New Study 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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Small and mid-sized businesses are confronting substantial human resources obstacles 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 distinctive challenges and potential remedies for organizations employing fewer than 500 workers. More than half of SMBs are wrestling with significant HR problems including talent retention, sustaining positive company culture, and recruiting qualified staff. These difficulties are especially acute in today's competitive business climate where smaller enterprises frequently struggle to match the resources available to larger corporations.
The research indicates that 60% of HR professionals in SMBs identify retaining top talent as their primary concern, closely followed by establishing supportive employee culture at 58% and hiring qualified employees at 56%. Notably, only 35% of SMBs regard employee reskilling and upskilling as a major issue despite the increasing significance of workforce learning and development in recent years. The investigation also uncovers substantial variations between SMBs with more developed HR operations and those with less mature HR functions. Organizations possessing more advanced HR practices typically emphasize manager skills and quality hiring, while those with less mature HR operations concentrate more on fundamental matters such as compliance with employment regulations.
A crucial discovery of the research involves the vital function of technology in confronting HR challenges. SMBs with more sophisticated human capital management practices are substantially more likely to operate at strategic and advanced levels of HR technology utilization. This implies that coordinating HR technology investments with leadership business objectives can markedly enhance decision-making and organizational achievement. Julie Develin, senior partner of HCM advisory at UKG, stresses the significance of HR technology for SMBs, noting that appropriate HR technology enables leaner teams to think strategically while supporting company growth through improved workflows and enhanced employee experience.
The complete research report accessible through https://web.hr.com/9lxj provides practical approaches for SMBs to address their HR difficulties. These methods encompass implementing more strategic HR approaches, investing in effective HR technology, and concentrating on employee development and retention. Debbie McGrath, chief instigator and CEO of HR.com, highlights the potential influence of strategic HR investments for SMBs, suggesting that intentional strategies in HR processes combined with effective technology can help smaller businesses better manage HR challenges and prosper in an increasingly competitive marketplace. As SMBs continue to encounter fierce competition for talent and resources, these research insights deliver a blueprint for enhancing HR performance and driving organizational success through focus on critical areas including talent retention, company culture, and strategic application of HR technology.
Curated from Newsworthy.ai
