How Benefits Can Help Solve Manufacturing's Labour Crisis

The manufacturing sector is facing considerable labour shortages. A strategic approach to workforce benefits could help address this, allowing companies to gain a competitive edge in attracting top talent, boosting productivity and cultivating a positive workplace culture.

Research from Economist Impact, sponsored by Nuveen, explores this in the Benefits 2.0 research study. According to the study, employee benefits are a powerful tool for navigating the current talent landscape.

Tailoring benefits to attract and retain talent

With a critical recruitment gap to fill, benefits have the potential to make a substantial difference. According to data from Economist Impact's 2023 survey, nearly two-thirds of manufacturing workers would consider changing jobs for access to better benefits.

The research identified healthcare and education benefits as the two most effective levers for talent acquisition. Prospective employees may see these as vital for personal and professional wellbeing, aware of how costly they can be to access privately.

However, a one-size-fits-all approach is ineffective. Rather, companies should offer varied benefit packages as part of a robust talent strategy.

For example, the survey data suggests that younger professionals are drawn to education perks, while their more experienced counterparts place a premium on quality health and retirement benefits.

Closing the engagement gap with wellness and leave policies

The demanding work environment in manufacturing can create persistent productivity challenges. The survey reveals gaps in wellness benefits and paid time off, which are directly associated with worker satisfaction and engagement.

Wellness benefits appear particularly rewarding. The survey shows that four in five manufacturing workers credit them with improving their health and wellbeing. Disparities, however, could limit their effectiveness.

Junior workers reported lower access to these programmes, with only about half of this group (55%) seeing positive health impacts, compared with 75% of senior workers. This could be a factor in fuelling feelings of burnout and disengagement at a rate five times higher than their senior counterparts.

Paid time off, although common, is frequently underutilised as a tool to support productivity. In the manufacturing sector, more than a third of workers say that their company culture is not conducive to taking time off.

This issue is more pronounced among junior staff. Two-thirds of junior workers say they lack sufficient time off to manage their mental health effectively, versus just 23% of C-suite executives.

Making efforts to ensure that paid time off is fully utilised holds great potential for keeping workers productive.

Leveraging inclusive benefits to advance DEI goals

Diversity, equity and inclusion (DEI) remains an ongoing challenge for the manufacturing sector, particularly concerning gender diversity.

The industry remains male-dominated, with women making up only 30% of the workforce. The survey suggests benefits can be a tool for achieving better DEI outcomes.

Ensuring benefits are inclusive can also have a major impact. For example, offering caregiving benefits to all employees can facilitate greater participation of women in the sector.

The data shows that nearly half of workers (45%) who desire caregiving benefits currently lack access. This doubles the likelihood of them being absent from work.

Furthermore, ensuring benefits are equally accessible is another vital part of the solution. The survey data highlights that employees from certain ethnic minority backgrounds are less satisfied with their paid time off, retirement and health benefits.

Addressing these gaps is not just about equity. It is a strategic imperative for building a resilient and diverse workforce.

Disclosure statement

Nuveen and Economist Impact, or any of their affiliates or subsidiaries, are not affiliated with or in any way related to each other. The research was independently developed by Economist Impact and is sponsored by Nuveen, LLC. The views and opinions expressed in this publication are those of Economist Impact and do not necessarily reflect the views and policies of Nuveen, LLC. This material is for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market, economic or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. There is no representation or warranty (express or implied) as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information, and it should not be relied on as such.

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