SMEs are the backbone of the Australian economy. In OECD countries, SMEs account for 70 per cent of all jobs and contribute more than 50 per cent of GDP. However, when it comes to landing the best talent, SMEs often find themselves in the shadows of larger corporations with deeper pockets and more extravagant perks.
However, the dawn of 2024 brings new opportunities for these smaller players to compete and stand out. And the key is not to outspend but rather outsmart the bigger players.
Four tips for SMEs competing for talent
1. Embrace agility and flexibility
One of the most significant advantages small businesses have over their larger counterparts is their agility. In 2024, this agility should be at the forefront of their strategy. It’s about being ready to pivot, whether it’s adopting new technologies, exploring niche markets, or tailoring roles and benefits to meet specific employee needs, as it’s more crucial than ever for SMEs to leverage their strengths and adopt innovative strategies to remain competitive.
SMEs also boast a faster hiring process, with 48 per cent filling a position in under ten days, compared to the industry average of 30 days. Likewise, as the world of hybrid, flexible work continues to hold significance in the Australian workforce, embracing and promoting work flexibility will give SMEs a competitive advantage on an unequal playing field. SMEs can also leverage their recruitment advantages. These include offering tailored employee packages, greater flexibility in working arrangements, and a more hands-on working culture. Candidates can be a ‘big fish in a small pond’ whose achievements directly impact the business.
2. Cultivate a unique company culture
While large corporations may offer attractive salaries and benefits, SMEs can compete by fostering a strong, inclusive company culture that values each employee’s contribution and supports their professional growth.
For this to be achieved, SME employers must prioritise employee engagement and wellbeing. For example, implementing flexible working arrangements, encouraging open communication, and developing a supportive environment that values work-life balance can work towards a workplace dynamic where everyone is valued. This approach not only attracts talent but also enhances productivity and job satisfaction.
Collaboration can be more powerful than competition. Forming partnerships with other businesses for joint ventures, shared marketing, or mutual support can open up new avenues for growth and visibility.
3. Boast a quicker career trajectory
While many SMEs face more constraints than big corporations, they make up for it with valuable experience and the means for faster career trajectory due to less competition for progression and salary increments.
When working for an SME, employees have the unique opportunity to be closer to the heads of department and the founders and directors of the business. Whatever your role, it’s easier to move up the ladder in a smaller business and share your ideas in front of the people who turn the wheels. SMEs can hone in on their ability to offer faster career progression to entice new talent and provide constructive means for new and existing employees.
4. Invest in your employees’ success and wellbeing
While large companies can offer extravagant perks, small businesses can create a more intimate and supportive work environment. Focus on what matters most to employees, whether it’s flexible working arrangements, professional development opportunities, or a strong company culture. Happy employees are your best brand ambassadors.
The landscape for Australian small businesses is ripe with potential. It’s not about having the greatest budget or the flashiest perks. It’s about playing to your strengths, connecting with your team and community, and staying true to your values. This is how small businesses can not only compete with the big players but carve out their own unique and successful path in the business world.
