Is a Recession Coming in 2022? Protect Your Business by Outsourcing With KWANJuly 15th, 2022
What is a recession?
Defined as a significant decline in economic activity that lasts for months or even years, experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time. Recessions are considered an unavoidable part of the regular cadence of expansion and contraction that occurs in a nation’s economy.
Why do people believe a recession is coming?
In the UK, with the GDP falling for a few months in a row, certain financial experts have warned that there might be a possibility of an upcoming recession, something also expected to happen to major economies such as the United States, and in the eurozone countries. Generally occurring as a result of a widespread drop in spending, recessions are triggered by factors such as an external trade shock, financial crisis, an adverse supply shock, or a large-scale environmental or natural disaster. During a recession, several negative effects may be felt. The economy will struggle, and people may lose work as companies make fewer sales and their profit margins get smaller. The country's overall economic output declines and can even affect other countries that have strong trade links or are affected by similar issues.
Hit by record fuel and energy prices, countries worldwide are seeing slowing growth, with rising inflation and the costs of everyday essentials, like fuel and food, rapidly increasing. The Covid-19 pandemic and the Russia-Ukraine conflict have sparked widespread financial difficulties for many, as inflation in the UK breaks records in recent months, the Euro area annual inflation rate increases to a new record high, and the US inflation rate reaches higher than it’s been since the early 1980s.
Why should business owners plan for it instead?
While, of course, it is much easier to hope that it won’t happen, we recommend business owners to prepare themselves and to take precautionary measures to get their company through difficult times. Outsourcing is a great way of doing this.
What is outsourcing?
Outsourcing involves an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally - so instead of hiring new employees, you simply buy that service to another company - and sometimes involves transferring employees and assets from one firm to another. Hiring KWAN as a business partner to provide talented IT professionals to your project will not only save you time and money to focus on your goals (and adapt them according to the circumstances), but it will also help you build a great, highly skilled, and stable tech team to help you reach those milestones successfully.
5 reasons why outsourcing with KWAN will proactively and cost-effectively help your company through a recession
The process of getting you the best tech talent starts by assessing the needs of your team and building a strategy tailored to your business. Next, you interview our talent shortlist to find the tech talent to match your team perfectly. Finally, we then proceed to take care of your team through day-to-day coaching and mentoring. See below our top 5 reasons why outsourcing with KWAN will proactively and cost-effectively help your company through a recession.
1. Easily Cover Your Needs
With over 15 years of experience in recruiting tech talent, we have interviewed more than 25,000 tech candidates, so our recruiters know the market very well, and so we can present you a shortlist of candidates ready for you to interview in less than 5 days - and for some specific positions even less than 3 days!
By attempting the hiring process on your own, on the other hand, you would have to spend more time searching, screening, and evaluating candidates, and you would also have to take care of the bureaucratic part of hiring: paying 23,75% of salaries to Social Security, communicating the admission of your employees on the Social Security platform, organising the mandatory medical exams, and paying for work insurance. You would also need to find a partner to take care of the payroll, according to Portuguese law.
Fortunately, all of this is already included in KWAN’s rate, so we take care of everything.
2. Satisfy Your Team’s Needs
After finding the tech professionals that perfectly fit your project and your tech team, our team of People Managers are here to support and guide employees in every aspect of their professional and personal life. They are specialists in managing, motivating, anticipating, and avoiding eventual employee turnover and conflict management.
How does it work?
Each consultant is assigned a People Manager, trained coaching professionals who will be in charge of carrying out frequent follow-ups to make sure they are carrying out their job effectively. If a red flag is detected, our People Managers will communicate with your Account Manager, who will meet with you and report on every single detail worth reporting. From coding training to negotiating with landlords, from managing a communication conflict with a colleague to choosing the right school for their children, our People Managers are here for your team and their success, every step of the way!
We wrote an article exclusively about the extraordinary work performed by People Managers together with tech teams of our clients, check it here.
Taking care of your team is also taking care of their health, therefore, every worker sourced through KWAN will be given a private health plan. This service is already included in our rate, and this way, your workers do not need to depend on the overloaded Portuguese public health system. It will also automatically give new employees a sense of security and appreciation for your business.
3. No Equipment and Software Costs
Now we have your employees taken care of, let's talk about equipment and software expenses. Luckily, by outsourcing with KWAN, this is already provided! Which means that every worker will have access to an i7 laptop with Windows and at least 8GB RAM. We offer this service already included in our rate so you don’t have to worry about finding a provider. Should you need specific technologies, or computers with more power, things can smoothly be arranged upon negotiation. This deal can save you a lot of money in the long run, especially if your company expands its number of employees or in case your business is affected by a recession.
4. Lay Off Stress-Free
We all know that one of the worst things to do in a company is laying off hard-working staff because of a lack of funds. It is never an easy task! We understand this, which is why we offer a slightly different approach, which turns out easier for both your company and your workers. Outsourcing with KWAN brings less risk via contract flexibility. If there comes a time when you need to lay off an employee, you won't have to deal with rigid Portuguese labour law. Rather, all you need to do is simply communicate that to the worker with a 30 days notice period. Then, this gives us time to find a new project for our KWANer, so they won't have to worry about becoming unemployed. It’s a win-win and hassle-free scenario, ensuring your employer reputation and your ex-employee will both be protected.
5. Salary Payment Flexibility
With inflation affecting not only basic goods - such as food - but also the mortgages families pay to the bank, and fuel, being able to pay salaries at the end of the month - with no delay - is essential!
To help your business manage its cash flow, outsourcing with KWAN allows for a negotiation of payment deadlines. This means that if something unexpected happens and you can’t pay the salaries until the due date, your consultants receive their salary regardless, and your company brand won’t be harmed.
We showed you 5 ways how KWAN can help your company; do you need more?
Outsourcing with KWAN offers many advantages and cost-cutting perks to ensure your company has enough support to get through a recession. Not only do you as an employer receive expert recruitment advice and ongoing support, but the workers themselves are also provided with great deals such as health service, mentoring, guaranteed payment and job security.
Get started today and click here to learn more about how KWAN can help build your business during the possible upcoming recession.