Recruitment, Retention & Key Factors
Recruitment
Attracting manufacturing talent remains a top challenge. In Q2 2025, 100% of manufacturers surveyed reported that talent availability had medium to high relevance to their ongoing operations. Foreign-born workers made up nearly one in five U.S. employees (19.2%) in 2024 which is up from one in eight (12.4%) in 1999—highlighting their critical contribution to filling labor shortages. In fact, in 2024, the average share of workers who were foreign-born in durable goods manufacturing was 19.2% and in nondurable goods manufacturing was 22.3%. These figures represent increases from 18.5% and 21.8%, respectively, in 2023.
While refugee resettlement agencies were traditionally an effective tool to access immigrant talent pools, recent changes to federal resettlement programs have disrupted some traditional sourcing pipelines. However, several alternative strategies remain effective for sourcing foreign-born talent:
- Employee Referral Networks: These are informal, employee-driven systems where current workers recommend candidates from their own social or ethnic networks. Such referrals often yield better job matches, higher productivity, and significantly lower turnover compared to other hiring methods. Research from IZA World of Labor highlights that employees hired through referrals tend to remain longer, perform more effectively, and reduce recruitment costs. This approach leverages strong social ties within immigrant communities and contributes to placement stability in manufacturing roles.
- Partnerships with Community Organizations & Ethnic Associations: This strategy entails formal collaborations between manufacturers and external immigrant resource centers, cultural associations, and community groups. These partnerships establish trusted organizational bridges to immigrant populations, helping connect employers with motivated job seekers who might be difficult to reach via traditional postings or internal referrals. According to resources from the National Immigration Forum's employer engagement section, such strategic alliances open direct pipelines to qualified candidates and enhance workforce integration efforts.
- Job Fairs and Hiring Events Targeted to Immigrants: These event-driven recruitment efforts offer manufacturers direct access to diverse foreign-born talent pools. Often organized in partnership with advocacy groups, community organizations, or workforce agencies, these fairs create tailored opportunities for employers to meet and evaluate skilled immigrant and refugee candidates. The Migration Policy Institute highlights how immigrant-focused hiring events help align talent supply with manufacturing sector needs.
Retention
Turnover is one of the most expensive problems in manufacturing. Fortunately, employers are seeing stronger retention rates among foreign-born workers. Investing in English language training tailored to plant environments and skills training that connect to advancement opportunities have been noted as key opportunities to support ESL employees.
Yet general best practices still apply. Organizations with alternative/flexible work schedules report reductions in turnover and absenteeism, increased morale, and retention. Annual hourly worker turnover in manufacturing frequently falls near 19.2%, so high retention pays off, literally, as the average cost to replace a skilled front line worker ranges from $10,000 - $40,000.
Employment Factors
A consistent challenge that manufacturers face is the growing presence of local talent competition and changes to office policies. As non-manufacturing organizations move in with similar wages and benefits, talent may be leaving for “$0.10 more an hour.” For office staff, sentiment around return-to-office policies remains mixed, and manufacturers have seen pushback.
Amid these pressures, compensation remains a key factor in both recruitment and retention. In 2024, median weekly earnings for foreign-born workers were $1,001, compared to $1,190 for native-born workers. However, in strategic manufacturing fields, where technical certifications and advanced skills are in demand, foreign-born employees are now earning wages equal to or higher than their native-born counterparts.
As manufacturers compete on multiple fronts such as hourly labor, specialized talent, and employee satisfaction, tailoring compensation and flexibility strategies are becoming essential to staying competitive.
Median Weekly Earnings by Nativity
Source: Bureau of Labor Statistics, 2025
Fulfilling the Talent Shortage: Foreign-Born Market Offers Potential
U.S. employers, particularly in manufacturing and STEM fields, depend on foreign-born workers to fill critical roles as domestic labor supplies struggle to keep pace. Post-pandemic turnover remains a persistent issue in manufacturing, but employers report that immigrant workers, especially those brought in through structured resettlement or workforce development initiatives, are helping to reduce attrition and support operations.
This segment of employees might be one to watch as organizations shift production locations and increases in technology and automation place additional pressures on finding the right skilled talent.
