SMBs Face Critical HR Challenges with Talent Retention and Culture Top Concerns
TL;DR
Small and mid-sized businesses can gain a competitive advantage by improving HR practices and strategic approaches to address hiring and retention challenges.
The free research report provides valuable insights into how HR professionals from smaller organizations manage strategic processes and HR responsibilities.
By adopting potential best practices and strategic HR approaches, SMBs can create a more supportive employee culture and thrive in today's dynamic business landscape.
Surprisingly, only 35% of SMBs cite employee reskilling and upskilling as a concern, despite the current tight labor market and competition from larger companies.
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Small and mid-sized businesses are confronting substantial human resources difficulties according to recent research from HR.com's HR Research Institute conducted in partnership with UKG. The study titled "HR Decision-Making in Small to Mid-Sized Businesses" examines the specific challenges facing organizations with fewer than 500 employees and identifies potential solutions for improvement.
The research indicates that more than half of SMBs are dealing with major HR problems including talent retention, maintaining positive company culture, and hiring qualified staff. These issues are particularly challenging in today's competitive business environment where smaller organizations often cannot match the resources available to larger corporations. According to the findings, 60% of HR professionals in SMBs identify retaining top talent as their primary concern, followed by creating supportive employee culture at 58% and hiring qualified employees at 56%.
Surprisingly, only 35% of SMBs consider employee reskilling and upskilling as a major priority despite the growing emphasis on workforce development in recent years. The study also reveals significant differences between SMBs with more mature HR operations and those with less developed HR functions. Organizations with advanced HR practices tend to focus on manager skills and quality hiring, while those with less mature operations concentrate more on fundamental compliance with employment laws.
Technology emerges as a critical factor in addressing HR challenges according to the research. SMBs with more sophisticated human capital management practices are substantially more likely to operate at strategic and advanced levels of HR technology implementation. This suggests that aligning HR technology investments with leadership business objectives can significantly enhance decision-making and organizational performance. Julie Develin, senior partner of HCM advisory at UKG, emphasizes that having appropriate HR technology is crucial for businesses with leaner teams so HR professionals can think strategically while supporting company growth.
The complete research report available at https://web.hr.com/9lxj provides actionable strategies for SMBs to address their HR challenges including adopting more strategic HR approaches, investing in effective HR technology, and focusing on employee development and retention. Debbie McGrath, chief executive officer of HR.com, notes that strategic investment in HR technology could represent a transformative opportunity for SMBs. By implementing deliberate strategies in HR processes and investing in effective technology solutions, small and mid-sized businesses can better navigate their human resources challenges and succeed in an increasingly competitive marketplace.
As SMBs continue to face intense competition for talent and resources, the insights from this research provide guidance for enhancing HR performance and driving organizational success. By concentrating on key areas including talent retention, company culture, and strategic utilization of HR technology, small and mid-sized businesses can position themselves to overcome human resources obstacles and prosper in today's dynamic business environment.
Curated from Newsworthy.ai
