Ease of Doing Business for MSMEs: More than 70 per cent job seekers in India prefer working in small businesses (SMBs) instead of large enterprises, revealed findings from the study done by job listings platform Indeed.
The research was conducted with 1320 job seekers and 610 small businesses by analytics firm Valuevox on behalf of Indeed.
The report stated that the jobseekers believe SMBs provide a faster growth curve and a dynamic learning environment as compared to larger companies.
More than 73 per cent of India’s talent pool said they prefer having a challenging job role that allows them to step outside their comfort zone and 67% preferred a job that allowed them to innovate and learn.
The jobseekers are also aware that working at small businesses could mean letting go of a few things. In fact, 44 per cent of job seekers surveyed feel SMBs offer low salaries, inadequate benefits and perks (32%), and have limited resources (31%), said the report.
“It is evident that job seekers are focused on SMBs which means that they [small businesses] need to lay the foundation for strong HR practices and realize the value of hiring right to flourish and contribute to India’s growing economy,” Sashi Kumar, Head of Sales, Indeed India said.
According to the report, Bangalore (83%), Mumbai (83%), Chennai (75%), Hyderabad (71%), and Kolkata (69%) are the top five cities where job seekers are highly attracted to SMBs. The IT sector (at 39%) is the most preferred sector of jobseekers followed by hospitality and food (at 24%) and e-commerce (23%).
The top job roles preferred by India’s talent pool are a software developer followed by sales executive, front desk executive, customer relationship manager and HR associate respectively.
“SMBs are expected to create 2 million jobs in the next 5 years and hence SMBs must adopt democratic hiring practices that allow them to create a more diverse talent pool,” said Kumar, in the company’s statement.
Despite the attention given to SMBs by jobseekers, the small businesses are still struggling to capture the right talent because of over reliance on referrals and family connections, noted the study. Almost 60% of SMBs reported having a 40% skill gap in their organizations.
“Today’s SMBs are facing increased competition for talent, especially from large players. They are struggling to find the right fit candidates, and are wary of the impact hiring delays will have on their business,” said Kumar.