Employee turnover refers to any situation where a team member leaves and must be replaced — and for manufacturing companies, it's becoming an expensive and unavoidable reality. The financial toll alone ranges from 16% to 213% of an employee's annual salary, depending on their role.
Because 80% of employees are either actively job hunting or open to new opportunities at any given time, meaning your best people are always one bad experience away from leaving.
The good news is retention is controllable. This blog breaks down three proven strategies — smarter hiring, better employee treatment, and workplace flexibility — that manufacturing companies are using right now to stop the bleed.
Employee turnover is never desirable, but, unfortunately, it's becoming more and more prevalent, especially in the manufacturing industry. The latest studies suggest that the average employee tenure is about four and a half years. This high staff turnover rate costs businesses huge sums of money every year.
What can your company do to combat this alarming trend? In this blog post, you'll learn three top ways to better retain your talent and lower turnover rates. Let's dive in!
Employee turnover is any instance where a team member leaves and must be replaced — whether through resignation, discharge, or layoffs — and it carries significant financial consequences for businesses.
Turnover costs businesses between 16% and 213% of an employee's annual salary, depending on their role and seniority level.
Proper onboarding alone can increase employee retention by 25%, and companies with a standardized onboarding process see 50% greater productivity from new hires.
Hiring for both technical skill and cultural fit is critical — employees who feel misaligned with company culture are far more likely to leave within the first year.
Employees who feel underpaid, underappreciated, and disengaged won't stay long; competitive salaries, meaningful work, and growth opportunities are non-negotiable for retention.
Flexibility matters: companies with happier, more flexible work environments experience measurably lower employee turnover rates across all workforce types, including frontline and deskless workers.
Employee turnover refers to any occurrence where an employer and an employee end their working relationship. There are a number of reasons this may happen, such as an employee discharge (i.e., a firing), a voluntary termination, or layoffs.
If, for any reason, a team member leaves your company and must be replaced by someone else, it can be classified as employee turnover. Understanding this concept is crucial for developing effective employee retention strategies and implementing proper workforce management practices.
A company's employees are its most valuable asset, and losing team members is never a desirable circumstance. That's why some of the following facts and statistics about staff turnover are so alarming.
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Statistic |
Finding |
Source |
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Monthly resignations |
2.5 million Americans quit their jobs every month. |
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Job-seeking employees |
80% of employees are either actively looking for a new job or are open to having a new one. |
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Females & bad managers |
Females are more likely to leave for having a bad manager compared to males — 34% vs. 25%. |
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Males & underpayment |
Men are more likely to leave for being underpaid compared to women — 39% vs. 33%. |
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HR leaders' top concern |
46% of HR leaders say retention is their greatest concern. |
OfficeVibe |
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Millennial job-hopping |
Almost 25% of millennials have worked for five different employers. |
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Millennials & development |
86% of millennials would leave their current position if career development and training opportunities were not offered. |
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Turnover cost range |
Employee turnover costs anywhere from 16% to 213% of annual salary, depending on position. |
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Onboarding & retention |
Proper onboarding can increase employee retention by 25%. |
Clear Company |
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Standardized onboarding |
Companies with a standardized onboarding process experience 50% greater productivity from new hires. |
These statistics highlight the importance of onboarding best practices and retention strategies in today's competitive job market, particularly for the manufacturing workforce and frontline workers.
The numbers don't lie; employee turnover is prevalent and often expensive. How can your company minimize staff churn and avoid paying these costs? We have a few ideas to improve employee retention and create a positive work environment:
Employee retention starts with hiring the right team members. You obviously need to find talented individuals to fill open positions. An employee who doesn't have the technical skills required to perform their work will have to be replaced. Conducting a thorough skills assessment during the hiring process ensures candidates meet both technical and safety compliance requirements.
But you also need to hire for company fit and organizational culture. Top talent won't benefit your company if they're constantly making demands, have a poor work ethic, constantly put a damper on the office environment, or have other negative qualities.
Finally, take into account a potential hire's career goals. Will they be happy at your company for longer than a few years? Will your organization be able to help them meet their personal objectives?
One of the absolute best ways to increase employee retention during the early phases of your company's relationship with a team member is through proper onboarding.
Does your organization have a standard process for bringing new hires up to speed? An effective onboarding checklist should include essential elements like i-9 verification, e-verify integration, electronic signatures for document management, and comprehensive employee training modules.
While nothing is certain, manufacturing onboarding software like HR Cloud's Onboard can be the difference between retaining your company's talent and experiencing high turnover rates. This onboarding platform streamlines new hire integration and reduces time-to-productivity through onboarding automation. The benefits of onboarding are clear: when the right people are hired and onboarded successfully using onboarding technology and onboarding solutions, your company will thrive. A comprehensive onboarding experience with mobile onboarding capabilities can significantly improve cultural integration and provide a competitive advantage in talent management, especially for shift workers and deskless workforce members who need shop floor accessibility.
We said it earlier, we'll say it again: your company's employees are its most valuable asset. You need to treat them well! That means offering competitive salaries and benefits packages, rewarding high-quality work, and allowing employees to have a manageable work/life balance.
Team members who feel underpaid, underappreciated, and overworked won't stick around for long — not surprising. But did you also know that your staff wants to feel invested in their work, too?
Most modern workers aren't looking to simply check in and out. From onboarding onwards, they want to feel engaged and like they are a part of something bigger than just themselves. Employee engagement is crucial for job satisfaction and long-term commitment. Make them feel this way and they'll have a difficult time leaving your company.
To foster employee development and engagement, consider implementing:
Regular performance review through performance management systems
Mentorship program for workforce integration
Professional development opportunities and employee training programs
Skill development workshops with training modules
Clear expectations and role clarity with compliance requirements
Continuous learning initiatives , including safety training for manufacturing processes
Certification tracking and equipment certification programs
Safety protocols and safety procedures training
Compliance management and hr compliance monitoring
OSHA compliance requirements and safety compliance training
These practices, supported by compliance management tools and regulatory compliance management systems, can significantly boost employee satisfaction and contribute to organizational success. Implementing compliance tracking and compliance documentation processes ensures your manufacturing hr team maintains proper compliance automation while supporting frontline workers on the factory floor.
Finally, the more flexibility you can offer your workers, the more satisfied they'll be. Companies with happy teams experience much smaller employee turnover rates. What can you do to offer a more flexible work environment?
Some businesses offer remote work options and unlimited vacation days. Others offer perks like catered lunches and free gym memberships that promote life flexibility as well. Digital transformation initiatives, including workflow automation and digital workflows, can help create more flexible working arrangements even for shift workers and those on the factory floor.
Every company is different, and what they can offer their team in regard to flexibility will vary. But to retain top talent and reduce employee turnover, do what you can to make your working environment more flexible. Any small costs or inconveniences will be made up for in boosted employee morale and improved workplace culture.
Consider implementing:
Flexible work hours
Remote work options where manufacturing processes allow
Wellness programs
Social integration activities
A buddy system for new hires
Safety training automation for consistent learning
Mobile access to training and compliance documentation
These initiatives can enhance the overall employee experience and contribute to a positive sense of belonging within the organization, particularly important for the deskless workforce who need accessible resources.
While employee turnover rates are higher than they were a few years ago, the tactics outlined in this blog post will help you keep your talent from abandoning ship. It all starts in the hiring phase. Be sure to only bring on new team members who have the necessary skills and fit the organizational culture. Once a new employee has been hired, treat them right!
Offer competitive salaries and benefits packages. Engage them in their work and make them feel like their role has meaning. When possible, offer them flexible working environments. The more you're able to give your team, the more likely they'll be to stick with you for the long haul.
Remember, employee retention is not just about keeping people in their jobs; it's about creating an environment where they can thrive, develop their skills, and contribute to the company's success. By focusing on these strategies and continuously improving your HR practices with modern manufacturing onboarding software and comprehensive workforce management solutions, you can create a workplace that attracts and retains top talent, ultimately driving your organization's growth and success.
Employee turnover happens when an employee leaves your company through resignation, termination, or layoffs and you need to replace them. In manufacturing, turnover creates operational disruption, overtime costs, productivity loss, compliance risks, and additional hiring expenses. Studies show turnover can cost businesses between 16% and 213% of an employee’s annual salary depending on the role. HR Cloud helps manufacturing companies reduce turnover with structured onboarding, automated workflows, compliance tracking, and employee engagement tools that improve retention from Day 1.
A poor onboarding experience is one of the fastest ways to lose new hires. Modern onboarding software helps companies automate document collection, I-9 and E-Verify workflows, training assignments, reminders, and employee communication before Day 1. HR Cloud’s onboarding software gives HR teams visibility into missing tasks and helps employees complete onboarding on mobile devices, which improves retention, engagement, and time-to-productivity. Proper onboarding can improve employee retention by 25%.
The most common causes include poor onboarding, weak management, lack of career growth, burnout, underpayment, scheduling stress, and low employee engagement. Manufacturing companies also struggle with compliance-heavy onboarding, frontline communication gaps, and disconnected HR systems. HR Cloud helps solve these operational gaps with AI-assisted onboarding workflows, automated reminders, certification tracking, and employee communication tools designed for deskless and frontline workers.
The best manufacturing onboarding software supports mobile onboarding, compliance automation, document management, certification tracking, shift-based workflows, and integration with payroll and HR systems. HR Cloud’s Onboard platform is built to help manufacturing companies automate onboarding tasks without replacing their current payroll or HRIS systems. It works alongside platforms like ADP, UKG, Paylocity, and Paycor to streamline hiring and retention workflows.
Frontline and deskless employees often leave because onboarding feels confusing, disconnected, or delayed. HR Cloud helps companies deliver mobile-first onboarding experiences with SMS reminders, digital forms, training assignments, and real-time task tracking. Employees can complete onboarding from their phone before their first shift, while managers gain visibility into onboarding progress, compliance completion, and certification status across locations.
Yes. HR Cloud integrates with existing payroll, HRIS, and workforce management systems including ADP, UKG, Paylocity, Paycor, QuickBooks Payroll, and more. Companies do not need to replace their existing systems. HR Cloud fills the operational gaps around onboarding, employee engagement, compliance workflows, and workforce communication while syncing employee data across platforms.
Employees stay longer when they feel connected, recognized, and supported. Employee engagement tools help companies improve communication, recognition, feedback, training visibility, and workplace culture. HR Cloud’s Workmates platform helps organizations create stronger employee experiences through recognition programs, company feeds, employee communities, surveys, and internal communication tools that improve engagement across distributed and frontline teams.
The most effective employee retention software includes onboarding automation, compliance management, employee engagement tools, mobile accessibility, certification tracking, workflow automation, analytics, and integration capabilities. Companies should also look for AI-assisted workflows that reduce manual HR follow-up and improve employee readiness. HR Cloud combines onboarding, engagement, compliance, and workforce communication into one connected employee experience platform designed to reduce turnover and improve retention.