The skills gap has been one of the biggest talking points in manufacturing over the past few years. It’s a serious issue that affects many manufacturers, and even companies that do manage to close the gap by securing talent have another challenge — retaining employees.
Multiple reports and studies estimate that nearly 2.5 million manufacturing jobs will go unfilled through 2028. And for those that are unable to retain their employees, the financial impact of employee turnover is estimated to be anywhere from hundreds of thousands, to millions of dollars annually.
What are the main causes of manufacturing turnover?
Lack of adequate training stands out as the primary reason for turnover in the manufacturing industry. According to one report from 2019, most manufacturing companies are not upskilling or investing in continued education to ensure higher retention numbers.
More than 75% of companies responded saying they don’t have a talent development strategy in place to train manufacturing employees. Less than 50% of the industry respondents also strongly agreed their company trained employees to develop the right knowledge and skills.
Here’s what else the data revealed:
- 36% of manufactures have a budget for employee development
- 44% have training for on-the-job trainers
- 56% assess critical job tasks using structured evaluations
- 12% use training programs and skills assessments
- 15% use skills development to determine worker compensation
As you can see, the manufacturing industry still has a long way to go when it comes to training and skills development. Traditional methods of training are no longer feasible in today’s climate. That’s why looking at other solutions is necessary if you want to reduce turnover.
Using simulation training to reduce turnover
An effective solution to manufacturing training is simulation training. With Simutech Multimedia’s training system, your maintenance professionals will learn how to troubleshoot electrical faults in an immersive 3D environment where they are free to fail without the risk of injury. If you would like to learn more, contact us [email protected]