It’s now clear that factory recruiting and talent acquisition strategies remain the top HR concern for the nation's manufacturers. Here's what you should know.
Earlier, the pandemic caused significant fluctuations in the supply and demand side, particularly in how and where consumers chose to buy goods and services with social distancing policies that put immense pressure on those manufacturers struggling to keep people on.
As consumers pivoted to the digital-first economy, labor shortages choked up the supply chains. Companies competed for limited available talent as associates were wary of working in a warehouse environment due to fear of exposure.
Attracting, onboarding, and retaining new talent became difficult for nearly every process manufacturing company. To add pressure, Amazon increased its U.S. retail market share by 39%, overcoming the warehouse and labor issues despite owning a massive delivery network.
That’s why employers who don’t want to miss out on the potential recovery in 2021 are now ramping up efforts and turning to innovative solutions to attract talent and improve operations.
Here are the shifting trends you want to stay prepared for in 2021.
Top Factory Recruiting Challenges in 2021
Light industrial jobs are subject to frequent fluctuations and depend on a “continuous intake” model. That is to say, during the winter holidays or the peak shopping season, there is a considerable demand for an extra workforce.
Competition from eCommerce Giants
Giants like Amazon and FedEx have turned gig roles and seasonal hiring into full-time jobs. For example, to combat worker shortage, Amazon announced new talent acquisition strategies to hire over 100,000 new workers and open 1,000 delivery hubs and warehouses in the U.S.
At the same time, FedEx hired 27% more workers during the holiday season than the previous year.
Workers turn to these ecommerce companies because the work tends to be physically easier due to the automatically enforced pace of work, coupled with better pay and safer working conditions which adds continued competitive pressure.
Blue-Collar Workers are Hard to Find
Another factory recruiting challenge is that the labor shortage is increasing in the blue-collar workforce and low-wage services. Ever since the 2008 financial crisis, the gap is visible in sectors like:
- Transportation: Delivery drivers, packers, loading and unloading services
- Manufacturing: Machine operators, cleaners, and assemblers
Very few are willing to accept the roles due to the level of risk involved, physical duress, lower benefits, and slow wage growth.
Companies are considering reduced educational requirements, and automated recruiting as some ways to curb these potential shortages.
As emphasis moves to filling these roles, skill shortages can be addressed by relaxing educational or compliance requirements needed to fill open positions. Roles can be filled faster through mobile apps like Instawork where you can post open shifts, and view worker profiles easily. Communication is easy between both the team and the candidates.
The Rise of Remote Hiring Processes
The rise of stay-at-home mandates has changed the way companies recruit talent for in-person work. Compared to the pre-crisis levels, hourly jobs are up by almost 15%, but finding the right talent is still a challenge.
Fortune Business Insights predicts the market size of global recruitment software will be $3095 million by 2025. It is a 7.4% Compound Annual Growth Rate (CAGR) from 2017, where the number was $1753 million.
All this will aid organizations in remote hiring abilities like: virtual fairs, video interviewing, contactless hiring, usage of apps, and temp staffing agencies that are fast becoming an essential part of the factory recruiting process.
Staffing Solutions in the Future
As more and more U.S. residents get vaccinated, the labor market situation will change, and a flood of candidates will be looking for jobs. Employers like Starbucks also offer hourly positions critical protections and benefits, such as wage hikes, paid holidays, etc.
New factory recruiting solutions will include:
Hiring Gig Workers
The gig economy is where organizations and independent employees make short-term, flexible work arrangements. These contingency positions include temporary contract workers, hourly staff, and consultants.
Currently, 36% of the U.S. workforce is part of the gig market, while 64% of full-time job-holders also dabble in alternative work to earn more money.
Amazon Flex is one such program by the retail giant Amazon that attracts delivery partners and gig worker drivers with their vehicles. Uber Eats, Instawork, Lyft, GrubHub, DoorDash, Instacart, Postmates, and Shipt are a few popular apps where gig workers can find flexible employment.
Usually, the time frame is between 3-8 hours, which gives workers control over which work they can accept. Once they get accustomed and are satisfied with the working conditions, they are more open to further orders. Some, like Instawork, also include a temp-to-hire model to transition those who started wanting “gigs” to full-time employment.
Recruiting People with Job Assistance
Many employment assistance programs are available for eligible candidates, such as recent graduates, people with disabilities, or those who got laid off. Ex-offenders with nonviolent parole status can also qualify for these incentives.
The purpose behind such programs is to give individuals a second chance to build financial stability and earn respect in society. These talent acquisition strategies support students and parolees entering the workforce, and you hire staff for shorter durations.
Using Digital Platforms
The manufacturing industry is unlikely to return to the pre-pandemic conditions, which is why there is a need for a hybrid factory recruiting model to suit the evolving work environments.
The use of non-traditional recruitment channels like Facebook, LinkedIn, and Instagram has been increasing. 79% of job seekers rely on social media for their research, while over 75% of employers use LinkedIn and Facebook.
Technology streamlines the hiring process and improves the efficiency of recruitment campaigns. Using digital analytics can reveal what components are practical.
Overcome Factory Recruiting Challenges with Instawork
Instawork is a flexible staffing app that can adapt to your company’s needs. Unlike traditional recruiting methods, Instawork allows you to connect with workers in an innovative way.
We are ever eager to discuss the changing dynamic in the job market. Get reliable and vetted worker reviews to make factory recruiting more effortless. Tap into our network of 600K workers who are ready to help solve your custom needs.
Instawork is a leading flexible staffing solution located in over 20 metro cities, including California (SF Bay Area, LA, San Diego), Texas (Austin, Dallas, Texas), Boston, Chicago, Las Vegas, Miami, NJ/NYC Metro, Phoenix, and more.
Need to better way to hire warehouse workers and grow your business? Visit instawork.com to learn more. Or, book a demo below.