Crafting A Competitive Edge In Manufacturing With Worker-Friendly Environments

Companies continue to increase their use of advanced technologies to streamline processes and boost productivity. But technology alone can’t solve the industrial sector’s labor shortage problem.

According to the 2024 National Association of Manufacturers’ Outlook Survey, more than 71% of manufacturers said their top challenge is the inability to attract and retain employees. That challenge may get worse with manufacturing workers having a median age of 44. In Soter Analytics’ recent “Gen Z Industrial Work Report,” only 14% of respondents said they’d consider a career in manufacturing. Yet, forward-thinking companies recognize they have a powerful, underutilized tool to attract and retain new employees: the impact of their physical environment on employees’ health and well-being, which improves overall workforce satisfaction. A focus on workplace design and amenities is proving transformative in the quest to attract and retain talent in the manufacturing sector.

Traditional manufacturing environments aren’t designed for workers

Traditional industrial facilities are designed around the production lines they house and the products and materials they produce. Their layout and design focus on the machinery and processes required for production, with little consideration for the human element. Non-manufacturing spaces, such as break rooms, lockers, and offices, are afterthoughts crammed into leftover corners so as not to interfere with the assembly line. It’s common to find the cafeteria a 15-minute walk away from the assembly floor for workers with only a 35-minute lunch break.

The perception of the dark, dingy factory is well-earned. Assembly floors are often artificially lit, windowless areas with poor ventilation. This industrial aesthetic reinforces manufacturing’s reputation as hard, dirty work. Companies have difficulty attracting and retaining workers when candidates and employees experience an environment that embodies these negative stereotypes. A quarter of Soter Analytics’ “Gen Z Industrial Work Report” respondents believe manufacturing work conditions are unsafe. The same report also found that 26% of respondents consider industrial work a short-term option, not a career choice. These responses underscore the need and opportunity to design manufacturing facilities that emphasize worker well-being and experience alongside production efficiency.

Elements of excellent workplace design

A facility’s design reflects how it values its people. Companies can communicate to employees that they value their contribution and well-being with energizing surroundings and attractive amenities. A study by Future Workplace, a research and advisory firm, found that employees prize natural light and a view of the outdoors more than other perks like cafeterias and fitness centers. Additionally, inadequate ventilation is connected to poor concentration and increased employee absenteeism. Good air quality and natural lighting are critical to protecting employee health and well-being. Whether consciously or not, employees in a healthy workplace feel more motivated and loyal because they enjoy their work environment and feel good there.

Cafeterias, break rooms and restrooms aren’t afterthoughts in a facility concerned with the employee experience. They should be comfortable spaces that all employees can easily access. Break areas and cafeterias should provide employees with a genuine respite from their work. Instead of inundating them with company branding and work messages that create visual noise, these areas should offer a calm, uncluttered environment that allows workers to recharge during breaks. Empowering employees to disconnect entirely from their work environment during breaks has been shown to lower their stress levels and combat fatigue. Workers who feel less stressed or tired are less likely to get burned out. Avoiding burnout improves retention rates. Workers who feel burned out “are nearly three times more likely to be actively searching for another job.”

Biophilia or a connection with nature is an increasingly prized touchstone. This could mean indoor plants, outdoor seating areas, views of landscaped grounds or even hiking trails for an industrial facility. These features help employees relax and refresh and have been shown to reduce absenteeism and improve engagement.

A well-designed facility offers multiple strategically placed outdoor spaces. If there’s only one outdoor seating area, it often becomes the smokers’ corner. Areas near trash bins, loading docks or other staging areas won’t fulfill this purpose for employees either. VEGA Americas, a process instrumentation manufacturer, designed its new research and development park, including a 129,000-square-foot advanced manufacturing facility with considerable natural light, large windows, viewable and walkable landscapes and quality employee spaces. Once it moved into the new building, the company saw its employee retention rate jump to over 90% from the mid-1970s 70% range in the older facility.

Obstacles to building industrial spaces that attract talent

Typically, the lion’s share of a facility’s budget is allotted to process and production because these areas are prioritized during the design phase. Facility managers, competing internally for new production to come to their site, focus on operational efficiency over employee experience. There’s little interest in capital investment not directly tied to that production line, so the cafeteria never gets renovated and the   outdoor space isn’t landscaped. Amenities and aesthetics are often seen as costs to minimize, allowing additional resources for production-related expenses.

This narrow focus can be counterproductive. Suppose a company can’t add a second shift because it can’t hire enough people. In that case, running at 50% capacity will far outweigh the costs of installing windows in the manufacturing area and providing healthy vending machine options in the cafeteria.

Another major obstacle is the absence of human resources (HR) in the planning phase. When HR is involved, it’s often a half-hour meeting to discuss projected headcounts. Instead, it’s vital for HR to be part of the discussion from the first vision meeting and throughout the design phase. HR can offer insights based on what it learns from employees who quit and applicants who decline job offers. HR representatives can provide specific information about what building facilities, work conditions and lack of amenities influenced these decisions and what these people would prefer to see in a workplace they’d want to visit every day.

Quick wins for workplace design and the 10-year strategy

Existing workplace environments can be improved. Many employee-friendly elements don’t have to wait for a major renovation or a new build. Lighting fixtures can be cleaned or upgraded to modern LED systems that provide a more natural light quality. A light color will brighten the entire space if the floor needs a new epoxy coat. Even painting the walls bright white is a quick win that will liven up the manufacturing floor. HR can identify areas with the most complaints so companies and designers can target the changes with the greatest impact.

Quick wins will be easier to identify when the company has a longer vision for the facility. Developing a 10-year vision for existing and new facilities considering future production needs and evolving employee expectations is a valuable guide. Only with a master plan in place can companies integrate thoughtful placement of amenities within the manufacturing process flow. These planning discussions can address how to ensure employees can realistically access immediate and future break rooms, outdoor patios and restrooms during breaks.

Some companies establish a separate corporate budget specifically for facility upgrades that aren’t directly tied to the manufacturing processes. A dedicated fund for employee quality of life upgrades helps companies avoid the trap of continually deferring investments in the work environment.

Employee-centric environments are integral to operational success

Advanced manufacturing is moving away from dust-laden environments to clean, robotics-driven spaces. It’s time for the manufacturing spaces to evolve as well. When the worker’s experience is considered during the design phase, the resulting workspaces can become a competitive advantage in recruitment, retention and operations. Companies that prioritize workforce well-being through thoughtful environmental design create a more appealing workplace for younger generations while fostering a more productive and engaged workforce overall.

This article was originally published by Plant Engineering.

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