The small and Medium Enterprise (SME) sector plays a very important role in the economy of India. It contributes significantly to the Indian economy in terms of employment generation, exports, and innovative products and services. At present, around 63 million MSMEs in India account for almost 30% of our country’s gross domestic product (GDP).
Some of the key HR issues and challenges faced by SME organisations are the following :
Ability to attract skilled talent
Skilled manpower is essential to perform and grow any business. Especially in the context of SME organisations in India, it’s equally important to hire skilled manpower to grow and scale up the business. Some of the typical challenges encountered by SME organisations in hiring the right talent are-
I. SME organisations’ ability to pay the market compensation for good talent is sometimes a real financial challenge and at times a mindset issue. Most SME organisations may not be aware of the market compensation of any position or carry out a proper...