The national “war for talent” has been happening for the last decade or so but since COVID-19 became a reality, it has taken on new heights in North America and beyond. In July 2021, according to Korn Ferry, U.S. employers reported the highest number ever of unfilled positions. Beyond this staggering statistic, the survey revealed that 74% of employee turnover will increase the following year (this year, 2022). In fact, in another study conducted by PwC, talent acquisition (and cybersecurity) were the two top risks business leaders said they face.
While these statistics reveal there is conclusive evidence of a problem even hiring enough talent in the first place, the numbers surrounding turnover and retention also reveal another troubling reality which is many employees are feeling a collective feeling of “burnout.” The pandemic no doubt amplified this collective feeling of working too much for too little.
The culmination of hiring challenges and employee frustration has led businesses to think differently about staffing and corporate culture. Perhaps, many CEOs and CFOs are finding, with a smaller internal team, employees won’t be feeling so overwhelmed and can use their skill sets to do what they do best. This aligns with the case for outsourcing – especially when it comes to tasks that require a high level of digital understanding and rigorous EQ tasks. This is backed up by data as Deloitte’s 2021 Global Shared Services and Outsourcing Survey reported that 65% of successful global organizations utilize both shared services and outsourcing into their operating models.
At Horatio, we have seen an increase in businesses from a wide range of sectors needing to outsource their Customer Experience and other support functions we offer such as risk and response management. Our incredibly talented team learns our clients’ ethos inside and out, and we repeatedly are met with surprise when businesses that have never previously outsourced, view our people as an extension of their team, rather than a remote outfit.
Looking ahead, outsourcing will only continue to grow more and more prevalent. In fact, in the most recent Deloitte CFO Signals survey, 34% of (Finance) executives indicated that they expect to increase the use of outsourcing in their operations. This is generally felt by all sectors, not just the financial services world. It is therefore up to businesses to decide how they will continue to use outsourcing as not only a way to stay competitive, but as a way to get ahead.
