of surveyed manufacturers said manager resignations are up year over year, and other research indicates that manufacturers continue to face sourcing, training and retention of talent that further contributes to the skills gap.
But that’s not a huge surprise, is it? Managers have shouldered the burden of the labor shortage. They watched their people resign in droves over the past year, oftentimes for better pay and more flexibility, while rarely seeing their own salaries increase to fully account for the extra work they’ve taken on. I kid you not, our research found manufacturing plants are staffed appropriately just 11 days a month on average—you can’t make this stuff up!
As greater economic challenges loom, manufacturers need frontline managers more than ever to help keep up with production demands amid ongoing supply issues and severe staffing misalignment.
Here’s what businesses can do to keep their frontline managers happy.
1. Listen to managers.
Too often, employers forget to truly communicate with their people. This means not only talking with but listening to people to better understand their unique needs. Let your managers share their input. Ask them to weigh in. And then follow through by addressing their concerns or sharing the next steps. If managers feel their voices aren’t being heard or their ideas aren’t taken seriously, that’s when you start to see engagement drop off and know you’re at risk of increased turnover, this 2021 study shows.
2. Take care of managers.
Yes, salaries are still a major priority, but the pay is only one part of the retention equation. Try giving managers more control over their time. Many are searching for more freedom and flexibility in the workplace, as well as autonomy over their work. Create opportunities for managers to acquire new skills, work on challenging projects, and make sure they see a clear pathway for advancement within your organization.
3. Trust managers.
Trust is another way that business leaders can care for their people. Managers should play a key role in decision-making, as they have important insights that will help employees improve efficiency. It is important to give them leeway to make onsite decisions, especially regarding the people and processes they oversee.
These three small steps, if taken seriously, can have a mighty impact on your managers and organizational culture. So spend some time with your leadership discussing how your organization can listen, take care of and increase trust with your managers.
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