Why People Leave Manufacturing Jobs

Written by Stalin Encarnación, Workforce Development Specialist

The more research is done to understand why great, talented people leave the plants where they work, the clearer it becomes that two of the most important causes are a poor relationship with the person they report to and the conditions they face on the shop floor. These two factors were identified in research conducted by the Purdue Dauch Center and summarized in IndustryWeek.

The study reported that many of the manufacturing plants examined experience annual turnover of around 40 percent, with up to nine out of ten new hires exiting within their first 90 days. Firms that achieved much lower rates, about 15 percent or below, did so without paying more than other local competitors. The distinguishing features instead were stronger relationships between supervisors and employees, cleaner and safer work environments, and a culture that emphasized support rather than blame (McLeod and Iyer, 2021). Such results align with earlier research cited in the same article, which noted that many leavers go because of the relationship with their immediate manager, not simply because of wage levels (McLeod and Iyer, 2021).

In addition, the Manufacturing Institute and the American Psychological Association found that in high-retention manufacturers, workers who felt valued, treated fairly, and supported by their managers were dramatically more likely to report high motivation, job satisfaction, and intent to stay, even when pay was not the top reason they stayed (The Manufacturing Institute and American Psychological Association, 2021). Those same companies invested in concrete supervisory behaviors such as setting clear expectations, giving constructive feedback, involving employees in decisions, monitoring stress, and recognizing contributions.

If we take the cited research seriously and aim to fix similar challenges in our own plants, we must pause and ask ourselves a fundamental question: “If stronger relationships with supervisors drive retention, what would it actually look like to build those relationships on our shop floors?” Put differently, how do we ensure that frontline leaders know how to run meaningful one-on-ones, listen actively, coach rather than command, and hold people accountable without humiliation? These are not optional soft skills for a few individuals; they are essential leadership capabilities that require commitment from every level of the organization.

How do you actually achieve that? How do you help managers and supervisors succeed in building this foundation? You start by giving them the training they need in leadership, effective communication and listening, emotional intelligence, teamwork, and stress management, among other skills. When supervision begins to shift in this direction, you can then pull the next lever: giving people a real voice in how the work runs every day. For instance, the same Manufacturing Institute and APA study highlights practices like self-managed teams, cohesive problem-solving teams, and regular feedback channels as “key retention activities” because they let frontline workers shape their environment instead of simply enduring it (MI & APA, 2021). When people see that their ideas and contributions create a positive impact, they begin to attach their identity to the place, and walking out after 60 days stops feeling like the obvious move.

The physical and psychological work environment is a central part of the retention equation, and the MI and APA study shows that workers who rate their company’s efforts in health, safety, and overall well-being positively are significantly more likely to report high motivation, job satisfaction, and intent to stay (MI and APA, 2021).

Recent research on the frontline employee experience shows that manufacturers focused on retention are investing in features such as improved scheduling flexibility, enhanced safety and well-being supports, and better facility resources. These moves are linked with higher frontline worker satisfaction and engagement beyond increases in wages (The Manufacturing Institute & PwC, 2023).

Contextual supports around the plant also shape whether employees can realistically remain in their jobs, even when they value their supervisor and the work itself. Childcare research in Indiana shows that parents of young children often reduce their hours, miss shifts, or leave employment entirely when they cannot access affordable and reliable care. These disruptions are widespread and measurable. The U.S. Chamber of Commerce Foundation reports significant statewide consequences, including billions of dollars in lost productivity, reduced earnings, and increased turnover linked to childcare barriers (U.S. Chamber of Commerce Foundation, 2023). Manufacturers cannot solve the childcare crisis alone, but the firms that retain people in this environment often partner with local providers, adjust start times to align with school schedules, or offer flexible shift swaps and paid time off policies that reflect family realities (The Manufacturing Institute and American Psychological Association, 2021; U.S. Chamber of Commerce Foundation, 2023). When supervisors view these constraints as opportunities to strengthen team cohesiveness rather than as character flaws to punish, trust grows instead of resentment, and good operators do not disappear after the third time their sitter cancels.

If you put all of this together, the through line is straightforward but demanding. One of the main drivers of high turnover in manufacturing is not simply the going wage; it is whether the day-to-day experience of working in a plant feels safe, respectful, meaningful, and compatible with the rest of a person’s life. Companies that win the retention game are the ones that invest first in the quality of frontline supervision, then in real employee voice, structured growth paths, a clean and safe environment, and practical support for workers’ family obligations. For leaders in plants, this means that the central question is not only how to raise starting pay; it is how to turn supervisors into trusted coaches and the shop floor into a place where people can imagine themselves succeeding in a great workplace five years from now, not just surviving the next shift.

 

LIST OF REFERENCES

Conexus Indiana. (2022). The state of Indiana’s advanced manufacturing workforce. Conexus Indiana.

McLeod, A., & Iyer, A. (2021, October 28). What works to retain staff: Purdue study finds commonalities in Indiana manufacturers with low turnover. IndustryWeek.

The Manufacturing Institute, & American Psychological Association. (2021). Manufacturing engagement and retention study.

The Manufacturing Institute, & PwC. (2023). Improving the frontline employee experience. The Manufacturing Institute.

U.S. Chamber of Commerce Foundation. (2023). Untapped potential in IN: How childcare impacts Indiana’s workforce productivity and the state’s economy. Indiana Chamber of Commerce.