Offshore Staffing is the New Way of Hiring: 3 Problems You Can Encounter With Hiring In-House

December 1, 2022
Businessman in suit and glasses conversing with two women about "Problems You Can Encounter With Hiring In-House".

What are the problems that you can encounter with in-house hiring?

  1. Limited Number of Applicants
  2. Higher Costs for Recruitment
  3. Delaying the Work Process

Recruitment for any company is a long and tedious process. All human resources departments are always out to find the person best suited for the role. They make use of endless recruitment methods, including offshore staffing, referrals, talent pools, and even in-house hiring! Many recruiters would prefer to hire in-house to fill their other roles. This allows them to hire someone already familiar with the working environment and its core values. There may be another team member perfect for a vacant position. However, this poses many problems.

Limited Number of Applicants

Limited Number of Applicants

There are many candidates for vacant positions when you take a look at your current roster of employees. However, how many of them are willing to shift to another position in the company? With that question, in-house hiring limits the number of candidates for a job. Many employees possess qualities that make them perfect for numerous positions. However, they may be engrossed in their tasks for their team. On top of that, a company also eliminates the possibility of hiring someone outside of the company with in-house staffing. Many people outside the company are qualified for the job — sometimes even perfect for it! However, you can never find them if you don’t search outside the company.

Higher Costs for Recruitment

Costs always play a big factor in recruitment. Many human resource departments try to keep these as low as they can. However, in-house hiring doesn’t allow you to do so. When considering hiring current employees, it can turn out quite costly. Offering someone a new position in the company often results in higher wages. The overall costs will increase immediately. On top of that, you’ll need to allocate the budget for proper training. This is a good way to get the employee motivated to transfer, but it can add to costs. Promoting someone to a different team without training is not always beneficial. It can lead to delaying future projects because of the steep learning curve of the job. It will also affect the professional development of the employee. That’s why it’s important to invest in their certification and education. When depending on in-house hiring, it’s not safe to assume that a person will be willing to take on a new role. It’s important to keep an open line of communication with employees. Explain to them the benefits of accepting new responsibilities, but keep an open mind that they may not be interested in accepting this.

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Delaying the Work Process

Delaying the Work Process

There are cases where hiring in-house can sometimes have a longer implementation process compared to when you onboard someone from outside the company. Even if they come from the same company, it can take time to learn about time to learn the ins and outs of their new department. This includes training and orienting them about their new tasks Some may think the opposite when it comes to in-house hiring. However, the reality is that this process involves hiring someone with less experience compared to hiring someone from the entire labor pool outside of the company. The onboarding process may be faster if you hire someone from outside the company with the proper credentials for the job. The biggest downside to training an employee for a new job is that it will delay any tasks they currently are assigned to. Even if the intentions for shifting their position are good, companies need to grasp the fact that they still have their deliverables to accomplish on top of the training they need to undergo.

What is Offshore Staffing?

With the many problems you can encounter with in-house hiring, many companies have turned to offshore staffing to fulfill their hiring needs.This is another method of hiring wherein companies hire employees from overseas to work. They make use of a development center from overseas to hire for them employees from that same country. It is possible to accomplish offshore staffing with your in-house human resources department. You can also use an offshore staffing agency like Atticus to help you with this. Some services sought after by this method are customer care, IT development, and NetSuite accounting.

Key Takeaway

There are many problems that you can encounter when hiring in-house. It can be employees declining the offer or even tasks being delayed in the process. That’s why many turn to offshore staffing to address the vacant positions in their workforce. Here at Atticus, we can help you with your offshore staffing needs. Atticus provides flexible and efficient services to provide you with the best solution for your team. If you want to learn more about our services, send us a message here! We’re more than happy to discuss and find a solution for your hiring needs.

Aspect
Offshoring
Nearshoring
Outsourcing
Long-Term Costs
Cost-effective for skilled talent
Cost-effective but needs initial investment
High, offers control and flexibility
Investment
Moderate, reduces overhead
Initial training and technology
Highest initial and ongoing costs
Benefits
Access to nearby skilled talent
Large global talent pool
Maximum control over operations
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Key Differences
BPO
EOR
Not over PHP 250,000
Tax-exempt
Not over USD 434.49
Over PHP 250,000 but not over PHP 400,000
15% of the excess over PHP 250,000
Over USD 434.49 but not over USD 695.18
Over PHP 400,000 but not over PHP 800,000
PHP 22,500 + 20% of the excess over PHP 400,000
Over USD 695.18 but not over USD 1,390.36
Over PHP 800,000 but not over PHP 2,000,000
PHP 102,500 + 25% of the excess over PHP 800,000
Over USD 1,390.36 but not over USD 34,759.04

Frequently Asked Questions

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