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 specific difficulties organizations with fewer than 500 employees encounter in today's competitive marketplace where they must compete against larger corporations with superior resources. More than half of SMBs report struggling with major HR issues that threaten their operational stability and growth potential.
The research reveals that 60% of HR professionals in smaller organizations identify retaining top talent as their primary concern, while 58% cite creating a supportive employee culture and 56% mention hiring qualified employees as major challenges. Surprisingly, only 35% of SMBs consider employee reskilling and upskilling as significant concerns despite the increasing emphasis on workforce development in the modern economy. The study also uncovers notable differences between organizations with mature HR operations and those with less developed functions, with advanced HR practices focusing on manager skills and quality hiring while less mature operations prioritize basic compliance with employment laws.
Technology emerges as a critical factor in addressing these HR challenges according to the findings. SMBs with more sophisticated human capital management practices demonstrate significantly higher levels of strategic HR technology usage. This correlation suggests that aligning technology investments with leadership business objectives can substantially enhance decision-making capabilities and organizational performance. Julie Develin, senior partner of HCM advisory at UKG, emphasizes that having appropriate HR technology enables leaner teams to think strategically while supporting company growth. She notes that proper foundational technology improves workflows, eliminates operational roadblocks, and enhances the overall employee experience.
The complete research report available at https://web.hr.com/9lxj provides actionable strategies for SMBs to address their HR difficulties effectively. These approaches include adopting more strategic HR methodologies, investing in effective HR technology solutions, and concentrating on employee development and retention initiatives. Debbie McGrath, chief executive officer of HR.com, characterizes strategic investment in HR technology as potentially transformative for smaller businesses, suggesting that intentional strategies in HR processes combined with effective technological solutions can help SMBs navigate their challenges successfully in an increasingly competitive environment. As small and mid-sized businesses continue facing intense competition for talent and resources, these research insights offer a practical framework for enhancing HR performance and driving organizational success through focused attention on talent retention, company culture development, and strategic technology implementation.
Curated from Newsworthy.ai
