As manufacturers and employers across Northern Indiana and Southwest Michigan begin planning their 2027 budgets, workforce costs remain a major consideration.  The question is no longer simply, “What should we budget for wages?”

Employers also need to consider: What will it cost to attract dependable employees, retain them, and fill the skilled positions that are becoming increasingly difficult to find?

Our recent Specialized Staffing Solutions Client Survey highlighted two workforce challenges that continue to impact employers across our region:

1. Attendance and reliability
2. The shortage of skilled and technical talent

Both should be part of workforce planning for 2027.

Reliability Has a Cost

Attendance and dependability were among the most common concerns shared by our clients.  Call-offs, tardiness, employees leaving shortly after starting, and inconsistent attendance can create significant operational challenges, particularly in warehouse, packaging, assembly, and off-shift positions. 

The real cost goes well beyond replacing an employee. When someone does not report to work, employers may face overtime costs, production delays, missed shipments, additional pressure on dependable employees, and supervisors spending valuable time rearranging schedules and assignments.  That is why employers should look beyond the hourly wage when planning their 2027 labor budgets.

What Employers Should Consider for 2027

• Competitive shift differentials. Second and third shifts are often harder to fill. Employers should review whether their shift premiums are competitive enough to attract employees who are willing and able to consistently work those schedules.
• Attendance and retention incentives. Well-designed attendance, retention, or milestone bonuses can provide additional motivation for employees to remain dependable.
• Realistic job previews.Candidates should understand the schedule, physical demands, pace, environment, and attendance expectations before accepting a position. Better job fit on the front end can improve retention after placement.

Skilled Trades Remain a Bigger Challenge

The second major issue employers identified is the shortage of skilled and technical workers.  Some of the most difficult positions to recruit include:

• Industrial Maintenance Technicians
• CNC Machine and Lathe Operators
• Process Technicians
• Overhead Crane Operators
• Waterjet Technicians
• Heavy Equipment Operators

Unlike many entry-level positions, these jobs require specific skills and experience. The available candidate pool is much smaller, and many qualified technicians are already working.  Waiting until a position becomes vacant to begin recruiting can leave an employer without critical skills for weeks or even months.

Plan Earlier for Skilled Positions

As employers build their 2027 workforce plans, we recommend considering three things.

• Allow more recruiting time. Skilled and technical positions may require significantly longer recruiting timelines than general production roles.
• Review wages against the local market. A position can remain open simply because the compensation no longer matches what qualified candidates can earn elsewhere.
• Develop talent internally.Employers should consider identifying dependable employees with mechanical aptitude who can be trained and developed into higher-skilled positions over time.

Building your own talent pipeline can become an important part of addressing the skilled trades shortage.

A Staffing Partner Should Provide More Than People

One of the most important messages from our client survey was that employers want more than resumes. They want a staffing partner who understands their business and can help identify why positions are difficult to fill.  

At Specialized Staffing Solutions, that means helping our clients evaluate wages, shifts, candidate availability, job requirements, recruiting timelines, and retention challenges.  Sometimes the solution is more recruiting.  Other times, the market is telling us that the wage, schedule, requirements, or hiring process needs to change.  Our responsibility is to provide that feedback honestly so our clients can make informed workforce decisions.

Start Planning Now for 2027

The employers that are best prepared for 2027 will be those that begin planning before the need becomes urgent. Review your difficult-to-fill positions. Look at where attendance and turnover are affecting production. Identify skilled positions that would be difficult to replace. And make sure your labor budget reflects what it will realistically take to attract and retain the workforce you need.

There is a reason our clients rate our service as “Excellent” with a Net Promoter Score (NPS) of 60—far exceeding industry averages. We listen to regional market data, understand your operational pressures, and deliver the precise talent needed to keep your business moving forward.

Specialized Staffing Solutions can help you review your workforce needs, local wage conditions, recruiting challenges, and 2027 staffing strategy.

Connect with your Specialized Staffing Solutions Account Manager or contact our team at sales@specializedstaffing.comto schedule a 2027 workforce and wage review.

South Bend: 574-475-7516
Elkhart/Goshen: 574-498-7417
Kalamazoo: 269-397-4222