Strategies for Controlling Workforce Attrition in Manufacturing

eBook Strategies for Controlling Workforce Attrition in Manufacturing

In the industrial sector, where production goals are critical, workforce attrition can become a costly obstacle. With manufacturing turnover rates reaching as high as 37% (Award.co) and over 400% (Statista) in temporary stafûng, high employee turnover disrupts productivity and signiûcantly increases recruiting and training costs. This challenge is compounded by a labor shortage across the U.S., where there are approximately 85 workers available for every 100 job openings (U.S. Chamber of Commerce). Companies that aim to build a resilient workforce need a balanced approach that combines data-driven insights with proactive employee engagement. Here are four strategies any industrial business can adopt to reduce attrition and support long-term growth: 1. Leverage Data to Track and Reduce Attrition 2. Build Clarity Around Roles and Growth Opportunities 3. Design an Engaging Workplace Environment 4. Use Predictive Analytics to Address Retention Risks

The Cost of Workforce Attrition Attrition can affect industrial companies in several ways: ● Increased training costs: Frequent employee turnover means increased expenses for onboarding and training replacements. ● Reduced productivity: Every new hire requires time to ramp up, disrupting established worküows. ● Lower morale: High turnover can demoralize remaining employees, creating a cycle that’s hard to break. According to a report from Deloitte and The Manufacturing Institute, the manufacturing industry will need up to 3.8 million jobs ûlled between 2024 and 2033, with nearly half of these potentially going unûlled due to recruitment and retention challenges (Investopedia). This trend underscores the need for practical retention strategies to create a more stable workforce.

1. Leverage Data to Track and Reduce Attrition environment, or management practices. Companies that Using data to identify turnover trends and address attrition systematically analyze exit data can address issues directly. proactively is essential. One effective approach involves tracking speciûc metrics that reveal underlying retention challenges. ● Predictive Analytics: Some businesses have found success by using predictive analytics to identify trends in speciûc ● Regular Performance Reviews: Quarterly Business Reviews departments or roles. For example, if certain roles have (QBRs) can be an effective way to analyze turnover metrics particularly high turnover, it may indicate a mismatch and identify potential areas of concern. Tracking KPIs like between job expectations and employee skill sets. By turnover rates and time-to-ûll can help management spot understanding these patterns, companies can take issues before they lead to widespread attrition. preventive measures, like re-evaluating role requirements or ● Exit Interview Insights: Tracking reasons for employee enhancing onboarding practices. departure allows companies to understand the root causes of turnover, whether related to compensation, work Example Eastridge Workforce Solutions has worked with companies to implement Quarterly Business Reviews that track KPIs related to attrition. Eastridge utilizes proprietary tools to track the candidate Discover how to understand journey, pinpointing where the highest drop-off percentages occur the causes of turnover and within the hiring funnel. We analyze turnover data, including the formulate strategies to reduce frequency and reasons behind employee exits, while collaborating attrition and support long-term closely with internal workforce advisors to identify trends and growth. Download the guide insights. Additionally, we offer comparative analyses across now to get started. anonymous companies, revealing patterns and market-specific trends to help optimize workforce strategies. By analyzing this data, Download Now organizations can proactively address common turnover drivers, such as poor onboarding experiences or lack of training support.

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The formula for Estimating Turnover Cost Turnover Cost = (Separation Costs + Vacancy Costs + Replacement Costs + Training Costs) Deûning Each Component ● Separation Costs: Includes exit interviews, severance pay, and any additional HR processing costs. ● Training Costs: Considers training time, onboarding, and lost productivity as new hires ramp up. ● Vacancy Costs: Covers lost productivity and overtime for remaining employees to compensate for the vacancy. ● Replacement Costs: Involves recruiting, interviewing, and hiring expenses, as well as signing bonuses or relocation expenses, if applicable. Quick Estimate Formula for Hourly Positions Turnover Cost = Annual Salary of Position × 0.2 to 0.3 For example, if a manufacturing worker earns $50,000 annually, the turnover cost might be around $10,000 to $15,000 per turnover event. This approach provides a general idea but can be reûned with real data from the company on recruitment, training, and lost productivity costs for accuracy.

2. Build Clarity Around Roles and Growth Opportunities One of the simplest ways to reduce early-stage turnover is to ensure Companies can create clear advancement pathways and clear communication about role expectations and growth mentorship programs to show employees that growth opportunities from day one. opportunities are available. ● Setting Clear Expectations: Establishing transparent Example communication between new hires and management about Eastridge’s collaborative hiring process starts with gathering job responsibilities and performance expectations prevents information to develop a deep understanding of customers' misunderstandings. This open dialogue can also align operational needs. The the process utilizes specific intake employees’ personal goals with company goals. procedures and a continuous feedback loop with hiring managers to drive alignment and success in placements. Additionally, our ● Career Pathways: Employees are more likely to stay with a quality control extends to supporting working associates company when they can envision a future within it. throughout their assignments to ensure satisfaction, provide encouragement, and foster strong relationships. This approach enhances assignment duration, boosts performance, and has led to a high conversion rate of temporary associates transitioning to permanent employees.

3. Design an Engaging Workplace Environment An engaging work environment goes a long way in supporting Example retention. Creating a workplace that meets employees' personal and professional needs fosters loyalty and encourages long-term Eastridge maintains regular check-ins and has developed tailored commitment. recognition programs to support mutual goals, including improved attendance, retention, and performance. We personally accompany ● Recognition Programs: Recognizing contributions and working associates on their first day and make frequent onsite visits celebrating milestones can boost morale and foster loyalty. to build relationships, offer coaching, and answer any questions. For Companies with formalized recognition programs often see clients with a high volume of Eastridge associates, we provide increased engagement and reduced turnover. dedicated onsite support, acting as an extension of our customer’s HR team to enhance engagement and responsiveness. ● Tailored Benefits: Offering beneûts that align with employee needs, such as üexible scheduling or wellness programs, can improve retention. Companies can survey employees to determine which beneûts would be most valuable to their workforce. ● Regular Check-ins: Consistent feedback sessions help employees feel valued and heard. This practice can also foster open communication, making employees more likely to discuss concerns before they escalate into reasons for leaving.

4. Use Predictive Analytics to Address Retention Risks Beyond tracking current metrics, using predictive analytics can help companies anticipate and address retention risks before they become larger issues. ● Identify At-Risk Groups: Some businesses use data analytics to detect patterns in turnover, which allows them to create targeted solutions. For example, if speciûc roles have high attrition, the company can re-evaluate job requirements or improve training programs to better support these employees. ● Proactive Adjustments: Predictive analytics can indicate potential problems in advance, giving businesses time to address issues like employee dissatisfaction or lack of advancement options before they become serious enough to impact turnover. Example Eastridge applies predictive analytics to help companies identify potential retention issues. For instance, if data shows that employees often leave due to limited career development, they may recommend professional development programs to address these concerns before attrition becomes an issue.

Success in Action: Reducing Attrition through Data and Engagement One Eastridge Industrial client was struggling with high turnover in entry-level roles. Working with Eastridge, the company found success by combining data analysis and engagement initiatives. By analyzing their attrition data and recognizing the lack of career advancement as a main driver for turnover, they launched a training program that offered employees clear growth pathways. Within six months, turnover dropped by 30%, and employees reported higher job satisfaction and motivation. In another example, Eastridge worked with a global leader in healthcare manufacturing providing medical devices, diagnostics, pharmaceutical delivery, consumer health products, and orthopedics. Leveraging data and Eastridge’s proprietary GATE candidate assessment program, the client was able to reduce turnover by 10% and improve product quality by 20%.

Building a Sustainable Workforce through Strategic Retention Combining data-driven insights with employee engagement strategies can help industrial companies control attrition. With a holistic approach that includes structured metrics, clear communication, and workplace engagement, businesses can build a stable, productive workforce. As labor shortages continue, these strategies will be essential to retain talent and support long-term growth in the industrial sector.