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Small businesses are feeling the pressure
Small businesses are on a hiring freeze which could cause an economic downturn.
A National Federation of Independent Business survey of small-firm hiring intentions is clinging near its lowest level since the COVID-19 outbreak. Additionally, the latest U.S. survey of business input prices shows a decline in costs paid by staffing services while the share of temporary jobs in the overall labor market has also fallen.
Experts claim these data show that small businesses are feeling the economic pressure, pushing them to cut back on investment and hiring. The declining use of staffing is a critical sign of an economic slowdown.
Pandemic hiring frenzy
Just a couple of years ago, small firms took advantage of the heady low interest rate environment to welcome new employees to chase continued growth. Post-pandemic, as interest rates have shot up and cash and new debt supplies dwindle, firms are now facing a financial reckoning.
Many have resorted to a hiring freeze, which is the first stop for managing finances and taming budgets. It is a response to unpredictable market conditions or liquidity concerns and a tool for preventing the firm from laying off employees.
Hiring freezes across an economy can work as a short-term measure; however, if prolonged, they put pressure on current employees to cope with compressed workflows. Employees are inevitably pushed to do tasks that aren’t theirs, which can lead to work overload, stress, and an eventual drop in productivity and employee morale.
As the reduced workforce juggles multiple tasks at once, the firm’s innovation rates drop. Its workforce is so occupied with present tasks that they have no time to look ahead.
Luckily, there is a solution…
Filling the gaps with an offshore workforce
As the U.S. economy enters turbulent times, small businesses must learn to navigate their way through the choppy waters.
With uncertainty comes opportunity, and a strategic business might attempt to take advantage of the uncertainty by zagging when all other businesses are zigging. In a down economy, this means hiring when all others are firing and spending on marketing and sales when the competitors are cutting budgets.
While the domestic labor market may be too costly to fill in the gaps, solutions are still available offshore at a sweet 70% discount.
Two things can be true at once. It is possible to save 70% on staffing costs while simultaneously driving quality and productivity. The global labor pool is getting more competitive every day, and offshore staff can deliver superior service even at a massive discount.
HR, IT, accounting, and other administrative jobs can be easily fulfilled offshore. Almost any operational task – senior, junior, complex, or simple – can now be done offshore. If a small firm wants to accelerate its growth and complexity, there are high-value jobs available offshore.
An anticipated economic slowdown doesn’t mean small firms should stop growing. An offshore workforce will empower these businesses to continue their growth trajectories. So when the economy recovers, they can be a few steps ahead.
The question for your business
Have you explored an offshore workforce instead of a hiring freeze?
