Tips for Reducing Manufacturing Employee Turnover


According to a recent study on entry level employees, which included positions at manufacturing and distribution plants, there are a number of contributing factors that can make or break a manufacturing and distribution company’s employee retention rates. Results of the study were discussed in a recent article from Business Knowledge Source and included the following:

  • Filling a vacancy is usually a month-long process, if suitable candidates are found
  • Turnover can represent as much as 10 percent of wage costs
  • Job satisfaction may be unrelated to an employee’s decision to leave
  • Wages are more predictive of whether an employee will stay

The results of the study are important for manufacturing and distribution companies to keep in mind when planning with human resources. In addition to financial incentives, employee recognition and appreciation is important, as “the number one reason people under 35 leave a manufacturing and distribution job is that they feel like they don’t have a future at that company.”  Therefore, setting wages sufficiently high will not be the only factor involved in turnover reduction. Rather, the most important additional factors to consider as part of an employee retention program is opportunity for advancement.

Additional suggestions can be found in the full article, which discusses how the survey results can help to form new ways for manufacturing and distribution companies to reduce turnover, including interview and hiring decision processes, as well as training and communication methods.

Read the full article at