Labor Shortage Issues Within the Manufacturing Industry: KFI Staffing’s Innovative Approach

What sets apart a successful business from a less successful business? Several possibilities may come to mind, but the heart of any business is the employees. Whether it’s working on the production floor or overseeing heavy machinery, these employees help ensure day-to-day operations run smoothly. Not only is it important to have employees you can trust, but retaining those employees is a key factor. As mentioned in our last blog, Top Employee Retention Strategies: Keeping Your Employees Engaged and Productive, there are many ways to ensure employee success.  

Not only is retaining employees an obstacle faced by the manufacturing industry, but the hiring process in itself can present difficulties. With over 80 years of combined experience, our team is composed of seasoned staffing industry experts. We understand the complexities of a wide range of manufacturing industries, ensuring that our solutions are tailored to meet the needs of each partner we work with. 

What is the #1 Problem the Manufacturing Industry Faces? 

As mentioned earlier, employees are the heart of the manufacturing industry. As demand continues to increase, the manufacturing industry has also seen an increase in employee turnover rates as they have grown from 30.6% in 2017 to 39.9% in 2023. Therefore, labor shortages are a pressing concern because they can halt production, decrease revenue, and slow business growth. Over the long term, this increase can slow economic growth and industrial advancements. Shortages can also lead to overworked employees, causing burnout and affecting their overall well-being.  

Addressing this issue is not only important to ensure the stability of the manufacturing industry, but it’s also critical for employee retention. From a wider lens, labor shortages are not just about solving a business problem but also about maintaining the health of the economy and the livelihoods of the workforce. 

How Does KFI Staffing Fix This Problem? 

When starting a new job, there are many external factors that can make the process intimidating. Whether it be relocating, learning the ropes of the new role, or transportation to and from work, these aspects add a layer of stress. According to Habitat for Humanity, one reason why manufacturers are struggling to retain employees is due to the struggle of finding affordable housing. Supporting employees within work hours is a non-negotiable, but how does supporting them outside of work enhance the quality of work they produce? 



Recent studies show that 83% of workers who do not feel secure about their job are less likely to stay. At KFI Staffing, we go the extra mile by assisting employees with their housing and transportation needs, enabling them to feel secure and excel in their new roles. This added sense of security extends beyond the workplace to eliminate concerns about housing and transportation stability. KFI Staffing ensures your talent is set up for success by making sure your employees’ basic needs are met to enhance job security and foster a strong sense of job satisfaction. 


The success of any business, particularly in the manufacturing industry, relies heavily on its workforce. The ability to source, retain, and support dedicated employees is critical to maintaining operations, driving revenue, and fostering long-term growth. Labor shortages in manufacturing can be detrimental to both induvial production and the economy. Not only do they halt production, but they also place excessive demands on existing employees. KFI Staffing recognizes these challenges and, with over eight decades of combined experience, offers innovative solutions that set us apart in the staffing industry. Our approach extends beyond placing individuals in roles; we address the personal needs of employees. Our commitment to going the extra mile ensures that employees are well-equipped for success, which, in turn, sets our clients up for long-term sustainability. 


Top Employee Retention Strategies: Keeping Your Employees Engaged and Productive

Employee retention is a critical factor in the success of any organization; however, retaining hardworking and motivated employees is even more sought after. High turnover rates can lead to increased costs, decreased productivity, and a loss of expertise. Rather than spending the time, energy, and money training new employees, understanding how to retain top talent is more important than ever. Understanding effective employee retention strategies is critical for keeping employees engaged, motivated, and committed to the organization’s long-term success. Although many strategies can be effective in retaining employees, here is a look into the values and strategies KFI Staffing implements to develop internal success. 

1. Positive Company Culture  

Employees are more likely to stay with an organization that prioritizes their well-being, emphasizes work-life balance and fosters an inclusive atmosphere. Not only do these values lead to higher productivity, but the quality of one’s work increases when surrounded by supportive work conditions. Similarly, encouraging teamwork, celebrating achievements, and using positive affirmations help to create an engaging atmosphere that allows for employee success. At the end of the day, creating and fostering a strong, supportive team will drive production.  

2. Provide Opportunities for Growth and Development 

Investing in employees not only enriches the employees themselves, but allowing them unique opportunities to learn from certificates, training sessions, mentorship programs, or offering college reimbursement directly impacts the company. This commitment to learning benefits the employee and offers a fresh perspective for the company. It can be easy to become stuck in the past, but when you’re investing in your employees and providing them with opportunities to enrich their skills, it allows for the flow of new information. Offering employees the chance to improve their skills also helps ensure that your company stays up to date with industry trends. When providing employees with a clear path for growth, they are more likely to stay and contribute their best efforts. 

3. Recognition and Rewards 

Recognizing employees for their hard work and achievements can significantly boost morale and create an understanding that the company acknowledges each employee. Implementing a recognition program that acknowledges outstanding performance, whether through verbal praise, awards, or bonuses helps show commitment to your employees. Feeling valued and appreciated encourages employees to remain committed to their roles and the organization.                       

4. Establish Clear Communication Channels

Effective communication is key to a productive work environment. Creating open channels of communication where employees can voice their opinions, concerns, and suggestions is a non-negotiable for success. Regularly engaging in one-on-one meetings to understand their needs and aspirations helps employees feel heard and allows them an opportunity to voice their concerns. Similarly, acting on this feedback demonstrates that their opinions matter and contributes to a more engaged workforce.

5. Build Trust and Transparency 

Trust is the foundation of any successful workplace. The more transparent and open you are allows employees to feel comfortable and opens the door for transparency in decision making. Be transparent in your decision-making processes, company goals, and performance expectations. When employees trust their leaders and feel included in the organization’s vision, they are more likely to stay committed. 

Conclusion: Top employee retention strategies go beyond offering competitive salaries; they involve creating a positive, nurturing work environment that values employee growth, recognizes achievements, and fosters open communication. Investing in these strategies not only helps in retaining top talent but also boosts productivity, employee satisfaction, and overall company success. A happy and engaged workforce is the backbone of any thriving organization. By implementing these strategies, your company can build a loyal and committed team ready to contribute to your long-term goals.