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August 12, 2024 | 4 Mins Read

How Much of Our Labor Challenges Could We “Retire?”

August 12, 2024 | 4 Mins Read

How Much of Our Labor Challenges Could We “Retire?”

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The shortage of skilled labor is a problem that has been hanging over the field service sector for years, and only got worse in the aftermath of the pandemic. We’ve talked about this challenge from a variety of standpoints – how technology can help maximize resource utilization and speed the onboarding of new hires, how we need to change recruiting practices, and how we must work harder to collect and democratize the institutional knowledge of retiring techs.

But are we overlooking an opportunity to find better or different ways to work with our older technicians? The Harvard Business Review ran an article earlier this year exploring the ways that companies can keep older workers engaged on some level to help fill in the labor gaps they face.

Through at least 2030, one of the biggest challenges is going to be the retirement of Baby Boomers, all of whom will be at least 60 years old by the end of this year. Each day, 10,000 of them hit retirement age. The article also cites a ManpowerGroup survey that found the share of companies reporting a talent shortage rose from 35% in 2013 to 77% in 2023.

In response, many companies are finding new ways to approach the graying of the workforce, including attempting to keep older workers around past age 65 in full-time, part-time, or hybrid positions to help keep staffing levels up while training and mentoring younger co-workers.

According to the U.S. Bureau of Labor Statistics, more than 10 million Americans over the age of 65 are still employed. That figure could rise to 15 million by 2032, and 27% of senior citizens are actively looking for jobs.

Of course, field service work is not the same as, say, being a doctor, a teacher, or a software programmer. Depending on the industry segment, technicians can be expected to do a lot of very physical labor and/or to work in harsh conditions. Some technicians would likely bristle at working past retirement age while others would love to stay involved in some capacity.

There are numerous ways that field service organizations can benefit from working with their older technicians to optimize the timing and degree of their retirements. They could, for example, encourage older technicians to stick around as mentors, supervisors, or support staff. They can help get new hires up to speed and keep projects on track. Some companies may be able to keep older technicians involved on a part-time or contract basis handling basic troubleshooting or light-duty service calls or pitching in during peak demand times. With remote assistance technologies, there are more and more opportunities for older technicians to aid in service resolution from an office or even home, or to give “hands-on” support to a mentor, from a distance.

There may also be opportunities for companies to recruit older or retired technicians from adjacent industries. A tech may have passed the point where they can safely work on an offshore oil rig but could still be an asset in a less arduous service environment in an industrial or residential service field.

HR departments at service organizations could look at the existing pool of technicians and start having open conversations about their retirement plans and try to coordinate that with the onboarding of new hires. Those discussions are going to vary a lot based on age, health, family situation, and industry. The point is not to start pushing people out the door or trying to get them to stay past the point they want to work, but to find common ground that helps them meet their retirement goals and still make sure the business can support its customers. Just like a good company has paths to career advancement, they might want to create formal paths to (for lack of a better term) de-advancement – shifting into less-demanding roles as they reach or pass the typical retirement age.

There are ways this can be appealing or helpful for technicians, too. They may need to maintain company health benefits, for example, or they could use the extra income. According to the HBR article:

“If older people have more years to enjoy purposefully, they also have more years to fund. Many Americans approaching or in retirement do not have nearly enough savings. The Boston College Center for Retirement Research has found that nearly half of working-age households are at risk of not being able to maintain their current standard of living in retirement, even if the people in them work to age 65. Our recent research found that more than 40 million workers were thinking of retiring later than planned (by an average of five years), most often for financial reasons. Working longer is prudent for many—and necessary for some.”

Don’t get me wrong, that’s not a great scenario. People shouldn’t have to keep doing hard, manual labor into their 70s because the cost of living is too high. But there is probably an opportunity for employers to work with older technicians to ease that burden, address some labor shortage issues, and better protect institutional knowledge by taking a fresh look at how retirement works.

Has your company found novel ways to keep older techs engaged and involved in a way that’s mutually beneficial? Send me a note and let me know what you are doing!