Finding the right talent can feel like an uphill battle for small and medium-sized businesses. While larger corporations often have the resources and brand recognition to attract top candidates, SMEs and medium-sized corporates face unique challenges. Limited visibility, constrained recruitment budgets, and competition from bigger players make it tough to connect with skilled professionals.
But this struggle isn’t insurmountable. In this blog, we’ll unpack the key hurdles SMEs and medium-sized corporates face in talent acquisition and offer actionable strategies to overcome them. By the end, you’ll have a roadmap to make your hiring process smarter, faster, and more effective.
Why Small and Medium Businesses and Medium-Sized Corporates Often Struggle to Find the Right Talent
Small and medium-sized enterprises (SMEs) and medium-sized corporates (companies with under 200 staff) are often considered the lifeblood of our economy—dynamic, innovative, and providing countless job opportunities. Yet, one common struggle that many SMEs and medium-sized corporates face is finding the right talent to help their businesses grow. Unlike large corporations, which can often dedicate significant resources to their recruitment efforts, SMEs and medium-sized corporates encounter unique challenges in attracting and retaining skilled professionals. In this blog, we’ll explore some of the specific hurdles faced by these companies and share practical recommendations to help overcome these obstacles.
Challenge 1: Limited Employer Brand Visibility
Large companies have the advantage of established brand recognition. Their logos, culture, and benefits are well-known, which makes them instantly appealing to job seekers. SMEs and medium-sized corporates, on the other hand, often lack this kind of visibility. A potential candidate may be unaware of your business, what makes you unique, or why working with you would be a good career move.
How to Overcome It: Focus on building an employer brand that speaks directly to potential hires. You don’t need a massive marketing budget—start by showcasing your company culture on social media. Post about team successes, share behind-the-scenes stories, and highlight your mission and values. Encourage current employees to share their positive experiences too. Leveraging testimonials and creating a compelling “Careers” page on your website can also help build credibility and attract the right talent.
Challenge 2: Limited Resources for Recruitment
The recruitment process is time-consuming and often costly. Large corporations have internal recruitment teams and budgets for external agencies, but SMEs and medium-sized corporates typically need to manage with fewer hands. Business owners and managers often juggle recruitment alongside other responsibilities, leading to rushed hiring decisions or not enough effort dedicated to finding the ideal candidate.
How to Overcome It: Automation and smart recruitment tools can make a big difference here. Consider investing in affordable Applicant Tracking Systems (ATS) to help streamline the process. You can also develop a proactive recruitment strategy by building a talent pipeline—maintain relationships with prospective candidates even if you don’t have an immediate opening. This way, when you do need to hire, you already have a pool of talent to reach out to.
Challenge 3: Competitive Compensation and Benefits
Top talent is often drawn to the attractive compensation packages and benefits offered by larger organisations. SMEs and medium-sized corporates, with tighter budgets, may struggle to match the salaries or the perks that corporate giants provide, which can make it hard to attract experienced or highly skilled professionals.
How to Overcome It: While you may not be able to compete on salary alone, you can still offer value in other areas. Flexibility is key—many candidates are now prioritising work-life balance, remote work options, or flexible hours over a higher paycheque. SMEs and medium-sized corporates can also emphasise the unique benefits they offer, such as a close-knit team environment, the ability to make a significant impact, and opportunities for growth and learning that may be harder to find in larger companies. A personalised approach, where employees feel seen and valued, can go a long way in attracting and retaining talent.
Challenge 4: Difficulty in Reaching Passive Candidates
A significant number of skilled professionals are passive candidates—those who aren’t actively looking for a job but may be open to new opportunities. Reaching these candidates can be difficult for SMEs and medium-sized corporates that don’t have extensive networks or aren’t using the latest sourcing technologies.
How to Overcome It: Networking is essential. Build relationships through industry events, local business groups, or even online forums. Leveraging LinkedIn can be very effective for finding passive candidates. Engage in conversations, post thought leadership content, and connect with potential candidates even when you don’t have a role to fill. Partnering with a recruitment consultancy can also be beneficial, as recruiters have access to extensive networks and can help connect you with passive talent.
Challenge 5: Limited Internal Career Development Opportunities
Larger organisations can offer structured career paths, training programs, and opportunities for advancement, which can be a big draw for ambitious candidates. SMEs and medium-sized corporates, due to their size, may not have the resources to provide these kinds of structured growth opportunities, which can make retention challenging.
How to Overcome It: Focus on offering personalised development opportunities. Create a culture of learning where employees feel encouraged to grow. This can be done through cross-training, mentorship, or even by offering to fund external courses. SMEs and medium-sized corporates often have an advantage in being nimble and able to respond quickly to employees’ needs—use this agility to provide tailored growth opportunities. Emphasise how working in a smaller team can mean broader exposure to different tasks and responsibilities, which often results in quicker learning and career growth.
How My Experience Can Help
With over 30 years of experience in recruitment, including extensive work with both SMEs and larger corporates, I understand the unique challenges faced by companies with under 200 staff. I have a deep knowledge of the Melbourne and Sydney markets and have successfully placed talent across a variety of industries and role levels. My approach is to work as a partner with my clients, understanding the nuances of their business and tailoring recruitment strategies that work for them. Whether it’s building a talent pipeline, leveraging networks to find passive candidates, or providing end-to-end recruitment services, I am here to help streamline your hiring process and ensure you find the right people to drive your business forward.
Conclusion
While SMEs and medium-sized corporates face some unique hurdles in attracting and retaining talent, these challenges are not insurmountable. By building a compelling employer brand, leveraging modern recruitment tools, offering flexible and unique benefits, actively networking, and providing personalised growth opportunities, these companies can position themselves as highly attractive workplaces. Remember, many candidates aren’t just looking for a job—they are looking for an experience, a sense of purpose, and a chance to make an impact. SMEs and medium-sized corporates are often in the perfect position to offer just that.
Is your business struggling to find the right talent? Consider implementing some of these strategies to enhance your recruitment approach, and reach out if you need guidance. With the right steps, finding the perfect fit for your growing team is entirely possible. My experience and tailored approach can make all the difference in ensuring your business has the talent it needs to thrive.