Training, Turnover and Budgeting for Both
It’s a balancing act that businesses have been performing long before the COVID-19 pandemic, but one that has been exacerbated by it – the act of training new hires, avoiding turnover and budgeting for it all.
Aircraft ground handling training requires a wealth of technical knowledge, industry regulations and safety knowledge, all coupled with customer-facing service skills.
Investing in employees to make sure they have all these necessary skills to perform their jobs safely and efficiently is critical, but will inevitably be lost once employees leave or retire out of their positions. It takes effective planning to balance these factors successfully and economically.
Brian Giacona, VP of operations, AccuFleet International, says the company utilizes a bid model based on a number of different factors.
“We have a fairly detailed bid model which allocates wage levels and training costs based on the location and scope of work being done for our customer in each market. Our budgeting includes all required training for the service line as well as maintaining certification for each position on our ground handling, cabin cleaning, disinfection, exterior wash and upholstery teams,” he says.
Giacona adds that AccuFleet analyzes their budgets both quarterly as well as annually.
“Most recently we have reviewed our individual station wage rates on a monthly level to maintain our competitiveness in being one of the top-paying vendors. This allows us to retain and train the best talent in each market,” says Giacona.
Influencing the Budget
The overall trends impacting the industry influence the budgets of ground service providers. What employees and customers are asking of employers and what new technology or techniques employers are taking advantage of impact the bottom line.
Giacona says that they have seen the customer base requiring a more comprehensive solution for employee training from vendors.
“AccuFleet has been working to leverage the proprietary technology we possess to bolster this need and, in some cases, create custom training packages for our customers. We use our iROD system to track and manage all training and provide our customers access to allow greater peace of mind in every employee being up to date with training and certification,” Giacona says.
On a more micro level, Giacona says that keeping on top of safety management systems (SMS) and other specialized training is what dictates training budgets.
“First and foremost is our SMS and required certifications as they relate to the service lines – IATA, dangerous goods, etc. We also accommodate airline-specific training requirements. Beyond that we have an established corporate training program for each position on the airfield in addition to a comprehensive manager’s training manual. We maintain two different learning management systems (LMS) for all employees and pride ourselves on utilizing the best technology to make sure our employees have the tools they need,” he says.
And in a mix of the macro and micro levels has been the pandemic’s influence on the workforce. With potential labor reluctant to return to work as the COVID-19 pandemic continues its resurgence with the delta variant, employers in the ground support and aviation industry, and beyond, are having to increase their competitiveness through wages and benefits to attract and retain workers.
“We, like other companies in aviation, have seen increases in competitive wages in the markets we work in. In some cases, we have raised entry level wages in the double digits to remain competitive and ensure our employees are earning competitive wages. We have also budgeted for additional testing, PPE and hours to accommodate quarantines to maintain a healthy, happy workforce. Projection of revenues has been a bit more challenging due to the volatility of passenger enplanements, travel risk perception and available airline routes,” says Giacona.
“We have several employee benefits programs, which we feel add to the attractiveness of working for AccuFleet, including 401k and health care for full time employees, tuition reimbursement, attendance bonuses, referral bonuses and a very competitive hourly rate for entry level positions,” adds Amber Gallaher, VP of human resources, of AccuFleet.
Of course, while the pandemic has accelerated turnover for a variety of reasons, it’s a factor that exists and impacts budgets. Recently, Gallaher says the combination of turnovers and rising wages has impacted their budgets.
“In the last six months, turnover and increasing wage rates have had an effect on our budgeting. We strive to pay our team members a competitive market rate to reduce the impact of turnover,” notes Gallaher.
Stemming the Turnover Tide
According to statistics released on Sept. 20 by the U.S. Bureau of Transportation Statistics, the 23 U.S. scheduled passenger airlines employed 2.1 percent more full-time employees in July 2021 than in June 2021. However, the amount is still well-below the pre-pandemic levels. In July of 2019, there were 449,804 employees compared to 402,561 in 2021.
Job Openings and Labor Turnover Survey statistics released by the U.S. Bureau of Labor Statistics for July 2021 had total separations across all industries at 5.8 million. In their transportation, warehousing and utilities category, the separation level fell by 43,000.
Quits, which the U.S. Bureau of Labor Statistics lists as, “generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs,” also decreased by 25,000 for transportation, warehousing and utilities.
While the stats are currently trending in a positive direction, the impact the COVID-19 delta variant will have on the industry as it moves into the autumn and winter seasons remains to be seen.
Gallaher gives some tips, though, on how to retain workers from leaving of their own accord.
“We would advise other vendors in the market to maintain full teams for each service provided, budget for the best total rewards package for the market, ensure ample feedback and communication, and establish a community among employees that encourages participation through social events and pre- and post-shift briefs,” Gallaher says.
She continues that organizations should maintain and recruit the best management in each market and implement the processes and key performance indicators (KPIs) needed to track against the standards of excellence an organization requires.
“Communicate early and often with your customers should there be any challenges in maintaining those standards. It helps to implement a stronger feedback loop with employees to manage expectations and address issues in the workplace,” Gallaher says.
