The growth and survival of every company depend on a lot of factors, one major one being the human resource. It’s always said that the business should be consumer centric and it can be done by cutting down the inconsistencies in the quality of products and services. To cultivate this ability and grow, a lot of businesses, particularly SMEs fail to scale up as they do not invest wisely in human resource. HRM is the differentiating factor for MSMEs and is a large market for HR professionals in India.
Let’s understand why:
Need for investing wisely: The end result of any business idea comes from the execution of the idea and there is a crucial need to innovate every day. The selection, training and retention of individuals who can direct your business to the right endpoint can be a game changer. As an entrepreneur, you need to invest in individuals who have the ability to capture the opportunities and overcome the challenges to drive the business in the right direction. Your employees can make it larger if you can place the right person at the right job.
Most SMEs expect to increase their headcount: Researches have shown that most of the small business plan to recruit and increase their headcount in the next 2-3 years. The reason being that their productivity is increasing, but at the same time getting the right candidates remains. In order to remain competitive, the businesses have to deal with the combined impact of manpower constraints and rising costs. While a lot of SMEs globally are strengthening technology and innovation to reduce the dependence on manpower, but still manpower is the major issue that SME leaders are facing. The production capacity
Key Challenges: Being the fastest-growing sector in a developing country, recruitment is still one of the biggest challenges faced by SMEs in India. The attraction and retention of the 'right' kind of manpower are critical for any SME. Lesser skills lead to lesser efficiency, which ultimately leads to lesser output. When these requirements become urgent (which they normally do), SMEs have to hire people with lesser skills. SMEs should take steps to project themselves as a good employer brand and devise effective recruitment strategies.
The right approach: sometime the recruitment processes is not very well-defined among SMEs. By devising effective recruitment strategies, the impact of growing talent crunch can be reduced. While MNC’s have always been known for spending huge on recruitment strategies, SMEs are usually poorly marketed among candidates as prospective employers. The opportunities like excellent learning environment, exposure, decision taking ability, etc. have to be highlighted and used to sell SMEs as good employer brands.
What’s Trending: HR is playing a much bigger role in SMEs today. Talent acquisition, talent development and talent engagement are some trends that are developing to recruit a quality workforce. There is a huge supply and demand gap in terms of human resources for SMEs and there are some positive changes brought in by the new generation of businessmen. Hiring external professionals for top management positions and not just restricting it to family members, adapting to new trends of working, experimenting with ideas, stress on training and skill development, mentorship programs, employee engagement programs, wise investments, workplace diversity, strategized talent management, balance between employee’s vision and expectations, etc. have emerged as the recent trends among Indian SMEs.
For SMEs, human resource is the most valuable asset, and as per statistics, more than half of the SMEs end up shutting down their operations in the beginning due to many major reasons, the absence of a proper HR strategy being one of them. Over the time SMEs have done a major makeover with emerging HR trends to take their operations to the next level, so invest wisely!