The manufacturing industry in the United States is facing a severe workforce crisis as its aging employees approach retirement. According to a study by Deloitte and the Manufacturing Institute, the manufacturing sector will need to fill 4 million jobs by 2030, with 2.1 million expected to go unfilled due to a lack of skilled workers.
One of the primary reasons for this shortage is the aging workforce in the industry. The average age of a manufacturing worker in the U.S. is 44.7 years old, with a significant portion of the workforce nearing retirement age. This demographic shift has created an urgent need for manufacturers to attract and retain younger talent to fill the impending skills gap.
Attracting Millennials and Gen Z to Manufacturing
Millennials (born between 1981 and 1996) and Gen Z (born after 1997) are the future of the manufacturing workforce. However, these generations have different expectations and priorities when it comes to employment. They value flexibility, work-life balance, and opportunities for growth and development.
To attract younger talent, manufacturers must adapt their workplace culture and employee benefits to align with the preferences of these generations. One area that has gained significant traction is the adoption of on-demand pay solutions, which cater to the desire for flexibility and immediate access to earned wages.
The Appeal of On-Demand Pay for Younger Generations
On-demand pay, also known as earned wage access (EWA), allows employees to access their earned wages before the traditional payday. This concept resonates with younger generations who are accustomed to the on-demand economy and expect instant gratification in various aspects of their lives.
According to a survey by Visa, 79% of millennials and 92% of Gen Z workers expressed interest in having access to on-demand pay. This trend is driven by the financial challenges faced by these generations, such as student loan debt, rising living costs, and the need for greater financial flexibility.
Orbispay: A Solution for Attracting and Retaining Younger Talent
Orbispay is a leading on-demand pay provider that offers a free solution for employers to provide their employees with access to earned wages. By partnering with Orbispay, manufacturers can offer a compelling benefit that aligns with the preferences of younger generations.Here's how Orbispay can help manufacturers attract and retain younger talent:
- Financial Flexibility: Orbispay allows employees to access their earned wages instantly, providing them with greater control over their finances and the ability to manage unexpected expenses without resorting to high-interest loans or payday lenders.
- Improved Work-Life Balance: With on-demand pay, employees can better align their financial needs with their personal lives, reducing stress and improving overall well-being.
- Competitive Advantage: By offering on-demand pay, manufacturers can differentiate themselves from competitors and position themselves as attractive employers for younger generations.
- Increased Retention: According to a study by Visa, 79% of employees who have access to on-demand pay are more likely to stay with their current employer, reducing costly turnover and ensuring a stable workforce.
Real-World Data on Manufacturing's Aging WorkforceThe manufacturing industry's aging workforce crisis is a well-documented issue. According to the U.S. Bureau of Labor Statistics, the median age of manufacturing workers in the United States is 44.5 years old, significantly higher than the median age of 41.9 years for all industries.
Furthermore, a study by the Manufacturing Institute found that over the next decade, nearly 3.5 million manufacturing jobs will need to be filled, with 2 million of those jobs going unfilled due to the skills gap and the retirement of baby boomers.These statistics highlight the urgency for manufacturers to implement strategies that attract and retain younger talent, ensuring the long-term sustainability and competitiveness of the industry.
Final thoughts
As the manufacturing industry grapples with an aging workforce and a looming skills gap, attracting and retaining younger talent has become a critical priority. On-demand pay solutions like Orbispay offer a compelling benefit that aligns with the preferences of millennials and Gen Z, providing financial flexibility, improved work-life balance, and a competitive advantage for employers.
By embracing on-demand pay and adapting to the evolving needs of the workforce, manufacturers can position themselves as attractive employers, secure a pipeline of skilled talent, and ensure the long-term success of their operations in an increasingly competitive landscape.