New Study Highlights HR Challenges and Solutions for Small to Mid-Sized Businesses

Small and mid-sized businesses (SMBs) are navigating a complex landscape of human resources challenges, as detailed in a new study by HR.com's HR Research Institute in collaboration with UKG. The research, titled 'HR Decision-Making in Small to Mid-Sized Businesses,' sheds light on the hurdles organizations with fewer than 500 employees encounter, particularly in talent retention, fostering a positive company culture, and hiring qualified staff.

With 60% of HR professionals in SMBs identifying talent retention as their top concern, followed by creating a supportive employee culture (58%) and hiring qualified employees (56%), the study underscores the competitive pressures these businesses face. Notably, only 35% of SMBs prioritize employee reskilling and upskilling, a finding that contrasts with the increasing emphasis on workforce development in today's economy.

The study also reveals a disparity in HR focus between SMBs with mature HR operations and those with less developed functions. Advanced HR practices tend to emphasize manager skills and quality hiring, whereas less mature operations grapple with basic compliance issues. A pivotal insight from the research is the transformative potential of HR technology, with more mature SMBs leveraging strategic and advanced HR tech solutions to enhance decision-making and operational efficiency.

Julie Develin of UKG highlights the critical role of HR technology for SMBs, stating it enables HR professionals to adopt a strategic mindset while supporting business growth. The study, available for download at https://web.hr.com/9lxj, provides actionable strategies for SMBs, including the adoption of strategic HR approaches and investments in technology and employee development.

Debbie McGrath of HR.com emphasizes that strategic HR technology investments could be transformative for SMBs, enabling them to address HR challenges effectively and compete more successfully. As SMBs strive to overcome these obstacles, the study offers valuable guidance on leveraging HR strategies and technology to foster organizational resilience and growth.