New research conducted by leading HR tech platform Employment Hero, has revealed small and medium-sized enterprises (SMEs) in Singapore are struggling to overcome numerous disparities that hinder their ability to attract and retain top talent. The study, which was conducted in Singapore and Malaysia and surveyed 515 hiring leaders, highlights the need to level the talent recruitment playing field between local SMEs and multinational corporations (MNCs).
According to the study, the main barrier SMEs encounter in talent acquisition is rising advertising costs for job vacancies, with 86% of business leaders agreeing advertising costs have increased from the previous year, while 83% say the cost of accessing job boards is also prohibitive. Other reasons for increased hiring costs include 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 out of reach.
Ensuring Singaporean SMEs have access to the right talent is critical for Singapore’s economy and growth, given 96% of Singaporean businesses are SMEs. To address these challenges, Employment Hero recently launched Swag, the world’s first employment superapp, which uses an AI-powered recruitment functionality designed to streamline the job search for SMEs and jobseekers. Buoyed by a network of more than 200,000 employers and over 1 million employees, Swag makes finding, onboarding, and rewarding talent easier, by allowing businesses to post job ads for free, with job applicants matched to roles through AI.
“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. Swag was created by Employment Hero to address these issues by providing a free, AI-powered platform for job posting and matching, significantly streamlining the hiring process,” said Kevin Fitzgerald, Managing Director, Asia, at Employment Hero.
“It’s crucial for SMEs to rethink their recruitment strategies to compete against MNCs for talent, and it’s 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,” he added.
