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5 Ways Emerging Franchise Brands Can Benefit From Leveraging Offshore Talent Offshoring talent gives young franchises many benefits, from cost savings to quality maintenance to leadership development.

By David Nilssen Edited by Chelsea Brown

Key Takeaways

  • For emerging franchise brands, offshoring provides key benefits for scaling without sacrificing quality.

Opinions expressed by Entrepreneur contributors are their own.

Emerging franchise brands are laser-focused on growth, and rightfully so. However, growth consumes a lot of cash, and many are undercapitalized and unable to staff adequately in the initial stages of the business. A more nuanced approach to talent acquisition can facilitate success.

Leveraging offshore talent is a lesser-utilized growth strategy for emerging franchise brands. Outsourcing no longer fills just junior or customer service roles — a common misconception in today's landscape. Now, high-value, skilled workers are available around the globe to support completing higher-level work. Offshoring helps franchisors proactively hire as part of their growth strategy, instead of staying reactive while conserving cash.

Historically, I have seen very few brands leverage outsourced labor. However, that is beginning to shift as franchise leaders begin to understand the benefits of having an international talent strategy. There are compelling reasons that fast-growing franchisors can benefit from leveraging offshore talent.

Related: Your Most Pressing Offshoring Questions, Answered

1. Access to a broader talent pool

Talent scarcity persists as a substantial issue that won't soon go away. It's becoming harder to find, afford and retain top talent. A ManpowerGroup report revealed that 75% of employers say they have difficulty filling roles, and a study by Korn Ferry found that by 2030, there could be a global talent shortfall of 85 million people — to the tune of $8.5T in unrealized annual revenues if the issue is left unaddressed.

A shift in the talent procurement process is necessary to address this scarcity. Offshoring provides access to a much broader, global talent pool. Franchises need access to a wide range of skills and expertise that may be limited or fiscally prohibitive in their local markets. Offshoring can be particularly beneficial for more specialized roles within the business.

2. Cost efficiency and scalability

A significant outsourcing advantage is cost savings. Offshore talent carries a much lower expense compared to local hiring, with significantly reduced budgets for wages and benefits. With the right offshore talent, work quality won't be sacrificed. This can be crucial for franchisors that need to maximize their resources during periods of rapid growth.

It takes a long time for a franchise brand to become royalty-sufficient, which is why growth is especially important for new businesses. As franchises grow, the need for broader skills and additional staff rises. Offshoring provides the flexibility to expand or contract the workforce as needed, without the expense or complexity of hiring locally.

3. Quality improvement

Any business in growth mode struggles to hire ahead of the demand curve. Hiring proactively can help franchisors expand their capacity ahead of that curve to maintain high quality, brand value and customer satisfaction. Often, they delay hiring crucial roles or bring on less experienced workers to reduce costs. These are not mutually exclusive.

Most people think of outsourcing as transactionally delegating low-level tasks that no one wants to do. Instead, franchisors should consider offshoring, hiring skilled workers to fill roles earlier than they could otherwise with domestic workers.

For example, leveraging offshore talent could mean that domestic employees can take on new roles, such as management responsibilities, expanding capacity and facilitating greater business value.

4. Round-the-clock operations

Offshore teams often operate in different time zones. Meaning, they can complete their work outside of the franchise's local business hours, effectively enabling 24/7 operations.

Operating with longer hours can significantly increase project turnaround times and improve customer satisfaction.

5. Leadership focus

Within growing companies, executives often get mired in operational or administrative details. Through offshoring, franchise executives can affordably find support that relieves operational burdens and allows them to focus on core activities, such as franchise development and strategy and management, which spur growth and expansion. Offshore teams can handle repetitive and time-consuming tasks, which in turn increases organizational efficiency and productivity.

With this level of support, leaders can expand their bandwidth and add strategic value to the organization.

Related: Hiring Offshore Talent? Here Are the Top 10 Countries to Recruit From.

Investing in offshore talent allows room for franchises to grow. Businesses gain access to a wider range of skilled talent, and they can upgrade internal teams and foster leadership capacity and effectiveness. Cost-efficiency and 24/7 service provide much-needed relief to young franchise businesses — and customer service and profitability don't suffer in the process.

Offshoring helps growing franchises increase organizational value. The flexibility that engaging today's offshore talent provides creates a skilled global workforce that fulfills more roles than customer service.

David Nilssen

Entrepreneur Leadership Network® Contributor

CEO of DOXA Talent

David Nilssen is the CEO of DOXA Talent which helps businesses to build high-performing teams leveraging talent from across the world. He serves on the Global Board of Directors of the Entrepreneurs’ Organization (EO) DOXA Talent, and Guidant Financial.

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