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Top 4 industrial hiring challenges<\/h2>\n\n\n\n
The manufacturing industry is no stranger to turnover issues and a shortage of skilled workers, but these problems could be exasperated by a growing disconnect between the demands of a job and finding candidates with the desire, background, and fit for the organization. Over 800 participants who have hiring responsibilities across 13 countries around the world participated in our survey. With their expertise, we wanted to understand and define \u2018quality of hire\u2019 as well as how to improve it. As part of that process, we had to identify the top industrial hiring challenges being faced by those involved in recruitment and people management. Here is what showed up as the top issues they are facing:<\/p>\n\n\n\n
Challenge #1: Hiring candidates with the right skills<\/h3>\n\n\n\n
In Talogy\u2019s Quality of Hire study<\/a>, nearly 40% of organizations indicated they always or often have a skills shortage. It\u2019s actually somewhat remarkable to think about the fact that these businesses experience such a constant skill shortage yet are still able to keep production moving forward. The top four skills lacking in new hires were identified as:<\/p>\n\n\n\n It\u2019s worth noting the top three skills on the list are referred to as \u2018transferable skills\u2019 \u2013 skills that are not tied to a single discipline or job, but applicable to a number of roles and functions rather than job-specific skills. It\u2019s important to prioritize these four skills in your selection process as our research also showed that they were the most difficult skills to train on the job.<\/p>\n\n\n\n Even the smallest fires can grow and shift directions if the wind changes. Similarly, organizational retention problems can spread destruction in the workplace. In most industrial settings, frontline jobs are tough. They\u2019re physically demanding, repetitive, and often come with long hours, mandatory overtime, and harsh work conditions. It\u2019s a physical and emotional grind. When people start leaving, it can cause a dramatic imbalance. Morale declines, onboarding suffers, and the sense of teamwork is damaged.<\/p>\n\n\n\n According to the research, one of the main drivers behind this turnover is a mismatch between what people can do and what the job actually demands. Nearly 44% of participants pointed to the skills gap as the biggest reason people walk away. Once that gap opens up, it\u2019s like fanning the flames; employee disengagement<\/a> spreads, more people follow the turnover trend, and the cycle keeps going.<\/p>\n\n\n\n The skills gap isn\u2019t new. In fact, the evolution of manufacturing skills<\/a> explores the idea of treating frontline workers in the same way as professional sports players whose roles demand the same kind of physical and mental readiness. One way companies tackle this challenge is by introducing realistic job previews<\/a> (RJPs) which give candidates a clear, unfiltered look at what the job actually involves \u2013 everything from the pace, the physical demands, and the work environment. By seeing the job demands upfront, candidates can decide if the role fits their abilities and expectations which reduces the risk of mismatched hires and early turnover.<\/p>\n\n\n\n It\u2019s common for multiple industries to be filling vital positions at the same time, leaving industrial employers to battle against competing sectors for entry-level talent<\/a>. Most of these roles are physically demanding, which are failing to attract young job seekers who are instead focused on fields seen as less taxing, safer, and more sustainable. This shift has widened the talent gap, making it harder to attract and keep frontline employees essential to daily operations.<\/p>\n\n\n\n In this crowded hiring landscape, candidate experience can be<\/strong> the ultimate differentiator<\/strong>. The war for talent doesn\u2019t end when someone chooses to apply to your organization \u2013 it plays out in every step that follows. A SHRM survey<\/a> found that 47% of candidates withdraw due to poor communication and 46% drop after negative or disorganized interviews. Long processes, vague job expectations, and unclear pay only push more talent away.<\/p>\n\n\n\n In order to address this industrial hiring challenge, employers need to make the application process easy to understand, set clear expectations with an RJP, communicate quickly, keep candidates engaged, and treat them with respect. If this is done well, these steps can create a positive candidate experience and keep the best talent from walking through the doors of a competitor.<\/p>\n\n\n\n If organizations are simply reacting to putting out the proverbial fires from bad hires, then it\u2019s likely the damage will spread far and wide before real hiring issues are addressed. Our research shows just how intense the hiring pace is in industrial settings. 73% of employers feel pressure to fill roles quickly, and one in five say that urgency is a constant reality. Only 27% say they prioritize quality over speed. These numbers tell the story: nearly a quarter of positions in the industrial sector are filled in under three weeks, and 68% are filled within a month.<\/p>\n\n\n\n But moving this fast has its trade-offs. When speed becomes the top priority, thorough screening and thoughtful selection often take a back seat. The result? A drop in the quality of hires, which can lead to higher turnover, more training costs, and the likelihood of starting the process all over again.<\/p>\n\n\n\n The solution here might seem to contradict the solution to challenge #3. If we speed up our selection process to appease the candidate, don\u2019t we risk rushing to fill roles quickly? Not necessarily. There is a big difference between speeding up the process and developing a scientifically backed selection process that is efficient and effective<\/strong>.<\/p>\n\n\n\n Some key steps in the selection process that can be reviewed or adopted include the initial screening questions, structured interviews, psychometric assessments<\/a>, final interviews, and more. Depending on the position requirements, job level, and hiring volume, the hiring process can be adapted in various ways.<\/p>\n\n\n\n Wildfires, just like hiring challenges, can consume an organization and if not addressed quickly can start burning out of control. All it takes is one spark to start a potentially debilitating issue. When you\u2019re always fighting fires, there\u2019s no time to build the barriers that could\u2019ve stopped them in the first place. If we can develop a selection system that identifies key skills through efficient and valid hiring assessments along with a transparent process where the candidate knows exactly where they stand, it will reduce the skills gap, minimize future turnover, and keep candidates engaged.<\/p>\n\n\n\n Before designing or tweaking your hiring process, we recommend speaking with an experienced I\/O psychologist to understand the best approach. Here at Talogy, our experts have decades of experience guiding our Industrial partners through all of their hiring challenges and shifts in market conditions. Contact us<\/a> today to see how we can collaborate with your organization to address those challenges and ultimately achieve your talent management goals.<\/p>\n\n\n\n Warehousing, transportation, and utilities sectors face annual turnover rates above 50%*<\/p>\n\n\n\n Entry-level industrial roles often involve physical demands, challenging environments, and high expectations. Hiring and retaining talent continues to be a challenge across industrial sectors.<\/p>\n\n\n\n In our latest research, over 800 industrial professionals reveal their top hiring challenges, how they define quality of hire, and explain the real costs of bad hires. We provide 3 steps to improve quality of hire and practical examples to help build and strengthen your industrial workforce.<\/p>\n\n\n\n Download our research report to learn how a focus on quality of hire can help attract, engage and keep candidates who are not only capable of doing the work, but who are motivated to be there and grow with the organization.<\/p>\n\n\n\n * Supply & Demand Chain Executive. (2024, September 10). Maximizing warehouse efficiency in the face of labor challenges. https:\/\/www.sdcexec.com\/professional-development\/retention\/article\/22919798\/syspro-maximizing-warehouse-efficiency-in-the-face-of-labor-challenges<\/a><\/sup><\/em><\/p>\n\n\n\n\n
Challenge #2: Retention issues<\/h3>\n\n\n\n
Challenge #3: High competition for talent<\/h3>\n\n\n\n
Challenge #4: Rush to fill roles quickly<\/h3>\n\n\n\n
Fireproof your industrial hiring process<\/h2>\n\n\n\n
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<\/figure>Quality hires, quality output: Smart talent strategies for industrial hiring<\/h2>\n\n\n\n