The big HR trends shaping the current and future landscape for SMEs

If you’re feeling the pressure, you’re not alone.

From dealing with the aftermath of the pandemic to meeting expectations across everything from hybrid working, employee engagement, and, of course, the big talent problem – for HR leaders, the challenges are stacking up.

It’s these problems that are shaping current and future HR trends for SMEs. So can these trends help you overcome your challenges and drive growth? Let’s find out…

If you're looking for HR solutions, don't miss our Virtual SMB HR Trends Masterclass. Click here to find out more.

Better onboarding

Did you know that only 12% of employees believe their company onboards team members properly? Or that great onboarding increases retention by 82%?

Proper onboarding is crucial for businesses – particularly SMEs. It's a vital component of employee happiness, engagement, and ultimately, retention. So what does successful onboarding look like?

Onboarding isn’t built in a day – or even a few weeks. Successful onboarding takes time – usually two to three months. And the process should begin before your employee’s first day.

A simple thing like sending a welcome email telling them what they can expect in terms of their onboarding, can make all the difference; it sets the tone for the whole process. 

When it comes to what you should include, the following is a good place to start:

• Introductions to colleagues (either in-person or remotely). Don’t expect this to just happen; you need to facilitate proper introductions.
• Explanation of HR processes. Which day of the month will they be paid? Who should they speak to if they have an issue? How do they book annual leave days?
• Clarification of responsibilities and expectations. What are the specifics of their role? What do you expect them to achieve or work towards? How will you evaluate their performance?
• Team building. It’s a good idea to organise a day or two for team building so that your new employee gets a chance to interact with other staff members and get to know them better. This will help to make them feel included and engaged with the company culture.
• Review or performance assessment. At the end of the onboarding period, you should give your employee feedback on their performance, in-line with the goals and responsibilities you set out at the start.
• Employee feedback. You might think the onboarding process was perfect – but would your employee agree? The only way to find out is by asking them. After the onboarding period, give them a survey so you can see what worked and what you need to improve.

Recruiting for cross-functional roles

This is a growing trend for SMEs – and it’s easy to see why. With current recruitment and budgetary challenges, it makes sense to hire one employee who can work cross-functionally and plug gaps where needed, right?

Yes and no. While it makes perfect sense from a business perspective, your new employee might not be so keen.

A recent study found that employees – particularly Gen Z – prefer to stay within the boundaries of their core role, and 44.5% of employees in their 20s said they would find it unfair to have to take on responsibilities outside their main role. Does this mean you should avoid this trend?

Not necessarily – but you should tread carefully, particularly if you’re looking to hire younger candidates.

Most employees recognise that their responsibilities will sometimes go beyond their core job, but if you ask too much, you’ll run the risk of losing them. More importantly, if the role is considered too cross-functional, Gen Z and younger Millennial candidates might avoid you altogether.

Using social media to recruit

This trend has been on the ascent for a while, and it’s only going to go in one direction: up. SME talent acquisition and social channels is a partnership made in heaven. Why?

• Half of the population have active social media accounts
• 8 out of 10 people use social media to search for jobs
• 86% of younger people use social media to find jobs

For SMEs, social media is a highly effective – and efficient – way to recruit. Traditional recruitment channels (agencies, career websites) put you in direct competition with large companies that have much bigger budgets to spend on both recruitment and employer branding.

Conversely, platforms like LinkedIn, Twitter, and Facebook give you access to a wider pool of candidates as well as providing a host of other benefits, including:

• Building your brand as an employer. Social media is great for employer branding. As well as direct job posts, you can interweave social posts about your culture, office life, exciting projects – all of which will help position your brand as an attractive place to work.
• Reaching passive candidates. Social media recruiting tools help you reach passive users with your messaging. This is a big deal; it means someone who isn’t even looking might see your job or one of your branded posts, and it could just spark their interest. Conversely, standard recruitment channels will only reach people actively looking for a job.
• Advocacy. Social channels give your employees the perfect platform to advocate for your business and implement that all-important word of mouth. Encourage your staff to share their own stories, talk about job satisfaction, and interact with your posts – all of this can make a huge difference to your acquisition strategy.

While there’s no denying that these are testing times for small and medium-sized businesses, it’s not all doom and gloom. There are plenty of trends and tools out there that can help solve a variety of HR challenges - which ones you use depends on your specific challenges and objectives.

Want to talk HR? Join us on the 29th November for our Virtual SMB HR Trends Masterclass. Register now to book your complimentary space.