In the dynamic world of startups, the challenges of labor shortages, attraction and retention dilemmas, and the pursuit of diversity have reached a crescendo. Amidst the mixed results of traditional HR remedies, a trailblazing solution has emerged. Enter 1840 & Company—a seasoned accelerator—expertly tapping into the capabilities of the global workforce. They empower US startups to navigate uncharted territory by seamlessly broadening talent horizons, elevating attraction and retention strategies, and fostering vibrant, inclusive work environments.
KANSAS CITY, Kan., Aug. 28, 2023 /PRNewswire-PRWeb/ -- Following a record-breaking 9.1% inflation in June 2023, startups in the US find themselves struggling to keep their heads above water.(1) With venture capitalists (VCs) more selective in their funding decisions and the US talent pool demanding the highest reservation wage the country has ever seen,(2) conventional HR solutions prove inadequate in addressing these pressing issues. Enter 1840 & Company, pioneering a game-changing approach: fusing business process outsourcing (BPO) with an accelerator model. "By tapping into a global workforce, startups can bridge talent gaps, redirect resources for key roles, and foster diverse workplaces," says CEO, Bryan DiGiorgio. This innovative strategy emerges as a beacon for startups to navigate labor challenges, inflation's impact on HR, and DEI aspirations, promising transformative outcomes.
Concern 1 – Labor Shortage
That the labor shortage is caused by companies unwilling to pay a fair wage paints an incomplete picture. The truth is there has been an enduring skills gap in the labor market stemming from a surfeit of new graduates earning degrees in low-demand fields.(3)
As a result, startups in engineering, the sciences, and finance are struggling to find qualified candidates on US soil. With 75% of organizations planning to expand their workforce this year, many will be unable to do so unless they can circumvent the labor shortage.
Concern 2 – Attraction & Retention
Hiring and retaining employees has also been a struggle.
Inflation often leads people to seek higher wages to offset the escalating costs of living. The outcome is that potential hires may hold out for opportunities that meet their salary expectations, leaving vacancies unfilled. Meanwhile, an increasing number of existing hires are contemplating switching to higher paying jobs.
Concern 3 – Diversity, Equity, and Inclusion (DEI)
Thirty-five percent of HR leaders consider fostering a diverse and inclusive work environment as a top priority.(4) However, HR often face resource constraints, as DEI programs tend to take a backseat to core business operations. Furthermore, being relatively inexperienced in DEI, young companies like startups may encounter biases and blind spots when implementing such programs.
HR's Traditional Toolbox
Confronting these issues, HR has turned to tried-and-true methods: facilitating remote work, doling out cost-of-living adjustments, and offering supportive resources such as mental health programs and financial workshops.
While these approaches can certainly make a startup's workplace more alluring to potential and existing hires, they do little to tackle the labor shortage or the difficulties in implementing an effective DEI program.
Given the inadequacy of current methods in addressing this year's most pressing HR concerns, a new strategy is needed for startups to meet their personnel goals.
The Solution: Business Process Outsourcing with a Startup Accelerator
1840 & Company combines business process outsourcing (BPO) with an accelerator model to help startups revitalize their HR departments.
BPO services involve outsourcing strategic positions on an as-needed basis to candidates across the world. Engaged as contractors, these remote hires can quickly address specific pain points within the business, requiring only minimal commitment from the employer regarding onboarding, training, and benefits.
The cost savings and flexibility afforded by independent contracting or hiring offshore talent directly can work wonders in solving hiring challenges. First, the cost of living in other countries is notably lower than in the US, to the extent that offshore professionals can be contracted at a lower cost than local hires. By outsourcing certain positions abroad, firms, including startups, can overcome attraction and retention issues as the generated savings can be redirected to make core positions more lucrative for homegrown talent.
Second, BPO services is a direct answer to the national labor shortage. Because applicants trained in tech and finance might be less common in the US than before, expanding the hiring scope to include global freelancers who may be just as capable but available at a fraction of the cost makes logical sense for high-growth companies like startups.
Finally, BPO services provide an easy way for companies to satisfy DEI requirements. Hiring remote employees from diverse locations can lead to culturally rich workplace experience, allowing new ideas and perspectives to flourish in a safe and equitable manner.
That being said, a BPO system can be difficult to implement for smaller companies. Few startups have experience dealing with local benefits, payroll, taxes, and compliance. As such, a startup accelerator specializing in contracting global talent like 1840 & Company should be present to mentor those intending to turn to BPO services.
How Startups Can Overcome HR Obstacles in 2023
The labor shortage, inflation-induced attraction and retention problems, and DEI objectives all pose roadblocks to startups. Business process outsourcing offers a solution to all three obstacles. By entrusting strategic roles to offshore freelancers, startups can close the labor gap, gather the capital to attract and retain key contributors, and promote a cosmopolitan work culture.
About 1840 & Company:
Bryan DiGiorgio, Founder and CEO of 1840 & Company gravitated to the year 1840 when defining the company he created. A world previously stunted by disconnection and scarcity suddenly launched towards rapid growth never before seen in history. It correlated to his mission and innovative business model. 1840 & Company is a revolutionary global business process outsourcing and remote teams provider headquartered in Overland Park, Kansas. From pre-seed to post-IPO, they help growing companies of all sizes solve significant staffing and skills shortfalls within a global competency model. With flexible hiring options via traditional outsourcing, vetted freelancing, and direct placement, 1840 delivers all-in-one, comprehensive solutions tailored to a company's needs. They operate in scale from more than seven countries with the ability to hire in 150 different countries. 1840 & Company has been recognized as a top 10 Recruitment Process Outsourcing (RPO) firm by HR Outlook Magazine. 1840 & Company – revolutionizing the way we work. For more information visit https://www.1840andco.com/
References:
1. Center for Microeconomic Data. "SCE Labor Market Survey." Federal Reserve Bank of New York, newyorkfed.org/microeconomics/sce/labor#/. Accessed 5 Aug. 2023.
2. Gartner. "Gartner Survey Reveals HR Leaders' Number One Priority in 2022 Will Be Building Critical Skills and Competencies." Gartner, gartner.com/en/newsroom/press-releases/2021-10-20-gartner-survey-reveals-hr-leaders--number-one-priorit. Accessed 5 Aug. 2023.
3. Gurchiek, Kathy. "Report: Inflation, Labor Shortages Top HR Concerns in 2023." SHRM, 31 Jan. 2023, shrm.org/hr-today/news/hr-news/pages/report-inflation-labor-shortages-top-hr-concerns-in-2023.aspx#. Accessed 5 Aug. 2023.
4. U.S. Bureau of Labor Statistics. "Consumer Prices up 9.1 Percent over the Year Ended June 2022, Largest Increase in 40 Years." U.S. Bureau of Labor Statistics, bls.gov/opub/ted/2022/consumer-prices-up-9-1-percent-over-the-year-ended-june-2022-largest-increase-in-40-years.htm. Accessed 5 Aug. 2023.
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SOURCE 1840 & Company
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