Outsourcing to offset labor shortages
The Great Resignation and The Great Retirement of Baby Boomers have caused pain for small businesses looking to expand and this doesn’t look like it’s going to change throughout 2022. A little over 30 million retirements happened in 2020 alone, and spanning all industries. This level of retiring from the workforce is predicted to hold steady for the next decade, which means finding ways to supplement business’ full-time staff has become more of a consideration.
Over a third of small businesses already outsourced some essential functions prior to 2020, and that number is incrementally rising. Two factors impacting this are:
Funding challenges among startups and small businesses. During the height of the pandemic, many businesses had to drastically reduce operating costs and faced supply chain challenges in addition to increased demand for quality customer support. As businesses reemerge at rapid speed, the need to adapt is more important than ever. However, many startups and small businesses lack the resources to scale rapidly.
Hiring and talent retention issues. Primarily prompted by a competitive market and high turnover rates, more and more, businesses are increasing employee compensation to attract and retain talent. Cost reduction has always been a significant benefit to businesses that outsource essential functions and for the foreseeable future, it is a reliable way to offset the cost of doing business while maintaining profitability.
As the US enters an era where change and adaptation are permanent, the need to outsource is not fading. Strategic outsourcing enables small businesses to reduce overhead costs, enhance agility, and even improve service quality. Choosing a partner to run your business isn’t always an easy decision, and we can walk you through the process and evaluate what needs you have to improve efficiencies and add to your team in a meaningful way.