Robert Half, a global talent solutions and business consulting firm, has uncovered the top recruiting obstacles that small and midsize businesses (SMBs) are facing in today’s competitive hiring landscape. A survey of over 1,700 hiring managers sheds light on the key challenges SMBs must overcome to attract and retain top talent, with salary expectations, skill shortages, hiring delays, and culture fit ranking among the most significant issues. With these insights, SMBs can better navigate the evolving talent market and develop strategies to stand out from competitors.
- The Pressure of Salary Expectations
- Salary pressure tops the list of hiring challenges for SMBs. Nearly half of hiring managers cited meeting candidates’ salary expectations as a significant obstacle. With rising compensation demands, it is crucial for SMBs to stay competitive by researching salary trends and aligning their offers accordingly. The 2025 Robert Half Salary Guide is an excellent resource to help businesses benchmark their salaries against market rates.
- Addressing the Skilled Talent Shortage
- Over 40% of SMB hiring managers highlighted the difficulty of finding candidates with the right skills. The shortage of skilled talent continues to be a pressing issue as businesses look to expand their teams. To overcome this, SMBs can focus on upskilling and training high-potential candidates, even if they don’t possess the exact qualifications or experience initially required.
- The Impact of Slow Hiring Processes
- Nearly 40% of SMBs are concerned about losing top candidates to competitors due to slow hiring processes. Delayed hiring cycles also lead to overburdened teams and increased turnover. To combat this, SMBs can capitalize on their agility by speeding up decision-making, reducing bureaucratic hurdles, and extending offers swiftly to avoid losing talent.
- Ensuring Cultural Fit
- Finding candidates who align with company culture is another challenge, with over 40% of SMB managers identifying this as a key obstacle. While skills are important, cultural alignment can be just as crucial for long-term success. SMBs should focus on showcasing their company culture in job descriptions, on social media, and during interviews to attract individuals who are a good fit for their work environment.
Strategies for SMBs to Navigate Hiring Challenges:
- Think Beyond Salary
- SMBs should highlight their strengths beyond salary, such as work-life balance, corporate culture, career growth opportunities, and flexible work policies. Promoting these benefits on job listings and company websites can make a difference in attracting top candidates who value more than just monetary compensation.
- Speed Up the Hiring Process
- Take advantage of fewer decision-makers in SMBs and streamline hiring practices. Shortening hiring cycles can lead to faster offer acceptance and a reduced risk of losing candidates to larger competitors.
- Consider Flexibility in Hiring Requirements
- Be open to training candidates who may lack some experience or qualifications but show high potential. SMBs can also leverage contract workers to bridge skill gaps while seeking long-term solutions.
- Partner with a Specialized Recruiter
- Collaborating with a recruiter can help SMBs market their company to job seekers, access a larger talent pool, and identify candidates who fit both the role and the company culture. A specialized recruiter can also streamline the hiring process and help companies avoid costly mistakes.
Small and midsize businesses are navigating a challenging hiring environment, but with the right strategies, they can overcome obstacles and attract the talent they need. By thinking beyond salary, hiring quickly, offering training, and partnering with recruiters, SMBs can build strong, resilient teams and stay competitive in today’s evolving talent market.
