For the past several decades, manufacturing has been experiencing a decline in their workforce. While many industries have had major turnover in the last two years, manufacturing has been steadily experiencing this for a long time, and is projected to continue for the foreseeable future.
There’s several causes that continue the trend. Many workers are expecting remote opportunities, something that is not feasible when you need people physically manning machines. A shrinking labor pool and increased retirement levels are also to blame. Overall, there’s not a lot of people available and fewer still who want to work in this industry.
This has urged owners to strive to keep their business running and competitive. One major solution for hiring and retention is a total reward statement.
The uncertain conditions of the manufacturing crunch have made many people question their worth and effort. The only thing pushing them forth is the handsome annual salary. However, employees may not be aware of everything they are getting. Total reward statements are as much of an educational tool as a retention tool. It keeps your employees knowledgeable and more satisfied.
Stay Ahead of Labor Trends
The recent workforce conditions demand businesses to take a step forward. To compete in this newly evolved market, you need to take the initiative and adopt new methods. Total rewards are the future of the employment market. Now that the labor market has realized how to assess their worth and value in the market, fishing for talented and good employees requires effort from your side as well.
Employees are now looking for progress and aiming to grow and build rather than settle for temporary pay. However, many view manufacturing as a dying industry, and one with no upside. It’s important to change this mindset, and total rewards are able to add that growth component via annual merit increase plans. These compensation statements help give employees an insight into their development at your firm.
Provide Insight for Prospects
Another important feature is the ability to allow employees to customize their starting package. This gives them an idea about the future prospects at the company. The most effective job offer letters contain detailed compensation information.
A digitized statement can also be impressive for younger generations that may not view manufacturing as a compelling industry. An interactive graph allows them to mix and match their compensation package while providing insights for HR to see what’s the most popular options when hiring employees.
Review Data for Managers
Modern total reward statements shouldn’t be just for the workers. The best solutions also provide insights for your HR team.
Learning the most popular benefit offering is invaluable when improving retention. It lets you know what is important to keep for years to come, and what isn’t providing enough value of investment. It can also shape your communication strategy in what options to highlight.
All this information will aid your benefits team in designing next year’s packages. Many companies are aggressively competing for talent, so creative offerings will give you an advantage.
Modern Tool for the Modern Workforce
As the labor crunch continues, organizations need to work harder in hiring and retention. Manufacturing is among the industries that have the most difficulty in these actions. The adoption of total reward statements can significantly help these problems, and create a competitive place to work.