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The Manager Effect: How Leadership Drives Engagement on the Shop Floor

Nearly 70 percent of the U.S. workforce isn't engaged at work, according to Gallup. For manufacturers already navigating labor shortages, aging workforces and the looming threat of 2.1 million unfilled jobs by 2030, that number isn't just a statistic. It's a crisis hiding in plain sight.

Disengaged employees cost U.S. companies between $450 billion and $550 billion annually. On the shop floor, the consequences are tangible: 63 percent more safety incidents, 32 percent more quality incidents and 14 percent lower productivity compared to engaged teams. The good news? The lever that moves engagement more than any other is one manufacturers already have in their hands: management.

The Manager's Outsized Role

Managers account for 70 percent of the variance in team engagement. That's not a small influence. It's the defining factor. Yet many manufacturers promote their best operators, machinists or engineers into supervisory roles without equipping them to lead people. These newly promoted managers are technically skilled but often unprepared for the interpersonal demands of the job.

The result is a gap between what employees need and what managers are trained to provide, and that gap shows up directly in output, retention and safety performance.

What Strong Manager Behaviors Look Like

Closing that gap doesn't require an overhaul of your entire operation. It requires prioritizing a handful of high-impact behaviors and training managers to execute them effectively. Start here:

Set clear expectations. Employees who understand what's expected of them, and why it matters, are far more likely to stay focused and take ownership of their work.

Coach, don't just manage. The shift from directive to developmental communication changes the dynamic on the floor. Regular feedback, delivered respectfully and consistently, builds trust and improves performance over time.

Make work meaningful. Even in high-volume production environments, employees want to understand how their role connects to a larger purpose. Linking individual contributions to product quality, customer outcomes, or plant goals drives discretionary effort.

Recognize contributions. Recognition doesn't require a formal program. A specific, timely acknowledgment from a direct supervisor is among the most effective engagement tools available, and it costs nothing.

Support well-being. Physically demanding environments place real strain on workers. Managers who actively monitor workload, encourage breaks and address burnout signals early retain their people longer.

The Power of One-on-One Meetings

One of the simplest, most underutilized tools in manufacturing leadership is the regular one-on-one conversation. These brief check-ins give managers direct insight into what's working, what isn't, and what employees need to perform at their best. They also signal that the organization views its people as individuals, not just production inputs.

Build the Management Capability Your Operation Needs

Engaged workforces deliver 23 percent higher profitability. That return doesn't come from new equipment or faster lines. It comes from people who are supported, developed and led well.

Executives and owners play a vital role in ensuring managers adopt and consistently demonstrate high-impact behaviors that drive organizational success. By clearly defining these key behaviors and providing targeted training programs that help managers develop the interpersonal and leadership skills that support them, manufacturers can not only build stronger managers but also a stronger workforce.

About the Author

Rehmann's Cheryl KuchCheryl Kuch is a senior consultant with Rehmann’s HR Solutions Team. She can be reached at cheryl.kuch@rehmann.com.


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