With manufacturers facing a skills gap that could result in 2.1 million unfilled jobs by 2030, retaining qualified and effective employees is critical. But how do manufacturing leaders keep great employees on staff? The Manufacturing Institute’s Center for Manufacturing Research and the American Psychological Association have some answers, collected in their recently published Manufacturing Engagement and Retention Study.
Why people stay: According to the study, the main reasons that employees remain at a company are enjoyment of the work (83%) and stability/job security (79%). Other contributors to satisfaction include the family friendliness of the employer and the way the job fits into their lifestyles outside of work.
- The next generation, however, has slightly different motives: “Although fewer survey respondents overall (42%) identified training and career opportunities as reasons for staying, around two-thirds of those under age 25 said these were motivating factors in their decision to remain with their current employer (69% and 65%, respectively).”
Feeling good: Employees who felt valued by their companies had significant more motivation and job satisfaction.
- Nearly all workers who said they felt valued by their employers (97%) described themselves as highly motivated and satisfied with their jobs. Nearly as many (96%) would recommend their company to others as a good place to work.
- Meanwhile, among employees who did not feel valued by their employers, those numbers dropped to 45% and 25%, respectively.
Fair treatment: Workers who felt that their employers treated them fairly were also less likely to be stressed out on a typical workday (at only 16%). But among workers who said they were treated unfairly, 68% felt stressed on a regular basis.
- Those who felt that they were treated fairly were also much less likely to say they intended to look for a new job within the next year—at just 2% versus 19% among those who felt they were treated unfairly.
Pandemic effects: The MI and APA conducted this study during the COVID-19 pandemic, which notably did not affect employees’ responses to a great degree. In fact, many felt more positive about their employers.
- A majority of employees (58%) said the pandemic and their company’s response to it had not changed their view, and more than one-third (37%) had a more positive view of the company, compared to just 5% who viewed their employer more negatively.
Find out more: Learn more about what motivates people to stay by reading the full study here.
Manufacturing businesses have long been proponents of equality in the workplace. As legislation to codify protections for LGBT individuals passes through the House of Representatives, the National Association of Manufacturers joined the U.S. Chamber of Commerce, Business Roundtable, and other members of the business community in advocating its passage, forging coalitions and providing congressional testimony.
Introduced with bipartisan support in the U.S. House and Senate in March, the Equality Act includes federal protections for individuals based on sexual orientation and gender identity under the existing framework of the Civil Rights Act, which already provides protection against discrimination on the basis of religion, national origin, race, color or sex. The goal of the legislation is to ensure that no person can face legal discrimination based on their gender or sexual orientation, setting a clear federal standard to enable individuals to succeed based on their abilities and qualifications to perform a job.
“Employers understand the importance of creating an environment in which the very best people can succeed based on merit,” Patrick Hedren, NAM vice president, labor, legal and regulatory policy, said. “At the same time, manufacturers know that discrimination in any form is antithetical to the values that we work to uphold every day: equality of opportunity, individual liberty, free enterprise and competitiveness.”
In March, more than 40 other industry associations rallied to support the Equality Act, providing an important boost for the groundbreaking legislation. In the weeks since, manufacturing representatives have testified before the House Education and Labor Committee and signed a coalition letter to the House Subcommittee on Civil Rights and Human Services calling for the Act’s passage. As Congress considers the way forward, manufacturers have made clear that they intend to advocate forcefully on behalf of the legislation and uphold their commitment to workers of every gender identity and sexual orientation.
“The Equality Act creates a clear federal standard that matches the sentiments manufacturers already share: gender identity and sexual orientation have no impact on an employee’s abilities and discrimination is not welcome on the manufacturing floor,” Hedren said. “We look forward to working with Congress as this important legislation moves ahead.”
Washington, D.C. – National Association of Manufacturers (NAM) President and CEO Jay Timmons released the following statement after the Department of Labor (DOL) rescinded the 2016 Persuader Rule:
Manufacturers have fought for this victory for many years in the courts, in Congress and with two administrations, using the full weight of our policy, government relations and legal teams, said Timmons. The NAM’s Manufacturers’ Center for Legal Action was able to halt the rule in court in 2016.And in 2017, the Trump administration, as part of its broader regulatory relief agenda, thankfully began the process of unwinding the rule. This overreaching rule threatened to impose serious burdens on manufacturers and upend employee–employer communications. Now manufacturers are relieved that this threat to workplace communications is finally and officially off the books. Commonsense steps like this to rein in onerous regulations are a major reason why manufacturers are reporting record-high business optimism.
The Manufacturers’ Center for Legal Action (MCLA) is the leading voice of manufacturers in the courts and engages in a range of activities, including direct party litigation and operating a robust amicus program, as well as educating manufacturers about emerging legal trends. The MCLA is led by NAM Senior Vice President and General Counsel Linda Kelly and NAM Vice President of Litigation and Deputy General Counsel Peter Tolsdorf. More information on the MCLA can be found here.
The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.