•  Journal: Small Business International Review
  • eISSN: 2531-0046
  • Section: Research Articles

Small Business Human Resources Practices for Expanding Diverse Talent in Manufacturing

Available online 10 November 2026, Version of Record 10 November 2026

Abstract

To embrace Industry 4.0 transformation, it's essential to address talent deficits in skilled labor. Manufacturing shifts from manual tasks to specialized competencies require proficient talent to stay competitive. Therefore, organizations must reassess and adapt their human resource management (HRM) strategies to optimize employee success. Presently, there's an imbalance in the demographic makeup of the manufacturing talent pool, as 77% of workers are White (US Census, 2022), a percentage significantly higher than the 68% of the White adult working population in North Carolina (BLS, 2021). By tapping into domestic racial talent and international candidates, companies can purposefully cultivate a varied workforce. This research seeks to pinpoint effective HR strategies (strategic, tactical, and operational) of Small Business Manufacturers in North Carolina that bolster diverse recruitment and retention. The research involved two distinct business case studies, employing semi-structured interviews and observational notes for data gathering. The study leveraged Merriam’s (1998) bounded systems of action approach to discern impactful HR methodologies. Strategic HR themes were (1) business rationale, (2) community involvement, and (3) workforce diversity. Tactical HR were (1) equal training prospects and (2) structured/unstructured training. For operational HR practices, the themes included (1) open communication, (2) leadership direction, and (3) empowering employees. Keywords: Industry 4.0, Human Resource Management (HRM), Diverse Recruitment and Retention, Small Business Manufacturers, Workforce Diversity JEL M14 Corporate Culture • Diversity • Social Responsibility
Keywords: Industry 4.0; Human Resource Management (HRM); Diverse Recruitment and Retention; Small Business Manufacturers; Workforce Diversity

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