Breaking the Cycle: How Leaders Can Reduce Turnover & Disengagement in Manufacturing

The manufacturing sector, a vital engine of global economies, faces serious workforce challenges. With turnover rates of 30-40% and rising disengagement, leaders are stuck in the costly cycle of losing employees and retraining new ones. This revolving door isn’t just frustrating—it’s a direct threat to productivity and long-term stability.

Disengagement alone can have a devastating financial impact. Our data shows a mid-sized company with only around half of their employees engaged could lose up to $9.43 million annually, underscoring the urgency for leaders to address its root causes.

Based on feedback from thousands of manufacturing employees through CultureID surveys, three key themes consistently emerge that highlight where leaders can focus–and employees can contribute–to improve company culture.

Theme #1: Fix Communication Gaps to Rebuild Trust

A lack of clear, timely communication is a constant pain point for employees. Many workers report feeling left in the dark about important company decisions, which directly fuels uncertainty, frustration, and disengagement.

Leadership Actions:

• Establish regular communication channels: Create structured methods for consistent information sharing, such as weekly town hall meetings, printed materials, bulletin boards, or in-person conversations.
• Encourage two-way feedback: Provide avenues for employees to ask questions, share concerns, and offer suggestions. Consider implementing an “open office hours” policy for managers or regular Q&A sessions where employees feel heard. If anonymity helps, consider CultureID’s anonymous surveys or suggestion boxes (virtual or in-person).

Employee Action:

• Take responsibility for staying informed: Encourage employees to actively engage with the communication channels available to them. Remind them to attend town halls, read newsletters, and participate in Q&A sessions. Employees can also clarify information by asking questions if something is unclear, fostering a proactive culture of transparency.

Theme #2: Break Down Silos to Drive Collaboration

A lack of collaboration is slowing down productivity and innovation. A significant number of employees state feeling isolated in their roles, working within rigid departmental silos that stifle teamwork. These barriers prevent information flow, limit creativity, and cause missed opportunities for cross-functional problem-solving.

Leadership Actions:

• Break down silos: Encourage cross-functional collaboration by creating opportunities for different departments to work together on shared projects. Regular cross-team meetings or problem-solving workshops can spark creativity and improve cooperation.
• Foster team-building: Host regular team-building exercises, both formal (e.g., structured workshops) and informal (e.g., social outings), to strengthen relationships and improve trust among employees.?

Employee Action:

• Proactive communication: Encourage employees to take the initiative to collaborate with colleagues from other departments. Employees can share information, offer assistance, or invite others to brainstorm sessions.

Theme #3: Offer Recognition & Feedback to Improve Workplace Culture

Employees desire a healthier work culture overall, including feeling respected, valued, and supported. Almost half of workers express dissatisfaction with a culture that doesn’t fully recognize or appreciate their contributions, which can lead to low morale and high turnover.

Leadership Actions:

• Build a culture of recognition: Implement recognition programs that regularly highlight employee achievements, whether through “employee of the month” awards, peer-to-peer recognition systems, or even small tokens of appreciation for daily successes. Consistently acknowledging hard work goes a long way in boosting morale.
• Encourage open dialogue: Make it clear that leadership is approachable and receptive to feedback. Hold periodic surveys or forums where employees can express concerns about the work environment without fear of retaliation. This not only addresses immediate issues but fosters a sense of trust and mutual respect.

Employee Action:

• Contribute to a positive culture: Encourage employees to actively participate in brainstorming solutions, offering recognition, and celebrating what’s working well.??

Moving Forward with Purpose

For leaders in manufacturing, improving employee engagement is not only about addressing complaints—it’s about creating a work culture where employees feel valued, informed, and connected. The cost of disengagement is steep, but by addressing core issues leaders can move the needle on turnover and engagement.?