SMEs surveyed in Singapore say they are losing the talent war to MNCs

SME leaders cite increased hiring costs such as rising salaries, labour shortages, and higher commission rates for recruitment agencies as among the key barriers to hiring talent today.

Small and medium-sized enterprises (SMEs) surveyed in Singapore are struggling to overcome numerous obstacles that hinder their ability to attract and retain top talent.

According to new research by Employment Hero, there is thus a need to level the talent recruitment playing field between local SMEs and multinational corporations (MNCs).

The study, conducted in Singapore and Malaysia which surveyed 515 hiring leaders, highlighted the top barriers SMEs face in their talent acquisition, with the most prominent being rising advertising costs for job vacancies, wherein 86% of business leaders agreed that advertising costs have increased from last year.

Further, 83% say the cost of accessing job boards is another challenge, including other reasons for increased hiring costs such as rising salaries, labour shortages, increased job board posting costs, and higher commission rates for recruitment agencies.

SME leaders in Singapore also face a technology divide, with 69% stating quality technology that assists with the hiring process is often financially infeasible.

Kevin Fitzgerald, Managing Director, Asia, at Employment Hero explained: "The rising costs of recruitment creates a huge disadvantage for local SMEs, resulting in them spending countless manual hours on recruiting, further impacting productivity and profitability. SMEs are the backbone of Singapore’s economy, and so it is critical to ensure they have access to seamless recruitment processes and equal opportunities to attract and retain the best candidates."

Thus, he noted, it is crucial for SMEs to rethink their recruitment strategies to compete against MNCs for talent, and it is evident a new approach is necessary. "By embracing innovative solutions and adapting recruitment practices, SMEs can level the playing field and secure the top talent needed for their growth and success."

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