Pavel Stepanov is the founder of Virtudesk. He talks about business development and outsourcing. Connect with him on his LinkedIn.
The pandemic crisis has brought about enormous changes worldwide. These changes have forced companies to reassess the business models they use. Several factors are known to have influenced the business environment: an economic recession, travel restrictions, globalizing markets and technological advancements. To mitigate the damaging effects of these pandemic-induced shifts, your business may need to adapt to the new business environment.
The post-pandemic shifts in the business environment
The “great layoff”: Following the lockdown measures, travel restrictions, business closures and an economic recession emerged. Employees were fired or their salaries were reduced to keep the company afloat. Before the pandemic, employees were already burned out. These events have led to a mind-boggling phenomenon of the Great layoff.
Digital transformations: The accelerated adoption of technological advancements changed workforce management, business practices, and consumer-business interactions. For example, companies were forced to operate remotely. The use of digital platforms and tools such as Zoom, Slack, ClickUp and Asana has become commonplace. At the same time, more companies came online, eliminating the need for physical stores. Traditional retail practices have been replaced by e-commerce websites, subscription-based services and mobile apps.
Business Process Outsourcing: Outsourcing has been around for decades, but mostly relates to the call center industry. It was only during the pandemic that more business leaders realized the cost-effectiveness value of outsourcing. Delegating allows companies to focus on revenue-generating activities. Virtual assistants typically bear office-related costs, such as office space, equipment, and internet connection.
Innovation is key: how to reconfigure your business model?
Is your business facing changes that have shaped the way you make decisions about your business? If so, I think it’s imperative that you rethink the business models you use. As the founder of an outsourcing BPO company that closely monitors the job market and researches industry trends, I find that these tips can help your business survive.
Prioritize health benefits. If there’s one thing the Great Resignation has taught business leaders, it’s that employee needs have changed. They now prioritize their well-being above all else. And you should too. Demand for wellness benefits, including mental health insurance, fitness programs, remote and hybrid setup, and indoor gym reimbursement has increased. I’ve noticed that companies that have switched to provide these benefits are seeing better productivity, lower employee turnover and become more attractive to job seekers. These trends show that empathetic benefits programs lead to greater job satisfaction, fewer attendance issues, and better retention rates.
Take care of human capital. Focus on creating a safe space for your employees to discuss their career directions and their skills learning needs. You will be surprised at how many employees take up the challenge of self-improvement and take the opportunity to hone skills that align with their personal career goals. In fact, employees consider: Training options high on their list when looking at potential employers.
Support them through structured training programs and coaching sessions. You can also share access to educational platforms such as Skillshare, Udemy, and others.
Opt for remote/hybrid work models. According to an PwC research, 83% of employers surveyed agreed that switching to remote working was a positive change for their company. In the meantime, 76% of employees claim they would be more willing to stay with their current employer if they offered flexible hours.
It is clear that employees appreciate more flexibility. Hybrid constellations can help employees cut back on the time they spend traveling and find the perfect work-life balance they need. Also, the fact that you don’t need office space for every employee can limit your overhead budget.
Accelerate the adoption of modern technology. As digital innovations continue to emerge, technology is in demand in the business world. Consider investing in technology that promotes effective communication and promotes efficiency and a larger organization. If there is an area of your operations that can be automated, I recommend that you choose it. By investing in project management tools that fit the dynamics in your company, the need for more manpower can be eliminated and you can even improve your staff’s day.
Optimize your cash flows again. Introduce cost-saving measures such as automation and outsourcing. Create new revenue channels, such as offering subscription-based services and support products. When re-optimizing your cash flows, focus on creating value and minimizing costs.
Saving your money on rising inflation with a new revenue stream can not only support your business during an economic downturn, but can also grow into a reliable revenue-generating stream in the long run.
Outsource expert talent. I notice that more and more business leaders are getting excited about the idea of outsourcing – and for good reason. Outsourcing allows you to delegate tasks to virtual assistants. This allows you and your in-house team to focus on the areas of your business that generate revenue.
It can give you the opportunity to hire talents based on needs. This means that you can only hire someone for the duration of a project or task. You can also waive costs such as attractive fees and benefits. With outsourcing, you don’t have to pay for overhead and equipment costs.
Beyond the four walls of the office
The events that have taken place in business over the past two years show that necessity is indeed the mother of invention. Changes in business management, consumer interactions, workforce trends and outsourcing trends have prevailed. The need for innovation is imperative. Businesses fell during the crisis, but those that could turn quickly survived.
If you’re a business owner, you need to be able to proactively adapt to change. Avoid drastic changes in your business model without aligning with your values and pain points. Beyond the four walls of the office, there is a horizon of strategies that can shape your current business model into one that thrives during a crisis.