U.S. industrial facilities of every size often experience high employee turnover rates. Manufacturing employers recognize that any lost resource can have a direct financial impact on their operations. However, many plant leaders assume that staff terminations are simply the cost of doing business, without realizing the full expenditure turnover represents within their organization. Beyond replacement (sometimes higher) salaries and hourly wages, manufacturing businesses must also absorb additional periphery expenses, such as recruiting, training, outfitting, onboarding, and production continuity.
High plant turnover often proves costly in less tangible ways as well. Continuously losing internal employees can negatively impact crew morale. Additionally, a dwindling workforce can decrease employee loyalty, significantly influence overall company culture, and ultimate team performance.
Identify Root Causes of Turnover With Full-Time and Contract Workers Within Manufacturing Organizations
To circumvent excessive turnover within their full-time and contingent workforce, manufacturing managers must first pinpoint some of the key reasons why their employees are leaving. At the top of the list? Employer-initiated terminations.
Many plant leads are surprised to learn that employer-initiated termination is far more common than self-terminations, particularly with assembly workers and other plant positions. However, some corporate cultures support the belief that unskilled labor is cheap and easy to replace. As a result, supervisors and leaders have little to no tolerance for workers who don’t perform perfectly at all times. They are quick to release these team members, assuming that they can quickly and easily replace both permanent and temporary workforce resources.
Burnout is Common for Employees at Manufacturing Plants and Facilities
Burnout proves a leading contributor to self-termination at plants and facilities. Industrial and manufacturing facilities can amplify employee burnout, which also lends to an increase in turnover. Workers often continuously perform the same tedious and repetitive tasks for weeks at a time, eventually leading to their quitting or being fired.
Other Factors That May Prompt Gross Turnovers at Manufacturing Organizations
Other factors may also come into play when identifying the root cause of staff turnover, including:
- Poor job performance
- Work/family conflict
- Organizational commitment
Dissatisfaction with leadership can also prove a contributor to lost employees, particularly if there are cultural, educational, and social differences between leadership and on-the-floor employees. A perceived lack of empathy and respect from leadership can quickly lead to both employer- and employee-induced terminations.
Manufacturing Organizations Can Implement Tactics to Prevent Unnecessary Turnover
Yes, all workers want competitive pay. However, retaining high-performing staff often goes well beyond general compensation. Developing and implementing policies to improve trust relationships between employees and managers can lower terminations. Also, investing time, energy, and resources into workplace relations can help manufacturing organizations reduce turnover.
Family-supporting measures designed to give team members time off can help resolve work/family conflicts. Additionally, implementing job rotation can help reduce burnout and grant employees the motivation needed to improve their skill sets and elevate promotability. Extended benefits, such as health insurance for families, educational assistance, and room for advancement can deliver an added incentive for workers to stay.
Star Industrial Services Helps Manufacturing Companies Access the Gig Workforce They Need For Success
As a leading recruiting agency, Star Industrial Services develops customized staffing solutions to resolve high turnover rates at manufacturing and other industrial organizations. Contact us today to learn more about how our gig workforce of screened and vetted candidates can help your facility optimize output despite higher-than-average turnover.
Star Industrial Services is a contract labor supplier, staffing consultant, and strategic partner with over 50 years of combined industry management experience, using the latest innovative processes and technology to connect the right people to the right company. Working with both employers and applicants, Star’s recruiters are trained to help expand your skills and knowledge towards a better management of your employees and business. Learn more at starindustrialservices.com.