Five critical HR challenges in manufacturing

1. Learn about five important
challenges manufacturers
face in HR and how Sage
HRMS can help.
Sage HRMS
Five critical HR
challenges in
manufacturing

2. Table of contents
An overview of the five challenges 3
1. The growing skill gap 3
2. Recruiting and retaining talent 3
3. Changing compliance requirements 4
4. Unionized workforce payroll requirements 4
5. Workplace safety requirements 5
How Sage HRMS can help 5
Tackle your challenges with Sage HRMS 5
Sage HRMS
Five Critical Challenges in HR for
Manufacturing
2

3. An overview of the five
critical challenges
The manufacturing industry has changed dramatically over the last decade. It’s more
dynamic and high-tech than ever before and has returned as a driving force behind U.S.
economic growth. Manufacturing is now more about things like advanced robotics, 3D
printing, and digital everything—which presents unique workforce challenges.
According to a recent Brookings Institution report, 60% of jobs posted in manufacturing are
seeking workers with advanced STEM (Science, Technology, Engineering, and Math) skills.
Unfortunately, those jobs are left unfilled for longer periods of time. And though the industry
is experiencing steady job growth, analysts say that overall growth is being held back by a
large skills gap.
In addition, the manufacturing industry is facing an aging technology infrastructure. In order
to meet increased compliance needs and the expectations of younger workers, businesses
need to modernize. Here are the top five challenges human resources professionals are
facing in the manufacturing industry.
1. The growing skills gap
According to the U.S Department of Labor, the average age of a highly skilled worker is 56.
As the industry continues to grow, and the skilled workforce retires at its present rate, the
talent shortage will only worsen. Competition for skilled workers will increase as options
expand for those who have highly sought after skills and experience.
To be successful, manufacturers need to attract and train the next generation of workers
now. By 2025, Millennials will make up 75 percent of employees in the global marketplace.
This generation is tech savvy and will be frustrated by disconnected and outdated
technology. Manufacturers need to stay on top of the latest trends and provide mobile tools
and self-service technology in order to stand out from the competition.
2. Recruiting and retaining
talent
According to the U.S Department of Labor, the average age of a highly skilled worker is 56.
As the industry continues to grow, and the skilled workforce retires at its present rate, the
talent shortage will only worsen. Competition for skilled workers will increase as options
expand for those who have highly sought after skills and experience.
“The demands of
renewed growth amid
persistent skills gaps
necessitate a
stronger focus on
retention and internal
training, even as
firms seek out new
opportunities in
recruiting talent.”
Brookings Institute Report
Sage HRMS
Five Critical Challenges in HR for
Manufacturing
1- Muro, Mark, Rothwell, Jonathan, Andes, Scott, Fikri, Kenan, and Kulkarni, Siddharth, “America’s Advanced
Industries: What they are, where they are and why they matter,” Brookings Institute, February 2015
2-“Current Issues in HR: Closing the Manufacturing Skills Gap,” SHRM Foundation Executive Briefing 3

4. 2. Recruiting and retaining talent (continued)
To be successful, manufacturers need to attract and train the next generation of workers
now. By 2025, Millennials will make up 75 percent of employees in the global marketplace.
This generation is tech savvy and will be frustrated by disconnected and outdated
technology. Manufacturers need to stay on top of the latest trends and provide mobile tools
and self-service technology in order to stand out from the competition.
It’s also important not to overlook talent within your own organization. A recent SHRM
report predicts that hiring in the manufacturing industry will rise 10.4 percent, but
recruiting difficulty will increase by 14.1 percent. Before you start recruiting to fill a vacant
midlevel or high-profile position, assess your current team. With the right training,
promoting that employee could save you both time and money.
3. Changing compliance
requirements
While government compliance requirements as a whole aren’t new, there are many new
regulations and changes your company needs to be ready for. For example, an important new
phase of the Patient Protection and Affordable Care Act (PPACA) is being implemented in
2015. This year companies must ensure accurate categorization and documentation of
employees and benefits. It is essential that HR professionals know the differences between
part-time, contract, and seasonal workers so that it is properly documented in order to avoid
penalties.
In order to ensure accuracy of your employee records, there is also an increased need to
automate benefits administration, including online enrollment and enable employees to
make changes with a secure login.
4. Unionized workforce
payroll requirements
According to the U.S. Bureau of Labor Statistics, 11.1 percent of wage and salary workers
were union members in 2014 across all industries. While numbers can vary by industry and
state, it’s important for all manufacturing businesses to handle union deductions and pay
scale differences accurately and efficiently.
To prepare the necessary reports, payroll must calculate wages, deductions, and fringe
benefits which can be complicated and time consuming. Your company is responsible for
reporting the collection of union dues, welfare payments, training contributions, and more.
It’s critical to keep track of every detail in order to ensure the accuracy of certified payroll
reports. Using an automated system can help ensure you have everything you need to stay
compliant.
SHRM’s 2014 Economic
Conditions Survey
states 60 percent of
manufacturers have
had difficulty recruiting
for key positions in the
past 12 months.
Sage HRMS
Five Critical Challenges in HR in
Manufacturing
3 -“A Mixed Hiring Outlook at the Start of 2015,” SHRM Leading Indicators of National Employment, January 2015.4
Footnote copy, as needed.
4-“Union Members 2014,” Bureau of Labor Statistics, U.S. Department of Labor News Release, January 23, 2015 4

5. 5. Workplace safety requirements
There are many regulations associated with workplace safety in the manufacturing industry. HR professionals must ensure that
necessary training is completed on time and industry certifications remain current. This can often prove challenging to keep up
with rolling expiration dates and changing requirements. For example, OSHA requires that emergency action and fire prevention
plans are made available to every employee. Using talent management technology, manufacturers can track and manage
employee learning and development and make training materials and other information available online so that employees can
access this information when needed.
How Sage HRMS can help
All too often, HR professionals are being pulled in many directions at the same time and it can be difficult to manage changing
priorities. A comprehensive HR management solution can help you gain control over all the details and give you the visibility you
need to make sure you hire and retain top talent and stay compliant with regulations.
Sage HRMS enables you to decisively meet and respond to HR challenges. With integrated payroll, benefits, recruiting, employee
self-service, and more, Sage HRMS helps you maximize every dollar you invest in employees. We call this the Return on Employee
Investment.
Tackle your challenges with Sage HRMS
1. Beat the growing skill gap – Get access to workforce analytics so you can make better decisions faster.
2. Effectively recruit and retain talent – Manage the entire recruiting process and employee lifecycle, from learning
management and performance measurement to succession planning.
3. Meet changing compliance requirements - Ensure government compliance to avoid company risk in meeting
federal and state rules, regulations, and reporting requirements.
4. Comply with union payroll requirements – Stay in compliance through quarterly updates, ensure accurate
reporting, and simplify payroll processing with advanced customization capabilities that allow you to handle payroll
your way.
5. Satisfy workplace safety requirements – Track learning needs based on specific job requirements, deliver targeted
training, and provide proof of completion to remain compliant.
Ready to learn more?
Contact your Sage HRMS business partner to learn more about Sage HRMS and how this flexible, customizable human
resources management solution can benefit your business while helping you meet your industry challenges. Visit
www.SageHRMS.com to take a tour of the product.
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