Tackling Common HR Problems Faced in SMEs
Small and medium enterprises (SMEs) are busy in being backbone of economy with fast and energised decision making driving action and implementation of ideas. When business is perfectly managed, the focus on HR systems is loosely developed or compromised. Shortcuts to HR process and decisions, in particular, can prove to be costly, and lead to complicated work situations.
Remember, leaders need to note that ignoring or deterrent HR challenges or putting off action steps can prove to be expensive in the long run.
We have tried to explore & list some of the most common HR challenges faced within SMEs and the range of measures that can be implemented to avoid and mitigate them.
Lack of employer branding or ineffectively planned recruitment process can hurt chances of hiring quality talent from the market. To minimise the intricacies, it will help to have a well designed recruitment process with basic steps as well defined job description, centralised interview panel, right culture fit etc.
The lack of an employer brand is not to be seen as a challenge associated with size. With good strategic & policies, it’s possible to build the organisation’s employer brand presence through the effective use of online and social platforms.
Delivery is a key priority within SMEs, but ignoring employee training needs can be expensive and result in issues such as lack of engagement and falling productivity. When employees are invested in, they deliver a lot more to their employers. With rich exposure and understanding of their roles and access to the required tools, employees can deliver on their tasks with clarity, competence and high standards of performance.
SMEs could occasionally build high flexibility into their compensation strategies to attract & retain right talent.
Executing equitable and well-designed compensation plans will also drive favourable candidate perceptions in the market, and secure the company’s ability to acquire better talent in the long run.
In an SME every employee’s performance counts, and ensuring synchronised delivery is a key priority for HR and line managers. Managers, however, may be too preoccupied with everyday schedules to address performance issues or just not have the skills to handle difficult conversations, and any challenges faced are simply swept under the carpet.
It is vital that HR facilitate in offering the necessary developmental support and resources to help employees and managers work towards better performance.
An entrepreneurial culture is important to ensure the success of SMEs – however leaders can get so busy with managing their schedules that making time to communicate with their employees and sharing their vision can take a back seat.
Regular communication initiatives involving leadership interaction allows employees to feel informed and connected with the overall business direction and align their efforts accordingly. Besides, these will also help them stay invested in growing the business and collaborate their efforts to achieve key business goals.
While developing the organisation’s culture, leaders and managers need to ensure that it resonates with their business’ core values, and can function as a compass that directs and demonstrates to employees and stakeholders “how they would need to get things done around here”.
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