This isn’t fiction: Employees are really leaving companies faster than they can be replaced. With over 4.3 million people quitting their jobs voluntarily in December 2021, there is a huge hole in the labor market. Understandably, the shortage of talent has become the top business constraint in 2022, which can leave you behind your competitors.
Exacerbated by the current pandemic and an aging population, talent shortage has employers feeling the crunch. The world is currently undergoing a 15-year low point in an ongoing talent shortage, and it is estimated that 69% of companies worldwide are having difficulty filling jobs in 2021, compared to just 35% in 2013.
The talent shortage is complicated, and employers see it show up differently. While many can’t find enough qualified professionals to fill roles, others witness a loss of talent due to attrition. The talent shortage scenario has seen several dimensions, from changing work models and rising salaries to people looking for a change or hesitating to accept offers. And sadly, it isn’t going away soon.
The working-age population has shrunk owing to a sharp fall in immigration, the retirement of the vast baby boom generation alongside a slowing birth rate. The implications of the global youth employment crisis have exceeded everything we have experienced in our history. 1.3 billion youth – the largest young generation in the world’s history is about to enter the workforce, and about one-quarter of them (aged 18-24) quit their jobs amid the pandemic.
The most peer-connected generation in human history- the “Gen Z”- comes with a different skill set and is expected to become the bedrock for the future workforce. The generation that was expected to inherit a stable work environment faced an international catastrophe and has ended up being scared and stressed. They are looking for real investment in their career progression and will not settle for opportunities if they cannot see avenues for future development. Personal well-being and mental health have become their primary concern, and a vast majority of gen-z value a prestigious job title and a high-paying job. Constant upskilling has become a new trend alongside great respect for work-life balance. By 2025, millennials will represent 75% of the global workforce, and Gen Z will make up about 27%.
People are also rethinking their careers, work conditions, and, more importantly, their long-term goals. Labor pyramids show fewer new working-age people, and over 30 million baby boomers have left the job market. Following the “Great Resignation,” we currently see “The Great Retirement.”
Apart from these, several other qualitative events such as immigration policies, COVID-19 deaths, government subsidies, and changing cultural views also significantly impact the labor market. Moreover, poor mental health, burnout & stress, and reflections due to the ongoing pandemic have also played a vital role in why some workers left their jobs even without another opportunity.
As experts say, a declining economy, changing attitudes towards the nature of work, and an exit of professionals that defined the major bulk of workers in the last five decades are key meta-trends that have aggravated the current talent shortage. And bridging the talent gap is critical to maintaining social stability worldwide.
The Tables Have Turned!
For several years, employers have been able to do what they wanted. But now, the market is now candidate-driven, and people are no longer grateful for being employed like they once were. Millennials especially feel a sense of entitlement in their roles and are more selective about who they work with. They are now in high demand and have the upper hand! People seem to be leaving their jobs simply because they can. Leaving a job isn’t anxiety-inducing anymore, and the cost of switching jobs has significantly reduced. There isn’t any stigma pertaining to a gap in one’s resume, and employees are seemingly more confident that they can find work anywhere and whenever they are ready.
Although recruitment continues to be expensive as employees look elsewhere, retaining them is also a big challenge. It becomes an ongoing cost as recruitment isn’t just making new additions to your team but also replacing those who were once a crucial part of the organization. Alongside the prevalence of short-term contracts and increased instability & uncertainty, the gig economy’s growth has led to a high team turnover in numerous sectors. An increasing number of individuals are job-hopping, and some are forced to seek new opportunities, particularly in the wake of the pandemic.
The pandemic not only accelerated trends in automation, e-commerce, and remote working but saw an increasing number of people looking to switch occupations. The post-pandemic great reopening also saw millions of people reassessing their relationships with their jobs. Per a Pew Survey, 66% of unemployed individuals have seriously considered changing jobs, and they have mixed views about their future job prospects.
Moreover, employers struggle to hire talents specializing in critical business functions and find it challenging to engage and retain qualified candidates. Changes in workplace expectations and increased remote opportunities over the past couple of years have contributed mainly to high staff turnover. Employee turnover leads to much more than just temporary internal disruption, and companies often see a domino effect even if just one person resigns.
While most workers (63%) quit jobs due to low pay or lack of avenues for growth and feeling disrespected at work, a lesser percentage of them cited reasons such as childcare issues, not having good benefits, working too many, or too little hours.
Also, people sometimes decide to leave due to management concerns, personality clashes, poor cultural fit, and other issues. But whatever the reason, a high team turnover is undoubtedly disruptive for any organization. Not only will it lead to a drop in quality and continuity standards, but it can also damage the overall reputation of your organization.
We can see organizations being afraid of the VUCA environment. Human brains work well in a relatively stable environment, but the current post-pandemic world has become otherwise. There is fear and confusion and a great deal of insecurity, decline of creativity, loss of motivation, and trust erosion. It paralyzes decision-making, and in turn, organizations engage in activities to be active. The post-pandemic era has not only seen the great resignation and changing work models but has also been affected by war in Europe. With the interest rates going up, there is also a rise in inflation.
Outsourcing can be a true savior in such an uncertain, highly complex, and challenging business environment. The focus on pricing and the other scopes of outsourcing is completely rethought: Business Process Oxygen, as Phil Fersht calls it. Outsourcing today is not just cost savings but more about providing the most critical element for existence. And the pandemic has demonstrated to us that irrespective of our geographies, we are all now more connected than ever and are hardly a remote connection away.
Because it makes absolute sense to take care of what’s more important and let someone else do all your tedious tasks. From Customer Support, Accounting, Recruitment, Designing, and Computer Programming to Manufacturing and Research & Development, outsourcing is already upping the game across industries.
Outsourcing partners can attract top talent to ensure competitive results and customer satisfaction. Outsourcing also allows you to staff up before busy seasons without any financial commitments. It isn’t just about cost reduction but, more importantly, efficiency enhancement such as state-of-the-art infrastructure & technical support, effective communication, better client support, and an advantageous time-zone difference that make countries like India one of the best destinations for outsourcing.
More importantly, India is home to probably the largest skilled talent pool of English-speaking skilled manpower. Also, per a new Korn Ferry study, India is expected to be the new tech leader by 2030. It suggests that while the world would face a tech talent crunch, India is expected to lead with over 1 million surplus skilled tech workers.
There is always a constant search for partners that can genuinely deliver business transformation. Clients seek providers who can elevate their business, enabling them to be more flexible and accelerate their overall speed to market. The pandemic has also resulted in a digital transformation revolution that paves the road to being future-proof in global business climates. Digital transformation entails creating an integrated structure that transforms how work is done across businesses. Operational functions of companies, including HR, Finance, and marketing, are all digitized, and 90% of companies employ third-party service providers to assist with at least one aspect of their digital transformation. Outsourcing helps organizations cross their capacity gaps and leverage extensive expertise to succeed in their digital transformation journey.
Companies benefit greatly from having more staff on hand. While they cannot afford the expenses of hiring and supporting more additional full-time employees, outsourcing comes to the rescue. It is not only more affordable to outsource the work than it is to build an in-house team, as you can even cancel an outsourcing contract without having to put employees out of work. It is the most thoughtful way to ensure steady growth while your team can focus on critical, internal tasks.
Each second matters! Stop wearing multiple hats and focus only on what’s essential for your business and clients. Prioritize your time for activities that will help immensely grow your business and outsource all other tasks, even your development, if need be.
Cost reduction is the primary objective of outsourcing, and it is becoming increasingly critical, especially amid the ongoing pandemic. With the increasing competition in the current market, businesses are looking for ways to cut operating costs and up their value margin.
Especially during the development stages of your product. The faster delivery process and quick turnaround times are key benefits of outsourcing. Stay on top of your game by outsourcing skilled and trained employees with the right partner.
An outsourced offshore team can quickly be fine-tuned to match your demands. Outsourcing reduces the number of bugs, reduces the risk, and ensures expert support during crises.
Moreover, outsourcing can diversify your team, maximize flexibility, and obtain expert advice in several fields.
It is beneficial for both the employer and the employee, especially for organizations that operate in countries with the different time zone. Most of the work gets already done even before you start your day. However, currently, there is a huge competition among BPO companies than ever before. With numerous emerging outsourcing providers, choosing the right partner might be tricky. Consider infrastructure, efficiency, culture, and management while closing on the right outsourcing provider.
Get the most out of your outsourcing partner by ensuring that they understand what you need them to do and if you can truly trust them with your intellectual property as well. The best way to go about this is to partner with an outsourcing provider based in countries like India, which promises quality services at a reduced cost, especially ones that share your passion.
An outsourcing partner can take care of all your tedious back-end office jobs while you can move your focus to important business operations. You can be assured that your business will grow when you choose to outsource.
Looking to outsource your important business processes? QX Global Group has got you covered! Contact us today to discuss your outsourcing needs and learn how our services can help scale your firm and build profitability.
We hope you enjoyed reading this blog. If you want our team to help you transform your business operations, just book a call. Let our experts take the burden of tedious tasks off your shoulders so you can focus on growing your business.
Originally published May 17, 2022 03:05:15, updated May 23 2022