It's no secret that companies are feeling the pinch of a growing talent shortage. The world is evolving at a rapid pace, technology is advancing, and the skills required to keep up are constantly changing.
This talent crunch is making it more difficult for companies to fill key roles, and this is where the question arises: Do you upskill your current employees, outsource or hire new talent? What's the best way for your company to ensure your vacancies stay filled?
Each strategy has its merits and downsides, and the answer often depends on your company's unique circumstances. In this article, we'll take a closer look at each of the options, including its pros and cons and share some insight for moving forward.
Upskilling: A closer look
Upskilling refers to the process of teaching current employees new skills. It's a fantastic way to fill knowledge gaps, build loyalty and boost morale.
Pros of upskilling:
Here are the pros and cons of this option:
- Cost-effective: Upskilling is often cheaper than hiring new talent, especially when you consider the costs associated with recruitment, onboarding and training.
- Boosts morale: Employees feel valued when their employer invests in their development.
- Builds loyalty: Upskilling can lead to increased employee retention, as it shows your commitment to their professional growth. This is especially important for younger workers, as 93% of millennial and Gen-Z workers expect their employers to provide some on-the-job training.
Cons of upskilling:
Here are the cons of using upskilling to handle your job vacancies.
- Time-consuming: Upskilling can take time, which might not be ideal if you need to fill a skills gap immediately.
- Limited scope: Upskilling can be limited by your current employees' existing talents and aptitudes.
Outsourcing: The double-edged sword
Outsourcing is the practice of contracting out certain tasks or functions to external agencies or third parties. While it can be a quick fix, it's not always the best option.
Pros of Outsourcing:
Here are a couple of the major reasons companies consider outsourcing when trying to keep roles filled.
- Efficiency: Outsourcing can be a quick way to fill a skills gap, especially for tasks that are not central to your business.
- Cost savings: Outsourcing can sometimes be cheaper in the short term, particularly for one-off projects or tasks that don't require a full-time employee.
Cons of Outsourcing:
However, here are some of the major drawbacks to outsourcing.
- Quality control: When you outsource, you're putting a part of your business in someone else's hands. This can lead to quality issues if the outsourcing partner doesn't meet your standards.
- Lack of control: Outsourcing can result in a loss of control over key aspects of your business – including IP. You're dependent on an external entity, which can lead to challenges if they don't deliver as expected.
Hiring: Bringing fresh talent onboard
Hiring involves recruiting new employees to fill skills gaps. This can be a great strategy, but it's not without its challenges.
Pros of hiring new talent:
Here's why you might hire new talent
- New perspectives: Fresh hires bring new ideas and perspectives, which can lead to innovation.
- Filling skill gaps: Hiring allows you to target specific skills gaps with precision.
Cons to hiring new talent:
Here are some reasons you might want an alternative to hiring when you have vacancies looming.
- Expensive: Hiring is often the most expensive option. Recruitment, onboarding and training can all add up – especially if you have to go outside your local talent pool and hire internationally.
- Time-consuming: Hiring can be a lengthy process, especially for roles requiring specialized skills. It can be a huge drain on your HR team.
- Difficulty finding skilled employees: Often, you have vacancies in the first place because of a lack of talent in your local talent pool.
An alternate path: Hiring employees abroad using an EOR
Faced with the above challenges, more and more companies are considering an alternative option: hiring employees abroad using an Employer of Record (EOR) like Outstaffer. This strategy allows you to hire talent from anywhere in the world, bypassing geographical constraints and tapping into a global talent pool.
With an EOR, you can follow your employees wherever they go and continue upskilling them or find new talent to fill your demand. In this way, it's a stellar option for handling the ongoing skill shortage and keeping vacancies filled while minding your budget. In addition, this strategy offers several benefits:
- Access to a larger talent pool: Hiring abroad opens up opportunities to access talent you might not find locally.
- Cost savings: In many cases, hiring employees abroad can be more cost-effective than hiring locally, especially in countries with lower labor costs.
- Flexibility: EORs provide flexibility, allowing you to scale your workforce up or down as needed.
- Simplicity: EORs handle all the legal, HR, and administrative tasks associated with hiring and managing overseas employees, cutting your recruitment and hiring timelines, and keeping your job vacancies filled.
Making the best choice for your company
In the face of a growing talent shortage, upskilling, outsourcing and hiring are all viable strategies, each with its pros and cons. While upskilling can foster employee loyalty and save costs, it might not fill the skills gap fast enough. Outsourcing can provide quick fixes but often at the expense of quality and control. Hiring, though effective in targeting specific skill gaps, can be costly and time-consuming.
Hiring employees abroad using an EOR, however, offers a promising alternative. This strategy allows you to access a larger, more diverse talent pool, save on costs and maintain flexibility, with the option to upskill your workforce still available. It's a win-win solution that could redefine how your company addresses its talent needs.
Interested in using an EOR to expand your team? At Outstaffer, we make it easy to find, hire, manage and equip employees around the world in just a few clicks. Plus, with our #WorkFromAnywhere technology, like Managed Devices, Employee Monitoring, and Time & Attendance Tracking, we give you and your remote employees everything they need to thrive.
Want to learn more? Schedule your free demo today.