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UK - SMEs have the advantage in recruitment

29 May 2015

Agility of smaller firms makes all the difference in the war for talent, according to the CIPD.

Recruitment is definitely the order of the day, with almost half (43%) of the businesses surveyed in the CIPD’s Labour Market Outlook Spring 2015 update saying they planned to increase their workforce. But gone are the days when large businesses had their pick of talent. Ahead of her appearance at the CIPD’s Managing Talent Conference in London, Gemma Bullivant, HR director at technology consultancy firm and SME Bluefin Solutions, tells People Management why small is beautiful.

What’s the current recruitment marketplace like for SMEs, and what advantages do they have over larger firms?

It’s pretty competitive. Regardless of whether there are a lot or very few people on the market, everybody always wants the same leading 10%, the extremely high potential and talented individuals.

SMEs find they can often tailor their offering a bit more. They’re more likely to be able to do one-to-one negotiations. At a large organisation, such negotiations could potentially affect a huge number of staff by creating precedents and so on. SMEs can be more agile.

SMEs also have fewer ‘layers’, and that flatter structure can appeal to people because it feels more accessible. Being interviewed by a board member who can really talk about the business’s vision can be a strong selling point. At a large corporate, the person who’s sitting in the seat opposite you may well have many layers above them.

How can SMEs boost their employer brand?

You need to understand what’s important to the core group you’re looking to attract, then make sure your organisation speaks to their ambitions. Some candidates perceive SMEs as unable to offer the big, cutting-edge projects they’re drawn towards. It’s worth emphasising when, for example, you’re the first in the industry to work with a piece of technology in a particular way. They love that.

Understanding how to connect with your network is also crucial, the same way you would if you were developing your personal brand. Those you connect with might not be job-hunting presently, but your company will stick in their mind.

How can SMEs retain staff once they’ve recruited the right person?

Communication plays a big role. You could have quarterly touch points, where you run an engagement survey, asking specifically if staff would recommend you as an employer. Quarterly all-company meetings also work: it’s a clever tactic for an SME to gather everybody together regularly, because the bigger you get, the harder this is to do.

What does the future of recruitment look like, and how can SMEs compete?

Word-of-mouth will be the biggest influencing factor. LinkedIn and the various other social media platforms provide people with the opportunity to promote themselves effectively, and SMEs can benefit from this by getting closer to the candidate.