It is becoming increasingly difficult to attract and attain blue-collar workers. Recent data shows the blue-collar sector is facing significant talent shortages and high turnover rates. For example, on the final business day of January 2024, there were 8.9 million job openings available. Businesses are currently dealing with one of the toughest job markets ever. With unemployment rates at an all-time low, employee turnover hitting record highs, and job openings exceeding 10 million, it’s really hard to stand out and attract the best candidates. It is necessary for companies to understand and adjust to the changing expectations of workers if they want to attract and keep good talent, and businesses need to reconsider their usual job setups to remain competitive. It is important that as we head into 2025, we are looking at new strategies for overcoming hiring challenges. Read below and join us in our upcoming webinar to learn more about how professionals are overcoming these challenges and the accompanying insights.
Understanding the Gen Z Workforce
Gen Z employees are experiencing an all-time high level of burnout. Studies show that 83 % of Gen Z on the front lines are experiencing burnout, compared to 75% of all frontline employees. Additionally, more than a third of Gen Z have stated they would leave their jobs due to the negative impact on their physical and mental health. This sets off some alarms for overall retention rates. As a significant 72% of Gen Z employees believe that their interactions at work have a harmful effect on their mental well-being, addressing burnout and mental health is essential to retain Gen Z employees.
The majority of Gen Z say they are not interested in industrial work. The blue-collar sector is having a tough time attracting Gen Z workers, with only 14% expressing interest in pursuing careers in industrial jobs. However, there may be some ways to increase their interest. For example, there is potential financial motivation. Studies also show that 46% of Gen Z workers say that pay is their top consideration, and 29% would consider industrial roles with above-average wages. Another value of Gen Z employees is the opportunity for career progression. About 32% would be open to industrial work if it offered paths to corporate positions. Gen Z is also often hesitant to try blue-collar work because they believe the field does not offer adaptable positions, with 26% saying that they don’t believe the industrial sector offers flexible hours. All of these beliefs have a huge impact on the attraction of the field. This also shows the importance for employers to offer competitive wages, career advancement opportunities, and flexible schedules to successfully attract Gen Z talent.
Evolving Expectations and the Need for Flexibility
In recent years, there has been a noticeable shift in work preferences. Candidates are increasingly prioritizing flexibility, work-life balance, and meaningful work environments. The pandemic had a lot of effects on the workforce. Since the pandemic, workers have been reevaluating their job priorities. They now expect more flexible work options and professional development. In fact, it is now the second-most important factor for Gen Z when choosing an employer. Other values may be changing as well. For example, over half of frontline workers say they would prefer additional vacation time over a pay raise. Employers may have to accommodate these preferences if they want to attract and attain employees for this generation.
Since flexibility is a top priority for Gen Z candidates, and more than a quarter of them think the industrial sector lacks this capability, it is now up to employers to explore flexible scheduling options and shift variations. They may have to implement policies that better support work-life balance to make these positions appear more attractive. There are some other benefits from these changes as well. For example, more flexible hours improve employee satisfaction and reduce turnover. It may also encourage this group to work harder and more efficiently. Most importantly, companies that add the benefit of flexibility may make blue-collar roles more attractive to a wider talent pool.
Addressing Burnout and Mental Health
Burnout is not only being experienced by routine employees. One Anoxify News study shows that frontline managers are also experiencing burnout from the responsibility of hiring and training new seasonal employees. About 65% of these managers report feeling overwhelmed as busy time seasons approach because of the increased recruitment and training burdens. The same set of data shows that 38% of frontline managers have thought about quitting their jobs within the past couple of months. This burnout among both frontline workers and management leads to higher turnover rates and affects the company’s operational stability. Burnt-out workers often experience a significant decline in job performance, leading to reduced creativity, increased mistakes, absenteeism, and lack of motivation. Burnout also impairs essential thinking skills like memory, focus, and decision-making. All of this lowers job performance and can cause a ripple effect that impacts the overall health of the organization.
There are some ways organizations can combat and address burnout. Employees may have a better experience if their workplace creates a more supportive culture that addresses workload and stress. Companies can also provide beneficial resources to their employees, such as counseling services and mental health days. These resources can also be implemented from a management level by giving managers the tools to recognize burnout and support their teams. All of these improvements to the work environment can have a great impact on retention. These ideas often lead to reduced turnover and enhanced employee well-being and performance.
Enhancing Recruitment and Retention Strategies
Companies should focus on proactive recruitment marketing to draw in top talent and remain competitive in the job market. This strategy is how they can effectively stay ahead in the hiring game. A key element of this approach is developing a strong employer brand that reflects the company’s values and culture. This makes the position more appealing to job seekers. It is also important for companies to emphasize career advancement and training opportunities. These are often significant considerations for job hunters. Additionally, using digital platforms and social media can help reach a wider audience of potential candidates. These tools not only allow companies to share job openings with a wider audience but also let them showcase their work environment and employee experiences in a more engaging way.
Making sure frontline workers have the training training is essential for creating the best operational efficiency. Lack of training often leads to operational inefficiencies. This is why 43% of frontline managers are now turning to upskilling and reskilling initiatives for 2024 season hires. This training is important for retention. Having a solid onboarding experience and regular training helps employees do their jobs better and feel more satisfied with their work. Training and communication technology can help make this training and onboarding process go even more smoothly. These training programs have many different benefits, including the ability to improve employee competence, confidence, and loyalty.
The Role of Technology in Attracting Blue-Collar Workers
The blue-collar job market is facing difficulties in bringing in new Gen Z workers. Many Gen Z workers believe there is a stigma attached to working in blue-collar collar jobs instead of a job that requires a traditional four-year university education. Many others are not aware of the opportunities in blue-collar work, are afraid of injury, want higher pay, or are simply interested. However, new technology may be able to help with this. A recent Supply Chain Brain study showed that new tech can reduce on-site injuries by over 50% and boost productivity by 3-4%. Innovative technology can increase the appeal for younger employees. This may include technologies such as AI-driven training programs, mobile platforms, and scheduling software, and certain smart systems. This technology can be used to improve safety and efficiency, making roles more attractive.
Integrating digital tools is key to improving training and communication. They make everyday processes quicker, easier, and more appealing. For example, the technology used for training can accelerate onboarding and provide consistent training experiences. There are tools available for daily use that include customized training content presented in a more engaging, gamified way with easy communication. This technology can also improve engagement, especially for younger employees who may be more interested in interactive, tech-based training. There are also tools like AppyHere that improve the candidate experience by helping match them with ideal employers within just hours. The process works through a user-friendly app that allows employees to apply for jobs in less than two minutes. This also makes the process easier on the employers' end by finding qualified matches for them more quickly, automatically scheduling interviews, screening candidates, and more.
Wage Growth and Financial Incentives
Pay is a huge factor in employees deciding whether they want to work with a particular company or not. This is a top consideration for many employees. They want to see that they will be paid well at the start of their time in the position and that there is a chance for advancement. In fact, studies show that pay is the top consideration for 46% of Gen Z workers. Other studies show that blue-collar wages are growing faster than white-collar wages. In many cases, blue-collar fields are thriving, while white-collar sectors like technology have a less promising outlook. One of the most notable aspects of this trend is how quickly wages are rising in blue-collar sectors. These more competitive wages are credited for the rapid growth of blue-collar job interest. Competitive pay not only attracts a larger pool of candidates but also helps to minimize staff turnover.
Income inequality has been shown to be a huge factor in employee interest. Recently, there has been an educational shift. Employment has risen by 5.7% for individuals without a high school diploma in 2024 alone. This shows that there is a big demand for positions that require certain skills rather than just educational qualifications. This trend is part of a larger movement in the job market, where practical skills and experience are becoming more valued. This growth in blue-collar wages is also helping to reduce income inequality. These jobs often attract candidates by allowing them to earn competitive wages without the requirement of the typical four-year college degree. This shows that employers may be able to attract talent who might not have considered blue-collar roles before by providing above-average wages and making them aware of the opportunities that are available to them.
Conclusion
As we look toward 2025, it is clear that businesses face big challenges—and opportunities—in attracting and keeping blue-collar workers. Addressing issues like burnout, the need for flexible schedules, competitive wages, and using new technology can help companies stand out to potential employees. By working on these areas, employers can create better workplaces that meet today’s expectations and appeal to a broader range of workers.
Taking action now will help businesses stay competitive and improve the work environment for blue-collar employees. By embracing these trends, companies can make their operations more effective, enhance employee satisfaction, and gain a competitive edge against their competition in the job market as open positions increase. Proactive approaches, such as developing career pathways, offering flexible hours, and investing in digital training tools, can show employees that the company values their time and growth. When companies pay attention to their workers’ needs, they encourage loyalty and long-term commitment, which ultimately helps reduce employee turnover. A workplace that emphasizes flexibility, mental health, fair pay, and ongoing skill development is one that stands out in the crowded job market and becomes a place where employees want to stay.
If you want to learn more, don’t miss our upcoming webinar. This is a great opportunity to help you prepare proactively for the future of blue-collar employment. We will explore these challenges in detail and discuss effective strategies for hiring and keeping talent in 2025. Register here for AppyHere’s upcoming webinar to learn more and find the best ways to overcome your hiring challenges in the new year!
