How to Reduce Turnover in Manufacturing: 10 of the Best UK Employee Retention Strategies

Employee turnover measures the rate at which workers leave and need replacing, encompassing both voluntary and involuntary departures. The distinction matters. Voluntary turnover can reflect factors you can change, such as culture or development. Involuntary departures can be necessary, but they still create knowledge transfer costs, which is the time and effort needed to pass skills to colleagues.

In spring 2025, 43% of manufacturing employers reported hard-to-fill vacancies, according to the Chartered Institute of Personnel and Development (CIPD). Each departure can leave a gap that is hard to fill.

What is the cost of employee turnover in manufacturing?

Make UK reported 46,000 vacancies midway through 2025, costing the sector £4 billion in output. Pair that with a 30-200% employee replacement cost and the cost of employee turnover in manufacturing compounds.

Average turnover rate in manufacturing

In 2024, the average employee turnover rate in manufacturing in the UK was 10.85%, according to Make UK's Labour Turnover Report 2025. The rate has fallen since 2022, when it was 20.75%.

Overall turnover trends:

• 2022: 20.75%
• 2023: 16.12%
• 2024: 10.85% (lowest in a decade)
• Excluding redundancies in 2024: 6.24%

Turnover by role type (2024):

• Manual roles: 12.18% (down from 18.77% in 2023)
• Non-manual roles: 11.84% (down from 20.24% in 2023)

Make UK calculates its all-employee rate separately, because some respondents reported a single figure for their whole workforce.

Turnover by company size:

• Small firms (10-249 employees): 13.31%
• Medium firms (250-499 employees): 9.66%
• Large firms (1000+ employees): 8.76%

Sector variations:

• Food & Drink: 5.02%
• Textiles: 14.84%
• Motor Vehicles: 15.89%
• Chemicals: 19.50%
• Other Manufacturing: 19.27%

CIPD's net employment balance is the share of employers expecting to increase staffing minus the share expecting to reduce it. In spring 2025, the balance for manufacturing was +3. By summer 2026, it had risen to +6.  A positive balance means more manufacturers expected to add staff than cut it, so keeping experienced people eases pressure on hiring.

Retirement is the most common reason, according to Make UK's 2025 survey of manufacturers. In 2023, 52% of respondents cited retirement when asked why staff left, excluding redundancies. Other common reasons were seeking better progression (48%) and seeking higher pay (47%).

• Retirement: 52%
• Better progression: 48%
• Higher pay: 47%
• Change of sector or role: 43%
• Physical ill health: 31%
• Mental ill health: 21%

Respondents could give more than one reason, so these reasons often overlap. Many of the strategies below address the reasons you can influence, such as progression, pay and health.

Primary reasons for manufacturing employees leaving:

• Better progression opportunities elsewhere
• Poor relationships with managers
• Inadequate recognition for contributions
• Safety concerns (physical and psychological)
• Inflexible scheduling
• Compensation perceived as unfair
• Mental and physical health impacts
• Desire for sector change

These factors rarely work in isolation - employees typically leave when multiple frustrations combine with an attractive alternative opportunity.

Turnover is a major challenge for manufacturers, but it is not the only one. For a detailed look at other HR challenges, read our article on the 5 HR challenges in manufacturing.

Reducing employee turnover in manufacturing starts with the reasons above. Retention strategies for manufacturers work best when they target those reasons. Each strategy below includes a first step and a way to measure progress.

1. Improve onboarding

Effective manufacturing onboarding sets clear expectations about each role and how it supports production goals.  Pair each new starter with an experienced colleague. This helps them build skills and relationships. Regular check-ins during the first 90 days identify and address issues before they become reasons to leave, whilst digital tools streamline processes across multiple sites and shifts.

Dublin Port's implementation of PeopleXD replaced manual systems with digital workflows, improving onboarding whilst freeing HR for strategic support.

2. Build a safe and positive work environment

Give workers safety training that empowers them to stop production when they raise a concern. This shows you take their wellbeing seriously. Creating psychological safety for reporting near-misses and suggesting improvements builds trust and engagement.  Ergonomic equipment and comfortable break areas may seem basic. They show respect for workers' daily experience. When teams develop supportive peer networks, employees are less likely to leave even when other opportunities arise. For ideas on the benefits and strategies to build effective peer-to-peer recognition networks, see our blog on ‘Peer-to-peer recognition ideas that make a real difference’.

3. Offer competitive compensation and benefits

Seeking higher pay was a common reason for leaving in 2023, cited by 47% of respondents in Make UK's survey. Healthcare provision that includes preventive care and mental health support addresses workers' security concerns.

Pension contributions matter to workers nearing retirement. Retirement was the most common reason for leaving in 2023, according to Make UK.  Practical benefits, such as transport support or childcare assistance, address everyday challenges that your workers face. Be open about how pay is set, so people can see why they earn what they do. The UK Government evidence cites returns of £4.70 per £1 invested in workplace mental-health interventions and around £8 per £1 invested in Employee Assistance Programmes.

4. Invest in career development

Modern manufacturing needs advanced skills, so clear progression paths give people a reason to stay. Upskilling for new technologies shows people you are investing in their future. It also builds skills your business needs.

Cross-training across different production areas provides variety and flexibility. Apprenticeships create clear advancement routes from entry-level to skilled positions. Partnerships with educational institutions bring formal qualifications within reach, whilst visible promotion pathways based on merit and development show that advancement is achievable.

How do you plan for retirement and knowledge transfer?

• Retirement was the most common reason for leaving in 2023, so experienced people's knowledge can leave with them
• Pair experienced workers with newer colleagues on critical tasks.
• Map which skills depend on one person.

5. Strengthen leadership and management

Day-to-day relationships with supervisors shape whether people want to stay. Manager training that includes people skills creates supervisors who inspire their colleagues.  Stay interviews help you learn what keeps people engaged before they think about leaving. Read our guide to enhancing employee retention with stay interviews.

An open-door policy builds trust only when you act on what people tell you.  Leaders who spend time on the shop floor make hierarchies feel less distant.. Treat every shift and department consistently, so people see decisions as fair.

6. Foster a culture of recognition

Peer-to-peer recognition works well where colleagues understand the specific challenges of each role. Safety milestone celebrations reinforce this critical aspect of manufacturing work. Timely, specific performance acknowledgement shows genuine appreciation for individual contributions. Share recognition through several channels so more people see it. Mix financial and non-financial rewards, because people value different things.

For more on what recognition involves, read our guide to employee recognition.

7. Promote work-life balance

Flexible shift patterns that allow some scheduling choice help workers manage personal commitments.  Paid leave recognises the physical and mental demands of manufacturing work. Mental health support through employee assistance programmes addresses wellbeing proactively. Family-friendly policies can help parents and carers stay in their roles.

As Emma Parkin, Head of Proposition at The Access Group notes: 

"Every scheduling decision must balance legal compliance, customer commitments, and worker preferences - yet most still use systems that can't see these conflicts until they become crises."

8. Enhance internal communication

Multilingual messaging helps critical information reach every part of a diverse workforce. Regular feedback loops that genuinely listen and respond to employee input build trust and engagement.

Visual communication through displays and infographics suits environments where written communications might be overlooked. Brief teams at shift handovers so information flows consistently. Digital tools can close communication gaps across dispersed sites.

9. Reframe manufacturing careers

Changing perceptions can help you attract people who strengthen your teams. Employer branding that showcases modern manufacturing reality counters outdated stereotypes. Educational partnerships bringing schools into facilities change perceptions early. Internal career stories highlighting progression from shop floor to senior positions inspire employees.

Emphasising manufacturing's societal contribution helps employees feel part of something meaningful. Taking part in industry competitions and associations raises your profile.

10. Use HR systems and data analytics

Data-driven approaches enable proactive retention strategies. Monitoring turnover trends by department, shift, and demographic reveals patterns requiring targeted intervention.  Predictive analytics can flag people who may be at risk of leaving. Regular pulse surveys provide ongoing intelligence about satisfaction and concerns. Workforce planning tools balance operational needs with employee preferences.  Give operational managers a visible dashboard, so retention becomes part of daily management.

Turnover in UK manufacturing has fallen since 2022. Thoughtful retention strategies can help you build on that progress. Start with one strategy this quarter. 

Replacement costs can range from 30% to 200% of salary. In spring 2025, 43% of manufacturing employers reported hard-to-fill vacancies. Each departure you prevent keeps knowledge in your business.

Good tools make implementation easier. HR platforms like PeopleXD can automate admin tasks and give you analytical insight. Whether managing complex scheduling, delivering development programmes, or gathering feedback, technology amplifies human effort in building retention-focused cultures.

Measure each change, keep what works and build from there.

Our HR Suite provides integrated platforms for managing onboarding workflows through to predictive analytics.

Access Employee Engagement Software enables recognition, communication, and feedback strategies 

Access HR Solutions for Manufacturing address specific challenges of scheduling, compliance, and workforce planning 

1. Make UK Labour Turnover Report
2. Culture Amp