Bridging the Gap: How Manufacturers Can Attract and Retain Gen Z Workers

Despite its reputation as one of the happiest industries to work in, manufacturers face a significant challenge—attracting and retaining Gen Z talent. As more members of Gen Z (born between the late 1990s and early 2010s) enter the workforce, traditional strategies like offering higher wages alone aren’t enough to capture their interest. To remain competitive in today’s labor market, manufacturers must rethink their approach to the younger workforce.

Manufacturing’s Strengths as a “Happy Industry”

A recent survey evaluating employee satisfaction across 200 companies, published by Glassdoor, ranked manufacturing third in terms of overall employee happiness. Factors like diversity and inclusion, work-life balance, and competitive compensation contributed to the sector’s strong performance. Manufacturing earned the highest score of any industry in diversity and inclusion, with a score of 77.9 out of 100. In addition, entry-level manufacturing jobs tend to offer higher pay than similar roles in other sectors, and employees often benefit from robust job security and career advancement opportunities.

But despite these strengths, manufacturers are finding it increasingly difficult to attract Gen Z workers. According to research by McKinsey & Company, only 7% of the current manufacturing workforce is made up of Gen Z workers, a number that has actually decreased in recent years.

The Challenge of Attracting Gen Z Workers

McKinsey’s research highlights that Gen Z’s workplace priorities differ significantly from older generations like Boomers (born 1946–1964) and Gen X (born 1965–1980). While Boomers and Gen X workers tend to prioritize salary, Gen Z places greater emphasis on factors such as workplace flexibility, meaningful work, and opportunities for career development. For this generation, compensation ranks lower in importance, with career advancement and supportive work cultures playing a far more significant role in their job satisfaction.

The research also indicates that nearly 48% of Gen Z workers in manufacturing plan to leave their jobs within six months. This high turnover rate suggests that traditional incentives like pay raises are not enough. Gen Z workers want environments where they feel respected, can learn new skills, and can contribute meaningfully—factors that are not always prioritized in traditional manufacturing settings.

Effective Strategies for Retaining Gen Z Talent

To better align with Gen Z’s priorities and effectively attract and retain this generation, manufacturers need to adopt strategies based on McKinsey’s findings. Here are three key approaches that can help:

1. Reimagining Work Structures: Flexibility is crucial for Gen Z workers. McKinsey’s research reveals that rigid schedules, such as 12-hour shifts commonly found in manufacturing, often discourage younger workers. Companies that introduce more flexible work schedules, whether through shorter shifts or options for part-time work, will find it easier to attract Gen Z talent.
2. Fostering Career Growth and Meaningful Work: According to McKinsey, career development is a top priority for Gen Z. They want to see a clear path for advancement and feel that their work contributes to something greater. Manufacturers can address this by providing well-defined career pathways, continuous skill development opportunities, and roles that allow workers to take ownership of projects.
3. Building Supportive Leadership and Mentorship: McKinsey’s findings highlight the importance of leadership that fosters respect, psychological safety, and professional development. Gen Z values leaders who can mentor them, help them grow, and create environments where they feel their contributions matter. Manufacturers can improve retention by investing in leadership training for supervisors, focusing on developing supportive, mentorship-based relationships with younger workers.