Recruitment problems at SMEs despite budget increases
Michael Page's latest study on recruitment in SMEs shows that the majority (78 %) of SMEs are facing recruitment challenges. One-third of companies have increased their budgets, while the majority (52%) have maintained their recruitment budgets despite recession concerns. Since SMEs account for more than two-thirds of vacancies in Switzerland, they are bearing the brunt of the historic shortage of applicants.
Many SMEs continue to have recruitment problems, according to HR consulting firm Michael Page: The biggest obstacles to hiring suitable candidates in SMEs are external labor market conditions. Some 37% of respondents said that the qualifications of applicants were not sufficient for the advertised positions. 27% had difficulty meeting salary expectations, and 18% had difficulty meeting job flexibility/home office expectations.
Recruitment problems particularly acute at small companies
The primary recruitment goal of most SMEs was to fill existing vacancies. 30% cited this as their most important goal. This was followed by improving the overall qualifications of employees (15%), improving the diversity of the team (14%) and filling newly created positions (12%). The smaller the company, the more difficult it was to recruit, as they typically have fewer resources available for this process. 44% of the smallest companies (fewer than 9 employees) found recruiting very difficult, compared to only 22% of the mid-sized companies (50 - 250 employees).
The study found that companies that use recruitment agencies have fewer difficulties filling vacancies with suitable applicants. Only 15% of respondents whose companies regularly use such services and 21% of those who use them occasionally have difficulty filling vacancies with suitable applicants. This is mainly due to the fact that SMEs do not have the necessary resources to fill vacancies internally. Only 16% of the SMEs have their own HR department, which is usually made up of HR professionals who are often tasked with hiring specialists. One in five respondents cited the lack of HR skills and a recruitment strategy as the biggest problems. Only 40% were satisfied with the human resources available to them in terms of time, budget and skills.
Complex requirements lead to a difficult recruitment process
The right professional qualification is the most important criterion when selecting a candidate - regardless of the size of the company. 55% rated this as extremely important. Medium-sized companies placed more importance on a candidate's ability to work as part of a team (44%), as well as relevant professional experience (42%). For small companies (fewer than 49 employees), the ability to work independently (45%) and commitment (40%) were other important criteria in applicant selection.
SMEs have advantages: 32% named a friendly working atmosphere and 16% relative flexibility as advantages of working in an SME. According to Yannick Coulange, Managing Director of PageGroup Switzerland, "these advantages are often not well communicated." The biggest weaknesses of SMEs include low perceived salaries (22%) and a lack of professionalism and resources in the recruitment process (26%).
Solutions to address recruitment challenges for SMEs
The study showed that SMEs that have up-to-date information on salary and benefit levels, current labor market trends, key criteria for attracting candidates and a streamlined hiring process have an advantage in attracting talent over those that do not (The Michael Page 2023 Salary Survey and Recruitment Trends can be found at here).
Yannick Coulange says, "SME leaders need to consider all employment and hiring options. This includes outsourcing the hiring process to achieve the optimal mix of permanent, part-time and temporary employees and a lean process."
Source: Michael Page
