If there’s one myth that’s been plaguing our industry for the past decade, it’s this:
“There isn’t enough available skilled talent in manufacturing.”
Now, there are plenty of articles and data that do a great job of feeding this myth.
A quick google search for “manufacturing talent shortage” returns 720 news articles.
The Manufacturing Institute states that 2.1 Million jobs will go unfulfilled by 2030 at a potential cost of 1 Trillion.
According to the Chamber of Commerce, 45% of all manufacturing job openings remain unfulfilled.
It’s easy to hear these points, throw our hands up, and say “there just aren’t enough skilled people.”
And yet, I’m sure you can think of 5-10 exceptional professionals you’ve met in the last few years. You’re likely working closely with at least 3 people you regularly depend on or trust for support. We all know, like and respect at least some of our coworkers. So what’s really going on?
The Top 3% Contains 381,000 Elite Professionals
The US Bureau of Labor Statistics says that 12.7 Million of us are working in manufacturing right now.
That is the equivalent of the populations of Los Angeles, Chicago, Houston, Indianapolis, Seattle, Denver, Nashville AND Charlotte COMBINED.
The manufacturing market is way bigger than you realize.
Let’s be extreme and say only 3% of our market is truly amazing at what they do.
The best of the best – the absolute.
This is like saying a team of 33 has only ONE 3% performer, which is unlikely, yet works well to establish the scale of our market.
3% of 12.7 million is 381,000 people – that’s equivalent to the size of every employee who works at Starbucks.
Finding epic talent can be as simple as finding a Starbucks once you have a grasp of the math.
Here’s a recent example
A previous client reached out to us last month with a night shift maintenance position they had been struggling to fill for 4 months.
They wanted the right culture fit and the right skill within their set rate range AND …. their entire team at the plant speaks only Spanish!
So what was the math involved? We corralled 64 applicants and screened that list down to 7. 6 of those 7 were sent to interviews.
We’ll call those 6 our “10 percenters” because 90% of applicants generally don’t meet enough of the requirements. Of those 6, two were given offers. Of those two – one agreed they were right for the job, the team, the rate, the culture, the language and the company.
Volume Decreases Time.
A willingness & ability to review 64, meet with 6 and negotiate with 2 is how we find “the one” in 3 weeks flat.
These numbers clearly show that identifying exceptional talent is driven by selection, not scarcity.
In short, believing in the talent shortage myth leads to a self-defeating cycle where leadership has an excuse to neglect the activity or infrastructure required to attract and retain quality talent.
How many applicants has your team screened for your most pressing position this week?
What has to change for your team to obtain & review 20 applicants a week until your position is filled?
Once there are enough options for you, focus on what’s in it for them.
Now that we’ve got a good understanding of the volume it takes to have proper selection (satisfying your needs), it’s time to create a positive experience for someone with enough skills & assets to be selective (satisfying their needs).
Most manufacturers treat their interview process like raw material procurement: You are offering a job, your candidate is buying a job, and you negotiate a rate based on market conditions. This cold, transactional framework hinges on 2 primary factors: grade and rate.
When it comes to team building, this is something we would politely refer to as … outdated.
Why?
In manufacturing; job security is at an all time high. The problem? Job satisfaction is at an all time low.
Think through your skilled interviews since 2022 … how many were unemployed?
5%? Maybe 10%?
The constant: You won’t hire anyone who doesn’t make the grade, and they won’t join you if you’re too low on rate.
When money & security aren’t the primary factors … why would the market chose you?
If you want to nail down a great hire, you have to nail down what makes you different. Fortunately, this is easily achievable with a little bit of consideration. Grasping these factors will enable you to examine your offering and discover all the best bits that have been hiding in plain sight.
Job Satisfaction: Enjoyment and fulfillment derived from the work. Why do people chose to work for you over other local companies? Where did your recent teammates come from? What do they get from you that they weren’t able to find anyplace else? Ask your team, today.
Skills Utilization: Being able to use and develop their skills effectively. What has your team recently learned how to do? Which vendors have recently been onsite for a lunch & learn? What new equipment have you recently installed? What type of equipment would your candidate like to learn more about? What are the most recent Continuous Improvement opportunities that have been discovered & implemented?
Work Environment: A safe and positive workplace atmosphere. What is your safety rating? How many days without incident? What are your site ratings & company rankings at Google, Indeed or Glassdoor? When was the last time someone from your team (or you) posted a positive review? Is your site climate controlled? How long has your average teammate worked there? Do you have a company store or perks? Is there an amazing food truck that comes by every week?
Career Advancement Opportunities: Opportunities for growth and advancement within the company. Is this job vacant because of a promotion? Did you or any other leader get promoted from within? Did any of your supervisors grow through promotion? Which executive leaders grew through the ranks? Is your site expanding or did it recently complete an expansion? What recent company acquisitions have taken place? Have you added new product lines? What new sites are you planning?
Work-Life Balance: The ability to maintain a healthy balance between work and personal life. What is your family leave program? What is your PTO policy? Who on your team recently expanded their family? Who just got back from a great vacation? What types of community programs does your company participate in? Do you have a wellness program? Do you cover gym memberships?
Recognition: Being acknowledged and appreciated for their work. Do you have an employee of the month program? Extra benefits for tenure? Team & performance bonuses? Does corporate meet & recognize front line performers during their onsite visits?
Training and Development Opportunities: Access to programs that enhance skills and knowledge. What is your tuition reimbursement program? What courses or certifications have your teammates recently completed? What new technologies are you adopting & rolling out to improve wrench time? What projects are underway to make your team run more effectively? What are you doing to give back to the next generation of engineers & technicians?
Most of these notes are never covered until after an offer is made, if at all. If you can collect & weave this information into your career conversations, you become selectable.
Selection Cures Scarcity
Here are a few of the best ways to cure yourself from “The Talent Myth”
1. Recognize that top 3% resources are as common as Starbucks Employees.
2. Find 60, meet with 6 and move on 2 to get “the one.”
3. When you’re in front of a potential hire, focus on what’s in it for them.
4. Collect your intangible assets, you have far more than you realize.
Once you put these factors into play, your options expand exponentially.
I hope you enjoyed today’s message.
Dust off the shortage myth & see how big your world really is.
Good luck, and we’ll see you in the next edition.
Whenever you’re ready, there are 3 ways I can help you:
- Manufacturing Talent Mastery Newsletters: Join a network of over 1,000 industrial leaders and learn how to dominate every phase of the engagement cycle with our weekly tips & tactics.
- Talent Assessment: If you have a maintenance team that’s short on talent – or just not running as well as it could, our FREE Competitive Market Analysis uncovers the precise market positioning required to attract and retain experienced talent.
- 5 Pillars: If you’re eager to further explore how winning teams are attacking the talent market, I invite you to explore our in-depth research on “The 5-Stage Industrial Talent Attraction Formula.” Download our FREE guide and discover the exact blueprint for building a High-Performing team… the right way.
