4 Outdated HR Outsourcing Fears That Will Widen the Skill Gap in 2023

With 75% of employers experiencing skill gaps and employee shortages, dispelling myths about outsourcing may enable businesses to enjoy the advantages of global talent.

75% of employers report a talent shortage, with education, health, government, IT, technology, manufacturing, banking, and fintech among the industries most affected. Given that global inflation is said to have peaked in June, businesses are increasingly turning to outsource to expand their talent pool while also cutting costs—hiring specialists with the same qualifications and skill set may be cheaper in some countries.

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Companies are choosing to hire HR agencies to handle their recruitment needs for a variety of reasons, including the fact that the agencies handle onboarding, professional training, employment, safe work training, and other processes. Companies can focus on their core competencies rather than administrative tasks.

Nevertheless, using outsourcing to recruit employees or expand in global markets is still fraught with several persistent myths that may limit businesses’ ability to broaden their candidate pool.

1. Outsourcing costs more than conventional hiring

Companies may be persuaded that hiring candidates the traditional way or establishing offices in other countries on their own is more cost-effective. However, Diana Blazaitiene, a remote work expert and the founder of Soprana Personnel International, a recruitment and personnel rental solutions agency for German and Scandinavian companies, claims that outsourcing HR companies to do so saves companies both time and money.

“Say, a company wants to open an office in the Baltic states, it needs to hire a manager, an accountant, and a full team.” However, if it outsources the help of an HR agency, all they have to do is pay its monthly fee for administering the office and the team. “It is as easy as that, and significantly reduces the stress of setting up a business in another country,” she maintained.

2. Outsourcing increases the complexity of administrative tasks

Although it may appear that outsourcing recruitment services add to the administrative burden, selecting the right partners reduces the need to intercept talent hiring.

“HR companies have robust onboarding processes that reduce the administrative hassle. HR agency selects and screens the candidates, performs interviews, and onboards them. Also, the outsourced agency can help the company to create internal processes that would facilitate onboarding in the future,” the expert added.

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3. Outsiders will not understand business specifics

To ensure that the outsourced agency fully understands the intricacies of the business, look for partners who specialize in specific fields such as IT, digital marketing, hospitality, and others. HR agencies that specialize in specific industries will be able to more effectively hire candidates who fit the company’s profile and meet its requirements.

“At the same time, I recommend companies not limit themselves in terms of the qualifications of the candidate. If the candidate does not have the required skills but is eager to learn them, the company can organize a crash course for such a person to learn the intricacies of the position. “A positive attitude toward learning new things is always one of the most valued traits when recruiting people,” Blazaitiene said.

4. Companies cannot regulate onboarding if a new employee is not present at work

As stated by the expert, HR agencies that provide outsourcing services meet with new employees on a regular basis and invite them to the company’s main office several times a year. Consistent meetings and check-ins ensure that both the company and the new hire are kept up-to-date on all business matters.

Soprana Personnel International’s assistance allowed Jobilla, a Finnish company named one of the 50 leading companies in the world by The Silicon Valley Review, to attract talent from the Baltic region. Despite being based in Finland, the company turned to Lithuania and Latvia, two of Europe’s fastest-growing tech startup hubs, to find around 15 specialists whose credentials were ideal for Jobilla.

According to Pekka Nebelung, COO at Jobilla, his company has had positive experiences with the Baltic countries and is willing to hire more specialists from the region. “When recruiting and managing a remote team, the most important aspect is trust in the person, who is on location running the operations.”

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[To share your insights with us, please write to sghosh@martechseries.com]



employee shortagesGlobal TalentHiringHR OutsourcingJobillaskill gapSoprana Personnel International
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