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Biggest HR Pain Points for Small & Midsize Businesses
Insights From Mettl Company Insights

As with every organization -big or bigger, even startups, small, and medium enterprises want to get their human resources and talent management department right. But there are some challenges that stops SMBs from achieving their best in HR that have been collected in this summary of an article.   

  • Not Being Able to Build Recruitment Strategy and Pipeline:

A major point for SMBs is to understand the nitty-gritty of building a recruitment strategy and pipeline- suffering either from a lack of skilled employees or having more than the business can sustain. When a startup is just lifting itself off the ground, the processes are still being created. Business owners already have their hands full because your finances wouldn’t allow having more people onboard. Usually balancing the finance and the amount of work can be tricky without the resources to keep the cash flowing- it is difficult but crucial for a startup to be sustainable and turn into steady state business.

  • Lack of Budget and Technology:  

Due to lack of investments in technology like AI-enabled intelligent solutions and predictive and behavioral analytics, it’s difficult to gauge which employees might be thinking of leaving. When there’s no information on the data about unhappy employees, it’s difficult to build a talent pipeline, identify talented employees for internal succession planning, train them through effective leadership development programs, and to hire externally if need be. Also, without insightful and intuitive recruitment data, going randomly about hiring and succession planning serves no cause and is wasteful expenditure.

With Professional Employer Organizations (POEs), having HR department for a startup is not mandatory. The recruitment work processes can be easily outsourced to POEs while founders concentrate specifically on building the business and generate funds. For small and mid-size organizations too, a POE could be a viable option as they have a plethora of technological advancements and artificial intelligence-based analytics capabilities to offer the best talent available in the market.

Topics: Human Resource

Originally published June 21 2019,updated August 24 2019

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