Businesses are facing a stark reality right now: Workers are leaving their jobs quicker than new ones can take their place.
In December 2021, more than 4.3 million people chose to leave their jobs alone. This has created a significant gap in the job market, making the need for more skilled workers a top-priority problem for businesses recently.
What’s worse? This could put you at a disadvantage compared to your competitors.
Years after the pandemic, employers are still grappling with a talent shortage. An aging population exacerbates this. The world faces a 15-year low point in this ongoing scarcity of skilled workers. Since 2021, an estimated 69% of companies globally struggled to fill job vacancies.
This talent shortage presents a complex challenge for employers, manifesting in various ways. While some need help finding qualified professionals to fill roles, others experience talent loss due to attrition.
This shortage has unfolded across multiple dimensions—from shifting work models and rising salaries to individuals seeking change or hesitating to accept offers. Unfortunately, this issue shows no signs of abating soon.
What Brought This Upon Us?
Several factors have contributed to the shrinking working-age population.
For one, Immigration has declined sharply, and the retirement of the baby boomer generation, alongside a slowing birth rate, has made things worse. Additionally, the global youth employment crisis has reached unprecedented levels, with a significant portion of the youth workforce quitting their jobs, even after the pandemic.
Moreover, the emergence of Generation Z, the most digitally connected generation, has brought new expectations to the workforce. But their transition into the job market has been marked by uncertainty and anxiety, with a focus on career progression and mental well-being.
It’s also important to note that millennials and Gen Z combined will represent a significant portion of the global workforce by 2025. They will shape the future of work – whether for the better or the worse remains to be seen.
Changing Work Dynamics
People are reevaluating their careers and long-term goals, leading to significant shifts in labour dynamics.
The “Great Resignation” and subsequent “Great Retirement” have reshaped the workforce landscape, impacting industries worldwide. External factors such as immigration policies, COVID-19 deaths, and changing cultural views have further influenced labour market dynamics.
The truth is this: Employers now face a candidate-driven market, with employees needing to be more open to their current roles. Gone are the days when people just “take any job they can” and employees “only do as they’re told”. Millennials, in particular, exhibit a sense of entitlement and are more selective about their employment choices. Meanwhile, the cost of switching jobs has decreased, which leads to increased job mobility and turnover rates.
This is not to say that this new proactive mindset for working isn’t beneficial — almost half of employees in 2023 love and enjoy their jobs, mainly because they had complete control over choosing those jobs. However, employers are now uncertain since employees, especially the younger generation, are no longer afraid to leave their jobs when they feel it’s no longer fulfilling or beneficial for them.
How Outsourcing Solves This Issue
In this volatile environment, outsourcing emerges as a viable solution for organisations seeking to navigate uncertainty. Beyond cost savings, outsourcing offers access to top talent, business transformation opportunities, and rapid growth potential. It allows companies to focus on core business functions while leveraging external expertise to drive efficiency and innovation.
Why Outsource?
- Enhance efficiency – Allow yourself and your team to prioritise core tasks while outsourcing tedious ones like Customer Support, Accounting, Recruitment, Designing, and more.
- Gain access to a talented pool of professionals – Attract top talent for competitive results and customer satisfaction. It also enables staffing up before busy seasons without financial commitments.
- Unlock genuine business transformation – Future-proof your business, enhance flexibility, and speed up time to market.
- Unleash rapid growth – Outsourcing is a cost-effective alternative to hiring and supporting additional full-time employees.
- Save costs – This is one of the most significant benefits of outsourcing, if not the most important. Cut operation costs and increase your value margin.
- Get faster delivery processes – Ensure quick turnaround times, particularly during product development. Stay ahead of your competitors!
- Improve risk management – Fine-tune offshore teams to match demands, reducing bugs, mitigating risks, and diversifying the team for increased flexibility.
We live in a volatile and ambiguous world where traditional workforce dynamics rapidly evolve. outsourcing presents a strategic option for organisations. With outsourcing, companies can address talent shortages, drive business transformation, and achieve sustainable growth. By partnering with outsourcing providers, businesses can capitalise on a skilled talent pool and unlock new opportunities for success in the post-pandemic era.
Alyssa is a multifaceted professional who writes about tech, remote working, finance, and current events. If she isn't writing which is highly unusual, she enjoys treks and travel for food.
