Recruiting is more complicated than ever right now. Many manufacturing firms are having a hard time fulfilling open roles. This is why a recruitment strategy with a PEO is essential.
At PRO Resources, we understand that hiring employees presents a significant challenge to firms in the manufacturing industry. Our tailored onboarding and training solutions allow you to attract and retain the right employees for the job.
The Worker Shortage in the Manufacturing Industry
Currently, there is a significant labor shortage in the manufacturing industry. The manufacturing labor shortage has various impacts on business owners. It is worth noting that the labor shortage makes hiring an extremely competitive process.
The labor shortage has also contributed to a marked rise in wages. Manufacturing businesses must raise their wages to attract and retain the right talent. This cuts profit margins, and most companies are forced to pass the higher production costs on to the consumer.
Right now, employee retention in the manufacturing industry constitutes a significant challenge. Recent surveys indicate that manufacturing firms must offer several non-financial benefits to reduce turnover. These benefits range from flexible working schedules to increased vacation time.
Today, thousands of jobs in the manufacturing sector are unfilled worldwide. Companies are facing difficulties in filling high-paying, entry-level manufacturing jobs. The National Association of Manufacturers predicts that an estimated 2.1 million positions will be vacant by 2030. The economic ramifications of this scenario will be far-reaching and could translate into financial costs amounting to $1 trillion.
How to Overcome the Labor Shortage: Working with a PEO
In the face of the labor shortage, the last thing you need is to be overwhelmed by paperwork. Working with a PEO helps you overcome this challenge by handling your HR management tasks.
Numerous business owners are at capacity in terms of their workload. The absence of a formal human resource department ordinarily forces them to take on HR duties.
Retention, hiring, and onboarding represent a significant burden for business owners in the manufacturing sector. PEOs help retain, hire, and onboard workers in the long term. Their ability to determine employee benefits and workers' compensation remains critical to reducing turnover. PEOs also use advanced hiring and onboarding techniques to select the right candidate for the job. Ultimately, PEOs step in as the HR team that you need.
What is a PEO and How Does It Help You Scale Your Business?
A PEO is an organization that handles HR-related tasks for individual companies. It is worth noting that a PEO plays a pivotal role in recruitment for manufacturers. One of the perks you get is that it minimizes legal liability risks.
PEOs handle payroll processing, attendance management, HR compliance, employment tax, risk management, and employee benefits. The organizations also enable you to minimize liability for unemployment taxes, payment of salaries, and payroll taxes.
You must know that a PEO does not take control of your organization. If you intend to hire a PEO, you do not have to worry about the organization taking over all management tasks. The final decision on vital strategic actions lies with you.
A PEO does not make firing and onboarding verdicts and only presents employee misconduct issues before taking autonomous actions. Lastly, a PEO does not supply a workforce to worksites. It can only help recruit your crew from the marketplace.
When a PEO tends to HR tasks, business owners have extra time on their hands to run regular operations and handle other matters. At PRO Resources, we are experts at hiring manufacturing employees. Essentially, our professional team has the right tools, experience, and expertise to optimize the job satisfaction levels of your current employees.
The Bottom Line
Streamline your business using a PEO to improve procedures, safety, and training and relieve yourself of all HR tasks. If you are looking for a PEO to handle your HR tasks, you need not look further. PRO Resources helps you cope with the challenges associated with employee retention in the manufacturing industry. We have state-of-the-art tools to help you get the right candidate for the job. You can learn more by talking with the PRO's at PRO Resources.
