How Manufacturers Compete in the Labor Market
Manufacturing companies are increasing wages to stay competitive in attracting and retaining workers, according to a new study conducted by The Manufacturing Institute and Colonial Life.
Tight labor market: Of the survey respondents, 93% had unfilled positions in their companies that they were struggling to find qualified applicants for.
- Nearly 90% said they have increased compensation and incentives to pursue and retain employees.
- Seventy-three percent of respondents felt that increasing compensation helped their company stay competitive.
The big picture: Average hourly earnings for production and nonsupervisory workers in manufacturing climbed to $24.78 in March, up 5.5% from one year ago.
- Despite significant wage increases, the labor force participation rate was below pre-pandemic levels at just 62.2% in April.
Other benefits: Hourly wages and salaries were most important for attracting and retaining workers, but other benefits were also effective.
- Manufacturing companies have also attracted employees with health, dental and vision insurance, bonuses and/or additional income opportunities, paid vacation and sick time, contributions to a 401(k) or retirement plan and flexible work hours.
What the MI is saying: “We continue to see record growth in wages, and many of the companies we spoke with are offering even more generous benefits packages to try and differentiate themselves from other sectors struggling to find talent in a tight labor market,” said MI President Carolyn Lee.
- “We’re averaging more than 800,000 open jobs in manufacturing a month, and the MI is focused on equipping manufacturers with tools and strategies to overcome this challenge so we can reach our full potential.”
Learn more: Looking for retention strategies you can use right away? The MI will be hosting a retention workshop on June 7–8. Find out more and register here.