Despite the country moving to level one of the national lockdown, most industries are still reeling from the upset caused by the pandemic and reduced economic activity. This is exacerbated by the loss of quality talent that most companies are facing due to the restructuring they had to undertake to remain afloat during the economic downturn.
Quality labour is important to a business’s success as it is hard to acquire. With a quality workforce, even a business with a limited number of resources can compete favourably with the bigger companies.
In short, labour can make or break a business, and the current pandemic and economic recession is only making it harder for organisations to source competent talent.
The Society for Human Resource Management (SHRM) says about 83% of businesses are struggling to find workers with the right skillsets. But the lack of finding the right employee also presents an opportunity.
Companies looking to plug a gap in their labour force can leverage outsourcing to bolster their businesses. Outsourcing is beneficial to all businesses regardless of their size and area of specialisation. Outsourcing can provide industry-specific skills without the hassle or expenses that come with recruiting human capital.
According to the SHRM report, employee recruitment costs a company time, money, and other resources. Direct replacement costs can reach as high as 50%-60% of an employee’s annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary.
Outsourcing effectively shortens the hiring process by eliminating most of the steps such as an advertisement for positions; resume evaluation; conducting interviews; initial training and induction among other recruitment obligations.
Employers looking to replace lost talent, can embark on upskilling initiatives for employees, both new and experienced.
The training of employees ensures a workforce that is proficient, effective, and productive. Business owners can enhance the current skills of their labour force through various opportunities, such as further education, on-the-job training, mentorship programmes, and promotion.
Research shows that businesses stand to lose more when they do not train their employees, as staff turnover is higher amongst undervalued and underutilised employees.
The quality of performance is lower with untrained employees, which can affect the company’s bottom line as well.
Companies must leverage the unique skills set their various team members have to offer. Employees can learn from each other and complement each other’s weaknesses; this also makes the team stronger and more productive.
Furthermore, individuals who use their strengths every day are more likely to be engaged on the job and less likely to leave their company.
Diversification of skills through training and upskilling also gives employees increased and more diverse skills set, equipping them with the ability to take on additional responsibilities and produce superior products and services while growing in their career.
Whether looking to replace lost talent or foster the growth of your organisation, upskilling your workforce has immense benefits both for the business and the employees who work in it.
For businesses looking to simply focus on their operations without being bogged down by human capital needs, outsourcing can be an effective tool which liberates focus and frees up the organisation to concentrate on its core mandate and reduce administration costs.