Beyond the Bonus: Why Competitive Wages Alone Won’t Solve the Food Production Labor Crisis

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The food and beverage industry is in the midst of a persistent labor crisis. With high turnover and a struggle to fill critical production roles, companies are looking for solutions. For many, the first instinct is to increase wages and offer sign-on bonuses. And while competitive pay is a crucial component of attracting talent, it’s only one part of a much larger puzzle.

The Food & Beverage Labor Crisis: What’s Driving It?

The challenges facing food manufacturers today are unique and multifaceted. The National Association of Manufacturers recently surveyed its members, and a staggering 48% of respondents said that attracting and retaining a quality workforce was one of their primary business challenges.1

Unlike many remote-friendly jobs, front-line food manufacturing roles are tied to the plant floor. They require a physical presence and dedicated shift coverage, which can make it difficult for companies to accommodate the evolving expectations of today’s workforce. The core challenge in meeting these expectations, however, often boils down to compensation and competition in a tight labor market.

As Robert Acree, a Food Manufacturing Operations Consultant, put it, “Hourly pay matters. If a plant down the road is offering even

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