The global talent shortage is at 75%. Here is how EORs can widen your talent pool and boost retention:
- Last updated: November 1, 2024
It’s a paradox: the world is reeling from a talent crunch of 75%…while companies are simultaneously conducting massive layoffs.
While seemingly contradictory, this talent shortage can easily be explained: the current talents on the job market do not have skills which align with the needs of the market. As such, employers are now updating their recruitment strategy, with many considering cross-border talents, and placing greater emphasis on employee experience to attract and retain the talent with rarer skills that are currently in demand right now.
EORs prove to be just the right structure to help companies reap these benefits and curb the trend of talent deficit.
Here is how EORs can help you navigate these challenging times as an employer:
1. Sourcing talent from Africa through an EOR
On the one hand, European countries, the US, Japan, and even China – which house large corporations – have had steadily declining birth rates for years and even decades. This slow decline is now starting to leave a mark: as older employees are retiring, there are not enough younger people – and suitably qualified ones, even more so – to fill the gaps that departing employees are leaving behind in the workforce.
But consider a continent like Africa:
The continental population has consistently been rising and is all set to reach 2.5 billion individuals by 2050 – which represents 25% of the global population.
Beyond population metrics, Africa is also home to growing technologies and highly capable talent. It’s little wonder then that companies are willing to expand their talent pool to African waters, in a bid to fill the positions left vacant.
This is where an EOR proves most useful.
According to an Atlas study , 61% of US businesses and 71% of UK businesses said that they think sourcing talent from overseas is crucial to their continued development. Yet, in another study by People Matters in 2023 , organisations’ #1 voted compliance as the #1 roadblock to their expansion.
Because EORs allow you to operate in an African country legally and compliantly, without the need to establish your own permanent entity there first, they open a continent’s worth of opportunities and talents to you – without ANY of the legal or administrative risks you might associate with expansion.
EORs like Africa HR Solutions onboard, manage payroll, administer benefits, calculate and remit relevant taxes on time – liberating time, resources, and mental capacity so you can focus on finding the right candidates, without worrying about anything else.
2. Employee benefits and EORs
Talent, in many regards, now holds the upper hand when it comes to choosing a workplace – a simple matter of supply and demand, really.
To attract and retain talent, companies are increasingly betting on the Employee Experience (EX) to boost employee retention. Accordingly, employee wellbeing and employee benefits have found a new place at the beating centre of employee attraction and retention strategies. After all, in a world where talent is already scarce, high turnover rates are the last thing a company needs.
Health & Life Insurance in Africa
Among the popular employee benefits companies are handing out are extensive medical insurance coverage and life insurance.
Offering basic insurance coverage, especially in industries where there is a critical talent crunch, might not align with industry standards. How then, can your company offer these competitive employee benefits packages in Africa?
EORs like Africa HR Solutions can help you get some of the best insurance deals. Thanks to our partnerships with international insurance companies like Unisure, we can offer highly flexible and customisable health insurance plans with superior in-patient coverage, dental and optical coverage in Africa, but also across the world.
This means that we can help cover your employees even when they are on business trips.
Besides, Africa HR Solutions also has an exclusive offer in place for our EOR clients’ employees: we give FREE life insurance worth $20,000 to all your eligible employees.
This level of coverage provides peace of mind as well as a feeling of safety and being cared for, something that talent is on the lookout for.
3. Adapting to the local work culture in Africa
One crucial part of EX, especially when sourcing from Africa, is understanding your employees’ values, ideals and culture. The work culture in your part of the world, and the work culture in an African country will not be the same. In fact, the work culture will differ even from African country to African country. So, if you are looking to implement a global work culture, you must tread carefully. If you introduce measures that go against what local African workers are used to, this could be massively counter-productive. After all, workers who feel that their culture is not being respected, or who feel misunderstood and alienated will not stay in employment long.
How, then, can you ensure that this doesn’t happen?
An African EOR will have the local knowledge and understanding of customs that you require to create a good relationship with your African employees. The EOR will know, for instance, which unspoken expectations your employees may have depending on the country they are in, or what the common bonuses/employee benefits for your particular industry may be.
4. Outsourced payroll = fewer errors
Did you know that 49% of employees will start looking for a new job after experiencing only 2 problems with their paycheque?
EORs take on the burden of payroll for you, on top of other HR and administrative tasks such as employee onboarding, tax calculation and remittance, offboarding and more. Thanks to sophisticated payroll software, user-friendly Employee Self-Service systems and a dedicated payroll team, EORs can reduce payroll errors to a minimum, keeping your employees happy, and boosting retention.
Choose the African EOR specialist
Looking to open up your talent pool to Africa’s possibilities? Africa HR Solutions is the largest African EOR serving 46+ African countries. As a client, you get access to all the opportunities this represents – all with a single point-of-contact across the continent. Not to mention that ALL your eligible employees are entitled to a complimentary life insurance worth $20,000 at no cost to you.
Ready to talk about your needs in Africa? Our team is here to listen and to help!