Arguably, 2021 may have been a tough year not only for the healthcare sector but also for the business community. One of the effects of the COVID-19 pandemic was the lockdown that led to workplace restrictions. This eventually led some employees to quit their jobs, or to become independent professionals and engage in freelance work, while labor demands didn’t took long to rise shortly after quarantine restrictions were lifted, leaving many companies understaffed.
Consequently, millions of vacant positions were left which led to a shrinking economy in the US.
With the increasing labor shortage experienced in the country since 2021, most employers are considering hiring outsourcing services to lessen the impact of the shortage. In this article, we will explore how outsourcing to Latin America can be a viable solution for businesses.
What is The Great Resignation?
While there have been other workforce shifts in the U.S., the Great Resignation has seen all-time high resignation rates that have caused turbulence in the economy.
Basically, the Great Resignation in the USA started in 2021 as a result of low unemployment rates and high labor demands. This was greatly contributed by the pandemic that led to massive employment losses.
The U.S. Bureau of Statistics indicates that 4.4 million US workers resigned from their work in September 2021. By October 2021, there were 10.9 million job vacancies and over 38 million workers quitting their job by the end of 2021.
According to a Jobs Openings and Labor Turnover Survey by the Bureau of Labor Statistics, the number of Americans leaving their jobs has continued to increase. This number reached 4.4 million in February 2022.
With the changes in the workforce composition, the average wage has also been affected. Generally, those leaving the workforce have higher wages than those entering it. The nominal wage growth rose steadily between the second half of 2020 and 2021 during the pandemic period.
Reasons for the Great Resignation
While the primary reasons for the Great Resignation are not yet clear, experts agree that the need for a better work-life balance is a major contributor. Following the COVID-19 pandemic that saw many working from home, most employees are reluctant to return to their workplaces.
According to Pew Research Center’s survey, 63% of the respondents agreed that low pay was the major reason for leaving their job in 2021. Also, 63% cited a lack of advancement opportunities while 57% said they quit because of feeling disrespected.
Whatever the reasons for the Great Resignation, one thing that cannot be overlooked is the challenge that most employers are facing. As the tides shift and more and more employees resign from their work, employers are left with the challenge to fill the vacant positions. This is where outsourcing proves handy.
How Outsourcing is Benefiting U.S. Companies
With most companies facing employee retention problems, it is increasingly becoming beneficial for companies to outsource remote workers. Outsourcing is a ready solution that can take care of most business staffing needs to ensure seamless operations.
Some of the benefits of outsourcing include:
1. Lower Labor Costs
Outsourcing is an effective way to lower your labor costs. Instead of investing and training new employees, your outsourcing partner will provide you with a pool of highly-skilled workers to help with your business's daily operations. This will save you a lot of money compared to hiring an employee in the U.S.
2. Access to a Pool of Highly-Skilled Staff
Having a qualified staff with the necessary skills for your business’ operations can go a long way in ensuring productivity and maximum performance. With vast experience in the industry, an outsourcing company is capable of giving you access to a wide pool of qualified staff.
Plus, the company takes it upon itself to train the workers on how to be productive on the first day. Hence, you still get quality even with cost savings.
3. Flexibility for Scaling
The other advantage of outsourcing from Latin America is that you get the flexibility to scale up from the wide pool of skilled workers. If you are just starting, you can outsource a small team and later increase the number of workers when your business grows.
4. Saves Time
You can save a lot of time by outsourcing certain tasks to an outsourcing company. This is particularly true for repetitive tasks that are not a priority or have a low return on investment.
5. Boosts Organizational Processes
Ultimately, outsourcing can help take care of certain business processes, allowing your team more time to do other useful tasks. Depending on your business, you can partner with an outsourcing company to help with tasks like data entry, customer service, and more.
Employers in different industries are still struggling to attract new talent to fill open roles and retain the existing talent. Fortunately, outsourcing has proven a ready solution for finding skilled employees to run your daily operations.
If you are looking for a quick and efficient way to meet your staffing needs, our company is a go-to company. We are highly skilled and have extensive experience in the market to help you find the most suitable Latin American staff for your needs. We can provide you with real-working people that are trained to work regular U.S. business hours for productivity.