The Impact Of Impending Labor Shortages On Field Service:

Three practical solutions for the labor shortage problem

One of the most pressing concerns among field service executives is the impending shortage of skilled workers. These concerns are well-founded. The U.S. labor market is expected to face a shortage of approximately 8.2 million workers by 2027, reports Thomas Lee, head of research at Fundstrat Global Advisors.

This shortage is fueled by two trends. The first trend is referred to as the “Silver Tsunami.” This is a term that describes the enormous number of employees who are reaching retirement age over the next 10 years due to population demographics. Within the manufacturing industry alone, nearly 2.5 million will have retired between 2015 and 2025, resulting in a 2-million worker shortage by 2025, according to the Manufacturing Institute, an arm of the National Association of Manufacturers.

The second trend is due to that fact that millions of people have dropped out of the U.S. workforce due to factors such as disability and opioid addiction or because of prison records that make it difficult for them to find jobs. In fact, the percentage of the adult population that are working or seeking employment has dropped by 4 percent since 2000.

Meanwhile, the U.S. population and gross domestic product (GDP) continues to grow while the unemployment rate remains at a 17-year low. The net impact is that the demand for labor is outstripping the supply of labor in the United States. What will this mean for field service?

Blumberg Advisory Group and Field Service Insights recently conducted an economic analysis of the U.S. field service industry. The study examined the demand for field service labor in 16 different vertical market segments. Currently, these segments employ approximately 12.6 million field workers. However, an additional 2 million workers will be required by the year 2021 to meet market demand for service and support.

Considering every industry sector is facing a labor shortage, field service organizations (FSOs) will need to adopt creative and innovative solutions to overcome this gap. Fortunately, several viable solutions exist.

Using A Blended/Variable Workforce Model
FSOs can turn towards freelancers as a strategy for responding to labor shortages. Many millennials prefer freelance work because of the flexibility and autonomy it provides them, while retired baby boomers also appreciate the ability to generate additional income by working freelance. In a recent study, we found that 77 percent of FSOs are utilizing a variable workforce to handle shortages, and two out of three are using a freelancer management system (FMS) to source and manage talent. Users of FMS platforms boast that greater agility, reduced costs, faster time to market, and improved efficiency are the benefits of this strategy.

Reengineer Service Delivery Processes
FSOs will need to learn how to accomplish better results with fewer workers. One way to do this is by reengineering the way in which service is delivered. For example, the typical way that most FSOs handle field service activities is by assigning new hires to a telephone technical support capacity and dispatching the more experienced field service engineer (FSE) to resolve on-site issues. This is counterintuitive when you consider that more experienced FSEs are the ones who are best qualified to provide remote support and guided technical assistance to new hires. By switching these roles, FSOs can leverage their workforce for better results (i.e., remote resolution, first time fix, etc.) and improve the customer experience.

Utilize Advanced Technology
Many FSOs are realizing that digital technology can play a significant role in resolving the labor shortages. For example, IoT enables an FSE to save time in anticipating and preventing problems. AR provides a platform that new FSE hires and end-customers can utilize to troubleshoot and resolve problems on their own or through the help of guided troubleshooting. Initial pilots have found that FSOs can experience up to a 20 percent improvement in first-time fix rate after deploying AR. Lastly, artificial intelligence and predictive analytics can be utilized to diagnose problems, isolate the faults, and recommend and implement corrective actions. In short, digital technologies enable companies to reduce and eliminate the need for human involvement in the field service process, permitting FSOs to do more with less.

The impending labor shortage is not a myth. FSOs must be prepared to deal with it. Within every challenge lies an opportunity. This situation is no different. With a little planning and innovation combined with effective execution, FSOs can achieve remarkable results with fewer people.

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