October 3, 2024 | Insurance, Leadership, Our Thinking, Sustainability
Driving Cultural Transformation in Insurance Companies for Sustainable Success
Hiring challenges in the manufacturing sector have yet to ease. In a recent report, the National Association of Manufacturers found 67.6% of industrial businesses are presently struggling to attract and retain a high-quality workforce—making talent strategy the most widespread challenge in the industry.
The surging demand for and diminishing supply of skilled workers has certainly exacerbated hiring difficulties. However, the trend across all seniorities has shifted. Despite once boasting decades-long tenures, the industrial C-suite is now experiencing faster turnover than ever.
Manufacturers can no longer afford to begin their recruitment and retention efforts when urgent needs arise. The stakes are high—and establishing an ongoing employer branding strategy is essential to securing vital talent for the future.
The employer brand—a culmination of an organization’s core values, culture, and reputation—has always been intertwined with business performance. In order to streamline operations and drive strategic growth, manufacturers need top performers who can push critical initiatives forward. This requires positive perceptions of the organization and its dedication to fostering a supportive work environment.
An effective employer branding strategy empowers companies to control these perceptions—building an image that not only attracts quality candidates, but also effectively reduces the time and resources required to recruit manufacturing talent. In fact, a positive employer brand can lead to a 50% reduction in average cost per hire; a negative one increases expenses by 10%. An organization’s reputation is its differentiator in tight labor markets, where competitive pay alone won’t suffice.
Employer branding is directly tied to employee engagement, as well. When workers are satisfied with the alignment between their promised work environment and their lived employee experience, it enhances loyalty, turnover, and productivity. According to Gartner, companies that deliver on their employee value proposition can decrease annual turnover by 69% and increase new hire commitment by almost 30%. Branding, when realized, becomes a powerful retention tool.
As consumers evolve into omnichannel buyers, candidates are increasingly engaging with potential employers across platforms. Traditional employer branding—which often relegated messaging to careers pages and job descriptions—is no longer sufficient. The modern professional leverages everything from product pages and annual reports to employee reviews and social media to establish their “truth” about the organization and workplace.
Manufacturing executives in particular are savvy researchers who seek a consistent, compelling narrative about the employee experience, stretching across all potential talent touchpoints. The authenticity of this narrative depends on alignment between the company’s brand messaging and actual culture. With strong calibration, the right messaging is naturally weaved into recruitment materials, marketing collateral, candidate conversations, and similar touchpoints.
So, what cultural elements should manufacturing leaders prioritize and center their employer brand around? Professional development is a critical piece. SHRM reports 68% of workers would stay with their employer their entire career if they provided active upskilling opportunities. At Stryker, an emphasis on leadership training, mentorship, and performance reviews have strengthened retention and engagement across seniorities.
A Mercer study also found a growing desire for well-being and transparency. Implementing and highlighting initiatives such as comprehensive mental health support, open communication practices, and flexible work arrangements can fuel a positive employer brand.
Technological disruption has become a core part of the manufacturing industry. The rapid development of AI, IoT, and robotics has made advancement a critical concern for both leaders and employees—and integrating innovation into the employer brand can help industrial companies stand out to top talent long-term. Today, 60% of manufacturing workers would take a pay cut to work in a technology-forward factory.
Companies can strengthen their future readiness by emphasizing their commitment to cutting-edge technology and continuous improvement as a core element of their identity. This involves showcasing their investment in advanced tools and systems, embracing a culture of experimentation, and highlighting opportunities for employees to engage with new technologies. By positioning themselves as leaders in tech adoption, manufacturing executives can attract and retain high performers who are eager to contribute to groundbreaking projects—or even those who are concerned about the longevity of underdeveloped businesses amid automation and economic volatility.
Employer branding influences more than how candidates and employees engage with the brand; it also shapes their own sense of purpose in the workspace. Understanding this is critical—McKinsey reports the alignment of personal and organizational purpose is a key driver of loyalty, engagement, and referrals. Many businesses have wisely shifted their employer brand to reflect the growing interest in environmental, social, and governance (ESG) initiatives across the broader consumer market.
Diversity, equity, and inclusion (DEI) initiatives have become central to many industrial brands. In the historically homogenous manufacturing sector, employers are increasingly emphasizing inclusive hiring practices and internal programs to attract and retain broader talent pools. For example, Kyndryl has established employee-led resource groups centered on shared identities to promote equitable progress—showcasing DEI as a core value and strategic priority. Safety initiatives, which similarly demonstrate employee care, can also strengthen employer branding strategies.
A focus on sustainability can also strengthen manufacturers’ ethical reputations. Consumers—and therefore, leaders and employees—are growing increasingly aware of the supply chain’s impact on the environment. Organizations that actively prioritize sustainability in their brand messaging and culture can cultivate a meaningful sense of purpose for top talent. Stephen Gould, for instance, releases an annual corporate social responsibility (CSR) report detailing developments in its sustainable packaging and manufacturing processes, recycling programs, and energy management.
Employer brands that are activated through tangible business and culture initiatives will continue to strengthen perceptions, purpose, and—as a result—talent acquisition and retention in coming years. How will your manufacturing company elevate its employer branding strategy?