gen z job hopping: what’s the impact in manufacturing?

As an employer, boosting employee retention is always an important goal. During the course of their tenure, employees build up expertise and partnerships that are hard to replace when they leave. In manufacturing, this knowledge can be particularly valuable when problems arise in production.

However, the battle for retention will get tougher as the workforce is expanded by Generation Z, the generation of people born between 1997 and 2012. Gen Z workers are more willing to switch jobs than their older colleagues, and some potentially unattractive factors specific to manufacturing could make retention a major problem in this industry.

In this article, we’ll take a look at the facts around Gen Z’s job-hopping tendencies, the impact they have on manufacturing companies and the steps you can take to retain your Generation Z workforce.

gen z’s attitude to job hopping

Gen Z job hopping statistics are hard to find, but 2023 figures from HR consultancy Robert Half show almost three-quarters of surveyed 18-26 year olds were searching for a new job or planned to search for one in the next six months, higher than any other generation.

But rather than a marker of disloyalty, Gen Z sees job hopping as the natural way to progress quickly in their careers. When asked to imagine their future, Gen Z say they plan to switch careers at least three times during their working life, more than all preceding generations — and only 13% intend to stay for more than four years at their current employer.

Some employers still see job hopping as a negative quality in a candidate — but if they’re going to have a workforce in the future, they may need to change their attitude.

the challenges of gen z job hopping for manufacturers

Manufacturing employers who want to take advantage of Gen Z’s strengths may need to accept their more relaxed attitude to job hopping. But they should expect to face some challenges:

• increased hiring costs — benchmarks for the exact cost of hiring a single employee vary, but recent figures from the Society of HR Management (SHRM) put it at $4,700 (€4,200) on average. When you consider the added complexity of manufacturing roles and the practical training they require, the figure becomes even higher. If you invest it in an employee who goes on to have a long and successful career at your company, it’s money well spent. But if the new hire leaves after one or two years, you probably won’t have seen a return yet — and you have to spend the same amount training their replacement.
• worsened talent shortages — all sectors are affected by the ongoing shortage of talent, but manufacturing is being hit particularly hard. More than a quarter of European manufacturers suffer from labor shortages today, a figure that has exploded from under one in ten in 2012. A lack of qualified staff threatens daily operations and hinders expansion. When the qualified Gen Z staff that you’ve succeeded in recruiting leave the company, they take their knowledge with them — making the talent problem worse.
• weaker teams — solving problems in complex manufacturing operations requires collaboration across departments and a team with a diverse set of skills. No individual holds all the answers — instead, employees work together to find a lasting fix. This is easier to achieve with an experienced group that has a history of teamwork. But when employee turnover is high and the makeup of the team is constantly changing, it may become more difficult for them to reach an effective solution.

push factors in the manufacturing industry

Most benchmark figures on employee turnover rank the manufacturing industry somewhere in the middle — official figures from the UK and USA show that turnover in manufacturing is not significantly higher or lower than the national average.

However, when we focus only on Gen Z, we can see some unique push factors that may make them more likely to switch to a new job after a short period of time:

• Many working members of Gen Z entered the workforce during the pandemic, when remote work became a daily reality instead of just a sought-after benefit. So it’s not surprising they’re much more likely than older generations to see remote work as a dealbreaker when looking for jobs. The necessity of on-site work in manufacturing roles is likely a major factor that causes Gen Z employees to leave the industry.

• Manufacturing suffers from an image problem. Many young workers believe progression opportunities in manufacturing are low, and the industry has an environmentally unsustainable reputation. It’s unsurprising that members of Gen Z who value career advancement and sustainability are more likely to want to move to other industries. 
• Deloitte research into Gen Z’s career ambitions found they aspire to work in companies and industries they recognize from their personal lives. That’s fine if your company manufactures a recognizable product, but if you specialize in niche B2B products, you might struggle to get Gen Z excited. Effective communication and employer branding can help, but Gen Z employees may still be pulled towards other companies.

find out what motivates gen z in the workplace

If you want to attract more Gen Z workers and increase retention among the Gen Z employees you already have, you need to make some changes in your organization. Gen Z share basic needs like acceptable pay and enjoyable work with the rest of the workforce, but there are some unique Gen Z values that set them apart from their older colleagues. Download our infographic on Gen Z’s top career motivators to uncover the basics, and feel free to rebrand and reuse it in your own presentations when trying to make your recruitment process more Gen Z-friendly.