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The threat of a genuine ageing workforce crisis is being discussed by field service organisations across all industry sectors and in all corners of the globe. Field Service News in partnership with Si2 Partners, Workammo and Service People Matters undertook research to establish exactly how real this threat is to ongoing service operations and how recruitment, development and progression trends within field service are evolving...

Part one of this research report which is available here explored the findings of this research exploring the reality of the ageing workforce crisis, how field service companies are tailoring their recruitment and development programs to court millennials and whether outsourcing is an answer to help field service companies meet increasing customer demands.

Now we turn to the second part of this report...

Reducing the time from classroom to customer site

Of course, when we consider the issues many companies are facing in replacing their existing workforce it is imperative that the time it takes to onboard a new recruit is minimised as much as possible so that the newly appointed service technicians are adding value to an organisation as quickly as possible.

Whilst, of course, this is somewhat dependent on the industry in which an organisation operates, with some service engineer roles requiring far more knowledge and training than others, it is interesting to see in broad strokes the average time service engineer on-boarding takes.

The most common amount of time stated was between three and six months which was the on-boarding time for just over half of companiesThe most common amount of time stated was between three and six months which was the on-boarding time for just over half of companies (55%) whilst 34% of companies took between one and two years.

One obvious solution to both reducing onboarding times and increasing the longevity of those engineers approaching retirement age is to actively utilise your more experienced service engineers in a mentoring capacity for new recruits.

This is a well-established practice within the field service sector which is evidenced by the fact that 93% of companies stated that this is a practice they have within there workplace.

A more recent introduction to this concept is the ability for the more seasoned engineer to deliver assistance remotely using tools such as video conferencing or augmented reality.However, a more recent introduction to this concept is the ability for the more seasoned engineer to deliver assistance remotely using tools such as video conferencing or augmented reality.

The advantages of such an approach are two-fold. Firstly, it allows for one experienced engineer to support multiple newer engineers at the same time.

Secondly, it also allows the older engineer to work either from a central location or even from home - something that can be a big lure in convincing them to stay within the company.

Again this was an area we explored in our previous research where we identified that 20% of companies were using their older engineers within a remote expert capacity and we have seen similar numbers again in this current research with a further 35% of the total respondents stating they are in the process of putting such a system in place.

What is particularly interesting here is that of those companies that currently do have such a system in place a fifth of them (20%) are utilising Augmented Reality (AR).

We have long been advocates of the use of this technology in exactly this manner at Field Service News for some time now, but across numerous research reports, we have been seeing that the uptake for AR has been to date somewhat stunted.

Yet with the AR market within the field service sector becoming increasingly competitive it seems that we may now eventually be seeing the first real signs of increasing adoption amongst field service companies.

Developing the next generation of service leaders

Of course, whilst it is important to understand where the next generation of field service engineers are coming from and how they are being developed it is equally important to understand how the next generation of service leaders are entering into our sector as well.

Anecdotally many of the service directors one might encounter within the industry do tend to have come from a service engineer background, often having been promoted from within and our research would appear to indicate that this is still a common development path.

59% of the companies that participated in the research stated that when looking to fill a service management role their organisation tends to predominantly try to recruit for the role internally. In fact, 59% of the companies that participated in the research stated that when looking to fill a service management role their organisation tends to predominantly try to recruit for the role internally.

So let’s take a look at some of the common skill-sets that companies are looking for in their service managers.

It is perhaps of little surprise that when we asked our respondents “what are the key attributes you look for in a service manager?” That the most commonly cited response was ‘leadership capabilities’ which 86% of companies identified as a key attribute.

What is interesting and perhaps indicative of the growing importance the field service division plays in generating excellent customer experiences is that the second most valued attribute was ‘having a customer-centric outlook’.

In fact with 79% of companies stating that this was a key attribute they look for in their service leadership this was not that far behind leadership capabilities - certainly suggesting that customer-centricity is a fundamental aspect of what makes a great service manager.

Another big aspect of the role is, of course, the ability to communicate with the technicians and to be able to relay the wider operational picture of the business to them as well as be a conduit for them to engage with the business.

This was again quite clearly referenced in the research findings. For example, 59% of companies stated that having a good rapport with the field engineers was a key attribute they look for in their service leaders whilst over three-quarters of companies (76%) identified strong technical knowledge and application - which is of course, crucial for service managers to understand their engineers challenges and identify weak spots and highlights within their performance.

Two-thirds of companies (66%) stated that they thought their service managers should have a strong operational understanding.Additionally, two-thirds of companies (66%) stated that they thought their service managers should have a strong operational understanding.

This again is important as it allows the service manager to not only see the bigger picture but also translate that to the field engineers - which is an important means of gaining company loyalty - something that is more important than ever considering the challenges that many companies are facing replacing their ageing workforce.

The need for these key attributes is also corroborated in the areas that field service companies are focussing their attention on when it comes to training their service managers.

Again we see leadership and technical skills as the most common area of training with 52% of companies offering such training to their service managers.

Just under a third of companies also provide FSM systems training for their service managers - again an important area for them to grasp as the FSM solution is generally at the heart of how their department will run so a reasonable understanding of how such a system works, what it is capable of and even what it is lacking, can be the key to driving as much efficiency via the FSM solution as possible.

In terms of how the training was applied the vast majority of companies tend to deliver training in an ongoing manner when on-site - an approach over three quarters (79%) of companies within the research adopt. However, only a quarter of companies (25%) offer regular off-site training.

The danger here for those that solely rely on on-the-job training is that by its very nature field service is a dynamic operation with many moving parts, often seeing the service manager fighting fires as part of his regular routine.

With the immediate need of ensuring the customer stays happy the obvious priority - how often will training sessions get pushed down the to-do list?

Initial Conclusions

Firstly, it certainly does appear that the threat of an ageing workforce remains a significant concern and this is something that must be addressed swiftly before that concern truly turns to crisis.

Outsourcing appears to be a sticky plaster that many companies are turning to and it could well be that we see a gradual shift in workforce dynamics across the next few years whereby the role of the field service engineer becomes increasingly outsourced.

But in a world where customer experience is sitting at the heart of business strategy, one might question if handing over control to one of your most important assets in the customer service equation - namely your engineers themselves, is actually the right path to head down.

For those companies that are facing the challenge of replacing their workforce - but are not keen to outsource their field service work, then the reality is they must adapt both their recruitment and development plans to be more in line with the incoming workforce of millennials.

In terms of management for the time being, at least, it seems that we are seeing less disruption of the status quo, with many companies still seeking to employ from withinIt is surprising that so few companies have actually undertaken this process as yet, although what is perhaps somewhat encouraging is a similar amount of companies are at least considering doing so.

In terms of management for the time being, at least, it seems that we are seeing less disruption of the status quo, with many companies still seeking to employ from within and the traditional blend of skill-sets being required - namely technical knowledge, rapport with engineers and operational understanding all still highly sought after.

However, the one element that has been really raised to the fore is the need for our service managers to understand customer-centricity, for whilst this has always been an important asset for service managers, the fact that it has become a key attribute on such a pervasive scale is perhaps the greatest signpost of where the field service unit’s most important role in the future - not just as a maintenance team, but as true brand ambassadors also.

It’s therefore perhaps vital to bear this in mind during all points of talent acquisition be it for technician, engineer or management.

Key statistics: 

• 53% of field service companies state that replacing an ageing workforce is a challenge for their organisation...
• 21% of field service companies have adapted their training and development to be more suited to millennials...
• 80% of field service companies who outsource their service engineer work state that they have increased the amount they outsource within the last three years...
• 55% of field service companies have an on-boarding time of between 3 and 6 months for new service engineers...
• 93% of field service companies are now using their more experienced engineers as mentors for new recruits...
• 59% of field service companies state that replacing an ageing predominantly try to fill service management roles from within their organisation...

 

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The threat of a genuine ageing workforce crisis is being discussed by field service organisations across all industry sectors and in all corners of the globe. Field Service News in partnership with Si2 Partners, Workammo and Service People Matters undertook research to establish exactly how real this threat is to ongoing service operations and how recruitment, development and progression trends within field service are evolving...

The threat of a genuine ageing workforce crisis is being discussed by field service organisations across all industry sectors and in all corners of the globe. Whilst the technology that is developing within our industry is creating unprecedented opportunities for improving efficiencies and increasing productivity, it remains a maxim of our profession that it is a people led business.

Simply put without field service engineers, there can be no field service.

So it is of significant concern when we here of field service companies across the globe facing up to an ageing workforce crisis.

But just how much of this crisis is a genuine reality and how much is headline grabbing hyperbole?

Field Service News in partnership with Si2 partners and Service People Matters have undertaken a research project to establish the magnitude of the problem and to assess how field service organisations are recruiting and developing both field service technicians and managers.

Here are the findings...

About the research:

The research was conducted over a six week period reaching out to fieldservicenews.com subscribers as well as the respective audiences of our partners - inviting recipients to complete a detailed online survey. In total there were 131 respondents.

In addition to this Field Service News Editor-in-Chief conducted a live polling session at the recent Field Service Connect event, held at the Belfry, UK which was hosted by WBR at which an additional 33 senior field service executives were present bringing the total respondent level to 164 field service professionals - a sufficiently large enough response base to provide a fairly robust snapshot of the current trends around recruitment and development amongst field service organisations today.

The respondents represented a diverse range of industries including; Heavy Manufacturing, Healthcare, Consumer Electronics, Power Generation and Facilities Management. There were respondents from all across the globe including the UK, Belgium, Germany, UAE, Canada, Spain and the USA and there were responses from companies of varying sizes ranging from those with less than 10 engineers through to those with over 800 engineers.

The reality of the ageing workforce crisis

Of course, the first fundamental issue that we wanted to address was just how many companies were facing an ageing workforce crisis.

In a previous fieldservicenews.com research project conducted in late 2017 we identified that for 48% of field service companies the threat of an ageing workforce was indeed a genuine threat to their service operations - so has this challenge become more pressing across the last 8 months?

53% of respondents stated that replacing an ageing workforce is a challenge for their organisations Our research indicated that indeed it has, with 53% of respondents now stating that replacing an ageing workforce is a challenge for their organisations.

Of course, this means that 47% of companies stating that they do not have a challenge to replace their greying workforce - so then just how severe this crisis could be to our sector as a whole remains in question - but certainly the 5% increase of companies facing this issue across such a short period of time would indicate that this is an issue that is beginning to become increasingly prevalent.

Courting Millennials

Of course, the issue that field service companies are facing in terms of their workforce isn’t only exacerbated by the fact that many of the existing service engineers are coming close to retirement age, we must also consider the fact that the incoming generation of potential new recruits, often dubbed the 'Millennial generation' has a vastly different set of desires when it comes to job selection than the generation they are replacing.

A study by Fidelity Investments found that Millennials are the first generation ever to prioritise work-life balance over financial remuneration for example. Similarly, the linear career progression that was a lure to Baby Boomers and Generation X alike, is of less appeal to Millennials who value diversity within their career and regular fresh challenges within their working lives.

Millennials are the first generation ever to prioritise work-life balance over financial remunerationGiven this dramatic shift in culture within the incoming generation of workers should we be tailoring the way we approach talent acquisition to be more attractive for the Millennial market?

Surprisingly very few of the companies involved in our research are currently doing so.

In fact, just over a fifth of companies (21%) stated that they had adapted their training and development programs to take into account the cultural differences Millennials bring to an organisation compared to almost two thirds (62%) who had not done so.

However, there does appear to be a shift towards adopting such an approach developing though as 17% of companies stated that they were currently in the process of revising their recruitment and development programs to be more geared towards Millennials.

It is also interesting to note that over a quarter of respondents (27%) specifically target graduates when attending jobs fairs, whilst 7% go one step further and target school leavers directly. In comparison, 13% of companies target ex-service personnel.

Is outsourcing the answer?

One potential route to overcoming the loss of in-house engineers due to retirement could be to outsource some of the field service function to a third party.

In fact, exactly half of the companies we spoke to outsource some of their service work.

Of these, the most common breakdown of outsourced staff compared to in-house was a 25:75 ratio in favour of in-house staff which was the mix for 40% of those companies that outsourced some of their service operations.

34% of companies have seen the amount they outsource change across the last three years - with 80% stating that has increased What was of particular interest, however, was that amongst those companies who do use outsourcing as a means of ensuring they can meet their service demands 34% of companies have seen the amount they outsource change across the last three years - with 80% stating that they have increased the number of field service engineers that they now use within this period.

This increase is both dramatic and significant as it seems many field service companies are increasingly turning to outsourcing as a means of maintaining their field technician levels.

Whilst this could be a solution in the short term, it is justifiable to question whether such reliance on outsourcing is unsustainable across the long term?

Look out for the next part of this feature where we explore how field service companies are reducing the time from classroom to customer site, what are the key trends in developing the next generation of service leaders and draw some clear conclusions on the research.

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Barrett Coakley, Product Marketing Manager, ClickSoftware offers some crucial advice in the complex and crucial area of change management...

Organisational change is hard but, given constantly shifting market conditions and the rate new technologies are released, dealing with transformation is now a requirement at most firms.

However, McKinsey reports that 70% of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. With that type of failure rate, you might be wondering why even bother. Nonetheless, when done correctly, change management can have an enormous impact on employee engagement, operational efficiency and financial success.

There are three areas that are causing change within field service teams that leaders must address Field service organizations are being asked to address multiple reforms but there are three areas that should be high on your change management list; talent management issues, technology advances and new customer attitudes.

Here are some recommendations to help your field service group succeed on this change management journey.

Talent Management

According to The Service Council, 70% of service organizations report they’ll be facing a pinch as they lose workers to retirement in the coming years. The retirement of baby boomers has the potential to leave a vast knowledge and experience gap on many field service teams.

There is hope, however, as the 75 million large millennial generation has entered the workforce and they have the skills to fill these open positions.

However, field service managers must understand the drivers that motivate millennials and how they differ from the retiring baby boomers, including:

• Tech savvy: The millennial generation grew up with all things digital. They embrace technology and expect the organizations that they work for to provide the most current technology for them to perform their job.
• Mission: Millennials are looking from a deeper meaning from work. They want to feel that they are having an impact both on the company as well as greater society.
• Retention: You might have some members on your field service team that have worked in the group for 10-20+ years. Millennials, however, tend to change jobs frequently. In fact, Gallup revealed that 21% of millennials report changing jobs within the last year, which is more than three times the number of non-millennials.

Here are some areas your field service team should focus on to facilitate the changes this generation will bring to your team.

Offer Incentives:

While you might think a raise would be sufficient for millennial retention, you should instead focus on benefits you could offer.

According to Gallup, millennials are more likely than any other generation to say they would change jobs for a particular benefit or perk. They especially appreciate perks that directly impact their lives and the lives of their family. It makes sense considering many millennials are starting families, have large student loans, and desire a work-life balance.

Popular benefits for Millennials include:

• Paid paternal and maternity leave
• Student loan reimbursement
• Childcare reimbursement
• Tuition reimbursement

So instead of just offering a pay raise next year, poll your workforce to determine what they truly value.

The responses might surprise you.

Development opportunities: The best way to attract millennials is by leveraging two of their biggest desires—development and purpose.

67% of millennials are engaged at work when they strongly agree that the mission or purpose of their company makes them feel their job is importantFor instance, Gallup reports that “rallying millennials around a mission and purpose dramatically increases their employee engagement: 67% of millennials are engaged at work when they strongly agree that the mission or purpose of their company makes them feel their job is important.”

Focus your attraction and retention strategies on delivering learning opportunities and career development. This way millennials are assured that their jobs provide plenty of opportunities for skill development and career advancement.

Keep in mind millennials may want to pursue independent project work, attend conferences, take classes, and join professional organizations.

Give them the flexibility and resources to do so, whether this means tuition reimbursement, or time off work to ensure they are fulfilled.

The Impact of New Technology

New technologies like the Internet of Things (IoT), artificial intelligence (AI), machine learning, and data analytics are having a huge impact on field service operations.

These new technologies are providing real-time insights into field assets that can be used to predict when a piece of equipment might fail, allowing for proactive maintenance. However, with all of this technology, there comes the need for change across your field team in order make sense of all this new information. Here are a few steps you can take to make sure your team is prepared for the impact of technology on your field service group.

Make a Plan:

First off, you will need a plan to prepare for the impact these technologies will have across your field service organization. For example, you will need to train field engineers on how to potentially service IoT-based equipment, build a roadmap for incorporating new devices, and identify which technician or dispatch behaviours will change based on this new technology.

Will customer issues be identified at a server level when equipment fails? What does this do to the dispatch workflow? Are you incorporating wearables at an employee level to improve communication or field-based efficiency? What software will you need to ensure these devices operate smoothly within your current frameworks and infrastructure?

Create a roadmap that accounts for the short, and long-term implications of devices, services, and technician needs.

KISS Principal:

Albert Einstein once stated, “Everything should be made as simple as possible, but not simpler.” This is where the KISS principle comes into play during change management exercises. Stepping up to the challenges associated with all of these different technologies is difficult and complicated.

Everything should be made as simple as possible, but not simplerWith any digital transformation, the best possible course of action is to simplify by starting with small, simple changes. Select a small behaviour, or wearable device that your customers are using, and optimize around that. Then, scale what you have learned across more devices, customer behaviours, and internal processes. With a change this impactful it is best to keep it simple, sir.

Uberization of Service

As Amazon, Uber, Airbnb and other upstart organizations continue to heighten customer expectations, field service organizations have struggled to keep pace with these new demands.

Customers now expect transparency around service delivery such as the real-time location of the field technician responsible for the appointment as well as personalized communication preferences like text or email.

However, the delivery of exceptional service requires changes to the technician’s traditional role and skill set.

Here are few areas that should be looked at to change.

Product and Service Training:

Field service professionals understand the inner workings of the products they maintain but they might not be knowledgeable enough to upsell a new product or service to a customer.

To enable this ability, sales and marketing training should be provided to field service professionals so they understand the features and benefits of different services. Sales and marketing is a new type of training and skillset for most field service professionals but one that can really benefit the top line.

Increasing revenue is an important focus for many organizations but it is proving to be a difficult one as 76% of field service providers report they are struggling to achieve revenue growth, according to the TSIA. Sales and marketing training could be the support ticket that helps change this trend.

Soft Skill Training:

Field service professionals are now required to interact with clients in a way that elevates the customer experience, resulting in upsell opportunities and less customer churn.

64% of consumers have switched providers in at least one industry due to poor customer service.Preventing customer churn is especially important as Accenture reported that 64% of consumers have switched providers in at least one industry due to poor customer service.

To provide a higher level of personalized service requires better soft skills, something not every person has, but this ability is a key to this new service delivery model. In fact, study conducted by Development Dimensions International found that for every $1,100 invested in soft skills training, employers earned an average return of $4,000.

Training soft skills can help a technician provide more empathy towards the customer, improve communication and the ability to provide a more personalized experience.

Soft skill training is especially important for millennials as they often lack these abilities. An investment in soft skills training is worthwhile for any organization but can be particularly important in delivering a great customer experience.

Conclusion

The key to handling all of these changes is a commitment from all involved. In fact, McKinsey found that when people are truly invested in change it is 30 percent more likely to stick.

However, making the challenge even more daunting is that organizations no longer have the luxury of implementing changes over a 3-5 year period of time as in the past.

Change is no longer a periodic event, but one that is constant as the market and technology continue to evolve at faster and faster rates. Field service teams need to prepare now.

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Nick Frank, Managing partner at Si2 Partners explores an important topic in the face of an ageing workforce crisis - how to make your brand an attractive prospect for the growing Millennial workforce...

Today, brands pervade our lives – be it food, clothes, shoes or phones - and drive the value of companies, particularly on the stock market.

The brand value of Samsung Electronics (ranked No.6 on Interbrand’s “Best Global Brands 2017”) is $56.2 billion – while for Small Medium Enterprises, their sales turnover and assets generally create their value. In either case, the value of your employer brand has an impact on many areas, including your ability to deliver growth opportunities, to hire the right talent, as well retention.

Understanding the new workforce in this regard will be critical for your Talent Management efforts – Sarah Gibbons wrote “I’m a millennial, and I embody a lot of the clichéd things you’ve heard about the generation: the frivolous wanderlust, the tattoos, the addiction to Instagram, and one pretty powerful behavioural trend – the insistence on ethical substance and integrity from brands, or in other words, choosing to make mostly idealistic purchase decisions. Without a socially conscious framework, your brand means nothing to me or many of my millennial cohort, and without capturing the millennial market, you’ll never amass the army of brand advocates you need to partake of the nearly $200 billion in millennial-driven sales each year”.

Unlike many of their Consumer driven organisations like Coca-Cola, many Manufacturing Service companies being technical driven do not focus on this critical area so this article aims to provide some assistance in what to consider.

However what is an employer brand?

It is the internal and external perception of your company. It is often not a single ‘something’ that drives the perception. For example, the belief you have in the Apple brand starts with the shop you visit and the service they provide. The decision to purchase a wonderfully designed product is only reinforced when it works well, and by the reception and quality of the phone. If something does not work, you take note of how Apple deals with maintenance or the return policy. This end-to-end experience drives a belief in you and it is the belief that drives your behaviour - a positive belief will have you returning to buy more Apple products.

It is critical that you develop and communicate workplace expectations internally - what is acceptable and what is notIn the same way, a person experiences how a company responds to and leads their employees.

This will be communicated to others and of course, will influence whether people are retained or if they will look elsewhere for a brand they want to work for.

So, what can you do to build a strong employer brand? There are many actions that can be taken to grow or strengthen your employer brand, and the energy exerted will be driven by how seriously you wish to be taken and how important your employer brand is to the delivery of business opportunities.

Our goal here is not to overload you with the many actions that can help, but to share what I consider to be the critical few – 3 simple things you can do irrespective of the size of your organisation.

First, it is critical that you develop and communicate workplace expectations internally - what is acceptable and what is not. In developing the expectations, try to reflect the organisation you want to be and the people you wish to hire and retain. For example, as a software company, you will inevitably hire younger generations.

When a leader is seen as driving the right behaviours, share their success, its impact on team morale and the impact on the organisation’s growthHaving flexible work hours and dress codes will help you, as these are important attributes today! However, frankly, these are the easy wins – expectations around leadership style and development of the team will carry far more weight and will be shared amongst top talent more than the hygiene factors.

The second step is to reinforce and redirect workforce behaviours. When a leader is seen as driving the right behaviours, share their success, its impact on team morale and the impact on the organisation’s growth. Equally, when a leader does not drive the right behaviour, they need to be told and redirected to what is expected. If this leader is permitted to continue with their unacceptable behaviour, it will undermine your employer brand building efforts.

The most important contributor to your employer brand is for the leadership team to view it as equally important as product brand value. In the great brands I have worked for, I can remember very clearly the good and great leaders who absolutely represented the brands they led.

They made me proud to work there, valued my contributions, reminded me of my obligations to the employer brand in what they said, but most importantly in what they did.

Value your employer brand as much as your company/product brand. Set expectations, hold people to these expectations, and always walk the talk.The real employer brand is defined in the moment when an employee issue raises itself in the workplace. Is the company compassionate, caring or mechanistic in its HR actions? The rest of the workforce watch, as this will define exactly the company they work for.

In summary, value your employer brand as much as your company/product brand. Set expectations, hold people to these expectations, and always walk the talk.

Companies, as well as people, define themselves every day by what they say and, more importantly, do. There’s no doubt - great employer brands built with this in mind will attract and retain top talent.

For more information on ‘Building your Employer Brand’, contact Dag Gronevik or Nick Frank at info@si2partners.com or call +44 208 144 6452.

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