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The manufacturing industry is confronting a critical challenge: a substantial portion of its workforce is disengaged. This issue goes beyond low morale — disengaged employees are less productive, less innovative, and more likely to leave their roles prematurely. Amid rising economic uncertainty and rapid technological advancements, how can manufacturing organizations harness technology to foster a more engaged, productive, and skilled workforce?
As David Bator, Managing Director of Achievers Workforce Institute (AWI), explains, engagement is “the commitment an individual makes to doing the job they are paid to do.”
Alarmingly, 64% of manufacturing employees report feeling disengaged. However, there is reason for optimism — research-backed strategies and proven practices offer actionable solutions to address this challenge.
In this blog, we’ll explore eight powerful ways manufacturing organizations can transform workplace culture and drive engagement. By leveraging these strategies, companies can empower their frontline workers, strengthen teams, and achieve lasting success.
What are the 3 key drivers of employee engagement?
Recognition
Employee recognition is the number one driver of engagement. When employees feel that their efforts are noticed and valued, it boosts their morale, reinforces positive behaviors, and fosters a sense of loyalty to the company. Recognition doesn’t have to be grand — simple gestures, such as a thank-you or public acknowledgment, can go a long way in making employees feel appreciated. However, formalizing recognition through structured programs ensures that it happens consistently and equitably.
An organization-wide recognition program is particularly beneficial in creating a culture of appreciation. These platforms make it easy for peers and managers to recognize achievements in real time, breaking down barriers like physical distance or shift differences, which are common in manufacturing environments. Online systems also provide visibility across teams and departments, helping employees feel connected and valued as part of the broader organization.
Opportunities for professional growth
Professional development is a major part of employee incentive programs for manufacturing. However, AWI The New Skills Gap research shows that only 26% of employees see an opportunity for growth and development in their current roles. Most employee development occurs on the job in the form of new projects or responsibilities, but could also include regional conferences, new reading materials, or certification courses. Keep your employees engaged by finding out how they’d like to stretch and giving them appropriate opportunities for growth in that direction.
In manufacturing, where roles are often highly technical, providing training to stay updated with new technologies and processes is especially important. As the industry evolves with advancements like automation and smart manufacturing, offering employees the chance
A sense of purpose
Only 23% of employees report feeling enthusiastic about their job. When employees see a clear connection between their daily tasks and the company’s success, whether it’s producing quality products, meeting customer demands, or driving innovation, they are more likely to take pride in their work. With a set of company values that employees find meaningful, team members will associate their day-to-day tasks with a higher purpose and stay motivated. Company values need to be more than just words to accomplish this, however. When your organization and its leadership live your values day in and day out, employees will follow suit.
What does “engaged” in manufacturing mean?
In the manufacturing industry, an “engaged” employee takes pride in their work on the shop floor and is committed to the company’s success. They bring energy and focus to their tasks, whether it’s operating machinery, inspecting product quality, or hitting production targets. Engagement goes beyond simply showing up — it’s about being invested in the bigger picture.
What employee engagement activities in manufacturing looks like can vary from company to company. For instance, General Motors (GM) measures engagement through participation in their Employee Resource Groups (ERGs) and recognition programs. For other manufacturers, engagement might mean proactively finding ways to improve processes, reduce waste, or enhance workplace safety.
How do you engage employees to build capabilities for better manufacturing?
Building employee capabilities starts with helping workers see how their skills and contributions support the organization’s bigger goals. Recent AWI research shows that only 30% of manufacturing employees are given the time and resources they need to develop their skills at work.
Learning opportunities for manufacturing employees can include hands-on training for technical expertise and leadership skills, cross-functional learning for a broader understanding of the production process, or mentorship programs where experienced team members can share knowledge and guide newer employees.
And don’t forget to recognize your frontline workers for their efforts! When employees see that their growth is valued and supported, they feel more confident, engaged, and ready to take on new challenges.
8 tips for increasing engagement and retention in manufacturing
Recent Gallup studies show the global cost of disengaged employees has reached a staggering $8.8 trillion annually. In manufacturing, where work is physically demanding from lifting, walking, or standing throughout a shift, disengagement can lead to serious issues. When employees aren’t engaged, it affects sales, production, and productivity, and increases turnover. Disengaged workers are also more likely to overlook safety protocols, putting themselves and others at risk.
The combination of lost performance and safety concerns makes it clear that improving employee engagement is crucial for manufacturers. Don’t know where to start? Here are eight key strategies that manufacturing organizations can implement to foster a more engaged and committed workforce.
1. Foster a culture of recognition
A recent UKG study found that 75% of frontline workers feel burned out, rising to 83% for Gen Z employees. As the manufacturing industry faces retirement risks and younger workers enter the workforce, organizations must adapt their engagement strategies to employees’ needs and wants.
A key solution is fostering a culture of recognition. The 2024 AWI Engagement and Retention report shows that frequently recognized employees are three times more likely to be actively engaged.
For frontline workers, recognition, whether for achieving production targets, maintaining safety standards, or suggesting improvements, can significantly boost morale and productivity. An online recognition platform that encourages consistent gestures like a supervisor’s thank-you, a peer’s shout-out, or a quick digital note can make a big impact on your employees’ well-being.
Linking recognition to company values further reinforces how employees’ contributions align with organizational goals and creates a stronger sense of purpose. By embedding it into daily operations, manufacturing companies can address burnout and re-engage their workforce.
2. Build a sense of belonging
When employees feel like they belong, they are 12 times more likely to recommend their workplace. For manufacturing teams, this sense of belonging can make all the difference in creating a positive and productive environment.
To build this, focus on making everyone feel included. Start with team-building activities that get people connecting beyond their day-to-day tasks. These can be simple things like group projects or regular check-ins where everyone has a chance to speak up and give feedback. It’s also important to keep communication open — encourage employees to share ideas, concerns, or feedback in a way that feels safe and supported. When people feel heard, they’re more likely to be engaged and committed.
Celebrating diversity is key as well. Recognizing and respecting the different backgrounds and skills each person brings to the table strengthens your team as a whole. Whether it’s acknowledging cultural differences or celebrating achievements, making everyone feel valued boosts morale and helps everyone feel like they’re part of something bigger.
3. Prioritize skill development
Companies that prioritize skill development see a 2x boost in employee engagement. In today’s competitive manufacturing landscape, success depends on efficient operations, optimized processes, and data-driven decisions. However, to achieve these goals, manufacturing companies must ensure they have the right people in the right positions. A Forbes article identified the top 5 skills to look for in a new manufacturing hire, including communication, problem-solving, technical skills, attention to detail, and safety awareness.
It’s also important to link skill development to internal mobility. Offering structured learning paths — whether through on-the-job training, workshops, or certifications — gives employees the chance to advance and stay updated with industry standards. When employees know that learning new skills can lead to better roles or more responsibilities within the company, they’re more likely to stay engaged and motivated. This connection helps to retain talent and shows that the company is invested in their growth.
4. Empower employees with a voice
Employee voice, or Voice of the Employee (VoE), is about giving workers the opportunity to share their ideas, feedback, and perspectives openly without fear of negative consequences. Yet, in manufacturing, just one-fourth of employees feel comfortable offering feedback at work. This raises a crucial question: Are manufacturing employees encouraged to share their concerns and suggestions for improvement?
Employees who provide feedback at least four times a year are 50% more engaged. This demonstrates that when workers are given the chance to speak up, they feel more invested in their roles and the company’s success. To empower employees, create regular opportunities for feedback through pulse surveys, team meetings, or one-on-one check-ins. Encourage input on all aspects, from work processes to safety concerns.
However, it’s not enough to simply ask for feedback; acting on it is equally essential. When employees see their suggestions result in meaningful changes, they understand their voices matter, leading to a motivated workforce and a culture of continuous improvement.
5. Strengthen manager effectiveness
While the saying “People don’t quit jobs, they quit their bosses” isn’t entirely accurate, it holds a significant truth that managers play a crucial role in shaping an employee’s experience and satisfaction at work. AWI Manager Empowerment report data shows a strong correlation between manager effectiveness and engagement, with 89% of respondents who would recommend their manager also reported being highly engaged.
Manager effectiveness is the manager’s ability to balance employee expectations and professional development with the organization’s goals. To improve manager effectiveness, organizations should equip managers with the tools and training they need to coach employees on the job, recognize contributions regularly, and deliver constructive feedback.
AWI identified four key elements that drive manager effectiveness: contact, recognition, coaching, and professional development. When organizations get these factors right, employees are four times more likely to be engaged and five times more likely to feel a strong sense of belonging.
6. Improve workplace experience
For manufacturing employees, the day-to-day work environment is a major factor in job satisfaction and retention. According to AWI’s 2024 global primary research on workforce trends, only 27% of manufacturing workers feel a sense of belonging at their jobs, and 73% say they’re open to leaving. Building a great workplace environment for a positive employee experience should be a top priority for manufacturers.
A great place to start is by ensuring a safe and organized environment. Workers who feel confident in their safety on the shop floor are better able to focus on their tasks. Clear, consistent communication is also key. Whether it’s about production goals, process changes, or company updates, employees need to feel informed and in the loop.
Supportive leadership is equally important. Manufacturing managers can make a big difference by being approachable, recognizing team efforts, and addressing concerns promptly. Even small actions, like checking in during a shift or celebrating when production targets are hit, can help employees feel valued and part of the team.
7. Integrate feedback with performance tools
Major companies are moving away from the traditional and number-based performance reviews. In today’s fast-paced world, technology is a game-changer in simplifying and enhancing the feedback process. Employee feedback tools like Achievers seamlessly integrate feedback collection with recognition and reward systems.
These tools streamline the process, ensuring that feedback is collected consistently and efficiently, while also providing a centralized location for tracking employee progress. They also ensure that recognition is tied to the company’s overall goals. Employees can see how their hard work directly impacts productivity, quality, and safety, which makes their efforts feel more meaningful.
Ultimately, by linking feedback with performance metrics, manufacturing employees gain clarity on what’s expected, what they’re doing well, and where they can improve to help them stay motivated and aligned with the company’s objectives.
8. Address professional development needs
Professional development involves coaching employees to achieve both individual and company goals. A global survey found that companies offering training to engaged employees are 17% more productive and 21% more profitable. Yet AWI found that only one-fourth of manufacturing employees say their manager supports their professional development. Investing in employees’ careers not only boosts their commitment but also benefits your company through the new skills and knowledge they bring, creating more opportunities for internal promotion.
A great way to address this is by creating development plans that are tailored to each employee’s career goals while aligning with the company’s goals. For example, if an employee wants to move into a leadership position, offering training in team management, safety protocols, or equipment maintenance could help them build the skills needed for the next step. At the same time, make sure their development aligns with company goals, like improving production efficiency or mastering new technologies, to ensure mutual benefit.
Manufacturing success spotlight
General Motors
General Motors (GM), a global automotive company, employs more than 160,000 employees in 26 countries across six continents. In 2017, GM revealed their vision to create a world with zero crashes, zero emissions, and zero congestion. To deliver on this vision, the organization needed to build an inclusive culture with diverse perspectives and global alignment.
GM launched its GM Recognition Program, powered by Achievers, to their employees across 26 countries in 2017, and has seen growth in adoption and engagement in the years since.
“GM seeks to create an inclusive and innovative place to work where everyone can safely share their ideas, opinions, and feedback, and bring their experiences and authentic self to GM, so focusing on the people who use technology rather than just the technology is key.” — Sandra Garcia, Global Compensation Lead at GM
GM’s global recognition programs use insights on their leaders and employees’ needs and values to drive engagement, performance, and the cultural alignment they needed to deliver business strategy. To raise awareness and promote their “be inclusive behaviors”, GM integrated DEI strategy into their recognition programs and saw an average growth of 58% across their 12 ERGs memberships since 2022.
GM also recognized that onboarding sets the tone for the employee experience and helps them feel welcomed and valued on the first day. The company integrated Achievers’ celebration cards with Workday onboarding process to foster meaningful connections between leaders and new employees within the first two weeks of their new journey.
GAF
GAF is North America’s largest roofing and waterproofing manufacturer with over 3,000 employees, specializing in residential and commercial roofing products. With the Achievers recognition platform embedded into their employees’ day-to-day, GAF saw a great opportunity to boost participation and employee engagement in their organization-wide campaigns.
“To measure engagement, we take things like recognition receive numbers, engagement survey scores, attrition numbers, and safety. We know now, with our data, that there is a correlation between feeling empowered and being recognized, and being recognized and feeling encouraged to try new things.” — Gennie Stringfellow, HR Process and Project Manager at GAF
GAF saw employee participation double when they launched social campaigns through their recognition platform, and the consistent cadence of their campaigns is what nudges workers to go in and give thanks to their peers who went above and beyond.
Recognition in action
In an industry as dynamic and demanding as manufacturing, employee engagement is a critical driver of success. From fostering a culture of recognition to addressing professional development needs, these strategies serve as a roadmap for creating a motivated, skilled, and committed frontline workforce. Companies that prioritize recognition, belonging, and development can build a culture that not only improves morale but also boosts productivity, retention, and safety.
