Overcoming Challenges in Manufacturing & Engineering Executive Recruitment

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.

Understanding the Manufacturing Leadership Hiring Challenges

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.

Talent Shortage

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. 

High Salary Expectations

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.

Intense Competition

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:

  • Assistance with selling an executive’s current home
  • Temporary housing during transitions
  • Support for spouses to find new employment
  • Cultural integration programs for international
  • School search and enrollment for children

 

Strategies to Overcome Recruitment Challenges

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.

How Executive Search Firms Can Help Find the Right Manufacturing Executive

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:

  • Decreased productivity and morale
  • Loss of employees and customers
  • Damage to reputation
  • Weakened brand


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 can help streamline your executive hiring process and find a qualified candidate. 

Look for an executive search firm that has:

  • Industry Expertise: Deep knowledge of the manufacturing sector and understanding of the nuanced requirements of executive positions. 
  • Extensive Networks: Access to a global network of executive talent, especially with passive job seekers who likely do not respond to traditional job postings. 
  • Confidentiality: Understands the discretion necessary throughout the recruitment process. 
  • Thorough Vetting: Employs rigorous screening processes to ensure candidates are a good fit. 
  • Behavioural Assessments: Utilizes advanced psychometric and behavioural assessments to gauge a candidate's leadership style, decision-making processes, and cultural fit.

 

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.

 

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