A recent analysis by Make UK reveals that manufacturing companies have experienced improved employee retention in the past year, largely attributed to increased investment in workforce benefits and incentives.
Manufacturers are actively rewarding employees for various contributions, including working different shift patterns, taking on extra responsibilities, and dedicating additional hours. Companies are also providing substantial support to new parents and individuals facing health challenges.
Key findings from the analysis include:
Two-thirds of companies offer overtime compensation, with time and a half pay for extra hours and work during Bank Holidays.
33% provide bonuses or incentives for meeting production targets or other goals.
31% prioritize professional development opportunities for employees.
22% offer health and wellness benefits like gym memberships.
Taking on additional responsibilities is notably rewarded, with nearly half of companies offering annual payments of over £1,000 to employees who volunteer as First Aiders. Similarly, 17% provide compensation to Mental Health First Aider volunteers.
Manufacturers also offer attractive premiums for specific shift patterns:
47% provide a fixed percentage premium for permanent night shift workers.
43% offer premiums for early shifts in double day shifts.
53% provide fixed percentage premiums for late shifts in double day shifts.
Although pay settlements have slightly declined due to easing inflation and recruitment pressures, manufacturers continue to support their employees significantly above Statutory Sick Pay standards. Notably, 90% of firms with enhanced maternity pay base their offerings on length of service.
Jamie Cater, Make UK’s employment lead, emphasized the positive impact of manufacturers’ investment in their workforce, leading to improved recruitment and retention. Cater highlighted the importance of diverse financial rewards, incentives, and bonuses for skilled staff, underscoring their critical role in retaining talent in a competitive labor market. The investment in employee support across various facets of employment is essential for long-term retention and success in the manufacturing sector.