How to drive manufacturing success with worker-centric employee benefits

Manufacturing and construction companies can’t always use the traditional recruiting playbook when it comes to hiring skilled workers. A diverse workforce, challenges faced on the job, and a higher-than-average turnover rate contribute to a near constant need for hiring and retention initiatives. Getting creative with benefits offerings is one tactic to attract—and retain—workers of all skill levels. We’ll show you how you can build a stellar benefits package for manufacturing to attract top talent and keep your current employees protected, healthy, and happy.

Workforce challenges for manufacturing companies

Due to the nature of the job and the needs of their workforce, manufacturing and construction companies have to deal with a few unique challenges:

• Higher turnover rates: The turnover rate in the manufacturing industry is 28.6%, which is substantially higher than the average national rate of 3.6%. Considering that it can cost up to three times an employee’s yearly salary to replace them, this revolving door of talent can get pricey.
• Attracting skilled workers: As technology advances, manufacturing companies need employees who are skilled enough to handle modern machinery. This means professional development and competition for talent are huge.
• Balancing budget constraints with employee needs: Trying to offer outstanding benefits without exceeding the budget can be tricky, especially given the above-average premiums manufacturing and construction companies face.
• Safety concerns: The manufacturing and construction industry is the most dangerous in the country according to OSHA, with over 10,000 severe work-related injuries per year.
• Offering benefits for a diverse workforce: Manufacturing employees can span multiple generations and skill levels, each with its own priorities.

Standard employee benefits for the manufacturing industry

Offering benefits to your manufacturing and construction employees can help resolve some of the industry's drawbacks. Although health insurance is a given for any full-time job, offering an above-average health insurance plan can empower employees to seek help when they really need it and prevent more severe issues. Exceeding the norm with these benefits can help:

• Health insurance: More than 50% of employees say their healthcare plans influence their decision to stay at their job. Knock it out of the park with your healthcare plan, and watch your employees stick around for the long haul.
• Dental and vision coverage: These supplemental health benefits are increasingly important, as 90% of companies offer dental insurance and 62% offer vision insurance.
• 401(k) plans: Close to 25% of employees say that financial concerns lower their productivity at work. Offering a strong 401(k) plan and other financial benefits can help keep them focused, motivated, and satisfied at work.
• Paid time off: Vacation days, sick leave, and personal days are vital for work-life balance, especially in physically demanding jobs like construction and manufacturing.
• Life insurance: No one likes to think about worst case scenarios, but offering life insurance to employees can give them the peace of mind of knowing that their loved ones are looked after if anything happens to them.

Competitive employee benefits manufacturing companies should consider

Offering traditional benefits is the bare minimum if you want to attract talent. To really stand out above the crowd, consider adding these extra perks to your package:

Health and wellness benefits

A staggering 92% of employees believe it’s important for their company to prioritize their wellbeing. Extra wellness benefits show that you care about your employees’ health and happiness. Here are a few ideas to take it up a notch in the health and wellness benefits realm:

• On-site health clinics: These clinics can reduce time off for medical appointments, promote preventive care, and reassure your employees that immediate assistance is always available.
• Employee assistance programs (EAPs): EAPs offer a wide spectrum of support, from substance abuse help to legal advice and mental health counseling.
• Fitness and nutrition benefits: Maintaining healthy eating habits is no small feat when on a job site all day. Not to mention that physical fitness helps your employees stay mentally healthy on the job too.

Financial wellness benefits

Over 30% of working Americans are worried that their retirement savings aren’t on track. This can be especially true for industries like manufacturing and construction where work tends to be project-based and paychecks may not come in a steady stream. Here are a few ideas for benefits to help ease their financial woes:

• Financial planners: Access to a professional who can help your employees budget, invest, and generally plan to reach their financial goals can be a huge value add. Companies like Origin (a Nava Preferred Partner!) offer all-in-one financial wellness solutions.
• Profit-sharing: When your company’s bottom line does well, your employees feel it in their wallet too. Win-win! Plus, this encourages employees to stick around and meet (or exceed) company KPIs.
• Student loan repayment assistance: Only 5% of workers had access to student loan repayment benefits in 2023, but even a small amount of assistance can make a big impact. Similarly, tuition reimbursement supports employees’ professional development.

Nearly 25% of employees say that financial stress reduces their productivity and confidence on the job. By offering financial wellness benefits, you can boost both employee satisfaction and overall performance.

Work-life balance benefits

• Flexible schedules: A recent Deloitte survey found that 94% of employees benefit from flexible work schedules.
• Caregiver support: 4 out of 5 employees report their caregiving duties affect their job performance. Care services benefits not only help ease the financial burden of caring for an aging loved one or child, but also offer support in the behind-the-scenes logistics that go into that level of care.
• Generous paid time off: Being generous with not only time, but also different types of paid time off can be a big draw for potential employees. In an industry where injuries are more common, employees want to know they’re able to take the time they need if anything happens.

Using benefits benchmarking to stay competitive

At the end of the day, it’s important to remember that you’re competing for talent with other firms in your industry. Even a strong benefits package can be blown out of the water by a stellar package. Benefits benchmarking can help you measure how you stack up against your competitors and:

• Identify gaps in your current offerings
• Understand industry trends
• Make data-driven decisions
• Allocate your benefits budget more effectively
• Attract and retain top talent

Leveraging employee benefits surveys

Want to know what your team values? An employee benefits survey can help you identify just that. Our Nava employee benefits survey template provides you with carefully crafted questions to help you determine:

• Which benefits your employees use the most
• What additional benefits they’d like to see
• How satisfied they are with your current offerings
• Areas where your benefits package could improve

Creating a benefits package that works for you and your employees

The best benefits package is one that works for both your budget and employees. Here’s your game plan:

1. Start with the basics like health, retirement, PTO — you know the drill.
2. Sprinkle in some standout benefits based on what your employees actually want. (Thank you, benefits survey!)
3. Don’t forget about low-cost, high-impact perks like flexible schedules.
4. Keep your finger on the pulse of benefits trends. Conduct benchmarking and benefits surveys regularly.
5. Effectively communicate with our expert tips and HR toolkit.

Ready to create a benefits package that’ll make your manufacturing or construction company the best place in town to work? Nava Benefits brokers are here to help you create a solution that’ll keep your employees happy at a low cost. Let’s turn your benefits package into a magnet for top talent!

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