5 Reasons Why Your Business Can’t Afford to Overlook Nearshore Talent

For small and mid-sized businesses in the United States, navigating the complexities of workforce management can be really daunting. In fact, 56% of small businesses face their greatest challenge in finding great talent, with 35% of them finding it harder to recruit employees now compared to five years ago. These businesses go through endless roadblocks, from staying compliant with ever-changing HR regulations to productivity issues with current employees and everything in between. I know how much frustration this can lead to, which is why I want to share a practical solution that has made a real difference in my own business, WorkBetterNow: nearshore talent.

When I say “nearshore talent”, what I’m referring to is the wealth of skilled professionals available in Latin America(LATAM). But why Latin America? The answer lies in the numerous advantages it offers, from overlapping time zones to cultural alignment and cost-effectiveness. By tapping into this vast talent pool, businesses can access top-tier expertise without breaking the bank or sacrificing quality

But this isn’t just about finding a quick fix – it’s about finding long-term partners who continually contribute to the growth of your business over time. Whether you’re looking to expand your team, enhance your capabilities, or simply stay ahead of the competition, nearshore talent can help. So let me tell you a little bit more about why you should be considering nearshore talent for your business and how to make informed decisions for maximum benefits.

Reason 1: Addressing the Talent Crisis

In today’s competitive landscape, finding and retaining top talent has become increasingly challenging for small and mid-sized businesses in the US. The talent crisis is real, and its impact is being felt across all industries, from tech startups to traditional brick-and-mortar establishments.

The Hiring Conundrum: Understanding America’s Labor Shortage

The United States is facing a significant labor shortage, with workforce participation remaining below pre-pandemic levels. Despite a staggering 9.5 million job openings, there are only 6.5 million unemployed workers available to fill them, leaving a deficit of 3 million jobs unfilled. Several factors contribute to this shortage, including early retirements, a decline in labor force participation rates, and shifts in employment demographic patterns. Although job openings have increased since then, unemployment has decreased slowly, exacerbating the gap between supply and demand in the labor market.

One of the key manifestations of this crisis is the prolonged hiring process. On average, it takes businesses in the US 44 days to fill open positions. This extended timeframe not only increases recruitment costs but also disrupts workflow and impedes growth. I don’t know about you, but if my business took almost two months to fill a position, our productivity would be seriously hindered.

Escalating Costs

Moreover, talent has become more expensive than ever before. Despite overall salary growth in the United States, 55% of professionals feel underpaid. These rising salary expectations, coupled with additional recruitment expenses, put a strain on already tight budgets. For small and mid-sized businesses, this financial burden can be particularly daunting, limiting their ability to attract top-tier talent.

Diminishing Productivity

Meanwhile, productivity levels among the US workforce are on the decline. Despite technological advancements and increased automation, many businesses are struggling to maintain efficiency and output. According to Forbes, labor productivity in the US experienced a notable decline, with a 2.7% decrease in the first quarter of 2023, marking the sharpest decline in 75 years. The data also highlights the significant impact of employee disengagement, estimating that disengaged employees cost companies an average of 34% of their annual salary annually. This translates to a loss of $3,400 for every $10,000 earned by a disengaged employee. On top of this, they found that a substantial portion of the US workforce, 68%, is not engaged at work. This downward trend not only affects profitability but also hampers innovation and competitiveness in the global market.

The Nearshore Advantage

As a result, businesses are grappling with the consequences of this labor shortage, from prolonged hiring processes to increased competition for talent. Our clients have found that by tapping into a global talent pool, businesses can access skilled professionals from around the world, mitigating the effects of the labor shortage. 

Bernadette Capulong, CEO and Founder of BC Design Haus, discovered a whole new vision once she began working with nearshore talent. “Our first WBN Professional was fantastic, and I thought, wow, this really can work. The quality, the skillset, the work ethic… it just blew me away,” says Bernadette. “That made me think, how else can we supplement our team?” She currently has four highly talented WBN professionals integrated into her company, filling roles she never thought possible before.

Reason 2: Accessing an Exceptional Global Talent Pool

I’m going to make a bold but true statement here: In today’s interconnected world, talent knows no borders. So think about it – by embracing offshore hiring, small and mid-sized businesses can tap into a vast and diverse qualified talent pool, transcending geographical limitations and uncovering new possibilities for growth. I myself am continually amazed at the level of quality talent that I’ve found overseas.

Talent Knows No Borders

Gone are the days when businesses were confined to hiring locally. With advancements in technology and communication, the world has become a global marketplace for talent. From seasoned professionals to emerging experts, there’s a wealth of skills and experience waiting to be discovered beyond domestic borders.

When it comes to offshore talent, the possibilities are endless. Whether you’re in need of software developers, digital marketers, or virtual assistants, you’ll find a myriad of qualified candidates with the expertise and attitude to drive your business forward – like I said before, no borders. These extremely talented professionals bring with them a wealth of experience, a can-do attitude, and a commitment to excellence that transcends cultural boundaries. 

For example, Larry Zogby, President of RDS Same Day Delivery, found that nearshore talent could expand into roles he never thought possible. “The incredible level of talent goes way beyond assistants. I am using WBN talent for roles such as inbound sales, customer service, and courier recruiting — just to name a few. WorkBetterNow and their team of talent is transforming my business every day.” 

Language Proficiency

You might be surprised to learn that offshore talent often boasts excellent English language skills, making communication seamless and effective. This is something that was really important to me, because there could be potential language barriers. However, with WBN’s selection of nearshore talent, you can rest assured that language barriers will not impede progress. This fluency in English not only facilitates smoother interactions and enhances productivity but also serves as a testament to the exceptional communication skills of our WBN talent, particularly in the many customer-facing roles they are placed in.

Reason 3: Significantly Lower Compensation Costs

A significant advantage of offshore hiring is the lower cost of living in many regions around the world, resulting in lower compensation costs for businesses. This straightforward yet impactful factor can lead to substantial savings without sacrificing quality.

In countries where the cost of living is lower than in the US, talented professionals often command salaries that are competitive within their local economies but represent significant savings for businesses based in higher-cost regions. I’ve found that this discrepancy in compensation allows businesses to optimize their budget and allocate resources more efficiently.

Reason 4: Navigating Complex HR Regulations

I won’t sugarcoat it: In today’s regulatory landscape, navigating federal, state, and local HR-related laws can be a daunting task for small and mid-sized businesses. From evolving federal regulations to varying state and city mandates, staying compliant requires careful attention to detail and proactive measures to mitigate risk in order to protect yourself and your business. Let me show you what I mean.

Federal Regulations

Over the past few years, federal regulations have made it increasingly challenging for businesses to hire and manage employees. For example, the Biden administration recently enacted a new labor rule aimed at preventing the misclassification of workers as independent contractors. This rule is very limiting for businesses, as it introduces uncertainty for employers, who must navigate complex compliance requirements and potential enforcement actions.

State and Local Mandates

In addition to federal regulations, businesses must also contend with a myriad of state and local HR-related laws. Depending on their location, businesses may face a range of requirements related to minimum wage, overtime pay, paid leave, and workplace safety, among others. These mandates can vary significantly from one jurisdiction to another, adding another layer of complexity to HR management.

Reason 5: Gaining a Competitive Advantage

In today’s hyper-competitive business landscape, maintaining a competitive edge is more crucial than ever. Small and mid-sized businesses face constant pressure to innovate, adapt, and differentiate themselves in order to succeed. Against this backdrop, hiring offshore talent can provide a strategic advantage that sets businesses apart from their competitors.

Economic Realities

Businesses are operating in an environment where margins, both gross and net, are under constant pressure. Profit margins are being squeezed as businesses strive to remain competitive in the face of rising costs and evolving market dynamics. In this context, having access to lower-cost talent can be a game-changer, allowing businesses to optimize their cost structure and enhance their competitiveness.

Access to Top Talent

Attracting and retaining top talent is essential for small and mid-sized businesses looking to thrive in today’s economy. Offshore hiring offers access to a global talent pool, allowing businesses to recruit skilled professionals with diverse backgrounds and expertise. By leveraging offshore talent, businesses can tap into a wealth of skills and capabilities that may not be readily available domestically, giving them a strategic advantage in the marketplace.

Proof of Concept

At Work Better Now, my team and I have experienced firsthand the benefits of hiring offshore talent. A significant portion of WBN’s team, approximately 82%, resides and works in Latin America (LATAM), including myself and Andrew. Our diverse team has proven instrumental in driving WBN’s success, with many team members starting at assistant levels and rising to leadership roles within the company. WBN is living proof that offshore hiring can indeed provide a competitive advantage, as it enables my own business to scale efficiently and achieve goals, growing approximately 3400% from 2020 to 2023.

Our decision to source talent from LATAM was based on several factors, including the abundance of skilled talent, cultural similarities to the US and Canada, alignment of time zones, and significant cost savings for clients. This exceptional LATAM talent has been pivotal in our growth and success, and I frequently hear from clients that they regret not hiring WBN professionals sooner. 

How to Hire Offshore Talent

Now that you understand the benefits of hiring offshore talent for your business, I’ll guide you through some practical steps of making it happen. There’s two primary approaches to offshore hiring: the DIY approach and partnering with a talent agency like Work Better Now. Each option offers its own set of advantages and considerations, allowing you to choose the approach that best fits your needs and preferences. 

DIY Approach

Some companies opt to handle the hiring process themselves. This involves posting job listings on platforms like LinkedIn or Indeed, setting up appropriate payroll systems, and managing the recruitment and onboarding process internally. While this approach offers flexibility, it can also be challenging and time-consuming.

Talent Partner Services

Alternatively, you can partner with a talent agency like Work Better Now. WBN’s extensive screening process ensures that clients receive the top 2% of talent, freeing up their time and increasing productivity. Ultimately, WBN aims to simplify the hiring process for businesses, allowing them to focus on growth and operations while leveraging the expertise of overseas professionals. WBN takes care of the entire hiring process for you, from screening and recruiting to onboarding, and also offers ongoing support to address any challenges that may arise.

Where to Hire From

When considering offshore hiring, the primary regions to focus on are Asia and Latin America. These regions boast abundant talent pools with diverse skills and expertise. Additionally, some companies also explore opportunities in Eastern Europe. Ultimately, the choice of location depends on your specific requirements and preferences.

By understanding the current labor landscape and the challenges faced by businesses, it becomes evident that offshore hiring presents a viable solution to many of these pressing issues. With the right strategies in place, businesses can not only overcome the talent crisis but also thrive and succeed in the global economy.
I hope you’ve learned some solid takeaways about what nearshore talent could do for your business. For more detailed information on offshore hiring strategies and best practices, download our comprehensive E-guide and learn to work better now.