Countries across the developed world are struggling with serious labour shortages. Many businesses admit that they are finding it difficult to hire new staff who are qualified and skilled enough to do the jobs that are hiring them to do.
The covid-19 pandemic is predominately blame for these challenges as in 2020, the number of skilled worker immigration declined from 200,000 to a worrying 70,000 in the space of 12 months.
In the 12-month period leading up to February 2022, it was reported that 9.5 percent or 1.3 million Australian workers changed their job during this period of time.
This is the biggest change in Australia since 2012. These changes have led to phenomena’s such as; The Great Resignation or the Great Evaluation.
There is also an increase of candidate ghosting and there was a decline of 42.5 percent in the number of applications submitted for advertised jobs between February 2021 and February 2022.
To make matters even worse, inflation and the rising cost of living as placed millions of Australians in stressful situations and they are now more demanding in regards to their salary expectations than ever before.
A survey showed that 81 percent of employers believe that job candidates have become more demanding with salary expectations, in comparison to the expectations they had in a world prior to the covid-19 pandemic.
The problems related to retaining employees is concerning for a lot of businesses as in Australia the cost to hire a new employee doubled in the past year from an average of $10,500 to an average price of $23,860 for each new employee.
By not having access to skilled talent at home due to a lack of knowledge and expertise training costs can become extremely expensive. A way to solve this problem is to embrace outsourcing.
Outsourcing Lets Businesses Access An International Talent Pool
Outsourcing gives your business an opportunity to make the most of hiring talented individuals from overseas and source these candidates from anywhere in the world.
This means that you can hire a graphic designer from overseas and pay for the work you need them to do.
By stepping outside your comfort zone and undertaking research into what markets are available this might potentially open you up to places where what skills you lack close to home may actually be in surplus somewhere else.
Outsourcing Reducing the Amount of Money Spent on Employment Related Costs
Another benefit associated with outsourcing is that it could significantly reduce the amount of money you have to spend on employment related costs.
There have been some cases where businesses have saved up to 70 percent on employment costs as a result of outsourcing.
A major reason for being able to lower the costs via using outsourcing is because the salary that you would be required to pay workers in Australia is most likely going to be a lot less in a lower-cost economy such as the Philippines.
By outsourcing your jobs to employees in countries such as; the Philippines you can save huge amounts of money. The cost of living is much lower in the Philippines when compared to most Western developed nations. This means that the outsourced salary you give to workers in the Philippines would be much higher than a local equivalent position.
Outsourcing Enhances The Flexibility of Your Business
Outsourcing is also beneficial as it offers your business the type of flexibility that will allow it to keep up to date with changing resourcing requirements which might evolve as a result of market or customer demands.
Outsourcing also removes the costs that are associated with lengthy requirement drives. When outsourcing all you need to do is communicate your needs and let them handle everything else.
Outsourcing Improves Staff Satisfaction Rates
Outsourcing leads to an improved level of staff satisfaction rates. By hiring offshore team members, you can relieve the amount of stress experienced by your local team members. By outsourcing mundane jobs, you can enhance the job satisfaction rates experienced by your local team members.