According to the most recent Bureau of Labor Statistics report, 4.5 million people quit their jobs in November as the US unemployment rate declined to 3.9%. In other words, companies are struggling with high employee turnover at a time when they are trying to come back from the slump of COVID-19 and hit new profitability and growth goals. With a scarce job market and the cost of employee turnover ballooning month-over-month, it’s no surprise that organizations are laser-focused on this issue.
That’s where outsourced workers come in. With an outsourced team, you offload the stress and much of the cost of hiring to a partner with an extensive talent pool and network. Turnover is substantially minimized and, when it does happen, it’s the partner’s responsibility to re-staff your team.
In this blog, let’s dive into the key indicators that your business may need to combat employee turnover with outsourced workers.
Burnout
A recent study conducted by Deloitte found that 77% of professionals are experiencing burnout – what a number! Burnout can originate from a number of sources such as lack of support or long hours due to a heavy workload. It can especially occur if your team members are saddled with labor-intensive, repetitive tasks in addition to their other responsibilities. These factors are never something a company intends, but something that has a direct impact on your team’s satisfaction and turnover rate.
As a business leader, you can tell when your team is suffering from and being impacted by burnout. Attitudes change, motivation declines, and productivity takes a hit. Outsourced workers allow you to provide some relief to your team whilst increasing productivity and improving morale. At Extend Your Team, we believe that an outsourcing partner is responsible not only for staffing, but for supporting that staff from onboarding onwards. We’re with you every step of the way, providing supervision and mentorship for our outsourced workers to ensure a smooth transition, high productivity, and job satisfaction.
Productivity
How is your team pacing against deadlines? Against goals? Are you finding that the quality of work is declining? Low productivity is an indicator of employee turnover for two reasons. The first is that about 6% of any organization’s staff can expect to be terminated due to lacking performance. The second is that low productivity and low-quality work, especially from otherwise high-performing professionals, is a sign that they’re looking for a job elsewhere and have all but abandoned ship.
Whether it’s voluntary or involuntary, all employee turnover is going to impact performance and company growth. Some outsourcing companies promise low fees with no promise of quality. They’re only there to help you cut costs and fill seats. At Extend Your Team, we believe that outsourcing should be an engine for growth. While our employees are more affordable than an in-house solution, we put talent and quality above all, and ensure that our outsourced workers seamlessly integrate within your staff to fill any holes and bolster productivity. Whether you need an administrative assistant to free up valuable resources, a call center team to drive sales, or a customer service representative to improve customer loyalty, Extend Your Team is committed to finding the best person for that role.
The Cost of Labor & Turnover
With the unemployment rate below 4% and inflation peaking, it’s no surprise that employees are looking for higher wages. Maintaining a profitable business whilst meeting market demands can be challenging, even for a well-run organization. Outsourced workers allow you to save on overhead costs by offshoring certain key roles and tasks.
But the cost of labor isn’t even the biggest challenge for business owners right now – it’s the cost of turnover. With millions of workers quitting their jobs every month, that leaves thousands of employers frantically searching for new people to fill those roles. The cost of replacing an individual employee can range from one-half to two times the employee’s salary. Outsourcing partners not only allow you to dramatically decrease the cost of staffing, but decrease the recruiting timeline by introducing you to qualified candidates in a matter of days or weeks, ensuring minimal interruption to your normal business operations.
Conclusion
If you are struggling with high employee turnover, or experiencing any of the challenges outlined in this blog, it may be time to consider outsourced workers as a solution. At Extend Your Team, we worked with dozens of organizations over the course of this pandemic to improve productivity, cut costs, and enable business owners to keep their best team members on board.
As you consider outsourced workers for the first time, schedule a free consultation with Extend Your Team to learn more about our approach, network, and customer success stories.