Small businesses face big challenges in attracting and retaining top talent due to limited resources and lack of brand recognition.
“MSMEs struggle with the highest attrition rates of around 35% leading to hiring of close to 4 crore people annually,” says Pallavi Dhawan Gupte, Senior Director-Human Resources, Dun & Bradstreet.
As MSMEs have a tremendous room for expansion, it’s critical to strengthen the small business ecosystem in the country. MSMEs can specifically work on improving their talent hiring system.
R Narayan, Founder & CEO of Power2SME, says: “The Indian MSMEs can adopt innovative strategies and leverage data-driven insights. Building a positive work culture, offering competitive compensation packages, and investing in employee growth and development are crucial steps. Instead of solely relying on monetary benefits, MSMEs can also provide attractive perks such as flexible work hours, sufficient holidays, health insurance, and create a unique value proposition that larger companies may struggle to offer.”
Even Pallavi of Dun & Bradstreet says small businesses should implement unique strategies that focus on “employee value proposition (EVP)” to overcome the challenges. “In a fiercely competitive environment, companies can stand out by working on employer branding and letting the target population know of their unique offerings through various talent platforms.”Experts also are of the view that MSMEs today need to focus more on building a culture that nurtures fairness, holistic wellbeing and flexibility. “Their success would depend on their ability to personalise and differentiate their EVP, while showcasing their uniqueness through a strong branding exercise which resonates among their target talent pool. Leadership here will play the most critical role in creating the right value systems and ensuring that these are embedded in the culture of the company. Talent today is looking for an inclusive environment, clear career road map and open-door conversations with the senior management, along with a sizable remuneration. What and how the company contributes to the society and focuses on the environment is another key area of interest for the young minds,” says Pallavi. Sanjay Shetty, Director, Professional Search & Selection, Randstad India, believes that small businesses should look at offering competitive compensation packages. “MSMEs must think beyond and introduce additional perks like health insurance, paid leaves, flexible work arrangement, progressive benefits packages, learning and development programs, etc.,” Sanjay adds.
Campus placements
A targeted college campus strategy can also help MSMEs attract the best minds. But they should have good advocacy on most of the digital platforms, she says. “Students, by virtue of their habit, will check the credibility of various sources. The advocacy of the existing employees, the good ratings & reviews when in sync with the EVP could help crack the code.”
Jayanth Murthy, Joint Managing Director South Asia and Africa, Kaizen Institute, says, “MSME sector today faces a significant challenge in attracting and retaining top talent. These include students and graduates from prestigious business schools, engineering, and graduate programs. Many of these highly qualified individuals and capable individuals tend to gravitate towards more established firms and organisations, often overlooking the opportunities offered by smaller and lesser-known organizations in the MSME sector.”
“MSMEs can position themselves as attractive destinations for the talent pool by cultivating a positive brand image – highlighting opportunities for learning, growth and skill development, promoting work-life balance initiatives, offering industry-wise competitive remuneration packages, and most importantly, fostering a culture that is motivating, empowering, and driven by impact,” Murthy adds.
Invest in technology
Experts also say that investing in technology can help MSMEs significantly. They can leverage technologies such as remote work tools and cloud-based platforms to create a modern and flexible work environment, even with limited resources.
“By incorporating best technologies and practices into talent acquisition strategies, Indian MSMEs can position themselves as desirable employers, tapping into the immense potential of the workforce and driving their organisations to new heights of success,” adds Narayan of Power2SME.
