what drives talent in the manufacturing and logistics sector

The manufacturing and logistics sector's economic impact on the talent landscape is substantial, promising lucrative career opportunities and financial stability. Hiring managers, department heads, and talent acquisition leads can utilize technological advancements, skill development programs, and secure income opportunities as effective talent levers, appealing to top talent seeking growth and stability in a competitive market.

uncovering the top talent drivers

Employee retention remains a pressing concern, with 28 percent of employees looking to switch jobs in early 2024. A notable 46% of Gen Z workers plan to move in the first half of the year, driven largely by dissatisfaction with compensation and work-life balance. Both Gen X and Baby Boomers are similarly affected, with 50% citing inadequate pay as a primary reason for leaving, whereas Gen Z is particularly focused on career growth opportunities, highlighting varying generational priorities within the manufacturing and logistics sector.

a few nuggets:

• 28 percent of employees plan to change employers in the first half of 2024, up from 22 percent in the second half of 2023.
• The top reason for leaving is low compensation due to the rising cost of living, cited by 46.6 percent.
• About 40 percent of the employees seek work/life balance, and this seems to be consistent across generations.
• Over half of Gen X (52.6%), nearly half of Millennials (46.7%), and a significant portion of Baby Boomers (47.5%) cite low compensation as their main reason for changing employers.
• Concern about career growth opportunities among Gen Z employees has risen from 24% in 2023 to 32% in 2024.

what does this intel tell us?

There seems to be a clear demand for improved compensation and work/life balance across all age groups. Employers need to address these issues to reduce turnover and keep their workforce satisfied. Meeting these needs is essential for maintaining a stable and motivated team. Manufacturing and logistics professionals prioritize career development and opportunities for reskilling. According to the research's latest findings, while fewer respondents feel satisfied with their current development opportunities compared to the previous year, there has been a significant increase in the importance placed on career development and opportunities for reskilling as talent drivers. This shift underscores a growing preference among employees for roles that support ongoing personal and professional growth.

what are the talent drivers in the manufacturing and logistics sector? 

At a whopping 46 percent, Gen Z is most likely to change jobs. However, Millennials, Gen X, and Baby Boomers aren’t too far off. The research data indicates that fair pay and a healthy work environment are top priorities for all generations. 

With all this data in mind, here’s what you should include in your 2024 talent attraction strategy. 

1. providing flexibility

Supporting workers’ need for a healthy work-life balance can significantly improve employee satisfaction and retention. This is also reflected in our Workmonitor data, which shows that 58% of Canadian workers wouldn’t accept a job if they thought it would negatively impact their work-life balance. The research shows that if this driver is not satisfactorily met, work-life balance is the top reason given by respondents for switching roles.

2. leveraging AI adoption

In manufacturing and logistics, AI and automation are crucial; however, training efforts are insufficient. Only a quarter of employees receive regular technology training, and over half have not discussed reskilling. This highlights a need for proactive initiatives by employers. According to the research's latest findings, although fewer respondents feel satisfied with their current development opportunities compared to the previous year, there has been a significant increase in the importance placed on reskilling. This shift highlights a growing preference among employees for roles that actively support ongoing personal and professional growth. Employers should invest in creating supportive environments that encourage continuous learning and adaptation to incorporate AI technologies effectively while ensuring that employees are equipped with the skills needed to thrive in a digitally transformed workplace.

3. understanding the impact of economic conditions to inform compensation strategies

The economic environment in Canada is currently volatile, with a mixture of growth and caution. This uncertainty has employees carefully looking at how their employers are prepared to brace for the challenges. Manufacturing and logistics sector respondents were asked how employees perceive their employer’s adaptation to challenging economic conditions.

• 38% of employees sense their employer is facing challenges but remain confident.
• 36% believe their employer adapts well and can shift gears.
• 14% are concerned about losing their job due to cutbacks.
• 13% of employees are unsure about their employer’s ability to adapt.

When asked in what way is your company financially supporting you to help cope with these rising costs? About 34 percent of employees received no financial support, while a meager 8 percent got one-time sums from their employers. 32.7 percent had their salary raise partially cover rising costs, and only 14 percent received full compensation salary raises. Inflation has hit hard, and it’s telling that over a third of employees received no financial support from their employers. This highlights the need for more comprehensive strategies to help employees manage inflation’s effects.

4. prioritizing equity

More and more, companies are investing significant efforts in providing equitable working conditions and opportunities. But is it truly enough?  

 According to the research results, the manufacturing and logistics sectors show mixed results in equity perception among employees. Recognizing and supporting minority identities, such as ethnicity (23.9%) and sexual orientation (8.3%), helps create an inclusive atmosphere. A diverse workforce, where over 52 percent do not consider themselves minorities, reflects a company’s commitment to social responsibility and enhances its reputation. This diversity is essential for innovation and growth, bringing different perspectives and ideas to the table.

In the manufacturing and logistics sector, equity also resonates with respondents. If you break down the sector into women and then everyone else, here’s where it stands:

• 54.1 percent of employees feel valued for their unique attributes, similar to 54.3 percent of women employees, showing equal recognition across genders.
• Only 43.4 percent of women feel senior managers are fair in hiring and promotions, compared to 47.1 percent of general employees, highlighting perceived gender biases in career advancements.
• Both general (55.4%) and female (52.3%) employees agree on equal pay fairness, though women are slightly less convinced, reflecting ongoing pay equity concerns.

What does this data tell us? While progress has been made when it comes to equity, the perception and sometimes reality are that we have work to continue to do.

key takeaways: what attracts job seekers the most

Year after year, an attractive compensation package remains one of the most compelling talent drivers. Low compensation, exacerbated by the rising cost of living, has become the leading cause of employee turnover. In today's uncertain economic climate, employees expect adequate compensation to meet their basic needs without financial strain. Companies that prioritize competitive pay packages are successful in both retaining their current talent and attracting new top performers.

As the world's leading talent company, we want to be your partner on this journey to attract and retain top talent who will contribute to the growth of your organization. Randstad is here to help you navigate the ever-changing world of work. Get in touch so we can find you the best talent to meet your needs today and tomorrow.