Driving Employee Retention and Engagement Through Technology and Innovation

In a recent episode of the Manufacturers Network podcast, I had an insightful conversation with Kerrie Jordan , Group Vice President of Product Management at Epicor and host of the Manufacturing the Future podcast. Although Kerrie's expertise is rooted in manufacturing, the strategies and lessons she shared during our conversation apply to organizations in various industries looking to improve retention and employee engagement.

Our discussion covered critical topics like the role of technology, employee morale, and upskilling in today’s workplace. Here are key takeaways that can help organizations drive retention and employee satisfaction in an increasingly competitive and tech-driven landscape.

Commitment to Retention: Aligning with Employee Values

One of the most encouraging insights from the Voice of the Manufacturing Worker report, which Kerrie highlighted, was a decrease in the number of workers planning to leave their jobs within the next year—down from 56% in 2023 to 43% in 2024. While this is good news, the report also revealed that more than half of the workers would take a slight pay cut to work in a more sustainable or technology-driven environment.

This finding presents a significant opportunity for employers. It’s clear that aligning with employees’ values, particularly around sustainability and innovation, can help retain talent. Companies that prioritize these areas are likely to foster greater loyalty among their workforce, especially as younger generations increasingly seek employers who share their values and vision for the future.

Morale and the Impact of Workplace Flexibility

The report also revealed a dip in workplace morale, with only 45% of respondents reporting high morale—down from 52% the previous year. Despite this decline, workers continue to express pride in their contributions, particularly in creating something tangible and supporting their company’s mission.

One strategy to improve morale is offering greater workplace flexibility, a practice that may not always seem compatible with manufacturing but has proven effective in many industries. Flexibility doesn’t have to mean remote work; it can involve adaptable scheduling or solutions for balancing personal and professional responsibilities. Companies that have embraced flexibility have seen benefits in employee engagement and retention.

The #Upskilling Gap: Preparing Employees for the Future

One concerning trend from the report was the decline in companies’ commitment to upskilling. Only 70% of manufacturers prioritized training in 2024, down from 80% the previous year. This decline could have serious long-term consequences. Manufacturers that fail to invest in their employees’ skills risk losing top talent and falling behind competitors.

Upskilling is a crucial element for retaining talent and preparing workers for the rapid technological changes shaping industries today. Whether it’s robotics, artificial intelligence (AI), or IoT, employees want opportunities to grow. In fact, 66% of workers said they would trade their current job for one that offered more upskilling opportunities, even if it required longer hours. Investing in continuous learning opportunities, such as on-the-job training, online courses, or partnerships with educational institutions, can help future-proof the workforce while boosting engagement.

#Listening to Employees: A Powerful Retention Strategy

One of the simplest yet most effective strategies for improving morale and retention is active listening. Employees want to feel heard, and management that listens to its workforce—and acts on that feedback—can make a profound impact. According to the report, a lack of communication and responsiveness from leadership is a key driver of low morale.

Establishing ongoing feedback mechanisms, whether through surveys, regular one-on-one meetings, or informal check-ins, allows companies to stay in touch with employee needs. But it’s not just about listening—it’s about taking action based on employee feedback. Leaders who demonstrate that they value their employees’ input and make visible changes to address concerns will build a more loyal, engaged workforce.

#Technology as a Tool for Retention and Efficiency

While technology adoption in manufacturing has increased, the report noted a stagnation in enthusiasm for new tech. However, 83% of employees who had access to new technology reported working more efficiently, and fewer workers expressed concerns about being replaced by automation, with the number dropping from 64% to 52%.

To reignite interest in new technologies, companies need to clearly connect tech investments to pragmatic outcomes. Employees are more likely to embrace AI, automation, and other innovations when they can see how these tools improve their workflow, safety, and efficiency. Leaders should also involve employees in the process, asking for their input on which technologies would be most beneficial and ensuring that new systems align with their needs.

#Sustainability: A Growing Priority for Both Workers and Companies

Sustainability is not only a trend but a necessity, especially as regulatory requirements around carbon emissions and environmental impact increase. Interestingly, more than half of the workers surveyed said they would take a slight pay cut to work for a more sustainable company. This highlights the growing importance of aligning business practices with employee values around environmental responsibility.

Organizations can begin by assessing their current data around carbon impact and implementing systems to track and report emissions. By demonstrating a commitment to sustainability, companies not only comply with regulations but also attract talent that shares these values.

Preparing for the Future: Key #Trends to Watch

Looking ahead, several trends are shaping the future of manufacturing and other industries. Automation and AI will continue to play an increasingly important role, with generative AI offering new ways to streamline processes and empower workers. However, these technological advancements must be paired with ongoing training and development to ensure employees have the skills they need to thrive.

At the same time, sustainability is becoming a key differentiator in attracting both talent and customers. Companies that prioritize sustainability not only meet regulatory requirements but also position themselves as leaders in a marketplace where values matter.

People First, Technology Next

In today’s rapidly changing workplace, employee retention and engagement are more important than ever. The Voice of the Manufacturing Worker report offers valuable insights into how companies can better align with the needs and values of their workforce—whether through sustainability efforts, flexibility, or technology investments. By putting people first and integrating the right technological tools, organizations can create a workplace where employees are motivated to stay and contribute to long-term success.

As Kerrie Jordan noted in our conversation on the Manufacturers Network podcast, “It always comes back to people—how you engage them, reward them, and excite them about coming to work every day.” This message rings true across industries and should serve as a guiding principle for leaders looking to thrive in the future.

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