Due to the advances in technology and changing needs of the industry, manufacturing jobs have evolving requirements. This is why employment agencies are trying to connect the right individuals with organizations to ensure they can keep pace with the rapid changes. However, despite the increasing number of people looking for job opportunities, skill shortage is a challenge for Canada’s manufacturing sector.
The manufacturing workforce is shrinking due to many factors, such as:
- Unsafe workplaces
- Few graduates educated in STEM disciplines
- Misconception by younger generations that the sector lacks a competitive salary
Despite sustained financial growth within the sector, organizations must address the significant loss in human capital to stay ahead of the competition. Finding ways to replenish the retiring employees is crucial, as, without them, companies may find it difficult to survive in the competitive future. Pay alone is not enough to encourage employees to stay with your company.
Learn about the gaps between the labour market and the capabilities businesses need so you know how to hire the right employees.
Problems Recruitment Agencies Face When Hiring Skilled Candidates
Poor Perception of the Manufacturing Industry
Most people associate manufacturing jobs with outdated and low-paying job opportunities, making it difficult for companies to find the right fit for their organization. Moreover, many females find the idea of working in this sector less appealing as it is and continues to remain a male-dominated sector.
Studies show that women are only 20% of the workforce in the manufacturing industry.
If you are looking to hire new employees for your manufacturing company, it is best to be well-connected with the youth. Be sure to present your values, work environment, culture, and incentives in a way that appeals to them. You can offer apprenticeships to help them gain experience and skills through on-the-job training and provide opportunities to get them on board.
Automation and Robotization
There is a widespread belief that new technology will lead to reduced job opportunities in the manufacturing field. However, technological advancements often create more openings.
Research indicates that technology has helped create more jobs than it has eliminated over the years in the manufacturing sector.
When used correctly, automation can enhance employee engagement, overall productivity, and customer value. It can modernize your company and create new jobs for people with varied skills.
Rapidly Retiring Workforce
The shortage of qualified candidates for manufacturing jobs is largely due to the high number of older and retiring workers.
Surveys and statistics show that almost 30% of the manufacturing workforce in Canada is over 55.
However, older employees bring many benefits such as experience, skills, and knowledge to aid the younger staff. They can help limit the loss of expertise.
Retention and Attrition
Organizations in the manufacturing sector often face the challenge of retaining qualified and skilled employees.
The manufacturing sector is accountable for around 22% of employee turnover.
The turnover rate is high because people are drawn to new and better rewarding opportunities. When coupled with the common perception of stagnant pay packages and an unsuitable working environment, combating high turnover rates can be difficult. The advancing average age of the workforce further compounds the turnover. The specialists from employment agencies recommend spreading awareness about how organizations strive to work for the employees’ betterment and the lucrative job opportunities available in the sector.
Low Employee Engagement
Although there is significant growth in manufacturing jobs in recent years, there is scope for improvement in workforce engagement.
An estimated 25% employee engagement level in the manufacturing sector trails the national average by around 8%.
There is a need to improve the ability to create and maintain engaging work environments. Companies can achieve this through excellent leadership and team management, appropriate communication tools, and employee feedback. In addition to this, establishing healthy and continuous contact with the trade unions can help bridge the gaps between the employees and the organization.
Training and Development
The primary reasons behind the significant staffing issues in the industry are training and development. The companies need to provide adequate training to employees to ensure they are updated with the latest developments. This will also help them prepare for upcoming challenges. In addition to this, training and development are excellent tools for achieving higher employee satisfaction and engagement. By implementing appropriate measures for employee training, the organization can stay competitive within the global marketplace.
Political and Socio-Economic Changes
The experts in recruitment agencies believe that most employers overlook the impact of political changes on the manufacturing sector. Global issues such as Brexit and COVID-19 pandemic have led to travel restrictions and tighter border controls, which have limited opportunities to hire from overseas and impacted shipping and receiving times. Workforce gaps because of sickness and unavoidable layoffs also add to the recruiters’ problems. This is why it is essential to be innovative when developing your recruitment strategy. Being proactive can help you face unprecedented challenges and ensure proper workforce management.
The Need for Manufacturers to Upskill
With rapid technological advancements and the increasing importance of digital resources, modern manufacturing requires new, out-of-the-box solutions. This is why upskilling your workforce is crucial to bridge the skills gap.
According to research, only 36% of manufacturing companies consider measures for employee development and budget for it.
Having employees with a redundant skillset can lower their morale and affect the overall performance of the organization. Manufacturing companies must consider investing in upskilling through education and training programs to assist with employee retention.
Winters Staffing Can Help You Overcome Recruitment Challenges
With over 40 years of professional experience, Winters Technical Staffing can help companies find the right fit to grow their businesses. We also have the resources to support individuals looking for a job by ensuring they find one that meets their needs. Our staff will analyze the culture and business needs of your organization to help you select qualified individuals who meet all your requirements.
You can speak with one of our recruitment professionals by calling 647-556-2408 or fill out our online form for assistance. We’ll be happy to match you with suitable candidates for your company or align job seekers with openings matching their skillsets.