A Hiring Challenge for SMEs: How to Go Around a Tight Budget

Aug 5, 2016 | Market Insights, Trend Based

What challenges do small and medium enterprises face? How is recruitment managed in small companies? What part do recruitment agencies play in SME hiring?

According to the EU Commission, small and medium enterprises have up to 250 employees with an annual turnover of no more than 50 million euros.

‘Every business starts small… But being small is tough.’  The challenge for every SME is cash flow, and therefore they organise their business to cut extra expenses.

Outsourced recruitment services are considered a luxury good. Consequently, small businesses are advised to do the recruitment themselves, leaving outsourced solutions to the bigger players. SME hiring occurs either through internal HR staff, or through top management. Popular channels for this sourcing are job boards and social networks like LinkedIn, which theoretically attract the right talent.

However, small enterprises do not yet have an established brand which can speak for itself. The lack of brand awareness causes skilled staff shortage. The smaller the company is, the more important each employee is. It is hard to keep the costs down if the recruitment process never ends.

Thus, working around the budget actually becomes a struggle. The frustration of wasted time and money then couples with unsatisfactory recruitment results, and in effect the costs of internal sourcing for SMEs are much higher than expected.

Agency recruiters can really help with candidates that the company would otherwise struggle to find. Typically, the demand is either for high skilled labor or for low salary expectations. With a wide pool of candidates and networking connections, outsourced recruiters may solve the SME budget challenge.

Vacancysoft is the Data Publisher for the Recruitment Industry. We provide recruiters with daily lead lists that help to monitor their clients’ hiring and to identify companies struggling to hire.

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The data used in this article comes from and is owned by Vacancysoft LLP.

 

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