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Manufacturing Technology Insights | Wednesday, March 01, 2023
The fluctuating labor market affects manufacturing businesses' ability to retain, scale, and adapt their workforces.
Fremont, CA: Manufacturing companies are using contract talent, also known as contingent workers, to a greater extent than ever before. Today, manufacturing workers in the U.S. are in greater demand than they were in December 2019, with warehouse and distribution center jobs taking up 42 percent of the manufacturing workforce.
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Gain More Visibility into Your Workforce and Remain Flexible
The fluctuating labor market affects manufacturing businesses' ability to retain, scale, and adapt their workforces.
Integrated workforce management (IWM) platforms can help companies overcome these challenges since they enable them to gain visibility into the current demographics and behavior of their workforce and predict future workforce needs, including seasonal shifts.
Remain Competitive in the Labor Market Locally and Globally
Companies in the manufacturing industry may not always have the latest information about pay rates and non-wage incentives for contingent workers, so the process of filling open positions can take longer and cost them more money. Despite the 94 percent increase in global demand for manufacturing workers from December 2019 to today, 73 percent of workers also cite higher pay as a contributing factor to their turnover. It is also becoming increasingly important for companies to provide competitive salaries in this sector as talent demand continues to grow.
Improve Contractor Talent Turnover
It is also a challenge for manufacturing businesses to maintain a high level of employee turnover. Magnit research indicates that 46 percent of voluntary terms end within the first month of the assignment.
If companies are seeking to mitigate this, they should invest in pay intelligence to make sure they are paying competitively and offering benefits workers want.
Align to Worker Needs
A large number of manufacturing workers live paycheck to paycheck and often need to switch jobs because of economic and convenience factors.
In order to alleviate some of these difficulties, organizations can offer flexible weekly or daily pay options, especially since this can meet the needs of their workers. It is also important to provide non-wage incentives and the right worker benefits to make sure that employees are aligned with the company's objectives.
Stay Compliant and Mitigate Risk
To diversify their supply chain, manufacturing businesses are reshoring to the U.S. or moving abroad to hire qualified talent from different regions, which means they may not be aware of the various laws, regulations, and rules affecting them and their employees.
Companies need a partner who can provide expert compliance guidance, which can include anything from working conditions to standardized policies, hours, and benefits, whether they are hiring locally or globally.
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