Retention from Day One: How AI-Driven Engagement and Stay Interviews Build Stronger Workforces

At SME’s FUSION conference in Detroit, leaders gathered to tackle one of manufacturing’s most formidable challenges: retaining talent in an increasingly competitive labor market. In the session “Engage to Retain”, panelists Dan Rabin, Senior Vice President of Workforce at Mainstay, and Bethaney Mucci, Human Resource Director at Kent Elastomer Products, Inc., shared practical strategies to address turnover head-on. Moderated by Denise Cowburn, Senior Client Executive and Workforce Development Specialist at Tooling U-SME, the discussion highlighted how companies can strengthen retention from the first day of employment—using both cutting-edge AI and tried-and-true stay interviews.

The Retention Challenge

For many manufacturers, employee turnover occurs within the first 90–120 days of hire. Mucci explained that Kent Elastomer Products (KEP) saw turnover rates climb to 18% in 2024, raising alarms about hiring costs, cultural decline, and workforce stability. “We had to ask ourselves, why can’t we keep people? Is it recruiting, onboarding, or a deeper retention issue?” Mucci said.

The answer lay in a closer look at employee experiences. Exit data revealed that workers weren’t leaving due to a lack of skills or poor onboarding. Instead, frustrations around rigid attendance policies, inflexible schedules, and inconsistent communication were eroding trust and engagement.

Stay Interviews: Listening with Intention

To address these concerns, KEP turned to stay interviews, a structured way to ask employees why they stay, what challenges they face, and how the company can better support them. Unlike exit interviews, stay interviews create space for open dialogue while employees are still invested in their roles.

“We learned good people were leaving because they needed time off during the first year, or because last-minute overtime caused conflicts at home,” Mucci shared. “Others were discouraged when attendance points penalized them unfairly or when they didn’t feel recognized for their tenure.”

Armed with these insights, KEP acted. The company introduced “No Point/No Pay Days” to ease attendance pressures, implemented overtime passes to give employees more flexibility, and launched newsletters and quarterly town halls to improve communication. Leaders also committed to being more present on off-shifts, ensuring all employees felt heard.

The results were significant: turnover dropped from 19% in 2024 to just 5% in the first quarter of 2025. “Stay interviews require willingness to change,” Mucci emphasized. “It’s not just about asking questions—it’s about taking action.”

AI-Driven Engagement: Meeting Employees Where They Are

While stay interviews create meaningful one-on-one conversations, Dan Rabin highlighted how AI technology can extend engagement at scale. At Mainstay, Rabin and his team use AI-powered text messaging to communicate with employees before day one and throughout their tenure.

“Retention starts before day one,” Rabin explained. “Too often, companies wait until 30, 60, or 90 days to check in, but employees may have already left by day nine.”

Unlike traditional surveys, AI-driven conversations create a judgment-free space where employees can ask questions, voice concerns, and receive timely responses. Available 24/7 and adaptable to multiple languages, this approach ensures employees feel supported on their terms. Just as importantly, it provides employers with real-time, actionable data to identify challenges before they become reasons to leave.

Rabin stressed that AI isn’t a replacement for human connection; it’s a tool to enhance it. “Surveys don’t build trust. Conversations do,” he said. By combining automation with authentic follow-up, organizations can engage early, intervene quickly, and strengthen trust across their workforce.

A Holistic Approach to Retention

The session underscored a critical theme: employee retention requires both technology and humanity. Stay interviews give leaders a direct pulse on employee needs, while AI enables organizations to listen continuously and at scale. Together, these approaches help companies build cultures of trust, flexibility, and responsiveness.

As manufacturers continue to face hiring challenges, sessions like Engage to Retain at FUSION remind us that retention is not a single initiative, but a sustained commitment. Whether through a thoughtful one-on-one conversation or a timely AI-powered message, the key is clear: listen, act, and keep listening.