{"id":16134,"date":"2022-03-03T21:24:28","date_gmt":"2022-03-03T21:24:28","guid":{"rendered":"https:\/\/fieldnation.com\/resources\/why-on-demand\/"},"modified":"2025-01-21T09:56:15","modified_gmt":"2025-01-21T14:56:15","slug":"why-on-demand","status":"publish","type":"post","link":"https:\/\/fieldnation.com\/resources\/why-on-demand","title":{"rendered":"Three compelling reasons to deploy a blended workforce: The “why” of on-demand labor"},"content":{"rendered":"

By Shawn Fields<\/span><\/em><\/p>\n

This article is the first in a three-part series about blended workforces. This series will cover <\/span><\/i>why<\/span><\/i> blended workforces make sense for many businesses, <\/span><\/i>what<\/span><\/i> a blended workforce looks like for field service, and <\/span><\/i>how<\/span><\/i> to deploy a blended workforce. <\/span><\/i>Our approach is inspired by the principle of <\/span><\/i>The Golden Circle<\/span><\/i><\/a> developed by management expert and author Simon Sinek.<\/span><\/i><\/p>\n

\n

Blended workforces\u2014with a mix of automation, full-time staff, subcontractors, and on-demand workers\u2014are not a new concept. But the trend toward blended (or hybrid) workforces has dramatically accelerated in the field service industry. What\u2019s driving this massive change?<\/span><\/p>\n

Let\u2019s dive into the top three reasons companies are shifting toward a blended workforce.<\/span><\/p>\n<\/a>

Current market conditions require flexible staffing models<\/span><\/h2>\n

The U.S. labor market remains tight, <\/span><\/a>with job openings and worker turnover hovering near the highest levels on record. According to the U.S. Labor Department, there are currently almost 11 million job openings.\u00a0<\/span><\/p>\n

Similarly, the \u201cGreat Resignation\u201d has been in the news for over a year. Workers continue to quit in record numbers, and employers struggle to fill open positions. Additionally, we\u2019re now seeing the effects of the \u201cSilver Tsunami,\u201d a deluge of skilled Baby Boomers leaving the workforce. According to the TSIA, 46 percent of field service employees in North America are over 50 years old. On the other end of the workforce, the Service Council reports that 60% of field service engineers aged 26 to 40 aren\u2019t sure they\u2019re going to remain in the profession.\u00a0<\/span><\/p>\n

What\u2019s more, <\/span>inflation is now at a 40-year high<\/span><\/a>, leading to increased wages and labor costs. Combined, these shifts in labor trends and accompanying economic indicators mean that service delivery leaders face enormous challenges meeting their current staffing needs.\u00a0<\/span><\/p>\n<\/a>

Thanks to automation, you\u2019re already using a blended workforce\u00a0<\/span><\/h2>\n

Finding the most efficient, effective, and least expensive source of labor isn\u2019t a new concept. Even if you don\u2019t realize it, you\u2019re already evaluating which labor source to use when assigning work.<\/span><\/p>\n

Most businesses have increased their reliance on automation to run units of work previously assigned to humans. That\u2019s because automation works 24\/7, doesn\u2019t make mistakes, deploys faster, and is much less expensive than a full-time resource.<\/span><\/p>\n

For that reason, technologies like artificial intelligence, machine learning, and robotic process automation are becoming increasingly prevalent. Industry analysts have predicted that these technologies will allow 50 to 60 percent of typical service calls to be solved without human intervention by the end of 2022.\u00a0<\/span><\/p>\n

You can apply the same principle to other component parts of a blended workforce, i.e. work that <\/span>cannot<\/span><\/i> be automated. If work can\u2019t be automated, evaluate the best remaining labor source based on the parameters of the work\u2014whether that means using full-time employees, subcontractors, or on-demand workers. In other words, <\/span>let the work determine the workforce<\/i><\/b><\/a>.<\/span><\/p>\n<\/a>

A blended approach can help you build a competitive advantage<\/span><\/h2>\n

Blended workforces are essential to optimizing service delivery. Companies can reduce labor costs by adding on-demand workers to the labor mix, typically by <\/span>30 to 40 percent<\/span><\/i> over full-time workers. Also, moving work from subcontractors to on-demand labor has shown savings in the <\/span>15 to 20 percent<\/span><\/i> range.<\/span><\/p>\n

In addition to improving profitability, a blended workforce can enhance the output of your employees. By augmenting your in-house team with on-demand resources, you can allocate employees to higher-value projects with greater client impact. This type of work also increases the \u201crevenue per tech per day\u201d metric, which we\u2019ll discuss in greater detail in the next article.<\/span><\/p>\n

Not only can a blended workforce help you control costs, it can also boost revenues. That\u2019s because companies that use blended workforces are better positioned to respond to spikes in demand, particularly in a tight labor market. Very simply, you can deploy resources more quickly using blended resources than the longer timelines needed for the recruitment, training, and deployment of full-time resources.<\/span><\/p>\n

In contrast, companies that don\u2019t adopt a blended workforce will likely find themselves at a competitive disadvantage. Due to staffing shortages, businesses will likely be unable to meet client demand if they rely solely on full-time employees. What\u2019s more, they will be at a cost disadvantage as the rising cost of salaries, benefits, insurance, equipment, training, office space, travel, and administration eat into profits.<\/span><\/p>\n

\n

Want to discover the right labor mix for your business? <\/span>Contact our team<\/span><\/a> for more insights into aligning your workforce with current market trends.<\/span><\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This series will cover why blended workforces make sense for many businesses, what a blended workforce looks like for field service, and how to deploy a blended workforce. 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