The Quality of Labor Question Shouldn’t Slow Down 2026 Growth for SMBs

We’re halfway through Q1 2026, and everyone is assessing (and reassessing) their progress toward 2026 goals. If you’ve been looking at your business and feeling like you’re finally ready to hit the gas on those initiatives, only to realize there’s nobody in the passenger seat to help you navigate, you aren’t alone.

According to recent figures released by the National Federation of Independent Business (NFIB), 15% of owners believe now is the time to grow, and 16% expect sales to climb. The overall Small Business Optimism Index remains above the 52-year average. Yet the same report highlights that “Quality of Labor” remains one of the top two hurdles (taxes was number one) standing in the way.

Is it getting in your way?

You have the vision and the projected sales, but the domestic labor market isn’t providing the high-quality talent you need to execute. It’s a common story, especially for countless small and midsize businessowners.

“It’s a frustrating paradox we hear about all the time,” says ECLARO Co-Founder Paul Sheridan. “You see the opportunities on the horizon, but when you look for the Right People to help you reach them, the domestic labor market is coming up short, for a variety of reasons.

“You’re feeling the heat to expand, but you’re stuck because the quality of labor just isn’t there to support the weight of your ambition,” he continues. “But here’s the thing: The talent you need doesn’t have to be in your zip code, or even in the U.S., to move the needle for your business. In fact, the Right People could very well be waiting for you offshore. The challenge we help with is finding those people.”

A Universal Truth: the Right People are the Answer.

No matter the size of your business, no matter the roles you’re looking to fill, the areas where you need to expand or how much and how quickly you want to scale, talent is at the heart of everything. If you don’t have the best possible people in every role, and you are struggling to find those people, the degree of difficulty in achieving your goals rises exponentially.

This could be the time for a change.

“When ‘Quality of Labor’ ranks as one of your top two business problems, it’s a sign that the traditional way of hiring needs a reboot,” says ECLARO Co-Founder Tom Sheridan. “For many small and midsize businesses, the bottleneck isn't a lack of vision, it’s a lack of capacity.

“This is where the Philippines comes into play,” he continues. “We’ve spent more than two decades helping companies realize that offshoring isn’t just a ‘big corporation’ move. That’s a dangerous misconception. Offshore talent is not only a realistic survival and growth strategy for the agile SMB, it’s one those businesses can achieve almost immediately with the right partner.”

RELATED: ECLARO'S ULTIMATE GUIDE TO OUTSOURCING AND OFFSHORING IN THE PHILIPPINES

Bridging the Growth Gap: Why the Philippines?

When U.S. based talent becomes a bottleneck, the most strategic move isn't to “wait it out.” It’s to de-risk your operations by looking where the talent is actually flourishing. For more than two decades, we’ve helped businesses bridge this gap by building dedicated teams in the Philippines.

Here is why this is the preferred strategy for companies looking to scale right now:

• The Quality-to-Cost Ratio: You aren't just saving 50% to 75% on labor costs, you are accessing a talent pool in a market where “Quality of Labor” is a top concern. This shift moves you from settling for who is available to hiring the Right People for every role. With our ECAPTIVE™ model, we source and hire talent that is dedicated only to you—this is not a managed service approach, but instead a completely custom model.
• Cultural Synchronicity: Unlike many other offshore destinations, the Philippines has a deep-rooted Western cultural alignment. This means less time spent “translating” corporate culture and more time focused on output. With English as an official language in the Philippines, communication is based on genuine comprehension and communication. And our teams work whatever hours and shifts you require, so they are fully aligned with your onshore teams.
• Scaling Without the “Cap Hit”: Growth is expensive. New office space, equipment, HR and other factors can drain capital before your new revenue even hits the books. By leveraging our ECAPTIVE™ model, you get world-class talent on your team without the overhead of a domestic expansion, and without the risk of trying to navigate the challenges of offshoring that come without experienced partners at your side.

The Next Step: Will Lack of Talent Slow You Down?

When it comes to the question of Quality of Labor, the Philippines provides a powerful answer.

“But the first question isn't whether you should consider an offshore location for talent,” Paul Sheridan says. “It’s whether you can afford to let your expansion plans stall because the local labor market can’t keep up with your goals.”

“If your sales outlook is positive but your hiring plans are being held back because you fear you can’t find the Right People, you are effectively treading water, or worse,” Tom Sheridan adds. “The businesses that will win in 2026 are those that view talent as a global resource rather than a local constraint, and then find the right partner to help them hire the Right People.”

RELATED: Why Outsourcing & Offshoring Make Sense Right Now for SMBs

Let's connect to talk about your Quality of Labor challenges and see how ECLARO can help you hire the Right People to exceed your organization's goals.