HR Manufacturing: A Complete Guide for Employers

The manufacturing industry is fast-paced, tech-led, and economically driven. With its sector-specific laws and regulations, employers need to establish business continuity, staff satisfaction, and consumer demands cohesively.

That’s where your human resources department comes in. With their assistance, employers will be able to keep on top of statutory laws, sector regulations, and daily duties for their overall business.

In high-risk industries like manufacturing, any flaw found within your HR practices could lead to disastrous outcomes. Industrial action, plant closures, and even criminal prosecution are just some to name a few.

For more information on manufacturing HR, speak to one of our expert HR advisors today. Now, let’s look at ways employers can improve their HR services to encourage success in their manufacturing business:

Present an industry-led recruitment process

Research conducted by Make UK found manufacturing recruitment numbers grew by 3% in 2025 – creating around 25,000 new jobs. Whilst this growth is acknowledged, we can’t afford to ignore labour shortages, skills gaps, and post-COVID-19 impacts which stunted business progress up to 2024.

Manufacturing employers need to concentrate on presenting recruitment methods suitable for their specific sector. This might include a number of aspects; from diversifying talent pools to investing in apprenticeship schemes.

Let’s look at ways manufacturing HR teams can help improve their businesses:

Recruitment: To boost recruitment numbers in manufacturing, employers should target tech-savvy candidates. Utilising their invaluable knowledge and skills will bring new experiences to your workplace. It also showcases the business as being technologically advanced and accomplished.

Job adverts: Your job advert vacancies should be accessible digitally which expands the reaches of your talent pools. However, don’t underestimate the power of in-person advertising. Ask HR reps to attend career fairs and university open days. This will help steer younger, enthusiastic individuals towards the manufacturing sector.

Apprenticeships: A great way to encourage a driven, talented, loyal workforce is through hiring apprentices. These schemes provide young adults with the opportunity to learn a life-long skill and set the foundations for steady career growth.

Improve employee retention numbers

Research by Manufacturing Drive found the industry faced higher staff turnover rate compared to other sectors, with some estimates placing it around 39%. Bad employee retention is something employers or their HR department can’t afford to ignore.

Low wages, poor working conditions, career stagnation, job security… Any one of these can leave workers feeling undervalued – resorting to resignations or seeking jobs at rival companies who offer better work entitlements.

Let’s look at ways manufacturing HR teams can help improve their businesses:

Staff development: In the manufacturing industry, there’s scope for learning on the job. So, why not present workers with career development opportunities? From staff training to work shadowing, investing in their future sets the foundations for a loyal and dedicated workforce.

Work benefits: As the manufacturing industry deals with national and global competitors, employers need to focus on retaining skilled, valuable staff. Offer work benefits that will inspire staff to stay with your company over rivals. Ask for their opinions on work benefits and take reasonable steps towards fulfilling them.

Salary: Job insecurity and pay disparities are usually the root cause for industrial action within the manufacturing sector. Employers must provide fair, lawful salaries to all workers, especially during times of lay-offs and short-time working.

Show compliance to legislation and regulations

With the recent passing of the epic Employment Rights Bill 2024, manufacturing businesses should prepare for upcoming legislative changes that’ll impact their sector tremendously.

Changes to hiring practices, increased workforce planning, access to day-one rights... Manufacturing employers must work closely with their HR department to ensure proper compliance is followed at any given time.

Let’s look at ways manufacturing HR teams can help improve their businesses:

Employment law: Manufacturing businesses are made up of people of all employment status; like, apprentices, trainees, and workers. Employers must be aware of what employment rights are applicable to each status. Be aware of upcoming legislative changes that could result in additional (or reduced) legal entitlements.

Health & Safety compliance: Manufacturing is a high-risk industry, bound with all kinds of hazards and threats. HR teams are tasked with hiring competent people for roles that cover health & safety compliance. With the right people, you’ll be able to manage (and eliminate) work-related accidents, injuries, and fatalities.

Trade unions: Unfortunately, many manufacturing businesses face permanent closure due to failing to meet consumer demands. This often leads to redundancies and strike action. Employers should hold good relations with trade unions to smooth communication during such times. Strive for mutually, beneficial outcomes for both employees and the business.

Encourage a positive workplace environment

According to research by IfM Engage, the UK manufacturing industry hosts around 26% of female workers; 13% of which are ethnic minorities (related to race, religion, disabilities, etc).

Employers need to promote a workplace of equality, diversity, and inclusion. Not only do these open communications with wider demographics, but businesses benefit from homing workers of all aspects of skills, knowledge, and experiences.

Let’s look at ways manufacturing HR teams can help improve their businesses:

Equality and inclusion: Manufacturing businesses benefit from placing equality and inclusion at the forefront of their HR practices. From equal pay to inclusive recruitment, the business benefits from promoting a diversified, inclusive workplace environment.

Work-life balance: In the manufacturing industry, working overtime is common. Combined with low wages, many employees will never experience good work-life balance. Employers must follow working time regulations and safe working conditions – despite business demands. After all, a healthy workforce leads to a healthier bottom-line.

Occupational health: Due to consumer demands, many manufacturing staff face work-related health issues; like burnout, fatigue, and even physical injuries. Ensure the right steps are taken to meet legal health, safety, and welfare requirements. HR teams must hire competent, trained, and qualified people who will handle occupational health risks – and eliminate them reasonably.

Be aware of economic implications

The manufacturing industry will play a huge part in the UK’s goal of reaching net-zero by 2050. Manufacturers are globally responsible for 54% of the world’s energy resources and 20% of carbon emissions, according to research by the World Economic Forum.

It leaves UK manufacturers with the responsibility to develop practices that are economically ethical, as well as legislatively compliant – all whilst aspiring towards business success.

Let’s look at ways manufacturing HR teams can help improve their businesses:

Sustainability: Manufacturing employers have a legal responsibility to minimise environmental impacts caused by their business. Reducing energy consumption, sourcing sustainable materials, and considering their social responsibility are all part of your duty as an employer.

Tech and AI: The manufacturing industry is one that thrives on technological advancements, even within the role of HR. Automation, AI, and data analytics can all catapult your business into the forefront of modern manufacturing.

Consumer demands: Fast delivery times, ethical sourcing, product customisation… Manufacturing is at the mercy of customer satisfaction. Whilst meeting consumer demands is a given, it shouldn’t be done at the expense of your workforce or the credibility of your business.

Get expert advice on manufacturing HR with Peninsula

In recent times, the manufacturing industry issues due to economic inflation, regulatory compliance, supply demands, and labour shortages. Whilst these cause all kinds of pressures, employers must adhere to remedial measures – for their workforce and the business overall.

Peninsula offers expert advice on manufacturing HR. We offer specialised guidance on HR contracts and documentation – ensuring your business meets all its HR compliance. Want to find out more? Contact us on 0800 028 2420 and book a free consultation with one of our HR consultants today.

Sources

Executive Survey 2025 | Make UK

4 manufacturing trends to watch in 2025 | Manufacturing Drive

Women in UK Manufacturing 2024: Addressing labour shortages and bridging the gender gap | IfM Engage

Reducing the carbon footprint of the manufacturing industry through data sharing | World Economic Forum