“We want to grow from 200 Cr. to 400 Cr. in the next 3 years…we are ready to invest in new products and technology to enable this growth” said the promoter of a mid-sized business I was consulting in his annual strategy meet. “Sir, but where are the people to support this growth” I asked.
Everyone in the room looked at the empty chair for an answer…. suddenly realizing that the person (HR Head) in charge of controlling the attrition had attrited 3 weeks ago.
Welcome to the world of SMEs where high attrition rates and inability to attract the ‘right’ talent are the most acute HR problems
With large corporates offering the option of remote working, the location constraint (often cited by employees as reason to stick with the SMEs) is also disappearing adding to the woes of the business owners.
Limited talent pool (especially in urban/semi urban areas), brand pull of the large corporates and inability to pay competitive salaries are some of the commonly cited reasons by the business owners.
Ironically, none of these reasons appear among the top reasons cited by the employees for leaving the organisation. Employees often cite feeling under-valued, favouritism and limited growth & learning opportunities as the top reasons.
While there is truth in arguments on both sides of the table, the question remains what measures can SMEs take to attract and retain talent
Following are some of the tips for SMEs :
1. Invest in Learning & Development (L&D) programs – L&D programs can not only help in workforce upskilling and capability development but can also be marketed to attract talent
2. Establish fair and transparent HR policies – A uniform organization wide HR policy goes a long way in offering a clear and objective view to the employees on promotions, compensation, leaves, out-of-pocket expenses and other company
3. Make HR an integral part of business strategy – This is absolutely critical for enabling the HR to proactively develop the talent pipeline in line with the business goals and the identified growth areas. HR can also offer invaluable insights on competing businesses by studying their recruitment patterns
4. Develop and monitor the talent pipeline – Partnerships with head hunters and recruitment agencies is very critical to maintain a healthy pipeline. There are readily available software tools to track the progress of the talent pipeline against the targets. This also enables HR to give an accurate picture of resource availability to other business functions.
5. Cultivate an appreciation culture – Beyond the reward and recognition program, the employees need to be encouraged to appreciate each other with simple gestures such as a ‘Thank You’ note. This simple step can significantly boost employee morale and reduce the notion of being undervalued
Do let me know your thoughts and experiences with SMEs on talent management in the comments section.
Author – Aditya Shaligram (Cofounder/Partner SMBNEXT Pvt. Ltd.)
This is a personal blog. Any views or opinions represented in this blog are personal and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated
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