Diversity in Manufacturing: Key Challenges and Opportunities

Diversity and inclusion have become part of corporate strategies across various sectors in recent years. However, there is still a common belief that this topic only applies to large corporations, office jobs, or academia. That’s a misconception. The manufacturing sector is often overlooked in this context – and unjustly so.

This article presents key insights from the Symposium and examples of practice from participating companies.

Manufacturing and construction are among the largest employers in the Czech Republic, with more than 30% of people working in these sectors. This alone shows that diversity and inclusion (D&I) cannot be ignored here. Every day, people of different ages, educational backgrounds, cultures, and personal needs meet in operations. A workplace that understands and embraces these differences is more competitive and resilient to change.

Manufacturing is undergoing a major transformation

The share of industrial workers in the EU has been steadily declining – from about 26% in 2000 to less than 20% today. A similar trend is visible in the US. Many heavy manufacturing operations are relocating outside of Europe, while European firms are shifting toward specialized, high-tech production.

Technological change brings new demands on employees. Automation and robotics are gradually replacing parts of manual and skilled labor. Companies must prepare their workforce for new roles – including reskilling, digital skills development, and intergenerational collaboration. New social challenges also emerge – what happens to those who lose their jobs? How can their experience be utilized? And how can they transition smoothly into the next life stage, such as retirement?

Another factor is demographics. The population is aging, birth rates are falling, and the share of university-educated individuals is growing. Jobs are shifting to services, healthcare, education, and leisure sectors. Manufacturing must therefore compete even harder for talent – and D&I becomes a key tool to retain employees and create an environment where diverse people can work and learn together.

Top challenges and benefits of D&I in manufacturing

Implementing D&I principles in manufacturing faces specific barriers. These stem from both the nature of the environment and deeply rooted habits. Yet this sector can greatly benefit from a well-designed D&I strategy – not only in terms of culture but also performance and workplace safety.

What are the most common challenges manufacturing companies face?

Employee skepticism – D&I is often seen as unrelated to the shop floor, too theoretical, or “just for the office.” This results in lower engagement.
Prejudices and stereotypes – Manufacturing environments tend to be conservative, with men dominating decision-making roles. This makes it easy for outdated patterns to persist.
Hierarchical culture – The strong role of foremen and authority figures can be both a barrier and a key enabler. Without their support, teams are unlikely to embrace D&I.
Lack of time for education – Shift work and productivity pressure make it hard to organize workshops, training sessions, or open discussions.
“Politicization” of the topic – D&I is sometimes perceived as ideological enforcement, deterring both employees and leadership, and raising fears of conflict.
Limited flexibility – Manufacturing offers few options for remote work or flexible arrangements.
Language and cultural barriers – Many operations employ foreign workers. Without support for understanding and inclusion, miscommunication, errors, and safety risks increase.

What do companies gain when they succeed?

Well-implemented D&I brings measurable benefits to manufacturing firms. It boosts employee loyalty and retention – helping address labor shortages, especially in regions. Diverse teams are often more innovative, effective, and less prone to conflict. Transparent communication and inclusive practices reduce errors and injuries. D&I also strengthens the company’s reputation and long-term competitiveness and performance.

D&I goes far beyond the workplace – it intersects with economics, education, and social policy. Demographic change, population aging, preparing for the future of work, rising numbers of foreign workers – all require stronger collaboration with the public sector. Diversity and inclusion are key to a sustainable economy and cohesive society.

Real-world examples

At the symposium on Diversity in Manufacturing, organized together with Škoda Auto – Ambassador of the Diversity Charter, we focused on three main topics during group discussions. For each, we explored what works well and where companies need more support.

Reintegration into manufacturing – ensuring enough workers, including the inclusion of people returning after illness, injury, parental leave, caregiving, or long-term unemployment.
Communicating D&I in manufacturing – how to make D&I relatable and practical for manufacturing employees.
Well-being in manufacturing – supporting physical and mental health, especially with rising retirement ages and life phase diversity.

Reintegration Project at Škoda Auto

One HR priority at Škoda Auto is supporting employees returning to production – especially those coming back from parental leave, long-term illness, or other life events needing extended adaptation time. The “reintegration positions” project was launched at the end of 2024 in response to specific needs.

Thanks to close HR collaboration with production leaders and open dialogue, 52 operator and logistics roles were adjusted to allow employees to work temporarily on day shifts only. Despite operational limitations, the company is creating conditions that respect individual circumstances.

This initiative not only eases re-entry into work but also strengthens a culture of respect, diversity, inclusion, and equal opportunities. Reintegration roles are part of a broader HR strategy that includes personal and career development benefits, healthcare, social support, and well-being. In a time of rapid transformation in the automotive industry, Škoda Auto proves that flexibility, lifelong learning, respect, and a human approach are essential pillars of modern HR.

“At Škoda Auto, we believe that diversity and mutual respect are the foundation of a good workplace. We strive to ensure that people feel welcome and can fully develop their potential – regardless of where they come from or what their background is. Diversity and inclusion are a natural part of our company culture,” says Alžběta Budinská, Diversity Coordinator at Škoda Auto.

Target group integration: who not to forget and how to begin

Today, companies focus not only on parents and women but also on LGBT+ employees, foreign workers, and employees aged 50+. Foreign workers are essential in many industries, while the potential of people over 50 often remains underutilized. Leadership support is critical – especially from line managers and foremen. Working with them doesn’t require large campaigns – informal conversations over coffee or lunch can go a long way. Small, consistent steps are more effective than sweeping changes.

An inspiring example is the campaign “Become Our Heroine. Expand Your Outfit and Join Us!” by Iveco Czech Republic, a.s., which won an award at the 2025 Diversity Charter Awards. Iveco broke stereotypes and opened technical positions to women – welders, painters, electricians, and CNC operators.

“The project not only introduced a new recruitment approach, but also brought a culture shift across the Iveco Group. Thanks to EDGE certification, recruitment equality, and parental support, the company reached nearly 30% women, including women in leadership roles in production. The project is highly innovative – enabling women to enter traditionally male-dominated jobs and helping eliminate gender bias and stereotypes,” says Iva Bursová, HR Country Manager, Iveco Czech Republic.

At Hyundai Motor Manufacturing Czech, a strong Talent Program has been launched for production workers.

“Interest was huge, and although we couldn’t offer opportunities to everyone, the feedback was amazing,” says Klára Klepáčová, HR General Manager. “Employees appreciated being able to openly discuss career plans with leadership, focus on their development, and receive personalized feedback. This strengthened our culture of mutual respect and opportunity for all.”

“Our campaign on microaggressions also received a great response. We worked with real situations from the shop floor, and employees actively shared their experiences and views,” she adds.

At Toyota Motor Manufacturing Czech Republic, s.r.o., the focus is on supporting women and their career development.
“We’re finalizing preparations for so-called ‘open recruitment’ – a concept where team leader selection will no longer be solely up to the direct manager, but instead based on a fair and transparent process. This opens new opportunities for women who previously couldn’t move up due to legal barriers, bias, or lack of openings. A six-month development plan will follow, focusing on real-world skill application, not just training,” explains Blanka Janoušková, HR Development Specialist at Toyota.

“Both projects are just starting, so we don’t have results yet. We’ll begin with lower-level leadership roles in production (team leaders and supervisors), then move to shift leads and administrative managers. For the latter, we’re also offering a ‘women to women’ sponsorship program – experienced women leaders mentoring others to help them grow,” adds Blanka Janoušková.

Why Communication in Manufacturing Is Key – and How to Improve It

Clear and effective communication is the foundation of every successful company, and in manufacturing environments, it’s even more critical. It ensures a smooth flow of information, so every team member knows what’s happening and can work efficiently and safely. It supports cross-departmental collaboration – for example, between production, logistics, and quality control – which leads to fewer errors, faster processes, and better outcomes. In addition, communication plays a crucial role in building a culture of diversity and inclusion: employees who feel they can openly share their opinions and be heard are more engaged and contribute more to innovation. Good communication not only streamlines daily operations but also strengthens teamwork and fosters an environment where everyone feels respected and motivated.

Effective communication is not just about giving instructions – it's about creating a space where everyone feels seen, heard, and empowered to contribute to the company’s success. Companies that actively develop this area improve not only efficiency and safety but also support diversity and inclusion, bringing long-term benefits to the entire team.

The company Philip Morris effectively uses employee groups in its production plant focused on caregiving employees, women's career development, and wellbeing (ERG PMrodina, Wellbeing Committee, and ERG WIN). These initiatives are run on the principle of employees for employees. Each group has its own organizing team that plans and manages activities during regular meetings, enriching both the professional and personal lives of employees. Anyone can join – either actively as a member of the community across departments, where they can learn new things and see the tangible results of their efforts, or passively by participating in the activities. The company supports these groups with dedicated time outside of regular duties as well as financially through a dedicated budget for activity planning, says Tereza Buřivalová, Product & Experience Delivery Specialist CZ.

"The groups give this support back – they contribute to employees’ mental wellbeing, strengthen the employer brand, and play a key role in employee listening. Among the activities they participate in are St. Nicholas Day events, Children’s Day, day camps, the Travel Club, onsite vision screening, the Empowering Women Mentoring program, volunteering days, the Effective Communication with Children webinar, the How to Use LinkedIn seminar, the Relax Together program – a full day of sports activities, trips to Christmas markets, and many more,” adds Tereza Buřivalová.

Well-being in Manufacturing

The physical and mental health of employees is now a top priority. Many companies offer comprehensive preventive programs – from access to doctors, dentists, or physiotherapists to vaccinations and regular "health days." Healthier options in company cafeterias, including fruit and vegetables, are becoming standard.

Employees also have access to assistance programs for difficult life situations – ranging from financial and legal counseling to psychological support. Mental health is now recognized as equally important as physical health, as a satisfied and focused employee works more safely and efficiently. A popular tool is benefit vouchers, which allow employees to choose from a variety of activities – from sports and relaxation to healthcare services and vitamin supplements.

One challenge remains: aligning these activities with shift operations – employees often don’t have time to use everything their company offers. That’s why it’s crucial to tailor well-being programs to the real conditions of the manufacturing environment.

Diversity in manufacturing is not a choice – it’s a necessity. Companies that ignore it risk losing talent and competitiveness. Those that actively build inclusive environments gain better ideas, higher employee motivation, and more resilient teams. We should view investment in diversity as a strategic imperative for future growth and innovation.