As the world experiences unprecedented economic challenges, spiraling inflation and labor shortages, businesses are looking for effective solutions to remain afloat and thrive. So what matters are affecting businesses globally today?
Labor shortages
According to GlobalData, the number of firms mentioning labor shortages in their filings increased by 28% in 2022 compared to 2021 –continuing an uptrend witnessed in recent years.
GlobalData’s report, Company Filings Analytics – Trends & Signals Q3 2022, reveals that labor is the most discussed keyword around shortages in Q3 2022 Earning Calls Transcripts. The industries with the highest labor shortages discussions include construction, technology, packaging and consumer, while financial services had the highest growth in terms of mentions.
Financial services companies noted that the contributing factors to the shortage of workers in Australia included demand for flexible working hours, an increase in remote working, unemployment insurance benefits, early retirement, higher pay from competitors, and ongoing concerns about COVID-19. Labor shortages in Australia have also contributed to an increase in wages and salaries, with a consequent unfavorable impact on many companies’ expenses and operating costs.
Due to the Australia labor shortage, businesses are desperate for more workers. According to data from the Australian Bureau of Statistics, there are currently more than 423,000 job vacancies nationally. a. While there is high demand for workers, businesses are struggling to fill those vacancies. Australia’s unemployment rate is at a 48-year low, at 3.9%, with the proportion of the adult population holding a job or actively looking for work is at an all-time high of 66.7%.
The labor shortages in Australia are replicated in countries such as the United Kingdom, the United States, and New Zealand
- According to the UK’s Office for National Statistics, the UK employment rate for July to September 2022 was 75.5%.
- The UK’s unemployment rate for July to September 2022 decreased by 0.2 percentage points in the quarter, to 3.6%.
- In the US, the labor shortage problem is exacerbated by a labor force participation rate much lower than its peer countries and 88%, lower than during the Great Depression. In other words, one in ten men aged 25 to 54 is neither employed nor looking for work.
- Australia’s Trans-Tasman neighbor New Zealand is also suffering. However, due to travel restrictions implemented during the first stages of the pandemic and the resulting closure of New Zealand’s borders in March 2020, this problem has been compounded for New Zealand’s employers.
Galloping inflation
A recent Forbes report revealed the following inflation rates:
- Australia 7.3%
- New Zealand 7.2%
- United Kingdom 11.1%
- United States 7.7%
These numbers are particularly sobering for SMEs as they lack the overall power and financial muscle of larger businesses and therefore need all the support they can get when it comes to managing headwinds.
SMEs have the option of passing on costs to customers, but there is a limit as to how much the client will bear and for how long they will accept price increases. They can also look at expanding revenue – but the rising cost of doing business means that companies are spending more to achieve their normal output. Unless they increase sales, they’ll need to find alternative ways to boost profits by getting the maximum revenue from existing labor and resources.
That is why increasing numbers of forward-looking and innovative SMEs are choosing offshore outsourcing in the Philippines.
What is outsourcing & offshoring in the Philippines?
There are key differences between the two:
Outsourcing
Is when a company hires a third party to perform tasks, manage operations, or provide services for them.
Offshoring
Involves building a company’s own global team in another country, like the Philippines. Team members perform business processes that are completely managed within the company’s own operations.
Who are Intogreat?
Intogreat is an agile and successful offshore firm. Intogreat Solutions Philippines is committed to helping small- and medium-sized companies find professional services staff in all industries, with experience in Insurance, Home Loan, Financial Planning, Contact Centers, Banking and Accounting. Intogreat Solutions has premium offices in Metro Manila and access to a wide network of skilled people.
Intogreat is committed to delivering value that strengthens and grows our clients’ businesses and provides an enjoyable workplace for our staff that enables them to grow, develop, and consistently deliver exceptional outcomes.
We are always on the hunt for top talent so keep an eye on our job openings.
How can Intogreat Solutions help SMEs?
By taking charge of day-to-day admin and back-office tasks, Intogreat Solutions Philippines can slash costs, free up time and release SMEs from mundane work so they can concentrate on what they should be doing: growing their business and improving the client experience.
By providing business process outsourcing reviews, Intogreat Solutions will identify which areas in an SME can be improved and how efficiency and cost outlays can be boosted. This process can be a huge turning point in a business’ fortunes.
An Intogreat Solutions’ business process outsourcing review of how an SME works can be a turning point in their fortunes, by identifying areas which are ripe for improvement and boosting efficiency and return on cost outlay.
Are there any problems associated with offshoring?
The problems encountered by businesses who take the solo route into offshoring invariably arise because they have not taken the precaution of partnering with an offshoring expert. Intogreat Solutions can do all of the heavy lifting when it comes to offshore outsourcing, so that SME leaders can remain focused on their core operations and growth, without worrying about things like how the outsourced administrative support is performing.
What about hiring offshore labor?
The risks here are clear: without carrying out the stringent vetting of potential employees, SMEs have no idea who they are hiring, perhaps for a role in financial planning outsourcing . An offshore employee hired without vetting might be masquerading as someone else and could gain unfettered access to a company’s critical systems and data. The people employed may have all the right skills, but comprehensive checks on such things as background, ethics, and values are essential to maintain security and ensure business success
Intogreat Solutions company profile
Intogreat’s founders and leaders have over 60 years’ combined experience of hands-on, multi-country offshoring and outsourcing. Intogreat also works with business process experts to deliver solutions, improvement, and growth.
- We encourage teamwork across the organisation in order to solve complex problems.
- We treat everyone with respect and empathy.
- We constantly strive to maintiain a high standard of excellence in everything we do.
- We are dedicated to our work and take full responsibility for our duties.
If you are looking for labour shortage solutions, please contact an Intogreat outsourcing and offshoring expert for a consultation.
