What if we ask you about the most feared word amongst the business community in today’s time? Many of you might pick ‘COVID’. After all, it has created shockwaves in the business world due to its enormous economic devastation. But wait. There is something more severe than COVID.
It is the phenomenon of ‘The Great Resignation’ that has created ripples in the business world and is giving entrepreneurs sleepless nights. Business owners and top executives are finding it difficult to cope up with its after-effects and desperately looking for measures to counter this challenge effectively.
Here in this blog, we are presenting not just one but three proven solutions to tackle this challenge with ease. But before we jump to the solutions, let’s explore what is ‘The Great Resignation’ and what factors gave birth to this phenomenon.
So what caused the Great Resignation? And why is everyone quitting their jobs?
The Great Resignation, also called ‘The Big Quit’, is a term coined by Anthony Klotz, a management expert by analyzing the ongoing economic trend worldwide. It reflects the trend of mass resignation that began in early 2021 and is still going on. It is affecting the functioning of business operations and creating more trouble for enterprises that are yet to recover from the devastating economic impacts of the COVID-19 pandemic.
Although many countries in the world are being affected due to ‘The Great Resignation’, but the one that is most severely impacted due this unusual phenomenon is The United States of America (USA). It is widely believed and reported that roughly ‘33 million’ Americans alone have quit their jobs since the spring of 2021.
There is not a single factor but a combination of numerous ones that triggered this phenomenon (The Great Resignation), like:
- Wage stagnation amid the rising cost of living
- Job dissatisfaction
- Economic freedom provided by COVID-19 stimulus
- Job insecurity
- Break from a workaholic life
- Plunging into entrepreneurship
- Unwillingness to resume Work-from-Office culture
- Better career prospects
- Greater job openings post unlocking of commercial activities that were stopped abruptly due to severe lockdowns and business closures
- Changing life priorities
- Unhealthy work environment
- Lack of recognition & innovation
Chilling Stats Concerning ‘The Great Resignation’
- Millions of people have already quit their jobs in the last 11 months alone.
- According to Monster, 95% of the workforce are considering quitting their jobs for better career opportunities.
- 86% of employers revealed that they are worried about mass resignations.
Shocking!! Isn’t it?
But more devastating are the economic impacts on businesses of all kinds.
- It is widely believed that it takes almost 32-46 days to hire an employee in the USA.
- It takes almost 6 or more months for a company (depending upon the industry) to recover the cost of a new hire.
- The cost to replace an employee ranges from one-half to two times their salary.
- The overall costs of replacing an employee (turnover, training, attrition, etc.) range between 90% to 200% for any organization.
Now just relax for a moment, think, and analyze what kind of impact ‘The Great Resignation’ is creating on the fortunes of countless companies. A single resignation before a threshold time creates a negative outcome for businesses. Just imagine now what kind of ‘Havoc’ mass resignations are creating. It is undoubtedly the biggest and worst nightmare business owners are experiencing.
Worst Affected Industry/Work
Reports showed that resignations were higher among low-wage workers in comparison to those earning higher salaries and the most affected sectors were hospitality, healthcare, transportation, warehousing, education, retail and more.
Although several industries are facing the heat due to ‘The Great Resignation’, the one that is shivering even in the hot weather is the ‘Contact Center’ vertical, especially operating in the USA. According to a report, it is found that a significant chunk of the people who resigned in the last 11 months in the US were not having a college degree. A majority of them were deployed in contact center jobs.
With the telecom sector growing and subscriber base increasing, unavailability of enough skilled contact center agents has left companies with unprecedented challenges. It is impacting the quality of customer support services and increasing customer dissatisfaction.
Similar trends are emerging from other sectors as well. Especially at jobs where low/semi-skilled work is being carried out on a large scale that are mostly back-office related, where no big cognitive capabilities are required.
But is there a solution to this problem?
Although there are several measures that a company can take, but the ones that are very promising and cost-effective are:
- Process Automation
- Offshore Staffing
- Outsourcing Business Services (Project Level)
Process Automation as a Solution
Business Process Automation powered with Robotic Process Automation (RPA), Artificial Intelligence, and Machine Learning technologies can help you automate all rule-based voluminous work and assist you to reduce human dependency by a wide margin. There are several repetitive tasks like Data Entry, Payroll Processing, Data Gathering, Data Management, Invoice Processing, etc., that can be automated.
By using advanced automation i.e. Smart Process Automation (SPA), you can automate those business functions as well where complex decision-making is required to a certain extent. Embracing RPA for business processes thus can help you automate a significant part of your business and minimize the impact of skill shortage in a remarkable way.
‘Offshore Staffing’ as a Solution
This model gives you the flexibility to increase the capacity of an in-house team by adding skilled, experienced, and credible talents as and when you need them. You do not need to invest your time, money, and efforts in hiring, training, recruiting, retaining, and managing resources. Just collaborate with a reputed offshore staffing service partner and give your job requirements, you will get the ‘Extra Manpower’ strength to run your project smoothly. That too with the assurance of committed quality delivery on time and great professional ethics. Add the ‘Extra’ manpower when you want and relieve them when the business requirement suggests. This remote workforce model can not just fulfill your talent shortage need in quick time but can also impress you with its quality talents.
‘Outsourcing Business Services’ as a Solution
Many times, it happens that as a business owner you are not sure about the longevity of your several in-house key resources that are important for the successful delivery of projects. Or not sure about the capacity of the in-house team to help you deliver the expected output. In such a case, you can also choose one feasible option of ‘Outsourcing’ to get your job done. It is also considered as a proven way to manage skill shortage and gives you the power to run various parts of your business operations (END-TO-END) in a hassle-free manner.
Let’s say for example if you are in a B2B domain, you can outsource lead generation services, B2B data services, digital marketing services, customer service, content syndication services, finance & accounting services, human resource services, software development services, and so on. There are various players in the B2B outsourcing services space that can help you manage your entire sales, marketing and operations in a very result-driven and cost-efficient way. Many companies rely heavily on business process outsourcing (BPO) services to execute their business operations to get quality delivery at reduced operating costs.
In these times of ‘The Great Resignation’, outsourcing your business work is undoubtedly one of the most feasible options that companies across the world are embracing due to its wide-ranging benefits.
- Get the work done from industry experts
- You can focus better on core business functionalities
- Reduce operating costs
- Achieve increased efficiency
- Greater flexibility to meet dynamic business requirements easily
- Better operational control
- Promotes enhanced growth
- No need to worry about Hiring, Training, Retaining, and Employee Turnover (all managed and taken care by outsourcing partners)
If you are facing the heat due to ‘The Great Resignation’ dilemma and your business is getting affected severely due to its negative effects, VSynergize can help you find the right resources across multiple functions and onboard in a weeks time; faster than it takes to hire an employee. VSynergize has helped companies accelerate their growth by building a strong business pipeline, setting processes in place and digitally transforming the way they work turning this phase into ‘The Great Opportunity’
Contact us now to know more – +1-732-481-9424 | firstname.lastname@example.org