How SMEs can overcome talent acquisition challenges
They can do so by prioritising employee experience and taking advantage of readily available AI-powered tools to locate, hire and develop people with the best capabilities
SMALL and medium-size enterprises (SMEs) are the backbone of Asia-Pacific economies – driving innovation, job creation and gross domestic product growth. They face significant challenges in talent acquisition, however, particularly when competing against larger companies and bigger brands with deeper pockets.
This is an especially pressing issue in today’s artificial intelligence (AI)-driven landscape, in which demand for skilled AI professionals is rising fast, and organisations are looking to stay ahead and hire individuals with the necessary technical know-how.
The good news is that flexibility is emerging as a key strategic advantage for SMEs in attracting top talent.
New LinkedIn data shows that in South-east Asia, employers who explicitly state flexible work policies in open roles are 16 per cent more likely to have candidates accept their InMails (that is, messages to LinkedIn members who are not yet direct connections) and 29 per cent more likely to receive applications from prospects.
Communicate a clear purpose
From my conversations with SMEs across the region, I have heard success stories from business leaders who are re-examining their business and talent playbooks and adopting fresh approaches to help them emerge as victors in today’s talent wars.
Some have been able to lean into employer branding to ensure it robustly communicates their business purpose, mission and values; and position these as unique selling points.
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I call this being able to articulate a company’s “Why”, and it is proving to be a vital component of recruiting success.
Our Future of Recruiting 2024 report found that 57 per cent of recruiting professionals worldwide expect employer branding investments to increase this year – more than any other area in recruitment.
By using their websites and social media to showcase their company’s passion and purpose, these leaders are setting themselves apart and appealing to top talent seeking value-driven organisations.
In doing this, it is important to be authentic. Employer brand messaging should align with what jobseekers see on employer review sites.
Gen Z, in particular, may react more favourably to raw, employee-generated content that shows a realistic day in the life of a worker, than to polished and overly produced video offerings.
SMEs can also embrace their unique strengths. Smaller teams often offer flatter structures, providing benefits such as a close-knit working environment, greater responsibility and higher visibility – other qualities that Gen Z values highly.
In Singapore, we found that while 34.3 per cent of young professionals join companies with over 10,000 employees, almost as many (27.4 per cent) join companies with fewer than 200 people.
Prioritise skills-development opportunities
Speaking of Gen Z professionals, it has become increasingly apparent that new tactics are needed to successfully engage this cohort – who will account for more than a quarter of the global workforce by 2050.
As our data shows, Gen Z’s most urgent priorities are rooted in the concrete reality of their economic livelihoods and long-term earning potential.
In practical terms, this means that they are looking for workplaces where they can learn and advance meaningfully. Compared to Gen X and Millennials, Gen Z candidates in South-east Asia are 94 per cent more likely to prioritise skills-development opportunities.
These young professionals have the large part of their careers ahead of them, so investing in their growth and providing them with learning and development resources can also go a long way to ensuring longer-term retention.
Employees who feel valued and have opportunities to advance within the organisation are more likely to stay committed and engaged.
When it comes to skills development, leadership plays a critical role in setting the tone. Business leaders must also commit to and prioritise continuous learning amid everyday demands – staying ahead of industry trends and modelling a growth mindset.
That way, we can inspire our teams and create a powerful work culture where learning and innovation thrive.
Hire the right people
SMEs may not have the same resources as larger companies, but I am also seeing companies successfully level the playing field by embracing technology to access a diverse pool of talent.
AI can analyse regional job market trends and provide insights specific to local markets, helping SMEs finetune their recruitment strategies and attract top talent.
Hiring tools powered by generative AI can also assist with content creation for recruitment, crafting personalised messages to candidates. This allows small businesses to boost productivity and focus on higher-value tasks.
As SMEs continue to compete for talent, today’s labour market is only set to get more competitive.
By prioritising employee experience and taking advantage of readily available AI-powered tools to locate, hire and develop top talent, I firmly believe SMEs can create a positive work environment that attracts and retains the best workers, increases employee engagement and ultimately drives business growth.
In short, putting people first is a vital first step; the rest will follow.
The writer is Asia-Pacific managing director of LinkedIn
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