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Aussie businesses are feeling the pressure of the talent market, with many forced to consider outsourcing their work overseas to fill positions.
Sixty per cent of businesses across the country would look overseas for talent to combat talent shortages and rising wages, according to Money Transfer Comparison’s Will SMEs Outsource Work Overseas Amid a Tight Job Market and Rising Wages? report.
Inflation is hitting everyone hard. People need better wages to keep up with the rising cost of living, and businesses are struggling to provide them, creating a catch-22.
“It has been evident, after the pandemic, that staffing is one of the biggest challenges for Australian businesses,” commented Russell Gous, spokesperson for Money Transfer Comparison.
“While higher wages can attract new employees, the additional costs may not be maintainable for many small businesses, and demand for specific skills might also be outpacing supply.”
Sourcing overseas labour can be beneficial to businesses that are struggling domestically. Leaders recognise this, as reports claim that 84 per cent of employers who outsource globally do so to cut costs. Hiring overseas workers in the Philippines can save up to 70 per cent on employment costs.
Mr Gous continued: “Sourcing overseas labour and understanding how to pay them as a cost-saving and gap-filling measure might help the longevity of businesses during these uncertain times.”
“A sizable proportion of businesses Australia-wide are feeling the pinch when it comes to rising wages and the competitive labour market. Strategically outsourcing certain work functions overseas can assist with costs and fill gaps. This approach can be a win-win for all parties involved and could help ease the financial burden for Aussie business owners during these difficult times.”
According to Money Transfer Comparison’s report, of those who would outsource globally, 25 per cent said they’d do so to cut costs. Meanwhile, 21 per cent would do so to fill positions that they can’t domestically, and 14 per cent would do so to increase their workforce’s skill set.
So what skills are being outsourced? Technical skills were very popular, with 21 per cent of employers agreeing. This was followed by other roles such as consultants (18 per cent), contractors (17 per cent), admin or virtual assistants (14 per cent), bookkeepers (13 per cent), customer service (12 per cent), marketing (11 per cent), human resources (10 per cent), and sales (9 per cent).
RELATED TERMS
Outsourcing is the process of contracting a third party from outside a business to carry out tasks or produce commodities that were previously done internally by the staff and workers of the organisation.
The practice of actively seeking, locating, and employing people for a certain position or career in a corporation is known as recruitment.
Jack Campbell
Jack is the editor at HR Leader.
