While the Great Resignation has been a hot topic for more than a year, it’s masking the real labor problem facing employers—attracting new talent.
The manufacturing and distribution industries are at a crossroads with 2.6 million baby boomers planning to retire in the next decade. The demand for employees far outpaces the supply, which could create a $1 trillion problem by 2030, according to the National Association of Manufacturers. Companies nationwide are feeling the hit. With Gen Z as the newest demographic—people born in the late 1990s and early 2000s—entering the workforce, it’s imperative to understand their motivations and decision-making process as they choose career paths.
Gen Zers, aka Zoomers, are mission-driven and seek roles that align to their personal values. To get a better understanding of the Zoomer mindset, Conexiom recently conducted a survey that found 73 percent of Gen Z respondents have not considered a career in manufacturing or distribution. Of those, 58 percent said it was because the industry doesn’t interest them, while one-fourth said they don’t understand the available roles. Meanwhile, nearly three in five manufacturers and distribution decision makers reported feeling positive about Gen Z entering their industry. So why is there such a huge disconnect?
While the current workforce is largely millennials (born in the early ’80s to late ’90s), by 2025 it’s projected that 27 percent of the workforce will be Gen Z. To survive, core industries need to attract Gen Z talent by communicating the value of available jobs, benefits, career paths, and working environments.
While the pandemic impacted employment for many Americans, 45 percent of the Gen Z respondents indicated the pandemic had no impact on their careers. Of those who reported an impact, three in ten stated they were laid off unexpectedly and 22 percent reported working longer hours compared to pre-pandemic levels. This signals an opportunity for manufacturing companies to lure next-gen talent based on what is top-of-mind for their future endeavors.
When asked about their next job, the most desired characteristic Gen Z reported is great benefits, followed by stability and security in role, and a typical 9-5 job with expectation for overtime pay. Other notable characteristics Gen Z cited are having a voice and being able to impact change, while “free lunch” was a motivator for two in five Zoomers.
When asked how technology use in an industry or for a specific job impacts their desire to pursue a career in that industry or job, two-thirds of Gen Z respondents said it has a strong influence while just five percent said it had no influence.
It also is evident the industry understands the vital role technology has in attracting quality job candidates. Our study revealed that more than two in five manufacturer and distributor decision makers plan on investing in technology to make jobs more attractive over the next five years. In fact, they believe the number one reason Gen Zers want to pursue a job in the manufacturing and distribution industry is because they are excited about the industry’s digital innovation.
From our study, manufacturers and distribution decision makers are on the same page as their prospective Gen Z employees when it comes to technology in the workplace. Now, the challenge will be for manufacturers to bridge the gap in understanding the roles available and the skills needed for those roles, as well as emphasizing the stability of a high-growth industry to get top talent through the door.
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