With High Resignation Rates, Idaho Businesses May Benefit From Global Outsourcing Services
While labor shortages plague the entire country, some states have to fight harder for talent — and with a resignation rate of 4%, the highest in the country, Idaho is among those taking the brunt of the labor crisis.
How can local businesses stay afloat as more Idahoans leave the workforce for higher salaries, better opportunities, and more flexibility? The key is sourcing talent elsewhere, and global outsourcing services is an effective human resource strategy they can leverage to meet the rising demand.
Before the pandemic hit, Idaho’s job market was almost at an equilibrium, with the number of job openings hovering at the same levels as the number of unemployed residents. But now, there are only 54 available workers for every 100 slots, meaning almost half of the state’s jobs will remain unfilled even if they find jobs for all their eligible residents.
Craig Shaul, a research supervisor at the state’s labor department, said that many people who left the workforce are baby boomers who can afford to retire thanks to their home equity and pandemic stimulus packages.
Meanwhile, small local businesses affected by the gap continue to cut back on operating hours, with as much as half (50%) citing labor shortages as one of their biggest concerns.
How Global Services Business Process Outsourcing Can Help Idaho Businesses
Outsourcing companies offer a lot of benefits for businesses struggling to hire. Here are some ways outsourcing can help Idaho firms navigate the talent crunch.
Fill in labor gaps quickly and efficiently with global outsourcing services.
More than three years since the pandemic first upended the labor market, studies show that immigration policies and a shift in workforce demographics continue to fuel labor shortages in the US.
What are the numbers telling us?
The labor force participation rate is still below pre-pandemic levels, with roughly 3 million fewer people working today compared to February 2020.
Data also shows that the US has over 10 million openings, but only half (5.7 million) could fill the vacancies.
We hear stories of businesses across all industries and states forced to close temporarily as they face unprecedented hiring challenges.
More baby boomers are retiring, while millennials and Gen-Z workers are finding better jobs or starting businesses. With immigration diving during the pandemic, finding talent onshore is even more challenging. These combined factors have created a massive gap in the country’s precarious workforce supply and demand balance that trickles down to states like Idaho.
But as the US and European countries grapple with a labor crisis, finding employees beyond the borders poses a strategic option.
The solution for businesses across the globe – from Eastern Europe to North America – seeking talent is to fill the gap with capable outsourced workers.
Outsourcing allows businesses to expand recruitment reach and work with highly skilled overseas talent despite the local labor crunch.
Access a global talent pool of skilled workers.
Picture this: A small Idaho business needs a secretary, so they post a Help Wanted sign that goes unnoticed for weeks. The business owner then decides to pay for a listing in the local paper. Still, as they turn the page to the classified ads, they realize they’re competing with several other businesses – most offering a lot more than they can afford.
Some people may think they only have two options: wait helplessly as the overwhelming workload piles up or hire someone unqualified.
There is another cost-effective and strategic alternative that would help them get ahead of the competition without breaking the bank.
Businesses can grab the opportunity to outsource to a Business Process Outsourcing (BPO) company for quality services. Nearshoring to a nearby country and offshoring to a distant country can help them tap into a massive pool of world-class talent from top-ranking overseas universities.
Additionally, working with diverse remote workers paves the way for small businesses to diversify their offerings and eventually break into the international market. A reputable BPO company also helps companies gain a competitive edge in niche skills that they specialize in.
For instance, offshoring to service providers in the Philippines, dubbed the Call Center Capital of the World, can reinforce their customer service solutions, and nearshoring to Colombia can help them strengthen their IT solutions.
Accelerate digital transformation.
In the digital age, where customers’ demands continue to evolve, adopting innovative strategies and integrating technology into all aspects of their business is crucial to the success of any firm.
More executives are putting digital transformation at the core of their operations to cut costs, streamline processes, and revolutionize the course of doing business. They leverage data analytics to improve the customer experience, optimize services, and ensure the steady growth of their revenues.
How can you keep pace with the future of business? Outsourcing is an excellent place to start. BPOs play a crucial role in driving efficiency and catalyzing change.
Service providers don’t just give businesses access to tech talent. As leaders in innovation, a reliable outsourcing partner also provides their clients with cutting-edge software and tools to help them stay competitive.
Service providers use their deep industry expertise to help identify friction points, remove roadblocks, and develop a strategy for the individual needs of their clients. With a clear vision and an innovative approach, they can realign your operations to put technology at the core of every business process.
Save on costs while expanding your operations with global outsourcing services
While reduced cost is already considered one of the biggest drivers of outsourcing, this becomes especially true in the face of a looming recession where a healthy bottom line is critical.
Amid economic uncertainties, businesses must shift from growth-at-all-costs to survival mode and cut unnecessary costs to drive profit.
An effective way to do this is with outsourcing services.
By partnering with a reliable BPO, businesses can take advantage of competitive overseas labor costs. They can also cut operational and overhead costs with more economical real estate and utility since outsourcing destinations such as the Philippines and Colombia generally have a lower cost of living than the US.
But most importantly, BPOs have the resources to develop cost-efficient strategies for streamlining business operations to minimize expenses. For instance, digitizing or automating specific processes can maximize productivity for more revenue at the same time.
How to Choose Your Ideal Outsourcing Location
Global outsourcing has many benefits, from better risk management to greater focus on your core competencies. Still, the most important is that it allows local businesses to overcome hiring difficulties by tapping into overseas talent pools.
Categorized as a “Big Kahuna” in Tholons’ Top 50 Digital Nations, the Southeast country nation is home to over a million college graduates seeking to join the labor market every year. It also boasts one of the fastest-growing outsourcing markets in the world. By offshoring to the Philippines, businesses can access quality employees with specialized skills, exceptional work ethic, and high proficiency in the English language.
However, if you want to explore the outsourcing industry but are wary of the distance, nearshoring to Colombia is another alternative you can consider.
From 2021 to 2022, Colombia held the top spot in the Offshore BPO Confidence Index with an impressive 90.9 score. The country shares similar time zones with US EST (Eastern Standard Time), making seamless collaboration possible. With its strategic location at the heart of Latin America, businesses that nearshore to Colombia can also take advantage of global supply chain links.
Now that we’ve tackled a few advantages of working with Philippine and Colombian BPOs, you might ask what country is the primary outsourcing destination for services globally?
Well, there isn’t a definitive answer. Everything is based on your business’ specific needs and targets.
Both nations are considered top countries for outsourcing, but the Philippine offshoring and Colombian nearshoring have distinct benefits that businesses can explore.
Nearshoring allows real-time collaboration. On the other hand, offshoring helps businesses work round-the-clock through a “follow-the-sun” workforce model. This means that as your in-house team clocks out for the day, your remote offshore team will manage your operations, maintain your business and ensure that your clients can reach you at all hours of the day.
Whichever countries to outsource you choose, a reliable firm like SuperStaff can provide quality service to help your growing business reach its goals.
Reinforce Your Workforce With Global Outsourcing Services
Amid the US labor pinch, now is the best time to outsource for Idaho businesses.
With more than a decade of success, SuperStaff can help you navigate the labor crisis and gain a competitive edge through our full suite of business and knowledge process outsourcing services.
Reach out to us today and learn how we can help you grow as the labor market shrinks.