SMEs face biggest challenge in acquiring and retaining talent

The biggest challenges facing small-and medium-sized enterprises (SMEs) globally are talent acquisition and retention, revealed a report by the World Economic Forum (WEF). 

Such organisations struggle to create appropriate career development opportunities for their workers, making it hard for them to attract and retain talented workers, highlighted the report, which analysed over 200 peer-reviewed articles and engaged over 300 chief executives and founders of SMEs worldwide.

SMEs also face the challenge of coming up with a competitive compensation for their staff, as they compete for talent with larger organisations, WEF said. 

Other challenges cited by SMEs include expansion (43.8%); funding and access to capital (35.7%); a non-supportive policy environment (21%); and the difficulty of maintaining a strong culture and clear company purpose and value (20%).

To overcome the challenges of retaining and acquiring talent, SMEs can offer opportunities beyond tangible rewards, said WEF. These include creating a unique vision and culture, and tailoring self-development opportunities for their workers.

Such measures are important to the newer generation of workers who prefer engaging with companies that are mission-centric on having a positive societal impact, it added.