The Great Resignation
It was in May 2021 that Anthony Klotz from Texas A&M University said the Great Resignation was coming as the uncertainty of the pandemic was easing at the start of Summer 2021.
As the summer brought relaxation from restrictions and new freedoms after long periods of lockdown due to the pandemic then people started to move job. A survey of 6,000 workers by Randstad UK revealed 69% were feeling confident about moving to a new role in the next few months. A recent survey has shown a variety of reasons why people are looking to leave a business: 23% say work-life balance, 22% pay (freeze or cuts), 21% due to toxic culture, 8% for reduction in benefits, and 5% due to being furloughed.
Although this great job shuffle by workers may mean individuals can find roles with more flexibility, greater levels of remote working and higher salaries and benefits it has a knock on effect for employers. The direct and indirect cost of hiring new staff and trying to retain existing ones adds a burden to a company. It also makes projects hard to plan and a greater level of risk and uncertainty with the prospect of losing lots of knowledge and experience.
Companies are planning or 2% or 3% pay rises however staff can gain larger increases by moving companies, enhanced by the prospect of signing on bonuses. The average cost of someone leaving a business is calculated at £10,076 and despite that only 26% of HR decision makers are prioritising staff retention even with the great resignation in full flow.
So, what can businesses do to fill the gap they have in resourcing?
A recent PwC PULSE survey reported 27% of businesses will place more reliance on outsourcing in the next 12 to 18 months, along with 48% planning to change processes to lower dependence on institutional knowledge.
The last 2 years has shown that remote working rather than being an interesting idea actually works in practice. Also the working patterns and locations of staff are not likely to go back to the way they were and hybrid working is here to stay. This means companies have got used to recruiting, managing and delivering projects remotely using the associated technology. This allows a business to no longer be restricted to using a local labour force that commute to a static office but one that can be located anywhere in an appropriate time-zone. Those workers can communicate and share ideas virtually, access information and deliver software solutions. Teams can be comprised of full time generalists or specialists hired for certain phases or tasks in a project.
This aligns with using specialist offshore teams or outsource providers who have a large talent base so can adjust and tune the supplied people as the project matures from concept to design to implementation.
How to Start Outsourcing
If the situation is now right for a business to consider outsourcing, where should they start?
There are various great guides such as this guide on to successfully outsource software development and IT projects from outsource,dev that explain the terminology, models, charging options and ways to search and select a suitable outsource provider.