How SMEs Can Attract The Best Talent For Their Organisation

Finding the best talent may seem like a daunting task for smaller companies. Small and medium enterprises, or SMEs, often have to split candidates with multinational businesses. And because the latter has more resources, including renown and a larger budget, it’s easier for them to implement enormous recruitment programmes that can attract ideal workers. SMEs must learn to adapt their hiring practices so they could also attract the best talent for their companies.

The Ministry of Trade and Industry defines SMEs as enterprises with either an annual sales turnover of under SGD 100 million or fewer than 200 workers.SMEs account for 99 per cent of enterprises in Singapore and are responsible for 71 per cent of workers. SMEs are a prime contributor to the country’s economic growth.

According to the International Labour Organization, SMEs are crucial to the global economy. They account for over two-thirds of all jobs worldwide and can drive market innovation and competition. Unfortunately, they have the disadvantage of having fewer resources than larger enterprises and may end up outmatched in terms of quality employment.

To entice jobseekers to come knocking, try highlighting the benefits they will get if they work in your company. While not as familiar or massive as multinationals, SMEs do come with certain advantages.

1. An opportunity to learn more skills at an early stage Transferable skills are valuable in any workplace. SMEs typically have smaller workforces, and employees take on more responsibilities than they would in larger companies. This leaner setup encourages workers to adapt and learn these abilities earlier.

2. Higher potential for job creation  While multinationals are known to have more rigid structures because of their size, SMEs have the option to be more flexible. Employees in SMEs can take the opportunity to fill the gaps in their organisation and create new roles, processes, and practices that can help improve the company.

3. Flat hierarchy  Most SMEs have a “flat hierarchy,” which means there are few levels of management between the rank-and-file employees and the executives. Employees joining an SME can work closely with executive leadership and be exposed to high-profile campaigns and projects.

4. A view of the big picture Because the company is small, chances are that employees will have a better grasp of the business as a whole because they will have an idea of every department’s contributions. They can even get a chance to network and work with many colleagues outside of their team.

5. More chances for career advancement  A leaner team makes it easier for employees to get recognised for a job well done. In an SME, employees can have the opportunity to showcase their abilities directly to their leaders and may be rewarded with promotions or higher pay.

SMEs have faced challenges when hiring alongside large enterprises mainly because of their lack of resources. Large companies like multinationals have more money and more familiar brands to leverage when implementing their recruitment programmes. However, even big companies are not exempted from the brunt of Singapore’s talent crunch.

Job vacancies in 2021 were at an all-time high, based on data from the Ministry of Manpower. Hiring has become more challenging, with the amount of unfilled jobs increasing from 27 per cent in 2020 to 35 per cent in 2021. Jobseekers have become more discerning due to the pandemic. 

JobStreet’s 2022-2023 Outlook for Hiring, Compensation and Benefits found that employees want better perks and benefits, along with better pay. Seventy-one per cent of respondents said they would turn down an offer if the salary was not satisfactory, while 21 per cent wanted better benefits, like health/life insurance and birthday leaves. 

In a recent survey conducted by workforce communications platform Slack, titled “Leadership and The War for Talent,” found that Singaporeans would choose stability and job security (53 per cent) over salary (40 per cent)) when it comes to choosing the company to work for.  

To hire the best talent, SMEs should learn to be more flexible in their hiring approach. In being more agile, they can use the resources they have at hand to appeal to what employees want.

Here are some hiring best practices that SMEs can apply in their recruitment programmes. 

1. Look at skill sets instead of job titles. If you have a smaller talent pool, you may want to find the line between a perfect fit and the best fit. Look beyond the items on the CV and survey the skills the applicant learned to see how you can put them to use. Consider a lateral skills transfer, which is how a jobseeker who has solved one problem can solve equally complex concerns regardless of the difference. Transferable skills can be utilised in different workplaces and roles, regardless of where the employee previously worked.

When crafting job descriptions, specify the required skills for a position instead of the traditional bullet points such as college degrees or industries worked in.

2. Establish a good company culture.  A top selling point for many jobseekers is whether the organisation has a good company culture that aligns with their values. In JobStreet’s Decoding Global Talent survey, the importance of factors, such as diversity and inclusion (D&I) and sustainability, has increased for many individuals. Sixty-four per cent of Singaporean respondents felt that environmental responsibility became more important for them, while 75 per cent of Singaporean respondents placed more significance on D&I compared to previous years.

3. Diversity, Equity and Inclusion  Building on the previous point, having solid DEI policies will attract more employees to join your workplace while also helping the company foster creativity and innovation. Employees will enjoy working in a safe space and feel more engaged in an organisation that listens to diverse perspectives.

4. Environment and Sustainability  Supporting sustainable business practices can help companies thrive and keep up with the global market. The government’s Enterprise Singapore (ESG) initiative, under the Enterprise Sustainability Programme, has set aside up to SGD 180 million, which will benefit at least 6,000 enterprises over the next four years. The programme will support training workshops, capability and product development projects, and key enablers such as certification and financing.

It would help strengthen your brand if you mention your company’s values in your job postings, ensuring that individuals would understand your culture from the get-go even before they apply. Many reports have revealed that millennials and Gen Z workers value organisations that support social causes, after all. You can further emphasise these points during the job interview. The interviewer can share stories on the company’s values, making the concepts easier to understand for the jobseeker.

5. Offer growth opportunities for employees.  Nobody wants to be stagnant in their roles. By highlighting the growth opportunities available in your company, you are letting the jobseeker know they will not be stuck in a rut if they join your organisation. Does your company offer mentoring programmes, knowledge-sharing sessions or training opportunities? Make sure to share these with the jobseekers during the job interview. Your firm can also avail of government support programmes, such as the Jobs Growth Incentive, which can help support the upskilling of new hires through Career Conversion Programmes.

6. Highlight your company’s benefits programme.  Employees are not just looking at high salaries anymore. Other benefits, such as healthcare, childcare, and remote work options have become priorities for many individuals, especially as the pandemic has forever changed how people live. 

Many organisations are responding to the demand – our Hiring, Compensation and Benefits Outlook saw that more companies are planning to offer financial perks like flexible benefits (from 16-26 per cent) and dental coverage (from 50-57 per cent) in the next 12 months. In terms of special leaves, more employers are likely to employ birthday leave (from 23-33 per cent) in the upcoming year.

Feel free to mention this in the job posting to attract attention. In the job interview, the HR person or hiring manager can share why they love working in the company. Knowing that other people enjoy working for a prospective employer can help spark interest in the jobseeker and would make them want to hear more.

The best talent may seem hard to find, but it is not impossible. While the talent crunch and fierce competition may seem difficult for SMEs, using the right hiring practices can help them achieve their goals. By leveraging their resources, highlighting their capabilities and getting to the heart of what the employee wants, they will be able to find the right people for their organisation.

Find the most suitable talent for your company by registering on JobStreet Search and using Talent Search. Learn more about the latest hiring trends by following our Employer Insights page.