Source | MoneyControl
A skilled and engaged workforce is the bedrock of any success-driven business, irrespective of its size. Most corporate managers and business owners agree that getting the right people, with the right competencies on board is critical to the success and growth of the company. India’s Small And Medium Enterprises (SMEs), which are highly entrepreneurial, need robust manpower to drive innovation and cope with the rapidly changing business environment. SMEs are majorly labour intensive compared to large enterprises, but struggle first to find skilled resources, and then to train and retain them. A 2014 Firstbiz-Greyhound Knowledge Group survey reveals that 86% of SMEs in India found recruiting and managing talent a huge challenge due to lack of branding and their inability to pay well. According to the survey, 77% SMEs found unavailability of a skilled workforce, in a cost-effective manner, a major roadblock.
Not attracting the right talent and the difficulty of retaining a workforce that possesses the right skills are major deterrents for SMEs, and a major Human Resource (HR) challenge. With increasing competition, the hunt for talent among SMEs is set become even fiercer. The fact that SMEs are unable to offer competitive packages only adds to their problems in attracting and retaining the right people.
Why is Human Resource esssential for SMEs?
There is a growing realisation among Indian SMEs that talent management is a vital competitive weapon. HR can encourage SME employees to perform better by promoting a more accessible and face-to-face interaction that is often missing in larger businesses. A more engaged workforce can boost productivity, provide new insights and improve business performance.
While attracting and employing the right people is vital, it is just as important to retain them. HR plays an important role in recruitment, retention and people management on a continuous basis. Access to robust HR support can help SMEs tap their full potential and enable them to be at par with larger entities. Proactive HR can bring out the best in employees and enhance performance, ensuring it is aligned with business objectives.