Choosing the Right KPIs to Monitor Your Field Service Workforce
KPIs play a fundamental role in helping businesses to hit objectives and monitor progress based on expected Return on Investment (ROI). In the field service management industry, KPIs are an effective way to track and manage your mobile workforce of technicians.
In this article, you’ll discover the benefits of using Key Performance Indicators and the KPIs you need to set up for your field service management processes. We’ll cover:
What is a KPI (Key Performance Indicator)?
KPIs (Key Performance Indicators) are metrics used in various types of organisations to track and understand how well a particular operation is performing over time. They can be set up to monitor employee performance, project progress and success, or to monitor a company’s overarching corporate goals.
KPIs aren’t just a measuring tool; they work to drive behaviour too.
KPIs help with identifying problem areas within an organisation so that improvements can be made. They can be simple or complex. For example, in a sales environment, one goal might be to achieve a predetermined number of product sales per calendar month. A KPI can be set up to monitor the sales performance against that specific goal.
A more complex KPI could be to track and monitor a business’s carbon footprint to ensure that environmental commitments are being met.
What are the benefits of setting KPIs for your field service workforce?
Setting realistic yet progressive goals for your in-field workforce and using KPIs to measure their performance provides various benefits. For instance, a field service manager is able to:
- Monitor operations
- Provide improved service
- Enhance technician productivity
- Drive business revenue
KPIs are crucial for a mobile workforce, not just from a management point of view, but also for workers too. Individuals can be fairly judged and assessed based on their performance and receive recognition for their achievements.
One of the best ways to set up and track KPIs is through a field service management (FSM) software tool; many solutions offer this as a feature. But what KPIs should you be using to get the best out of your workforce?
5 essential field service workforce KPIs to track
There are many different KPIs you can set up to track and monitor field service performance. In fact, the average number of KIPs measured by field service companies is between four and seven.
When setting KPIs, it’s important to focus on the right ones and measure what’s essential for your operations. Here are five of the most critical field service KPIs to consider:
First-time Fix Rate KPIs
First-time fixes are challenging. The customer might not provide enough information about the problem to the office, parts may not be readily available, or assistance could be needed to carry out a tricky repair. That said, First-Time fix rate (FTFR) is a crucial metric to improve for all field service companies because it directly correlates with improved customer satisfaction.
A customer that has their problem resolved on the first visit is likely to be happy to use the firm again. But, if they’re required to wait days or weeks for a resolution, this can lead to them taking their business elsewhere. Failure to resolve an issue first-time was a top customer complaint for 34% of respondents who took part in research conducted by The Service Council.
In 2019, 45% of mobile workers said they wasted significant time due to outdated or inaccurate job information. That, along with the time spent driving to appointments, traffic delays, and unnecessary admin tasks, can all lead to a decrease in billable hours.
Setting up a field service engineer KPI to monitor billable hours can help you understand where time is being wasted and what measures need to be put in place to enhance workforce productivity.
KPIs for Daily Field Visits Per Engineer
Tracking the number of visits each engineer makes each day can help you to identify your most engaged and productive employees. It also enables you to understand which engineers aren’t optimising their time effectively. Having this type of data is empowering when you want to reward your top workers or pinpoint those that need further motivation, training or development.
Another important KPI is to monitor backend service costs, to identify where you can make cost savings and boost profits. For instance, payment processing fees, rising fuel prices and ordering unnecessary parts can impact on your company’s bottom line.
By tracking the financials with KPIs, you can identify areas where you need to save and make small changes (like route optimisation and refuelling at the right places) when needed.
Completed Jobs vs Invoiced Jobs
To ensure your company receives payments for services quickly, you should ensure that jobs are swiftly invoiced. In an ideal world, the ratio of completed to invoiced jobs would be 1:1.
In reality, this doesn’t always happen, which is why completed vs invoiced jobs is a paramount KPI to track. FSM software can help with this if you have on-the-spot invoicing as a feature. This is where field service engineers can issue an invoice upon job completion through their mobile app, which links into your main system in real-time.
Why the right field service KIPs are crucial to achieving your goals
KPIs are an essential navigational instrument for field service companies. But they can only deliver mission-critical data if you choose the right ones – those that really matter to your business.
Used effectively, KPIs can increase productivity, improve customer service, and boost profits. They can also indirectly improve employee and customer retention, too. When setting your KPIs, consider your company’s overarching corporate strategy and what needs to be achieved.
Once you’ve set up your KPIs, inform your workforce about the metrics you’re going to use for monitoring performance. You can access performance data via your FSM system and use it to inform strategic decision-making going forwards.
Want to learn more about the importance of field service management? Discover our extensive field service management software buyer’s guide.