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ResourceMFG | Manufacturing Workforce Specialists
5 reasons bad company culture makes labor shortages worse for manufacturers

With an aging workforce, a lack of skilled labor and an increase in turnover rates, manufacturers are scratching their heads over employee retention. All signs point to a need for dramatic change. But where to begin?

Perhaps the first thing that needs addressing in the manufacturing industry is its culture. It's not difficult to draw a line between negative company culture and the growing labor shortage.

To achieve meaningful change, manufacturers need to reinvent their core values and ensure they're distributed throughout the company altogether. Here are five reasons poor company culture is making the labor shortage even worse for manufacturers.

1. A negative culture discourages workers from performing their best
When workers don't feel supported by their company culture, there's a significant detriment to their overall performance. Positive cultures are not only conducive to productivity — they also inspire the workforce.

In fact, 47% of manufacturing executives agree that company culture is a major driver of innovation, according to Grant Thornton. In other words, when employees feel supported by their workplace, they're more likely to produce creative outcomes. This is a major asset for manufacturers struggling to mitigate a labor shortage.

2. Toxic workplace culture causes burnout
Culture and burnout are very closely tied together. The best organizations make it their mission to protect the workforce from burning out. On the other hand, toxic workplace cultures let professional pressure mount until employees reach their boiling point.

By extension, many companies with poor culture lack the necessary communication channels to support workers and provide helpful resources. Consequently, burned-out employees are quitting their jobs.

3. Lack of recognition leads to employee dissatisfaction
Any positive company culture will feature plenty of important recognition programs. When it comes to maintaining a satisfied workforce, recognizing personal achievement is an essential process.

However, many companies are dropping the ball. According to O.C. Tanner, 45% of employees feel that their organization's recognition program is stale and disconnected from what matters at their company. In other words, those companies lack understanding. In turn, dissatisfied employees are looking elsewhere for work that will actually be appreciated.

4. There's a communication barrier
In a similar vein, manufacturers may struggle to communicate with their workforce. Maintaining a dialogue without sounding disconnected is a major challenge for any organization. If a company's culture is not a communicative one, it's hard to stay on the same page. This disconnection and communication barrier results in mistakes, misunderstandings and inefficiencies.

5. It ruins your reputation
Obviously, if you can't retain employees you better be recruiting them. But if your company has a reputation for a bad company culture, you'll have a much harder time hiring skilled labor. This can be a very difficult disadvantage for manufacturers to come back from, especially if it goes on for too long.

Worst of all, those candidates you miss out on are likely being hired by competitors. To mitigate the labor shortage and stay competitive, manufacturers need to reinvent their company culture.