The state of talent 2023

The state of manufacturing staffing

Faced with accelerating workforce challenges, US manufacturers expect to continue raising wages to attract talent and keep pace with inflation. They are also offering added flexibility and other benefits to bring sidelined workers back into the labor market.

In 2022...

Other steps to combat talent shortages

Other steps being taken to combat talent shortages include adding flexibility, offering expanded benefits, instituting signing bonuses.

Two-thirds of manufacturers have increased worker scheduling flexibility
46% have increased benefits
43% have instituted signing bonuses.
Some more progressive manufacturers are even starting to offer child care as a strategy for brining parents with young children back into the labor force.

Source: NAM Manufacturers' Outlook Survey

The state of manufacturing staffing

Talent distribution is changing.

Talent distribution has undergone a substantial shift since 2020, and is expected to further exacerbate staffing challenges in many key states through 2030. Talent migration patterns impacting manufacturing:

Aging workers retire and leave the workforce
Worker population relocates into western and southern states for more idyllic weather
Company relocate to lower-cost markets with more favorable tax incentives

US Manufacturing Industry – Talent Migration Outlook
2020-2030

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The state of logistics & warehousing staffing

Increase in talent pipeline not enough to offset churn.

Sourcing conditions for material handling talent has become increasingly challenged by growing supply/demand imbalances.

While the number of material handling workers increased 5% during the pandemic, demand for these workers over the same time period has more than doubled.

The number of transportation and warehousing industry workers quitting has increased nearly 40% since 2019 and continues to rise despite signs of economic slowing.

Workers want tech solutions for less stress.

74% of warehouse workers surveyed in a 2022 study are at least somewhat likely to take a pay cut to work at another company with more technology and tools to help them do their job and:

Reduce physical stress
Achieve better speed in item picking
Achieve more accurate picking
Do more satisfying work
Assure safety
Reduce mental stress

More than half (52%) of respondents are extremely or very likely to resign.

Wages continue to trend upward.

The current supply/demand imbalance along with accelerating inflation trends has put significant pressure on wages.

Median advertised wages for material handling talent moved above $17/hr. in recent months and have increased more than 20% since 2019.

Sources: EMSI, Lucasware Voice of the Warehouse Worker Report,

The state of logistics & warehousing staffing

The rapid spike in e-commerce during the pandemic left many warehouses shorthanded and struggling to find the labor needed to keep up with demand. While e-commerce growth has moderated after peaking in 2020, the competition for labor remains fierce.

From 2020 to 2022...

Talent wants flexibility. Here's how you deliver.

While ongoing COVID fallout continues to disrupt life for families (at both school and work), a growing sector of the workforce is seeking jobs with flexible scheduling, only to find that few warehouse operators are providing flexible scheduling. Here are key ways your operation can deliver to attract and retain top talent:

Offer a choice of shifts (early shift, day shift, late shift).
Consider midweek shifts, weekend shifts, four hour shifts.
Allow shift swapping abilities for talent needing to make a last-minute pivot.

Sources: State of Warehouse Labor: Staying Flexible in 2022, Distribution Center Compensation Survey, Willis Towers Watson

Spotlight on younger workers

Gen Z and Millennials already make up almost half (46%) of the full-time workforce in the U.S. Millennials (born 1980-1995) are the largest segment of today's workforce, and could account for up to 75% of the global workforce by 2025.

Younger workers continue to shape the world of work. Here are 5 key values this group holds important, and how employers can leverage them for retention and deeper connection with talent.

5 values that will shape the workplace in 2023

Upward career mobility

66% of Millennials view two years or less as the "right" amount of time to stay in a role before being promoted or moving on.

Both Gen Z and millennials view upward career mobility as being intertwined with equity.

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In 2023 urge your leaders to discuss team member career goals and to lay out a timeline to upskill, cross-train, and promote talent. Ongoing employee development and career pathing conversations help younger employees fulfill their sense of purpose - and see a future in your organization.

Flexibility

Younger workers want flexibility, whether it’s a four-day workweek, shorter shifts, or the ability to swap shifts.

Nearly half of surveyed Millennial and Gen Z workers say they'd take a pay cut for a more flexible job.

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In 2023, provide a flexible workplace where possible. Giving talent autonomy empowers individuals to own the their experience while managing their work-life balance. Ensure management sets reasonable guardrails for the team to operate within, and allow space for feedback/discussion.

Better pay

While more than 90% of Millennials say salary is their top priority when job hunting, salary is the leading reason Gen Z workers leave a job.

Half of Gen Z jobseekers say they'd rather accept a boring-but-better-paying job over an interesting-but-lower-paying one.

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In 2023, ensure your pay rates are truly reflective of the work and industry. Be up-front and transparent about pay in job postings and interviews.

Sources: Deloitte, Fortune, LinkedIn, CNBC

5 values that will shape the workplace in 2023

Diversity, Equity & Inclusion

Younger workers care deeply about workplace equity. They also expect that their employers will make concerted efforts at diversity, equity and inclusion.

56% of Millennials view systemic racism as prevalent in society while 22% Gen Z workers regard equitable treatment of employees of different races, genders, and orientation as society's most important issue.
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In 2023, work to create an equitable workplace where underrepresented groups have a equal opportunity for work, wages, and wellbeing.

Mental health

More than 1 in 3 working Gen Zers find it difficult to cope with work pressure/stress, with 38% of Millennials indicating they are stressed all or most of the time.

Younger workers are feeling burned out. They’re also more likely than older workers to expect employers to care about and support their mental wellbeing.

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In 2023, encourage time and forum for mental health. Give talent a safe space to honestly discuss the impact their work has on wellbeing. Consider adding mental health/wellness days to PTO/compensation packages.

Sources: Deloitte, Fortune, LinkedIn, CNBC