Talent Acquisition for SMBs: Unraveling the Pain Points Faced by Small and Medium-Sized Businesses

August, 07, 2023 by Brooke McLaughlin author workhoppers

Small and medium-sized businesses (SMBs) often face many pain points when it comes to hiring talent. Understanding these challenges might take you to explore the idea of hiring freelancers to close the gap. Talent acquisition for SMBs might be challenging but here are some solutions.

Common challenges for SMBs when hiring talent:

1. Limited Resources

Not a surprise here. SMBs often have smaller budgets and fewer HR resources, making it challenging to compete with larger companies in attracting top talent. Finding the right freelance human resource expert could alleviate the load and provide effective support when having to find the right talent for your company.  And paying freelance rates could compensate for the budget.

2. Finding the Right talent

Identifying skilled and reliable freelancers or employees who fit the company culture can be time-consuming and difficult for SMBs. They may lack access to extensive networks and recruiting tools. That is why accessing a freelance marketplace that has reviews and intelligent matching can save a significant amount of time in the recruiting process.

Hiring a freelancer to help with talent acquisition for SMBs

3. Time Constraints

Owners and managers of SMBs often wear multiple hats, leaving them with limited time to dedicate to the hiring process and talent management. And most time than none, SMBs do not have a dedicated human resource expert in the company. So, even if have the skills and the tool to find the right talent, sometimes you would like to outsource the service. Some of the freelance marketplace offer a Concierge Service where you simply describe the ideal profile, and they recommend the right individual.

4. Retention and Engagement

SMBs may struggle to provide the same level of benefits and perks as larger corporations, making it harder to retain talented individuals in the long term. Keeping freelancers engaged and committed to the project can also be a challenge. However, freelancers might be attracted by the size of the challenge. As small businesses, the tasks are often more interesting and creative, and they are not looking for long-term commitments from the employer.

5. Skills Gap

Finding candidates with the right skills and experience can be challenging, especially in industries with specialized needs. This applies to any size company taking into account the shortage of the labor market. But SMEs, in particular struggle with attracting skills to keep up with digitalization, globalization, delivering on decarbonization commitments, or implementing AI to increase productivity.   Tackling the freelancer market might provide you with someone that has the expertise while he works in a large corporation during the day.

6. Uncertain Workloads

The workload for SMBs can be unpredictable, making it challenging to commit to long-term employment contracts. Freelancers can offer a more flexible solution to go up and down when the market or the stage of the company requires it. As we say in Workhoppers:

Get the talent you need with the flexibility you want

Roller coaster showing that companies go up and down
Freelancers give companies flexibility to adapt to changes in the market.

7. Onboarding and Training

Limited resources may hinder the ability to provide comprehensive onboarding and training programs for new hires or freelancers. Having a freelance human resource expert on hand will help you with implementing processes when hiring a new talent.

8. Legal and Regulatory Compliance

Complying with employment laws, tax regulations, and other legal requirements can be complex and overwhelming for SMBs. Having freelancers or independent consultants can simplify the task of managing payroll.

9. Remote Work Management

With the rise of remote work, SMBs may struggle with managing remote freelancers effectively and maintaining effective communication. Hiring local freelancers would simplify the process of communication and bonding. At the same time, offering the flexibility of working from home can be an advantage over larger companies to attract good talent.

It is clear that SMBs have traditionally faced more challenges than large businesses in talent acquisition to attract the best and most diverse talent. SMBs do not have the same resources, or in-house skills to attract the best talent. However, accessing the freelance market can help the company close the gap and obtain the necessary skills to compete and grow.

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