“The most valuable assets of a 20th-century company were its production equipment. The most valuable asset of a 21st-century institution, whether business or non-business, will be its knowledge workers and their productivity.” -Peter Drucker 

In the manufacturing industry, employees are more valuable than ever. Technology and automation may have phased out some roles, but those that remain carry more responsibilities than ever. To make sure that you are getting the best candidates for these roles you have to offer a good compensation package. Here’s why: 

Paying above average salaries results in above-average outputs.

The best engineers, managers, salespeople, and everyone in between are always in hot demand. A good compensation package is one of the main things these people consider when choosing where to work. Offering an above-average salary will help lure top talent, who can significantly increase your business’s productivity. On the other hand, companies that do not offer a competitive compensation package can put themselves out of contention when sourcing top talent.  

Higher salaries also incentivize a culture of higher output. When people see that they are getting paid more than their counterparts at other companies, they will work harder to demonstrate that they deserve that money. When you get the best team members who are eager and happy to work, your company’s productivity increases. Consider this scenario: You’ll have five outstanding team members that can accomplish what 8 less engaged and less talented team members in another company can.

High Turnover rates are more expensive than you think they are.

The longer someone is at your company, the better they understand the systems, norms, and mission. This makes them more productive and eager to create stronger teams and bonds in your workplace. When a company doesn’t keep up with the current industry compensation rates, employees will start feeling unhappy and unsatisfied and will ultimately quit. Losing employees is not just a decrease in manpower, the company also loses that person’s skill, experience, and knowledge that you can’t easily replace. The company will also lose productivity each day the role is not filled. You will also disrupt the team dynamics that have been in place: project timelines will suffer, which will cost the company additional time and resources to resolve. 

Increasing employee salaries will be painful at first. If you look at it in the short term — It will mean less profit for your business, but the long term effects will not only improve company culture and happiness but also save you money.

Your most important assets are your employees!

Most companies don’t realize that employee satisfaction significantly affects the business’ bottom-line. Your employees drive your business forward, so if their income impacts their stability in some way, it’s going to impact your productivity. This means your employee’s salary is directly related to your company’s success. Change your perspective: Look at your employees as an appreciating asset! Satisfied employees who enjoy working in your company becomes more valuable over time as they acquire new skills, knowledge, and experience. Change your perspective: Look at your employees as an appreciating asset. 

Companies often overlook the expense of replacing a team member. Re-staffing comes with an additional cost burden. Finding a good candidate to replace a seasoned employee won’t be easy. The recruitment process takes up a lot of time and resources like developing and publishing a job ad, screening applications one by one, Interviewing candidates, sending out rejection letters, onboarding, and training. Hiring the wrong person is another cost of its own — the additional expense for recruiting again and the impact it will leave in your workplace.

ISS Executive Search Partners specializes in direct-hire recruiting globally in the Manufacturing Industry for all functions. ISS Executive Search Partners has the industry expertise and knowledge to help you hire the right person the first time. We believe in building partnerships that allow our firm to directly align with your organization’s values, processes and brand image. Our approach is consultative and strategic. Our goal is to find the best talent. Our process and strategies are clear, precise, methodical, consistent and successful! Let me share in detail what that looks like and how we can add value to your organization’s recruiting initiatives. 

Looking to hire your next team member? Get in touch with us!