Building and keeping a strong workforce is a pressing challenge for manufacturers today, as they face mounting pressures from talent shortages and operational demands. Success often hinges on one key element: the ability to create meaningful, balanced relationships with employees. How do you build trust and mutual respect while maintaining the structure needed to operate effectively?
In this conversation, MAU’s Jared Mogan, VP of Talent Solutions, and Drew Epting, Director of Talent Solutions, explore how fostering flexibility, equity, and engagement can reshape the workplace, and why experienced workforce partners are essential for turning these ideas into practical solutions that work.
A: Based on the “Mindset of the Market” survey, what are the most significant workforce priorities you’ve observed, and how have these shifted compared to previous years?
JM: I think two themes really stand out. These themes have been consistent across the last three surveys we’ve completed. First, the importance of compensation and wages. Second, the idea of work-life balance and flexibility in scheduling.
These two themes have been recurring, and they became even more prominent after COVID. Before the pandemic, flexibility and scheduling weren’t really part of the conversation. Compensation was discussed, but not to the extent it is now. These two factors are now key markers we need to pay attention to. We also need to understand the dynamics driving their importance.
Flexibility in scheduling and competitive wages are only going to grow in significance for two main reasons. One, the growing millennial workforce. Millennials are an increasing demographic in the workplace, along with Gen Z. Data shows that millennials place compensation as their top priority when choosing work, whereas Gen Z prioritizes work-life balance.
Meeting both needs—offering competitive wages and supporting work-life balance—is critical. This aligns with the insights from the workforce survey. For example, this year’s survey data shows an 85% increase in Gen Z representation and a 76% rise in millennial participation compared to last year. These generational shifts further validate the feedback we’re hearing from across the market.
For manufacturers, the growing influence of millennials in the workforce brings particular challenges. Millennials’ focus on wages and compensation means manufacturers have to contend with what economists refer to as the “Wage-Price Spiral.”
Rising wages are driven by workers’ need to keep up with inflation, whether it’s the cost of fuel, groceries, or other living expenses. When wages go up, manufacturers must raise their prices to cover costs. This, in turn, increases the cost of goods for workers, creating a demand for even higher wages. Eventually, this cycle can become unsustainable and problematic.
A: Do you think automation might play a role in disrupting that wage spiral? Could it bring labor costs down by filling gaps with automated solutions?
JM: That’s a great question, and I think there are two ways to look at it.
First, automation can reduce labor costs. For example, instead of having five or ten people running an assembly line with various skill levels and pay grades, automation might handle some of those tasks. The jobs replaced may include middle-skilled roles. The operation might now require more entry-level roles, such as attendants who monitor or operate cobots (collaborative robots). This shift could lower the average wage for that operation overall.
On the other hand, automation can also increase labor costs. When a manufacturer implements robotics or advanced equipment, maintaining and operating that automation demands a higher skill set. You need specialized workers for tasks like maintenance, programming, and reprogramming robots.
These roles often come with significantly higher wages because these skills are scarce and in high demand. And this trend is widespread. Almost every manufacturer using advanced automation today has higher-paid roles dedicated to supporting those technologies.
Essentially, automation creates a new job category that has evolved over the last one or two decades to meet the needs of modern manufacturing.
A: How can employers balance flexible schedules and fair pay while factoring in generational differences to improve workforce strategies?
JM: From a workforce planning perspective, manufacturers are definitely feeling the effects of the wage-price spiral, especially as they try to accommodate millennials’ focus on compensation. This aligns with our data year over year, which consistently highlights millennials’ strong emphasis on wages and pay growth.
But now, shifting to what Gen Z values brings a different challenge. Gen Z places a higher priority on work-life balance, and manufacturers need to consider what they can do in light of that. Some examples include part-time solutions, job-sharing programs, and job-shift swapping systems that are simple and streamlined. Flexible shift start and stop times are also an option.
Streamlining these options and removing hurdles for employees is key. But, the success of these models depends on leadership buy-in. There is an established understanding that this is the path forward. Yes, we are accommodating, but we’re doing it for a mutually beneficial relationship between the employer and the employee. Leadership from the plant manager or executive level all the way down to the floor-level supervisors needs to understand the goal of having these models in place.
Typically, if there’s buy-in and commitment to those models, they are successful. Some are used seasonally, and some are used long-term. But if they have the buy-in of the leadership, you’ll see much more success with those types of models.
A: Nearly 60% of manufacturers face talent shortages—what’s driving these challenges, and how can reskilling and upskilling help address the skills gap?
DE: I think a lot of this still ties back to turnover. Even though we’ve seen the labor market soften, it’s still pretty tight. There are two dynamics at play.
First, there are still plenty of opportunities out there. What we’re hearing from customers is that manufacturers aren’t just competing with each other anymore. They’re competing with anyone hiring for the same skill set at a comparable wage.
Coming out of the pandemic, retail wages went up, hospitality wages went up, and it leveled the playing field across industries. Now, industries that didn’t traditionally see themselves as competition are vying for the same workforce.
Second, there’s the ongoing skills gap. Because of the talent shortage, those with higher skills tend to land the best-paying jobs. But that leaves a lot of roles to be filled by people who may not have the required experience.
There’s an upside to this. It creates an opportunity for people to learn something new that could be a great fit for them. But the downside is that many people are taking jobs, not necessarily because they’re a good fit, but because they need to provide for their families. Once they start, they might realize the role isn’t suitable for them, whether it’s due to personal reasons or family circumstances.
Much of this, in my view, stems from the lack of experience and the broader skills gap we’ve been talking about. It’s a cycle that continues to impact the industry in significant ways.
JM: You mentioned the challenges with finding talent, and the survey confirms that 80% of manufacturers are struggling. The data we have on turnover and job satisfaction, in some cases, is concerning.
When we look at it nationally, labor force participation rates have been declining for decades, really since the 1950s. And whether you like it or not, data shows that manufacturers often attract a male demographic, and the male labor force participation rate is decreasing even faster.
For younger women, aged 16 to 24, labor force participation rates are actually higher than for men. When we look at the Mindset of the Market and our data, women tend to place a higher priority on work-life balance, childcare, and flexibility.
If you’re thinking about challenges in finding and retaining talent, there must be an understanding of what’s really going on in the market. These trends make it clear—we need to think differently about work schedules, the talent we’re trying to attract, and what’s important to them.
I mentioned flexibility earlier, and that’s key when it comes to young women entering the workforce. Their priorities demand a different way of thinking. Flexibility is arguably against manufacturing norms, though, right? Traditionally, manufacturing relies on strict standards. The focus is on consistency, quality, speed, and efficiency. There’s no room for flexibility in processes because everything must remain the same.
But now we are asking for flexibility—not from the process side but in scheduling and workforce management. That creates tension. This friction is one reason manufacturers are struggling, especially post-COVID, when we’ve had massive changes in supply chains and workforce expectations.
At the leadership level, we need to commit to understanding the facts and being willing to do something different.
DE: Another thing we’ve seen in the survey results is the impact of generational differences. You’ve got the large Baby Boomer generation nearing retirement, and their values are completely different from younger Millennials and Gen Z entering the workforce.
Especially in manufacturing, we see a resistance to change. Organizations have done things a certain way for decades, and it’s hard to shift. For example, many companies use rotating shift models for very specific reasons, some tied to long-standing operational practices.
But times are changing, and so are the expectations of workers. We can’t compromise our product or our processes, but we absolutely need to find ways to adapt—to accommodate shifting generational needs.
A: How can manufacturers build better relationships with their workforce while keeping structure in place?
JM: There are manufacturers we work with who’ve surveyed their workforce in the last year or two. Some found that 70% preferred the current shift model. But that’s the workforce of today. What about five years from now? Gen Z and Millennials will continue to grow in numbers, and we should prepare for their needs now.
It’s important to actively listen to their priorities and make adjustments. That seems to be a critical factor in narrowing the skills gap.
DE: Absolutely. Younger generations highly value growth opportunities. You could frame it negatively by saying there’s a perception that they feel “entitled” and don’t want to wait their turn. But the flip side is their hunger to progress quickly and build a career.
It takes intentionality and investment, but when companies provide robust training programs, we see success. For example, if someone meets specific criteria like good attendance, a positive attitude, and strong performance, they can step into a training program. That paves the way for their development, and they’re eager to grow.
There’s a reason for this mindset. Progress often means higher pay or career advancement. From a company perspective, taking the time to invest in training programs pays off. It creates a sense of loyalty—not necessarily for a lifetime, but for a meaningful season of their career. This helps fill gaps in areas where the skills shortage is most pronounced.
Our data shows that one of the top priorities for younger generations is the opportunity to learn and grow. We just need to give them the chance to do so.
JM: Exactly. If we can create pathways for growth, we’re not only addressing immediate workforce challenges but also building a more engaged and skilled workforce for the future. It all comes down to better understanding what today’s and tomorrow’s workforce values.
It’s not that offering more flexibility, understanding your workforce, or having a relationship with them means there are no rules. There have to be rules. There have to be guardrails.
But I think what it comes down to is the idea of a relationship. Relationships need to be mutually beneficial. Think of it like this: if a close friend asks me to help spread mulch over the weekend, I’m going to show up. And if I can’t show up, I’ll call and explain. He’ll understand, and I’ll know I owe him one. Now, that kind of dynamic is tough to replicate in an employment setting.
However, the closer you get to fostering mutual respect, buy-in, engagement, and equity in the workplace, the better off everyone will be. It’s a challenge, but it’s a major takeaway from survey insights year after year. Employers, especially manufacturers, can learn a lot from that.
A: So, what’s the next step for manufacturers wanting to build a more resilient workforce?
Beyond building equitable relationships, the next step is applying these models. Once you’ve heard your people and gathered feedback, what do you do with it? That’s where it’s crucial for manufacturers to have a good workforce partner. Someone who’s been there, who’s tried and failed, and who’s learned from it all.
That’s where MAU comes in. With over 50 years of experience specializing in manufacturing and supply chain solutions, we understand what works and what doesn’t. Having someone at the table with that kind of expertise is the right approach to tackling these challenges effectively.
Want to get deeper insights into today’s manufacturing workforce challenges? Explore our Mindset of the Market survey. Discover what’s shaping workforce strategies, how flexibility and equity are driving success, and the trends influencing industry leaders.
