How Manufacturing Can Attract—and Retain—Gen Z

In this article we discuss:

• Understanding Gen Z’s Workplace Expectations
• The Manufacturing Skills Gap: Upskilling Gen Z Talent
• Attracting Gen Z to Manufacturing
• Strategies for Attracting and Retaining Gen Z in Manufacturing

Help wanted: 3.8 million global manufacturing jobs.

In 2030, that’s how many manufacturing roles are expected to go unfilled, when the last Baby Boomers—currently making up about one quarter of manufacturing’s workforce—will reach retirement age.

“The manufacturing labor shortage is the industry’s top issue today, with 75% of manufacturing leaders naming attracting and retaining talent as their number one business challenge,” says David Sweetman, senior manager, industry solutions marketing, manufacturing at Workday.

The competition to attract talent often prevents manufacturing organizations from expanding, investing, or even shipping orders. Therefore, it’s important for manufacturing companies to look to the next generation.

“If manufacturers want to close that talent and skills gap and overcome the challenges of an aging workforce, the industry will need to capture the attention of Generation Z,” says Sweetman.

To win Gen Z over, manufacturers need to adapt their strategies and create a workplace that resonates with this generation’s values.

Understanding Gen Z’s Workplace Expectations

Gen Z, born between 1997 and 2012, has distinct expectations and priorities when it comes to their careers. They are the first truly digital-native generation, having grown up with technology at their fingertips.

“They are highly connected, value diversity and inclusion, and seek purpose and meaning in their work,” says Sweetman. “They are also more likely to prioritize work-life balance and flexibility than previous generations.”

In a recent Deloitte survey, 63% of manufacturing workers aged 18 to 24 rated flexible work options as one of their top priorities when considering manufacturing roles. And flexibility matters for retaining workers, too. Organizations that can provide this level of flexibility are able to foster a sense of belonging in their workforce, leading to greater retention and happier employees.

The Manufacturing Skills Gap: Upskilling Gen Z Talent

The manufacturing industry is undergoing a rapid transformation, driven by technology advancements such as automation and artificial intelligence. This transformation is creating a skills gap, as many existing workers lack the necessary skills to operate in this new environment.

To attract and retain Gen Z, manufacturers need to invest in upskilling and reskilling their workforce, providing opportunities for continuous learning and development.

In a recent IDC study conducted on behalf of Workday, two of the top three HR priorities for manufacturing companies, across processes and systems, were to address employee skills gaps and skills compliance.

“A skills-based approach to workforce management helps ensure that workers are ready for whatever challenges and opportunities new technologies bring, be it working alongside a robot or leaning on AI to create efficiencies for rote procedures,” says Sweetman.

Attracting Gen Z to Manufacturing

Gen Z may not typically pick manufacturing as their top job destination. According to McKinsey, 47% of Gen Z respondents are interested in working in manufacturing, but they have concerns about the industry’s image and the availability of good jobs.

And 62% of Gen Z respondents would be more likely to apply for a manufacturing job if they had a better understanding of the industry’s career paths and opportunities. This shows that workers are increasingly seeking out companies that can provide the support and vision for an engaging, long-term career path.

To attract Gen Z to manufacturing, companies need to showcase the industry’s exciting career opportunities and dispel outdated stereotypes.

“Highlighting the use of cutting-edge technology, the potential for innovation, and the positive impact manufacturing has on society can help capture the interest of this generation,” says Sweetman.

Strategies for Attracting and Retaining Gen Z in Manufacturing

According to Sweetman, manufacturers can better plan for a future of a Gen Z workforce by adopting the following strategies:

• Embrace Technology: Gen Z is tech savvy and expects their workplace to be equipped with the latest tools and technologies. Manufacturers who invest in digital transformation and provide opportunities for Gen Z to leverage their tech skills are the most attractive employers.
• Foster a Culture of Learning and Development: Gen Z values continuous learning and development. Manufacturers should offer training programs, mentorship opportunities, and career advancement pathways to keep Gen Z engaged and motivated.
• Promote Diversity and Inclusion: Gen Z is the most diverse generation yet, and they value workplaces that embrace diversity and inclusion. Manufacturers must create an inclusive environment where everyone feels welcome and respected.
• Offer Flexibility and Work-Life Balance: Gen Z prioritizes work-life balance and flexibility. Manufacturers should consider offering flexible work arrangements, such as remote work or flexible hours, to attract and retain Gen Z talent.
• Showcase Purpose and Impact: Gen Z wants to work for companies that have a positive impact on the world. Manufacturers should highlight their commitment to sustainability, social responsibility, and community engagement.

The manufacturing industry has a unique opportunity to attract and retain Gen Z talent. By understanding this generation’s expectations and priorities, and by implementing strategies that resonate with their values, manufacturers can build a thriving workforce for the future.

“Remember, it’s not just about hiring Gen Z; it’s about inspiring them to build a fulfilling career in manufacturing,” says Sweetman.

To learn more about how Workday helps manufacturers keep up with ever-changing demands, visit workday.com/manufacturing.