Manufacturing HR teams are operating under constant pressure. They're facing an ageing workforce, persistent skills shortages, rising turnover risk, all while production must continue safely and on schedule.
As a result, HR leaders in manufacturing are expected to deliver operational reliability while simultaneously building long-term workforce resilience.
Recent SD Worx workforce data found that now is a critical time for HR leaders in manufacturing, as only 60% of manufacturing employees feel healthy and fit while working, and 16% are actively looking for another employer.
Additionally, one in two manufacturers already face labour shortages, and 57% expect these shortages to increase further.
This only emphasizes that retention, engagement and wellbeing are therefore not secondary HR concerns: they are central to maintaining operational continuity.
So, what's the solution? In this blog, we've laid out six foundations for HR leaders working in manufacturing, to help support people and performance.
In manufacturing environments, wellbeing and safety are everything.
However, four in ten manufacturing workers still do not feel healthy and fit at work. This shows there is still significant room to strengthen wellbeing as part of the core safety approach, rather than treating it as a separate initiative.
This starts with embedding wellbeing into daily safety routines and investing in continuous training.
That means actively managing physical strain and mental fatigue in labour-intensive roles where pressure can accumulate quickly. But the payoff is worth it, as strong safety standards reduce absenteeism risk and improve performance over time.
43% of manufacturing workers are either actively or passively open to leaving, putting additional pressure on already constrained labour markets.
As labour shortages are expected to intensify, retention becomes a strategic lever rather than a purely people-related metric.
While competitive pay remains important, it is rarely sufficient on its own. Work–life balance plays a decisive role in keeping people on board. Predictable schedules, manageable workloads and flexibility where possible signal trust and respect and strengthen a sense of belonging.
Skills are essential for operational performance, yet many manufacturing organisations struggle to make learning investments visible and meaningful for employees.
Though 58% of manufacturers say they are investing more in learning and development, only one in three workers reports experiencing an increase. This perception gap matters, because skills initiatives only matter when employees see them as real and relevant.
The greatest impact comes from linking technical training directly to safety and performance outcomes, embedding digital skills as a core capability and investing in frontline leadership development.
Manufacturing operates on rhythm. Shifts, handovers, coverage, overtime and predictability shape daily experience on the shop floor. So, when planning falls short, the effects are immediate and tangible, leading to fatigue, frustration, cost increases and operational risk.
Workforce planning is improving, but it has not yet become a consistently embedded strategic capability across the sector. Around half of manufacturing companies already use a staff scheduling tool, while nearly one in five still plans to implement one.
Progress requires a shift from static schedules to fair and transparent planning, supported by integrated time and attendance data. Planners and supervisors need continuous, scenario-based decision support rather than last-minute firefighting.
Technology increasingly shapes how decisions are made in manufacturing. For instance, automation reduces manual effort, AI supports forecasting and scenario modelling, and real-time insights improve visibility for supervisors and teams.
However, more than half of manufacturing companies say it is unclear how AI will impact the HR operating model or how it can be implemented effectively. For employees, the impact is even less tangible, with only 24% saying AI is rapidly transforming the workplace.
Closing this gap requires focus. Applying AI through clear, practical use cases ensures relevance, and using real-time insights to drive action, rather than simply report on past performance, enables better decision-making where it matters most.
Even the strongest HR processes will fall short if behaviours and collaboration do not support them.
There is a solid foundation to build on. 71% of manufacturing workers feel accepted in their team, and 65% feel treated equally. The challenge lies in translating these baseline sentiments into consistent everyday behaviours.
Strengthening shared accountability, recognising behaviours that reinforce communication and collaboration and developing inclusive leadership habits all help create an environment in which speaking up, learning and continuous improvement feel safe and valued.
While 66% of manufacturers say they feel successful in their HR practices, the data shows there is still meaningful headroom for improvement.
By applying these six foundations, manufacturing organisations can build a path towards stable output, fewer disruptions, and stronger retention.
An interview with Csaba Farkas-Pall, Head of Strategic M&A Integrations at SD Worx on how to successfully expand into different European markets.
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