Owners of manufacturing companies know first-hand just how rewarding careers in this sector can be, both financially and intellectually. However, our young talent may not realize the benefits a factory can offer. Manufacturing companies are having to find creative ways to breathe new life into their mature companies by enticing millennials — roughly defined as people born between 1982 and 2000 — to join their workforces.
Offer value-added work environments
Millennials tend to be more technology savvy and innovative than previous generations, according to executive feedback reported in the 2014 Duke University/CFO Magazine Global Business Outlook Survey. Hiring workers with such attributes can give a manufacturer the creative edge it needs to out-maneuver competitors.
As an added bonus, younger workers tend to have lower salary expectations and value nonmonetary perks and benefits over cash. In fact, 45% of millennials prefer flexible work environments over pay, according to the Millennial Branding Report published by Professional Development Services, a career-building firm. They want to choose when and where they work, rather than working traditional 9-to-5 jobs. Many young people also seek careers that provide a sense of personal fulfillment.
Examples of offerings that appeal to millennials include flextime arrangements, mentoring programs, and additional training and licensing opportunities. For example, a millennial worker may be incentivized by a year-end bonus program that’s based on developing innovative solutions to lower costs and waste (lean manufacturing) or improve product quality (six sigma principles).
Stay ahead of the technology curve
Technology is an important part of the daily life of millennials — and they know how to use it to improve efficiency. Millennials are also likely to try to integrate intuitive devices and online services used in their personal lives into the workplace, such as tablets, video chat, social media and cloud computing.
Managers can leverage millennials’ deep understanding of technology by involving them in purchasing decisions. Some forward-thinking manufacturers have even added millennials to their boards of directors to increase diversity and offer fresh, technology-driven perspectives on such issues as strategic investment decisions and data security.
Recruit and mentor
So how do you attract millennials to your workplace? Young people today face a tighter job market compared to previous generations. But there’s an ongoing talent gap in manufacturing, especially high-tech niches. Proactive high school and college academic advisors are often instrumental in directing students toward careers in high-demand manufacturing sectors and recommending apprentice or internship programs.
Many businesses and schools work together in Project Lead the Way (PLTW) programs that start preparing students for science, technology, engineering and math (STEM) careers as early as kindergarten. Today roughly 6,500 schools operate PLTW programs in all 50 states.
Manufacturing companies are a key partner in PLTW programs. For example, owners and managers may mentor students and teachers, companies may lend technology equipment to community colleges and high schools, and human resource departments may offer apprentice or internship programs.
Not only do PLTW programs offer opportunities for manufacturers to give back to local communities, but they also create a source of workers trained in STEM disciplines that they can draw from in the future. And money spent on these training programs may be deductible for income tax purposes — and, in some cases, may generate federal and state tax credits that could be refundable or carried forward to future periods.
Manufacturers and millennials can be a winning combination. But first manufacturers need to refresh the sector’s image by promoting flexible work options and personal development opportunities, investing in millennial-friendly technology and participating in PLTW programs. Contact your financial advisor to brainstorm creative solutions and maximize the tax benefits of attracting and hiring millennials.