According to the U.S. Chamber of Commerce, almost 99.9% of businesses in the U.S. are classified as small businesses. The demand for small businesses grows yearly, as the department documented a record-breaking 5.4 million new business applications in 2021.
While starting a small business is a challenge on its own, growing it is a different ballgame. Unlike established corporations, small businesses don’t have the resources to hire talent for every role. However, this problem has an efficient solution: offshore hiring.
Understanding Offshore Hiring
Offshore hiring refers to the practice of hiring employees from other countries, typically for remote work. This practice includes outsourcing tasks or projects to individuals or companies in a different country, often with lower labor costs. This approach has become increasingly popular among small businesses in recent years, allowing them to further access a larger pool of highly skilled and cost-effective talent.
Benefits of Offshore Hiring
Offshore hiring provides several benefits to businesses of all sizes:
- Cost Savings: One of the most evident advantages of offshore hiring is cost savings. Hiring talent from countries with lower labor costs can significantly reduce business overhead expenses.
- Access to Global Talent: Offshore hiring allows businesses to access a larger pool of skilled workers worldwide. This approach opens up opportunities for businesses to find the best fit for their needs and requirements.
- Scalability: With offshore hiring, companies can quickly scale their operations without the limitations of geographical boundaries. This approach allows for faster growth without added expenses.
Budgeting Considerations
Research analyzing nine in-depth case studies examined the various effects of offshore outsourcing. According to the study, companies initially aimed to cut operational costs but eventually determined that it presented more advantages than cost savings.
The cost-cutting advantage of offshore hiring is commonly associated with the lower salaries paid in other countries. The minimum wage in some states in the U.S. is $15/hr. At the same price, you could hire experienced managerial staff in India or the Philippines. Moreover, offshore hiring can also save businesses from other expenses, such as health benefits and workers’ compensation.
While an offshore hiring strategy may seem easy and efficient to cut costs, businesses must consider other budgeting factors such as legal fees, taxes, and currency exchange rates.
Best Practices for Offshore Hiring
A thorough vetting process is critical to ensure quality hires before you jump the gun and start sourcing talents offshore and unlocking your offshore hiring savings. Here are some of the best practices for successful offshore hiring:
- Research Where You Want To Hire: Consider cultural differences, language barriers, labor laws, and other factors affecting your business.
- Implement a Trial Period: This approach allows you to assess their skills and fit within your organization before committing to a long-term contract.
- Prioritize a Project Portfolio: Always ask your potential hire to provide a portfolio of projects they have worked on. Their portfolio should showcase their skills and expertise, allowing you to gauge whether they fit your team well.
How Search Party Can Help Unlock Offshore Hiring Savings
Hiring talents overseas can be challenging, especially if this approach is a new venture for your business. At Search Party Recruiting, we understand the importance of finding the right talent for your business needs. Our team of experts can assist you in navigating the complexities of offshore hiring in the Philippines and help you find top-quality candidates for your projects. Contact us today and let’s start to your offshore hiring savings together!
