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 challenges 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 difficulties facing organizations with fewer than 500 employees in today's competitive environment where they often struggle to match the resources of larger corporations.
The research reveals that more than half of SMBs are dealing with major HR issues, with talent retention emerging as the primary concern for 60% of HR professionals. Creating a supportive employee culture follows closely at 58%, while hiring qualified employees concerns 56% of respondents. Surprisingly, only 35% of SMBs consider employee reskilling and upskilling as a major priority despite the growing emphasis on workforce development in recent years.
Significant differences exist between SMBs with mature HR operations and those with less developed functions. Organizations with advanced HR practices tend to prioritize manager skills and quality hiring, while those with less mature operations focus more on fundamental compliance with employment laws. The study highlights the critical role of technology in addressing these challenges, noting that SMBs with more sophisticated human capital management practices are considerably more likely to utilize HR technology at strategic and advanced levels.
Julie Develin, senior partner of HCM advisory at UKG, emphasizes that having the right HR technology is crucial for businesses with leaner teams, enabling HR professionals to think strategically while supporting company growth. The complete research report available at https://web.hr.com/9lxj provides actionable strategies for SMBs to tackle their HR challenges, including adopting more strategic HR approaches and investing in effective technology solutions.
Debbie McGrath, chief executive of HR.com, underscores that strategic investment in HR technology could represent a transformative opportunity for SMBs. By implementing intentional strategies in HR processes and committing to effective technological solutions, small and mid-sized businesses can better navigate their human resources challenges and succeed in an increasingly competitive marketplace. The insights from this research offer a clear pathway for improving HR performance and driving organizational success through focused attention on talent retention, company culture development, and strategic technology utilization.
Curated from Newsworthy.ai
