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Emerging franchise brands are focused on growth, and rightly so. However, growth consumes large amounts of cash, and many companies are undercapitalized and unable to have adequate staffing in the early stages of business. A more nuanced approach to talent acquisition drives success.
Leveraging offshore talent is an underutilized growth strategy for emerging franchise brands. Outsourcing is no longer just for junior service or customer service roles. This is a common misconception in today's situation. High-value skilled labor is now available around the world to help complete more sophisticated tasks. Offshoring can help franchisors save cash and hire proactively as part of their growth strategy, rather than remaining reactive.
Until now, we have seen very few brands leveraging an outsourced workforce. However, this situation is starting to change as franchise leaders begin to understand the benefits of having an international talent strategy. There are compelling reasons why rapidly growing franchisors can benefit from leveraging offshore talent.
Related: The most pressing questions and answers about offshoring
1. Access to a wider talent pool
Talent shortage remains a serious problem and will not go away anytime soon. Finding, financing, and retaining top talent is becoming increasingly difficult. According to a ManpowerGroup report, 75% of employers say they are having difficulty fulfilling their roles, and a Korn Ferry study estimates that 85 million people globally will lose their jobs by 2030. If it does not materialize, the annual unrealized revenue could reach $8.5 trillion. The problem remains unresolved.
Addressing this talent shortage requires changes to the talent procurement process. Offshoring gives you access to a broader global talent pool. Franchisees require access to a wide range of skills and expertise that may be limited or financially prohibitive in the local market. Offshoring is especially beneficial if you take on a more specialized role within your business.
2. Cost efficiency and scalability
A big advantage of outsourcing is cost reduction. Offshore talent costs much less than hiring locally, and wages and benefits budgets are significantly reduced. With the right offshore talent, the quality of your work will not be compromised. This is very important for franchisors who need to make the most of their resources during periods of rapid growth.
Growth is especially important for new businesses because it takes a long time for franchise brands to earn enough loyalty. As a franchise grows, the need for a broader range of skills and additional staff increases. Offshoring gives you the flexibility to expand or contract your workforce as needed without the expense and complexity of hiring locally.
3. Quality improvement
Companies in growth mode struggle to hire ahead of the demand curve. By proactively recruiting, franchisors can proactively expand their capabilities to maintain high quality, brand value, and customer satisfaction. They often delay hiring for key roles or hire less experienced employees to cut costs. These are not mutually exclusive.
Most people think of outsourcing as transactionally delegating low-level tasks that no one wants to do. Instead, franchisors should consider offshoring and consider hiring skilled workers to fill roles earlier than domestic workers.
For example, leveraging offshore talent can mean that domestic employees can take on new roles such as managerial responsibilities, expanding capabilities, and driving increased business value.
4. 24-hour operation
Offshore teams often operate in different time zones. This means that work can be completed outside of the franchisor's local business hours, effectively allowing him to operate 24/7.
Longer uptime significantly increases project turnaround time and improves customer satisfaction.
5. Leadership focus
In growing companies, executives often get bogged down in the details of operations and management. Through offshoring, franchise executives can obtain affordable support that reduces their operational burden and allows them to focus on core activities such as franchise development and strategy and management that drive growth and expansion. . Offshore teams can handle repetitive and time-consuming tasks, making your organization more efficient and productive.
This level of support allows leaders to expand their bandwidth and add strategic value to their organizations.
Related: Do you want to hire offshore talent? Here are the top 10 best countries to hire:
Investing in offshore talent creates room for your franchise to grow. Companies gain access to a wider range of skilled talent, allowing them to upgrade their internal teams and foster leadership capacity and effectiveness. Cost efficiency and 24/7 service provide much-needed relief to young franchise businesses, ensuring customer service and profitability are not compromised in the process.
Offshoring helps increase organizational value through franchise growth. The flexibility afforded by today's offshore workforce creates a skilled global workforce that does more than serve customers.
