Embracing the ‘Silver Tsunami’: How to Overcome Staffing Shortages

The baby boomer generation has created a wave of disruption ever since growing up listening to Motown, Elvis, The Beatles, and The Rolling Stones. Many of this generation are still working (and playing). But they are retiring at an increasing rate. In the US alone, a record number of people turn 65 this year (4 million), translating into over 11,000 boomers retiring a day, according to this report.

It’s a similar picture across the globe, creating what has widely been referred to as a “silver tsunami.” The Wall Street Journal warns this could even result in a silver-induced recession from a global skills shortage. Is there anything that can be done to help mitigate this pending disruption? I believe there is, and fortunately, the tools to help with this transition already exist. The challenge is how to best ride this wave and – more importantly – how to do so better than the competition!

A closer look at the field service industry

According to research, almost three-quarters of companies (73%) identify an aging workforce as a potential threat to their field service operations. This is not just because organizations will be left with employment gaps. It’s also about knowledge, experience, processes, and relationships. According to the Service Council, “difficulties with technician hiring and retention, and loss of [institutional] knowledge through retirement, are likely here to stay.”

Unfortunately, this is not one of those problems that will solve itself. Competition for skills is increasing, industrial products are more complex, and competition spans from across multiple industries. As a LinkedIn data report reveals, skills such as communication, customer service, problem-solving, analytics, and project management are all in high demand across multiple vertical sectors.

Attracting new, younger talent is a perennial challenge when faced with so much competition. Digital natives (generally referred to as Gen Z and to a lesser extent, millennials) want to immerse themselves in tech and have it at their fingertips. They don’t want to bother with legacy technologies or manual processes. It’s just not in their wheelhouse of skills to get things done.

The push to modernize the employee experience on Service teams is now critical. Modern technology tools are needed to attract and retain younger talent. Generative AI, data analytics and visualization, virtual and augmented reality, and quick and easily accessible knowledge banks are fast becoming de facto requirements. The challenge for any organization on this front is prioritization.

Two options – but either way, talent must come first

According to one report from BCG, the current skills ecosystem is broken. For many companies, relying on traditional sources for a talent pipeline is not going to cut it. Organizations must be prepared to take their own course of action to prepare for impending shortfalls in the workforce.

Businesses effectively have two options to offset the current labor challenges. The first is to increase the productivity of existing staff, while the second is to increase the attractiveness of working at a particular organization. That means investing in automation and other technologies to improve productivity while being more competitive with other businesses and industries for younger talent.

This demands an understanding of what makes new generations tick. Much has been written and said about Gen Z, the first truly digital generation. While so much of it is too narrow and too isolated in its thinking, we have to accept that expectations are changing.

Deloitte, in its report Understanding Generation Z in the Workplace, identifies a shift. “The future of work will call for a return of the Renaissance figure: a person with many talents, interests, and areas of knowledge. It will require a fusion of four key work skills - digital tools and technology skills, comfort with analytics and data, business management skills, and design and creative skills.”

This shift suggests a need for greater collaboration and sharing of ideas, data, and strategies. Note that this sharing could come from employee to employee, machines to employees, or equipment to equipment.

A strategy to grow skills and relevance

The best strategy to get to grips with all of this is to combine both an internal and external skills strategy. This means service leaders must look at and use key technologies to their advantage.

Investing in automation, artificial intelligence (AI), and other advanced technologies can increase output and efficiency per employee. Simplify how employees collaborate with each other and customers. Automate data collection and other manual processes to streamline record keeping, billing, and other procedurally related tasks. Continue to invest in modern service platforms that provide intuitive and high-performance capabilities, such as complete suites integrated across the product lifecycle value chain.

Access to intelligent tools is key for any field service team to inspire and enthuse the workforce. Any opportunity there is to add a “wow” factor pays off considerably, especially with a younger, tech-savvy cohort. Organizations need their service people to not just fix things, they also need them to be the enthusiastic and loyal “face” on the frontline.

Much of this can come from technology. Data-driven, analytical, and efficient field service teams can be inspired by their products and services. If the tools are at their fingertips and make their job easier and more interesting, then employees will promote their company to both customers and potential recruits. Further, those nearing retirement might be inclined to wait a year if the annoying or boring aspects of their job are eliminated.

The ability for employees to proactively notify customers of pending service or maintenance requirements amplifies these points. As one example, advanced scheduling of service work is far more efficient than responding to a customer call after something has already broken. It is repositioning and reframing roles, and redefining service techs as trusted advisors that understand their customer’s businesses. While this helps in terms of first-time fixes and customer loyalty, it can also lead to new revenue opportunities through upselling.

Increased automation of processes and using AI to make sense of data can drive both interest as well as efficiency among service teams. Capturing knowledge from experienced colleagues will ensure continuity is not lost.

Make no mistake. Skills, experience, and operational discipline are leaving. Organizations need to capture knowledge and operational processes. Ask yourself, is everything baked in? Is your field service knowledge documented with both technology and strategy?

While the silver tsunami is an impending challenge, it can also be an opportunity. The first step in this process is to lean into this wave and recognize that there is an opportunity for competitive advantage. The tools exist today. Investing in a new data-driven, AI-enabled platform, is key. If this problem hasn’t already hit your business yet, it will. Business leaders, and particularly service leaders, need to act now to empower their service teams and start by investing in a better employee experience. With a high-performing staff empowered with all the modern tools for exceptional service delivery, customers can only benefit as well – a win-win for everyone!