Recruitment tips for SMEs

Here at Hello People Solutions we support SMEs (and large companies too!) across the Midlands. One of the most consistent issues is the skills shortage and the struggle to attract the right calibre of candidate.

In this article we look at what the talent shortage means for SMEs and provide you with an guide on how to better handle your recruitment.

The background

70% of SMEs are struggling to recruit skilled staff into their business. The feedback from potential employees is that SMEs typically offer too lower starting salaries making them unattractive employers. From the middle age range it’s all about SME’s not offering career progression and everyone feeds back that the flexibility on offer from small or medium sized business doesn’t fit their work / life balance requirements.

As an employer the feedback has all been about how to attract and retain talent with corporates offer far more perks and much bigger salaries. Combine this with the recent National Insurance hikes for employers, legislation changes, wellbeing for staff to prevent burnout or mental health challenges and the current economic pressures things look a bit worrying.

The trends

Reports show that for SMEs the workforce growth slowed: 24% (Q4 2024) to 20% (Q1 2025) and 17% of small or mid-sized companies cut staff, while 63% kept workforce stable. There are fewer SME size firms recruiting in 2025 with 59% to 54% quarter-on-quarter for H2 of the calendar year.

When it comes to training employees SMEs have seen statistics that aren’t too dissimilar from the large corporates this year with 20% cutting their training spend, 22% increasing it and 58% have stayed the same. What’s clear is that SME businesses are cautious about workforce investment due to costs and uncertainty.

Our recruitment tips

We’ve split this section into general recruitment tips, how to attract skilled team members and great ways to get unskilled employees into your SME.

Our general recruitment tips for SMEs

·        Be clear on job roles: make sure you write concise, transparent job descriptions that outline responsibilities, required skills (or willingness to train), hours, and pay. This saves time for both you and candidates (and awkward interview conversations!)

·        Highlight your SME advantages: many candidates value working for smaller companies because of flexibility to do part time work, closer teams, and variety in the work completed. Emphasise this in adverts.

·        Use cost-effective channels: Look we know you’ll never have mega budgets so utilise free or low-cost platforms (Indeed, GOV.UK’s Find a Job, local Facebook groups, LinkedIn, university job boards) as they are often more effective for SMEs than expensive recruiters.

·        Streamline applications: avoid long forms because you’re time short! CVs or short applications are enough. Make applying easy to encourage more candidates.

·        Act fast: in a competitive labour market, delays in communication can lose good candidates. Respond quickly and schedule interviews within days.

Our tips for recruiting skilled staff

·        Leverage LinkedIn and specialist job boards: skilled candidates often look on LinkedIn, sector-specific job boards, or professional networks.

·        Offer competitive non-financial perks: if you can’t match big company salaries, focus on flexibility, hybrid or remote work (if possible), varied projects, or personal development.

·        Show career impact: skilled professionals value influence and ownership. Highlight how they’ll make a difference in a smaller organisation.

·        Build partnerships: work with local universities, training providers, or trade bodies to access upcoming talent. Many of these can help support your recruitment costs or even enable you to access funding such as graduate apprenticeships.

·        Consider contractors or freelancers: if hiring full-time is tough, short-term skilled contractors can fill gaps while you grow. Here at Hello People, we’ve done that to access a high-level marketing professional.

And the tips for attracting unskilled staff

·        Tap into local networks: use community centres, job fairs, colleges, and Jobcentre Plus. Word-of-mouth in your area can also be powerful.

·        Offer training and progression: unskilled workers are often looking for stability and growth. Advertise opportunities to learn on the job and access training opportunities.

·        Emphasise reliability over experience: stress punctuality, attitude, and willingness to learn rather than qualifications when advertising.

·        Flexible arrangements: part-time, seasonal, or shift work can attract a wider pool of people (students, parents, semi-retired workers).

·        Consider apprenticeships: Government backed apprenticeships can bring in motivated staff while reducing hiring costs.

Retention matters

Let’s not forget that retention of staff is absolutely critical for SMEs, recruitment is an expensive business so if you have a high churn rate you’ll know and likely need to address.

We’ll write a guide on retention matters soon but for now here’s some highlights:

·        Make sure you have or are building a supportive culture

·        Offer feedback and recognition to all of your team members regularly

·        Providing training and upskilling opportunities

·        Ensure fair pay and good working conditions (including good Health and Safety)

If you'd like to talk recruitment matters with Hello People Solutions talk to us today: contact details here Let's talk | Contact Hello People