Challenges to SME’s in employee management

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In this Article, We Have reviewed The Challenges to SME’s in Employee Management And Given Some of the best Solutions.

Are you facing the following problems in your business then definitely this article will help you?

  1. Your staff does not stay long.
  2. Staff is not auto productive and responsible.
  3. Your maximum time and money wasted on employee training and salaries.
  4. Your maximum time consumed in employee follow-up and support.
  5. Have your company just become a training center for inexperienced fresher employees.

In the following article, we try to understand the major reasons behind these problems and understand the solutions.

Maximum small firms always fighting with the shortage of staff. At one site we say that there is unemployment in the county. On another site when we talk to Small medium enterprises (SME & MSME) owners they are always struggling for the right people for their business execution and expansion plans.

Many say that they have just become a trainer to enter in the industry. More than 90% of their staff left the job as they learned and got experience.

1.Why it happens?

2.What are the major reasons?

There are maybe a lot of reasons, but we can divide them into these main points.

  1. No appointment & job description Formats.
  2. Career insecurity feeling in employees.
  3. Uncertainty for growth, job, and work responsibilities.
  4. Appointing high skilled employees with high expectations than company worth.
  5. Work environment and social prestige fulfillment.

  1. No appointment & job description Formats.

Reason-Maximum small companies cannot afford full-time qualified HR person. Requirement of people generates as per workload or projects. Many times company hires an employee as per the availability of a person. Due to all these neither any fixed job-description format available, for what work and purpose firm is hiring that employee nor any appointment T&C available about job responsibilities and rights. With the company growth and market changes, that particular employee not able to execute the job responsibilities. Everyday disputes started occurring between Management and employee about employment terms and performance.

Solution–  Before hiring an employee, first draft an accurate job description with job responsibilities required skills, and experience. Salary budget, future expectations with the company’s future plans, and current situations. In this owner can take the help of any Experience Professional HR consultant and then hire a relevant person, with a properly drafted appointment letter.

 2.Career insecurity feeling in employees.

Reason– I have personally interviewed 50k+ job seekers. On this experience, I can say it is a very important reason for employee instability in MSME and SME. Maximum candidates searching for another opportunity while they are on job due to this reason. Maximum SME owners are not able to give a feeling of job security to their employees in their organization for the long term.

Solutions-  owners should always keep communicated about their future plans and growth prospects. Never discuss financial crunch or shortage issues in front of junior employees who do not have a direct relationship with it. Create an image of employee welfare plans for them in long-term returns.

  3.Uncertainty for growth, job, and work responsibilities.

Reason-  In my, this is the main Challenge to SME’s in Employee management in small firms. An employee’s situation is always like “wearing Too many Hats” because the company can’t appoint a different person for different tasks. Due to this employees are unable to understand accurate work responsibilities and many times failed to execute them due to lake of skills, planning, and understanding. Even there are also no hierarchy system and annual or another fixed appraisal system. The employee is always in the myth of future growth.

Solution- either you have one or two employees always set a pattern of salary and designation renewal once in years it does not matter what month you fixed for it, ensure minimum growth no matter what percentage (but not least than 8%) on fixed calendar cycle.  Also keep updating the job description, Appointment letter, and designation matching with time, growth, and expectation. Promoters can take the help of an expert HR professional consultant for these tasks.

 4. Appointing high skilled employees or people with high expectations than our firm.

Reason- Many times in urgency or person’s availability we hire highly qualified employees. which is hire then requirement and worth of the firm. This happens due to the market situation. Many time people lost their job or leave their last employer and to avoid job gaps and financial losses, join job with small firms for the time being purpose.  It also happens then due to prospective future proposal or reference owner also hire a highly skilled employee. But these types of people always have high expectations regarding organization and position and small firms cannot fulfill them. which let them run away as they got something that they want. They just use small firm’s owners to fill their gap of job and financial requirements.

Solution– first understand your firm condition, infrastructure, growth, and presentation and then match strictly with the applicant. Never hire people who have a high forecast vision for themselves and about their dream firms, Because they will surely run away. It is easy to skilled up employees but it is hard to downsize expectations.

5.Work environment and social prestige fulfillment.

Challenges to SME’s in employee’s management Challenges to SME’s in employee’s management

Reason– Every human is a social creature and his work and job is seeming to his prestige in society. What is his/her job, post and organization? These always give recognition. And in a society like India, it becomes more important when, questions is about marital proposal for youth. Besides this everyone has a lifestyle as per his family and society. Does your firm fulfill this social status? Match with an employee you are hiring. No matter if you hire a simple lifestyle person but it becomes a problem in stability when the guy has very high status and lifestyle concerns.  

Solution– At the time of hiring employees, check the applicant’s lifestyle, social status forecasting, and Brand concerns. We can do two things. First, we hire people matching our firm brand value, Second the firm should focus to change their social prestige and brand value to hold target employees.

All These are the Main Challenges to SME’s in Employee management, Generally faced by Organizations.

I share these basic points with my practical experience as founder and Director of Shaleenjobs. Here I experienced to provide employment solutions to more than 8500 firms. My team have interviewed more then 50K+ job seeks about their reason for the job change and dream firm.

Our team of EXPERTGRAPH will be always available to help firms to implement these and more other relevant solutions for Challenges to SME’s in employee’s management.

For support Contact us.

About the Author

Dilip Sharma
Mr. Dilip Sharma

Mr. Dilip Sharma
He is a renowned recruiter and founder of the leading job portal –

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