Wherever you see the news, there is no escaping the fact that the U.S. is strongly hit by inflation and going towards another recessional phase. The causes have been understood as a combination of the after-pandemic supply-side shortages, policy-fueled demands, and other supply-side disruptions caused by the war in Ukraine.
Businesses and consumers are rethinking their financial strategies for the coming year as inflation continues to rise without a clear end.
Some economists believe the pressure will subside in the coming months. Others, on the other hand, argue that Americans should adapt to the changing environment and adjust their financial strategies in the face of little hope.
Furthermore, restricting trade and immigration at a time when rising domestic prices are a significant concern will exacerbate an already dire situation.
Now that everyone is focused on inflation, it is worth considering why inflation has been so low over the last two decades, despite full employment in the United States (before the pandemic) and ultra-expansionary monetary policies.
Globalization and automation arguably played a significant role.
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Organizations are now facing a different reality altogether. Due to Biden’s protectionist policies, jobs are more secure than ever. However, the "Great Resignation" and other policy changes have reduced the supply of workers, increasing the bargaining power of those who remain in the labor force.
It could have been a positive development if the high inflation rate had not hampered efforts to improve the standard of living in the United States.
If there is a silver lining to today's inflation, it is in the lesson this episode teaches policymakers and the general public. Due to the benefits of open borders (lower costs) being less evident than the workers’ costs (lost jobs or lower wages), there is a bias toward the protectionist sentiment.
Today's inflation highlights the importance of resisting this bias.
The current decline in real wages serves as a reminder that our well-being is determined by the nominal wages we earn as workers and the prices we pay as consumers. Having open borders can help keep costs down during a difficult time.
What is the solution?
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Inflation can cause businesses to raise employee wages, incur higher costs for goods and services, and struggle to retain talented employees.
Additionally, the COVID-19 pandemic may add to this through lost income from the sick workforce, the need to recruit temporary workers on high-risk contracts, and increased costs associated with pandemic preparation.
Outsourcing business services can help mitigate these adverse effects by reducing the need for additional staff and providing a set price for administrative services.
This method increases business process accuracy and efficiency, resulting in cost savings and a more productive workforce. In addition, outsourcing improves company efficiency by freeing employees from administrative and managerial responsibilities, allowing them to focus on more critical tasks.
Outsourcing has changed the way businesses operate for decades, but it is now more critical than ever due to the pandemic and the current inflated environment.
Outsourcing administrative tasks is the first step for a startup or new business looking to expand during inflation. Outsourcing these tasks allows businesses to focus on their core operations while leaving administrative functions to a specialized company.
Additionally, outsourcing Human Resources will also boost business productivity because employees will no longer be bogged down with specific tasks that divert attention from their core business operations.
Outsourcing payroll administration is the second step for a startup or new business to grow its operations during inflation. It enables companies to focus on what they do best while payroll professionals handle the rest.
In addition, outsourcing payroll services can assist a company in managing the administrative tasks of running a business with employees, allowing them to grow.
How Can Outsourcing Beat Inflation?
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By utilizing web-based technology and streamlining processes, outsourcing can help you save time. Furthermore, hiring employees may be more difficult in recent downturns, and growing companies may no longer find it feasible to hire new employees.
Outsourcing recruitment can better manage costs so organizations can focus on scaling their business.
Organizations may also find it challenging to manage an increase or decrease in headcount in a volatile economy like we are experiencing. Nonetheless, outsourcing can be beneficial regardless of industry or company size, especially during uncertain times.
Outsourcing allows you to reduce your team's size without investing heavily in personnel and equipment. As a result, it's an excellent choice for small businesses and startups. It's also a perfect option for companies looking to scale and grow their workforce as needed without making substantial capital investments.
In times when the country is downsizing and is in dire need of an economic boost, international ties prove to be of great help. These global relationships can be seamlessly built through outsourcing.
In addition, outsourcing has the power to strengthen relationships between companies in two or more countries to the extent that it maintains relationships between their governments as well. Some experts believe that the more countries trade with each other, the less likely they are to go to war and the more they can cooperate in pursuing common goals.
Virtual Assistants: Outsource Specialized Tasks
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Hiring a remote assistant can help you save the company’s cash flow, time, and resources. Hiring a virtual assistant further enables you to cut costs and combat inflation.
The virtual assistants work for you remotely and on-demand, which means you only pay for the hours you need for the outcomes you want.
Additional advantages include:
Virtual assistants are certified administrative professionals who differ from conventional secretaries in several ways.
To begin with, they work remotely. As a result, companies don't have to worry about desk space, office equipment, furniture, or workplace disruptions.
They don't have to be full-time, either. So, instead of working a 40-hour week, corporations can contract for only the hours they need.
These VAs are a part of a massive global talent pool. So, for even your most trivial tasks, you can hire a VA by selecting from hundreds of qualified professionals.
Finally, they are incredibly affordable. Virtual assistants are well-trained professionals who are not subject to benefits or payroll taxes. The hourly rates are a fraction of what your calendar manager might be getting paid. Eventually, hiring a VA will save you a hefty amount of time and money.
Fight Your Way Through Inflation
It is easy for anti-capitalist intellectuals to condemn outsourcing as a cause of unemployment without considering why a company might choose to look elsewhere or what might be the long-term consequences.
No one can refrain from the fact that outsourcing causes unemployment, at least in the short term.
However, the same can be said every time an entrepreneur chooses to use a more efficient alternative to a specific factor of production. Outsourcing allows businesses to increase their efficiency. Even the most conservative estimate puts the savings from outsourcing at around 9%.
Moreover, lower production costs result in lower consumer prices in a competitive market. That saves more of the consumer’s income to purchase other products and services.
Understandably, this is a difficult time for all businesses. Nonetheless, outsourcing your business functions could be the answer to allowing your company to operate at maximum capacity while controlling costs during inflation.
To combat these uncertain times, you should consider hiring a Virtual Assistant from Wishup, which offers highly trained individuals for Project Management, administrative, and executive services who have been selected from the Top 1% of Global Talent.