New Research Reveals Critical HR Challenges Facing Small and Mid-Sized Businesses
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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More than half of small and mid-sized businesses face significant challenges in hiring, retention, and maintaining positive company culture according to new research. The free research report, HR Decision-Making in Small to Mid-Sized Businesses, conducted by HR.com's HR Research Institute in collaboration with UKG, examines how HR professionals from businesses with fewer than 500 employees manage strategic processes and HR practices.
When asked about their biggest areas of concern, participating HR professionals identified retaining top talent (60%), creating a supportive employee culture (58%), and hiring qualified employees (56%). These concerns reflect the current tight labor market and intense competition from larger companies with more resources. Surprisingly, only 35% of SMBs cite employee reskilling and upskilling as a concern, despite workforce learning and development being recognized as an effective strategy for filling open positions and retaining employees.
The research reveals that SMBs with more mature HR-related operations are more likely to prioritize manager skills and quality hiring compared to companies with less mature HR functions. Organizations with less developed HR focus primarily on fundamentals such as complying with employment laws. As SMB HR develops and matures, more organizations recognize the value of manager training and strategic hiring practices.
Technology implementation differences also emerge as a key finding. HR leader organizations with more mature human capital management are considerably more likely to operate at strategic and advanced levels of HR technology usage. Research insights suggest that aligning HR tech investments with leadership business goals can significantly boost efficiency, compliance, decision-making, and organizational success. Julie Develin, senior partner at UKG, emphasized that having the right HR technology is crucial for leaner teams to think strategically while helping companies scale.
Debbie McGrath, CEO of HR.com, stated that strategic investment in HR technology may be a game-changer for SMBs, enabling them to better navigate HR challenges and thrive in competitive environments. HR professionals can access additional expert insights through the recorded session discussing strategies for finding and keeping top talent, featuring insights from UKG and HR.com experts.
Curated from Newsworthy.ai
