The manufacturing and engineering sectors are facing unprecedented hurdles in securing top-tier talent, creating significant executive management recruitment challenges.
It is no secret that there is a massive shortage of manufacturing and engineering talent at every level. A study by Deloitte and the U.S. National Association of Manufacturers (NAM) Manufacturers projects more than two million jobs going unfilled by 2030 in manufacturing.
For those searching for leadership, these manufacturing leadership hiring challenges can seem overwhelming.
The manufacturing market in North America has undergone significant changes over the past four years that are adding to the executive manufacturing recruitment challenges. Many companies have embraced near-shoring and repatriated part or all of their manufacturing in North America to avoid supply chain disruptions.
This domestic expansion requires more robust leadership, creating even greater demand and fierce competition for top-quality executives with a limited pool of talent.
Manufacturing 4.0 has added to the manufacturing executive talent shortage. Many long-term execs have come up through the ranks and may lack the skills necessary to compete effectively in the future. As such, they are opting for retirement at a record pace. For every two leaving the industry, only one is entering — creating a continuing and future hiring crisis.
Next-generation leaders need different skill sets that include deep technological and digital acumen, making executives with these skills in even greater demand.
An aging workforce is also exacerbating the problem, requiring companies to put measures in place to be as attractive as possible, including increased comp packages to incentivize employee retention in the manufacturing sector.
Supply and demand always influence costs and scarcity leads to increased salary expectations among experienced candidates. Part of your manufacturing executive search strategies must include a review of your compensation packages to meet these expectations.
The manufacturing executive shortage has led to significantly higher wages. An Associated Press executive compensation study revealed that CEO pay rose nearly 13% last year alone, including salary, bonuses, stock awards, and other incentives. Some companies have also extended long-term compensation plans to employees that were previously reserved only for top execs to improve employee retention in the manufacturing sector.
With such intense competition for top executives, organizations are overcoming executive manufacturing recruitment challenges with creative approaches that go beyond compensation. This includes strategies such as bringing in the entire family on a recruitment visit. It is often the spouse that makes the final decision, so familiarizing them with the market can go a long way.
Comprehensive relocation packages and customized benefits packages are now common. This might include items such as:
Executive recruitment in the manufacturing industry is leading to a customized approach to meet unique talent needs. You need to offer competitive salaries and benefits that align performance with company goals and cast a wider net. Companies should be working with an executive recruitment firm that has a global reach to expand the talent pool.
Experienced executives who are willing to relocate often have multiple options, so everything about your company and your offer makes an impact. A positive company culture that values innovation and work-life balance is a key consideration for candidates. For some, sustainability initiatives or corporate social responsibility will be attractive. Taking the time to understand what is important for each individual will be key to knowing what aspects to emphasize.
A poor hire at the executive level is incredibly costly. The Association of Executive Search and Leadership Consultants (AESC) reports that it can cost up to 213% of C-suite salary and result in:
Poor leadership can also impact employee retention. 82% of workers in one survey said they would consider leaving their company if they felt they were stuck with a bad manager.
You simply cannot afford to make a mistake. Partnering with an executive search firm that is experienced in recruiting in the manufacturing industry or adopting a recruitment software solution tailored to the industry can help streamline your executive hiring process and find a qualified candidate.
Look for an executive search firm that has:
Overcoming executive manufacturing recruitment challenges will require a multifaceted approach and expert manufacturing executive search strategies. Partnering with a specialized executive search firm is a critical step to finding the right talent for your company.
In this article, we will provide an objective overview of the SHREK firms and discuss the key characteristics that set them apart.
CFR Global Executive Search is an alliance of independent executive search companies that combine to create one of the world’s most robust recruiting networks — helping members serve clients globally.
Already, 91% of businesses are undergoing some type of digital initiative. According to Gartner research 87% of senior business leaders say digitization is a top priority. Digital transformation leadership is essential to guide these efforts for success.