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The “War for Talent” was coined by Steven Hankin of McKinsey & Company in 1997. It refers to an increasingly competitive landscape for top talent and retaining them in your organisation. Due to the growing use of IT systems and software in organisations, hiring skilled and qualified candidates becomes challenging, resulting in a talent shortage and the inability of organisations to deliver quality output on time.

While the war on talent is complex, several factors triggered it throughout the decades.


Several Causes of the Talent War

  • The rise of small and medium-sized businesses — The rise of small and medium enterprises has become a huge game-changer. According to Statista, there were around 252.25 million SMEs in 2009, growing to 332 million worldwide in 2021. These numbers have become a challenge to hiring managers and recruiters. Even if they find the right candidate, retaining them is challenging. Highly skilled talent have the opportunities to explore, shift from one company to another and seek where they fit.
  • Job mobility is increasing — In this digital era where automation and IT are running the business economy, plenty of opportunities have opened to the workforce. Today, talent can explore numerous options globally. They can easily apply for jobs online and become employed by foreign companies. 
  • Change in values Traditional jobs and positions are now less appealing to the younger generation of workers. The advent of technology paved the way for many to work online. As a result, young professionals are becoming less interested in job security, lucrative salaries, or competitive benefits packages. 

Today, many skilled talent prefer flexible working hours and innovative work environments to explore, learn, and succeed in their chosen journey.

How Offshoring Can Help You Win the Talent War

  • You can tap global talent — Offshoring allows you to tap highly-skilled talent from any part of the world. You can offshore outsource based on your function needs to locations without talent shortage, such as the Philippines. You can outsource prominent roles from Digital Marketing, Software and IT Support, Finance and Admin, and Sales and Customer Service. 

92% of Filipinos also speak English, making them a premium offshore talent. The Philippines produces more graduates than most Asian countries, with an average of 350,000 yearly.  The Filipino culture is also compatible with Western countries, making it easier to eliminate cultural barriers at work.

  • Highly-skilled and experienced talent that may be challenging to hire locally — Your local talent market may have a shallow bench, making some roles difficult and more expensive to hire locally. This may increase your company’s operational expenses. This is where having access to a broader pool of talent overseas becomes a huge advantage. 

With offshoring, you can find talented professionals with a high level of English competency and industry experience matching your overall business needs. An offshoring provider can help you source candidates in Customer Service & Sales, Creative Digital Design, Finance & Accounting, IT Software Support & Development, Online Marketing, and many more. 

  • Cost-efficient — Offshoring is an effective cost-saving strategy that can help companies save up to 70% of their labour or fixed costs. Top offshoring destinations, like the Philippines, have lower operational expenses such as IT equipment, rental, utilities, infrastructure, and many more.

In addition, your offshoring partner will take care of the hiring process, reducing your time-to-hire and, ultimately, recruiting and sourcing costs. Your offshoring provider can oversee daily operations, including HR, payroll, and IT. 

  • Better retention than local talent — Offshoring has significantly evolved over the past few years. Today, offshoring offers competitive salaries and benefits, increasing employee retention rate.

Start Your Journey with Satellite Office

Satellite Office has a proven track record of assisting businesses to leverage the benefits of outsourcing by building a dedicated, highly skilled, and cost-efficient offshore team in the Philippines. 

Our tailored offshore outsourcing solutions give businesses absolute control of their remote team’s productivity, output quality, and targets while we provide comprehensive support that makes managing offshore employees as simple as possible. Experience a full-service model, including premium facilities, HR, IT infrastructure, account management, and payroll support services, with no hidden fees.

Looking for an offshore support service partner? Get a free assessment now, and let’s see how we can help.


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