Employee Resignation Skyrockets. Where Do Businesses Turn to?

 The global COVID-19 pandemic has caused economic instability, and businesses worldwide are struggling to keep up with staffing needs due to the increasing number of resignations. While inflation may drive some people back to work, it is not enough to create a sustainable hiring system for businesses. This situation has led many companies to seek out cost-effective and efficient staffing solutions, such as offshoring services.

Offshoring provides benefits such as cost-efficient staffing solutions, support services, and operational development in a strategically located country with a low-cost economy. However, to prevent operational disruptions and higher costs, it is crucial for companies to select the right partners. While India has been a popular choice for offshoring, it is currently experiencing a massive labor market. On the other hand, the Philippines, one of the world’s top business process outsourcing (BPO) countries, is proving to be a reliable source for offshoring business services.
Incorporating offshoring solutions may not be enough to address the challenges faced by businesses today, such as attrition rates and a changing workforce. Companies must adjust their talent-sourcing approaches to attract and retain workers who value workplace flexibility, quality leadership, and focus on health and well-being. Dedicated expenditures toward recruitment may be necessary, and third-party vendors can also provide staffing solutions. In this way, businesses can adapt to the current labor market and ensure continued growth and recovery.

Why are Employees Resigning?

Employees resign for various reasons, including personal reasons such as relocation, family needs, or health issues. However, the recent trend of increased employee resignations is primarily attributed to the impact of the COVID-19 pandemic. Many employees are reevaluating their priorities and seeking better work-life balance, job security, and workplace flexibility. The pandemic has also highlighted the importance of mental health and well-being, leading some employees to prioritize their mental health and leave stressful work environments. Additionally, some employees may have been dissatisfied with their job before the pandemic, but it took a global crisis to prompt them to seek other opportunities. Finally, some employees may be resigning due to better job opportunities or higher pay elsewhere.

What Should Businesses Do about Employees Quitting?

When employees are quitting in large numbers, businesses should take proactive measures to retain their staff and attract new talent. Here are some actions businesses can take:

1. Evaluate the reasons for employee resignation: Companies should examine the reasons why their employees are quitting to identify any trends or underlying issues. By understanding why employees are leaving, companies can take steps to address these issues and improve retention rates.
2. Improve employee satisfaction: Companies should prioritize employee satisfaction and well-being by offering competitive compensation, benefits, and opportunities for growth and development. They should also foster a positive work environment that promotes open communication, collaboration, and recognition.
3. Develop a retention strategy: Businesses should develop a retention strategy that includes ongoing training, performance feedback, and career advancement opportunities. This strategy should also include employee engagement initiatives, such as employee surveys and focus groups, to gather feedback and improve the workplace.
4. Utilize recruitment and hiring strategies: Companies should utilize recruitment and hiring strategies to attract and retain the best talent, such as offering competitive salaries and benefits packages, flexible work arrangements, and opportunities for career growth.
5. Consider outsourcing: Businesses can consider outsourcing non-core functions to free up internal resources and focus on core competencies. This can help companies save costs and provide access to a pool of skilled talent, especially in critical and non-flexible positions.

 By taking these steps, businesses can improve employee retention rates, reduce turnover costs, and build a more productive and engaged workforce.

Where Does Offshoring Factor in Business Solutions?

Offshoring is becoming an increasingly popular option for businesses looking for cost-efficient staffing solutions, support services, and operational development. This approach involves relocating some of a company's operations, such as customer service, IT support, or accounting, to a foreign country with a lower cost of living and labor costs.

Offshoring can offer several advantages, including lower labor costs, access to a larger pool of skilled workers, increased efficiency, and the ability to operate 24/7 across different time zones. Additionally, offshoring can help businesses fill crucial job openings that they may struggle to fill locally.
However, there are also potential downsides to offshoring, such as language and cultural barriers, quality control issues, and the risk of intellectual property theft. Therefore, businesses must carefully evaluate the potential benefits and risks before making the decision to offshore their operations. It's also essential to choose the right partners to ensure a successful offshoring strategy.