With More Than 40% of Gen Z Employees in the Manufacturing Sector Wanting To Move Out of the Sector, How Do You Retain This Talent?

Gen Z refers to the generational cohort born between 1997 and 2012. According to statistics, just under 12.7 million Gen Z individuals were in the United Kingdom as of 2021, constituting the fourth-largest generation in the country. Approximately 4.3 million Gen Z members were part of the UK’s labour force in 2022, making them the third-largest generation in employment.?

Globally, statistics predict that Gen Z will account for about 27% of the workforce by 2025. While the generation represents among the largest currently and a certain significant percentage of the future workforce, recent studies paint a bleak future, especially for the manufacturing sector.?

According to The 2021 Future Manufacturing Workforce Study findings, 92% of Gen Z talent employed within manufacturing expressed satisfaction with their current careers.? However, despite the seemingly high satisfaction, at least three in four manufacturers studied indicated they still faced challenges in attracting and retaining Gen Z workers.?

Another study conducted in by Randstad, which consulted over 700 companies found that over 40% of workers aged 25 in the manufacturing sector are considering leaving it within the next 5 years, citing improved career opportunities and the chance to learn new skills as reasons for potential attrition. The study also found that only 6% of Gen Z working in the manufacturing sector felt they had a chance to learn new skills in their current workplace.

The studies further indicated that attracting Gen Z remained a high priority for 88% of surveyed manufacturers. However with the number showing, nearly a 40% turnover, it becomes natural for manufacturing companies to find a solution that will keep Gen Z employees happy, cared for, and productive in the workplace to increase retention.

Considering these factors, research has shown that the four steps below will help attract and retain Gen Z employees in manufacturing.

1. Create a clear picture of their career path.?

Manufacturing companies need to build a positive image showcasing how their organisations are next-generation manufacturing enterprises where Gen Z employees can grow and expand their skills with guaranteed long-term sustainability.Studies have shown that having clear goals and transparent career paths drives job satisfaction for 67% of Gen Z talent, with nearly 28% of them saying opportunities for advancement are “extremely important”.

2.Provide a proper work-life balance.

Gen Z employees extremely value work-life balance. Most indicate they are ready for working environments that offer competitive time off and flexible work schedules. Among the top three reasons why an otherwise satisfied Gen Z employee would change jobs, 31% listed time off and? 22% listed flexible scheduling. Therefore HR managers in manufacturing companies need to be ready for the hard conversations pertaining to Gen Z work-life balance.

3.Show how the technological investment in the company is ambient for career progression.

Manufacturers need to emphasize how advancements in recent years, such as using AI directly on the production lines for quality inspection, have revolutionized the industry. Considering this generation is very digitally savvy, companies must show how their investment in technology satisfies the workplace technological expectations of Gen Z employees. Moreover, it is important to showcase how these technological investments allow these employees to open up unexplored avenues of career progress in the company.

4. Create ample avenues for recognition and feedback.

Gen Z employees are a on continuous improvement journey. Statistics show that 70% of Gen Z employees want recognition and respect for their work, and 69% want performance feedback on how they can improve. However, studies show that only 35% of Gen Z employees feel they are getting ample time with their direct supervisor where their work can be recognised and direct feedback given.Therefore, manufacturing companies need to create more opportunities for Gen Z to interact with management.

Going forward, manufacturing companies cannot ignore the needs of Gen Z employees, considering the aging workforce that will need to be replaced. With attracting and retaining Gen Z employees already a challenge, manufacturers must, therefore, take into consideration the above solutions to remain a competitive and attractive employee destination.