Actionable Strategies Unveiled to Help SMBs Tackle Major HR Challenges - New Study by UKG and the HR Research Institute

UKG and HR.com’s HR Research Institute conduct study to help small and mid-sized business (SMB) employers understand HR challenges and practices and guide the role of HR to improve strategic human resource management.

"By adopting intentional strategies in HR processes and investing in effective tech, SMBs can better navigate their HR challenges and thrive in an increasingly competitive environment."

Jacksons Point, Ontario, Canada (Newsworthy.ai) Tuesday Aug 20, 2024 @ 8:00 AM America/Toronto —

More than half of small and mid-sized businesses (SMBs) are struggling with significant challenges in hiring, retention, and maintaining a positive company culture. Addressing these human resources (HR) challenges is essential for SMBs to thrive in today's dynamic business landscape, and adopting potential best practices and more strategic HR approaches may help improve HR performance.

The free research report, "HR Decision-Making in Small to Mid-Sized Businesses," is now available for download. Conducted by HR.com's HR Research Institute in collaboration with UKG, a global HR technology company, this study examines how HR professionals from businesses with fewer than 500 employees manage their strategic processes, HR practices, and responsibilities. The findings and takeaways provide valuable insights into the unique challenges and solutions for smaller organizations.

When asked about their biggest areas of concern, participating HR professionals point to retaining top talent (60%), creating a supportive employee culture (58%), and hiring qualified employees (56%). These concerns are well-founded given the current tight labor market and the intense competition from larger companies with more resources. Surprisingly, only 35% of SMBs cite employee reskilling and upskilling as a concern. Workforce learning and development (L&D) has gained more attention in recent years, as one effective strategy for filling open positions and retaining employees is to provide them with additional skills.

It’s interesting to note that SMBs with more mature HR-related operations are more likely to prioritize manager skills and quality hiring compared to companies with less mature HR. In contrast, the latter organizations are still more focused on fundamentals, such as complying with employment laws. As SMB HR develops and matures, more organizations may see the value of manager training and more focus on strategic effective hiring.

Further investigation highlights differences in how technology is applied and implemented in these companies. HR leader organizations with more mature human capital management are considerably more likely to be at the strategic and advanced levels of HR technology usage. Research insights suggest that aligning HR tech investments with leadership business goals can go a long way to not only boost efficiency and compliance but drive better decision-making and organizational success.

HR professionals and managers from SMBs can also view the recorded session, “The Art of Finding and Keeping Top Talent: Expert Insights for Lean HR Teams”, to hear expert insights from Teresa Smith, director, UKG human insights and HCM advocacy, and Mark Vickers, HR.com chief research analyst, that will help SMB HR transform their function into a strategic business asset.

“Having the right HR technology in place at businesses with leaner teams is crucial, so HR professionals can think strategically while helping the company scale,” said Julie Develin, senior partner, HCM advisory at UKG. “By building on the right foundational areas, HR technology improves workflows, streamlines roadblocks, and enhances the overall employee experience.”

“Strategic investment in HR technology may be a game-changer for SMBs,” stated Debbie McGrath, chief instigator and CEO of HR.com. “By adopting intentional strategies in HR processes and investing in effective tech, SMBs can better navigate their HR challenges and thrive in an increasingly competitive environment.”

DOWNLOAD RESEARCH REPORT: https://web.hr.com/9lxj

About UKG
At UKG, our purpose is people. We are on a mission to inspire every organization to become a great place to work through HCM technology built for all. More than 80,000 organizations across all sizes, industries, and geographies trust UKG HR, payroll, workforce management, and culture cloud solutions to drive great workplace experiences and make better, more confident people and business decisions. With the world’s largest collection of people data, work data, and culture data combined with rich experience using artificial intelligence in the service of people, we connect culture insights with business outcomes to show what’s possible when organizations invest in their people. To learn more, visit ukg.com.

About HR.com and the HR Research Institute
The HR Research Institute (HRRI) helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest HR community, the HRRI identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings.

Among the most productive and respected HR research institutes globally, the HRRI publishes dozens of high-quality reports every year across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 250 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Become a part of HR.com’s HR Research Influencer panel today! Participate in surveys, share your insights, and earn rewards! Visit hr.com/hrresearchinstitute to maximize your HR potential.

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