Impact Outsourcing - Everything You Need to Know
The quality and consistency of a company's workforce are critical to its operations' success. As a result, business leaders are always looking for new sources of premium talent, and if those talent pools have a low attrition rate, the deal is even sweeter.
Impact Outsourcing - Why it Matters for Your Business?
"Impact outsourcing" is a sourcing strategy that has emerged as a clear differentiator in recent years. This strategy, also known as "socially responsible sourcing," focuses on outsourcing jobs and supply chains to economically disadvantaged areas and populations.
While impact outsourcing is primarily philanthropic, it also adds significant business value to forward-thinking organizations.
Here are the top advantages of impact outsourcing for your company.
A High-Performance Workforce
Even if impact workers come from economically depressed areas or demographics that may not have as much access to job opportunities as others, they can still be considered "high upside" employees. Both research and experience indicate that the performance of impact workers in most applications is comparable to that of traditional workers.
What if impact workers and their more traditional counterparts have a significant knowledge gap? Many business organizations have successfully bridged such gaps through effective training/onboarding programs. Companies that invest in employees with high potential upfront will reap the benefits of their diligent efforts for many years.
Low Attrition Rate
Consider yourself an impact worker. You've been looking for steady work that pays a living wage for weeks, months, or years. Now, a company offers you a job that will meet your basic economic needs. How would you feel? Are you relieved that your job search is over? Would you be grateful to your new employer and determined to meet the company's expectations?
The point is that impact workers are in a unique position to appreciate what they have — and are frequently fiercely loyal to the organization that provided them with consistent, dependable work.
What does reducing attrition mean for your company? You won't have to devote as much time to recruitment, new hire training, and HR administration. You will have a stable, engaged, and experienced workforce that can provide exceptional value to customers. Isn't that every manager's fantasy?
Long-Term Cost Savings
Increased cost savings come with low attrition rates. As mentioned in the preceding section, companies that hire impact workers often avoid the increased costs associated with a "revolving door" workforce. This factor alone makes impact sourcing a high-value proposition in the long run.
The impact outsourcing model can maximize cost savings while maintaining productivity and efficiency in a global economy where 59% of businesses use outsourcing to cut costs. Everyone involved benefits from this situation.
A Competitive Advantage
Businesses that use impact outsourcing gain a significant competitive advantage in the market. We've already discussed how this strategy saves money, which is a significant benefit in and of itself. However, don't overlook the production side of the equation: impact outsourcing provides access to previously untapped talent pools, potentially infusing a company with skilled, innovative, and driven employees.
Nearly 75 million people in the United States represent America's untapped workforce. This is just one example of the vast talent pools available from which businesses can easily recruit motivated employees. This, and many other impact demographics, allow businesses to avoid stiff competition for talent and potentially damaging "wage wars" with industry peers.
Companies have recognized the global nature of supply chain logistics for many years and have implemented strategies to maximize sourcing and distribution efficiencies while minimizing costs. While this approach may be effective in terms of "dollars and cents," impact sourcing aims to change the embedded "values chain" of a product or service.
In other words, this model aims for a more egalitarian approach to wealth distribution rather than the purely financial considerations associated with traditional outsourcing models.
Many business leaders believe this approach has far more potential for long-term sustainability and growth than current models. But, unfortunately, primary suppliers frequently are the lowest-paid and most underrepresented links in the supply chain.
Impact outsourcing frequently creates opportunities for oppressed or excluded groups, resulting in a more stable global economy. It's a win-win situation for everyone!
Contact us if you want to know more about the advantages of an impact outsourcing solution for your company. Subul has built a reputation for providing world-class outsourcing solutions to a diverse client base.
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