How manufacturers are winning the talent war

Traditional workplace strategies that have long focused on office-based employees are now extending to the production floor as manufacturers scramble to attract and retain skilled talent.

They are now delivering office perks, such as flexible work schedules, wellbeing programs, and upskilling initiatives, directly to the factory floor.

The changes come as seven in 10 manufacturers surveyed by JLL are prioritizing talent acquisition amid intense competition for skilled workers, a challenge amplified when fixed shifts and an on-site presence is required.

It doesn’t help that manufacturing firms are up against a perception that their jobs are unattractive due to poor career prospects, physical and mental health concerns, and inflexible schedules, according to Jana Cheong, Manager, Industries Research, Asia Pacific, JLL.

“Such roles often require operating heavy machinery, handling hazardous materials, and performing physically demanding tasks for long hours, leading to a higher risk of injury,” says Cheong.

This perception is deterring younger talent from entering the sector. But recruiting talent is only half the battle. Retaining them is equally critical.

A recent industry survey of manufacturers revealed that attrition rates for their manufacturing roles were nearly four times higher than those for their office-based roles in the past six months.

To improve retention, manufacturers are taking a cue from hybrid office-work models.

One key area of focus is scheduling, where they are actively exploring and implementing flexible solutions.

“While office workers have benefited from hybrid and remote work models, frontline manufacturing workers have been largely excluded,” says Kamya Miglani, Head of Research, Work Dynamics, Asia Pacific, JLL. “Their roles, by nature, demand fixed shifts and on-site presence, making flexible work arrangements a significant challenge.”

Despite these limitations, manufacturing employees value flexibility in their work schedules such as compressed workweeks or the ability to take time off at short notice.

Forward-thinking organizations are responding with flexible job designs. A prime example is advanced materials manufacturer Michelman, which redesigned the 12-hour shift for mature employees into a five-day work week with regular working hours, effectively alleviating their workload.

Beyond flexible schedules, a focus on employee wellbeing is becoming increasingly critical.

“The physical demands of frontline work make workers vulnerable to burnout, injury and mental health challenges,” says Cheong. “Employers must prioritize safe and supportive workplace environments and invest in robust mental health resources.”

For instance, UK cable assembly manufacturer GTK launched a mental health assistance program offering employees access to free counselling sessions, a 24/7 helpline, and a wealth of online resources covering diverse topics.

Such initiatives, while beneficial, often require resources that are not readily available to all manufacturers. As Cheong acknowledges, “The reality is, these important initiatives can be a significant barrier for smaller manufacturers who may struggle with thin margins and limited resources to develop comprehensive programs.”

Instead, a viable solution lies in implementing small, consistent actions that fit seamlessly into daily operations. “This could include scheduling regular breaks during shifts to relieve fatigue and integrating wellness activities throughout the day to accommodate different shifts,” says Cheong.

While employee wellbeing is crucial for immediate support, manufacturers are also looking at long-term investments to empower employees through learning and skill development.

Manufacturing employees often feel they have fewer training opportunities than their corporate counterparts, but the industry’s shift towards automation and robotics presents a valuable upskilling opportunity, Cheong says.

“Meeting the rising demand for workers with specialized technical skills to operate these increasingly prevalent technologies requires manufacturers to bridge the skills gap through targeted training programs.”

One company taking this approach is Cummins in India. For the past eight years, the engine manufacturer has been sponsoring professional engineering degrees for its entry-level associates and shop floor employees, equipping them with industry skills to boost their career prospects.

The success of training initiatives hinges not only on the quality of the programs but also on the environment in which they are delivered.

As a result, manufacturers are making deliberate real estate choices to attract and retain top talent. Factors such as facility design, location and amenities all play a key role.

Many are investing in modern facility design, including up-to-date equipment, ergonomic spaces, and collaborative areas, to enhance employee safety, wellbeing and engagement.

“Manufacturers are also increasingly seeking locations with easy transportation access, and amenities such as fitness centers and green spaces, because these features are particularly appealing to potential employees,” says Miglani.

“By thoughtfully integrating these real estate considerations, manufacturers can create workplaces that not only meet operational needs but also foster improved employee mental health and satisfaction."