Historically retaining and recruiting talent has been a top concern of CEOs within the manufacturing sector. According to a recent study done by the Chief executive, 2025 has presented the newest boogie man in the closet- the tariff. With costs of goods expected to increase across the board, overcoming these expenses to achieve pleasing margins for shareholders is becoming a thing of nightmares. While the ever changing geopolitical climate is going to affect industries, it’s helpful to remember the simple prayer of Reinhold Niebuhr: Grant me the serenity to accept the things I cannot change, the courage to change the things I can and the wisdom to know the difference.
That last line, the wisdom to know the difference, is where CEOs have the most opportunity. While those of us in the private sector can’t shape public policy we do have the ability to control how we respond to it. If your particular organization has the ability to apply for exemptions, flex to alternative supply chains, or rearrange some manufacturing locations, all the better. The unfortunate, and simple truth of the tariff situation for many is that there’s not much to do other than work through it. By accepting it as something we can not change, we can then work towards making significant improvements in an area that used to hold our attention- recruitment and retention.
Talent management isn’t just about finding people – it’s about finding the right people and keeping them motivated. Here are some key strategies that focus on efficiency and cost savings while ensuring you attract and retain the best talent in the manufacturing sector.
A lengthy or disorganized recruitment process can be a deterrent for top candidates. Streamlining your recruitment efforts can save time and money while ensuring you don’t lose great talent to competitors. We recommend partnering with an industry specific recruitment firm to make this happen. The key word being industry specific. Having a partner who is deeply entrenched in the industry, who understands your business and the kind of roles they’re filling, can greatly reduce the time to hire and increase the overall quality of the candidates. This also leaves more room for the internal team to focus on critical retention related tasks.
A strong company culture leads to higher employee satisfaction, which reduces turnover rates and helps build a positive reputation within the industry.
Recognize achievements: Acknowledge and celebrate individual and team successes. Recognition doesn’t always need to be monetary; a simple thank you or employee of the month program can make a big impact.
Foster collaboration: Encourage a team-oriented environment where employees feel their input is valued and that they are part of a shared mission. This can improve both morale and efficiency, which leads to cost savings in the long term.
Clear communication: Ensure that goals, expectations, and feedback are communicated clearly. A workforce that understands their role and feels informed is more likely to stay motivated and productive.
Manufacturing workers are often looking for more than just a paycheck; they want to grow professionally. Offering opportunities for advancement can help you retain your best employees and keep them motivated.
Promote from within: Show that hard work and dedication can lead to higher-paying roles and responsibilities within the company. It is also an asset to a team to have someone who retains historical knowledge of the facility.
Offer cross-training opportunities: This not only increases flexibility and adaptability in your workforce but also makes employees feel valued as they diversify their skill sets. As the landscape continues to change with automation this is the best way to keep your people growing and changing with the scope of the work, rather than getting left behind.
Mentorship programs: It’s one thing to receive on boarding training, it’s another to have senior team members pouring into less experienced ones. This can help newcomers feel supported, fostering loyalty and reducing turnover.
This is by no means a comprehensive list of ways manufacturing organizations may continue to improve and grow their talent resources. For a more individualized assessment of growth opportunities for your organization, reach out to us here for our organizational coaching and talent advisory services.