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The Challenges and Rewards of Human Resources in Manufacturing

Joanie Rausch

Joanie Rausch

Skilled Trades Champion

There are many factors that contributed to my love for Human Resources in the manufacturing industry. Manufacturing facilities typically employ between 50 and 500 people and often operate like small family businesses. This environment allows everyone to know each other on a personal level and the diversity on the plant floor creates a unique learning experience. Learning about each other’s cultures, beliefs and practices is rewarding and watching employees train coworkers who speak different languages has always been fascinating to me. Working in a smaller setting gives human resource professionals the opportunity to be involved in all aspects of HR and become well‑rounded generalists. 

However, many challenges are facing the manufacturing industry in the United States, including those related to human resources.  We are losing the workforce that grew up learning these skills and trades.  Over time, the focus has shifted toward four-year college degrees as the preferred career path, while vocational training and hands-on skilled trades have received less attention.

During COVID-19 many facilities were not considered essential businesses and were forced to close, leading to furloughed employees.  Many of these workers were among the last of the baby boomers who, when recalled, decided they enjoyed retirement. Unfortunately, many of these retirees represented the last of a dying skill set.  When businesses reopened, there were more job openings than available candidates.  Why would anyone want to work in a hot manufacturing facility when they could earn the same wage at McDonald’s? Manufacturing suffered, hiring nearly anyone who showed up for an interview. The training curve for these unskilled employees was steep - and that was only for the ones who actually stayed.

Relief finally came when the United States began allowing temporary resident aliens from war‑torn countries. Many of these individuals are skilled in our trades, appreciate the work opportunities and have become some of our hardest‑working employees. Just as we began to feel somewhat secure again, the U.S. stopped extending these work documents. Manufacturing executives, HR professionals and legal teams have been closely monitoring e‑Verify announcements regarding countries with extended or denied status updates, as each change can severely affect production. These are jobs that few people in the United States want or even have the desire to learn. 

It is imperative that we get people excited about working in manufacturing again. Installing air conditioning would certainly help! Many high schools no longer teach any of the trades, which has contributed to the gap in skilled labor. To remedy this, manufacturers could partner with local high schools and community colleges to offer internships, plant tours and apprenticeship programs that expose students to modern manufacturing technology. By showing that today’s manufacturing is clean and innovative, we can inspire the next generation to pursue these rewarding careers. 

While we love working in manufacturing, we must begin to think like Corporate America. Retaining the current workforce is key, so it’s important to think creatively. Conduct employee engagement surveys and start by addressing the low‑hanging fruit. Let employees know they are heard and that we genuinely want to make them happy. Work‑life balance is possible and investing time in focus groups to figure out what works best for your facility could be well worth the effort. 

Compensation & Benefits - Conduct pay and benefit analysis to ensure we are paying market rates.  Manufacturing is a demanding industry, so it’s essential to offer competitive compensation and benefits. Offer other incentives or goals to enable employees to earn more.

Manufacturing often runs in cycles and pays increases are not always possible. Make employees feel valued and appreciated through other means — simple gestures like thank you, cookouts, ice‑cream breaks and company picnics can go a long way toward boosting morale and showing genuine appreciation. 

At the same time, we must have a structured training program that enables our remaining aging workforce to train the next generation in the tools and techniques of this wonderful trade.  Manufacturing is a remarkable industry and it’s up to us to keep it alive!

The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.
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