Surviving Strikes (And Other Disasters)

Strikes are back in vogue.  What’s going on?! 

The United Auto Workers (UAW) are currently voicing their disagreements over the terms of a new labor contract. 

Their main demands: wage increases that offset inflation, and worker protections against plant closures as electric vehicle production increases.

Meanwhile, the Screen Actors Guild (SAG) is protesting studio usage of artificial intelligence to generate performances digitally.

Whilst opposing technological advancement may be the commonality here, it’s far from the only concern that companies have when it comes to their workforce.

Even without the risk of strikes, there is still the tension between running a business, maintaining profitability, while keeping the workers happy and committed, but not overpaid and too comfortable.  It’s complicated…

With high costs, economic uncertainty, and contentious employees, it’s no wonder that businesses are looking elsewhere.

The new era

Manufacturing moved offshore many decades ago now. This gave companies more options, lower costs, and diversification of countries, capabilities and labor pools. 

Fast forward 40 years and the same principles now apply to staffing, employees and professional services.

It’s called outsourcing, and it’s equally accessible to all companies, from startups, SMEs to the Fortune 500.

So how do you ensure uninterrupted customer service no matter which way the labor winds are blowing?

Diversify your workforce

Offshoring some, or all of your operations introduces a geographical barrier between your workforce and potential strike actions. Depending on your company size, you can have staff across multiple locations and countries which mitigates concentration risk.

This provides protection from potential strike action – as well as varied performance, hours of work, and holiday cover – by way of geographical distance, meaning problems at home won’t affect remote workers.

Operational excellence  

Outsourcing firms are generally very sophisticated when it comes to managing people, operations and processes. Working with a professional firm can help your company fortify its processes and organization.

The benefit of this? Diversifying your workforce mitigates downsides and creates a stronger, more efficient business.

Different country, different rules

Offshore labor laws often differ significantly from those in your home country.

Carefully managed and considered, they place the power firmly back in the hands of the employer.

Incentives, not deterrents

Whilst the focus for a business using offshore labor may be the cost savings, consider the other side of the coin. 

Lower labor costs mean that more competitive compensation packages can be offered. 

Higher wages lead to a happier workforce.

Nip it in the bud

Outsourcing firms have a proven track record in managing distributed teams. 

This includes addressing labor-related issues, defusing situations before they reach critical mass. Outsourcing is a people game.  And they are experts.

The question for your business

What price do you put on uninterrupted operations?

Read more thought leadership articles here:

• Outsourcing cost breakdown
• Don’t sweat the sweatshops