Robert Half Research Reveals Key Hiring Challenges for Small and Midsize Businesses Heading Into 2025

Rhea-AI Summary

Robert Half's latest research reveals major hiring challenges for small and midsize businesses (SMBs) heading into 2025. Based on a survey of 1,700+ hiring managers, the top concerns include: meeting salary expectations (cited by nearly half of respondents), finding skilled talent (over 40%), and losing candidates due to slow hiring processes. Nearly half of SMBs report higher turnover rates due to extended hiring cycles, while over 40% struggle to find candidates matching their company culture. To address these challenges, Robert Half recommends strategies including promoting company strengths beyond salary, accelerating hiring decisions, being flexible with requirements, and partnering with specialized recruiters.

Insights

Market Research Analyst

This research reveals significant hiring challenges for SMBs that could impact Robert Half's business model and market position. Nearly 50% of SMB hiring managers struggling with salary expectations indicates potential revenue pressure for RHI's recruitment services. The widespread talent shortage affecting over 40% of managers could drive increased demand for RHI's specialized recruitment services, but may also lengthen placement cycles and affect commission revenues.

The report's timing and focus on 2025 projections suggests RHI is positioning itself as a strategic solution provider for SMBs, which could strengthen its market share in this segment. However, the highlighted hiring delays and turnover issues may signal broader market challenges that could affect RHI's ability to maintain its placement rates and service margins.

Meeting salary demands, talent shortages and extended hiring cycles are top concerns among SMBs.

MENLO PARK, Calif., Nov. 13, 2024 /PRNewswire/ -- Research from global talent solutions and business consulting firm Robert Half reveals the top recruiting obstacles small and midsize businesses (SMBs) are facing now and in the months ahead. The research offers valuable insights to help SMBs compete for top talent in a complex and evolving hiring landscape.

According to a survey of more than 1,700 hiring managers at small (20-99 employees) and midsize (100-999 employees) companies, the greatest hiring challenges facing SMBs include:

• Salary pressure: When asked to rank their greatest hiring challenges between now and the end of 2025, nearly half of SMB hiring managers cited meeting candidates' salary expectations. The newly-released 2025 Robert Half Salary Guide can help managers research and better align on salaries for open roles.
• A skilled talent shortage: While many SMBs will be looking to add talent to their teams, more than 4 in 10 managers surveyed named finding candidates with the required skills among their top hiring challenges between now and the end of next year.
• Costly hiring delays: Nearly 4 in 10 hiring managers at SMBs said that losing a top candidate to a competitor due to a slow hiring process was a primary concern. Prolonged hiring cycles can also lead to heavier workloads, burnout and turnover of existing staff. In fact, nearly half of SMB hiring managers are experiencing higher rates of turnover because of how long it takes to hire for open positions.
• Finding the right workplace culture match: Of the managers surveyed, more than 4 in 10 anticipate struggling to find candidates who align with their company culture.

"Small and midsize businesses face unique challenges when it comes to attracting and retaining top talent," said Dawn Fay, operational president of Robert Half. "In today's market where workers are being selective about their next opportunity, these employers need to be creative, agile and efficient in their hiring practices to compete effectively and build strong, resilient teams."

Robert Half outlines four strategies for SMBs to successfully navigate today's hiring market:

1. Take inventory — and think beyond salary. Promote your company's strengths and differentiators — such as corporate culture and values, flexible work options, a generous paid time off policy, and career advancement opportunities — on your website, within job descriptions and on social media.
2. Hire quickly. Since SMBs typically have fewer stakeholders involved in the hiring process and face less red tape than larger companies, you can often make decisions and extend offers more quickly.
3. Be willing to bend on requirements. Consider options to train and upskill high-potential candidates, even if they don't possess the ideal years of experience or exact qualifications. Additionally, leverage contract workers to help bridge skills gaps on your team.
4. Partner with a recruiter. A specialized recruiter can market your company to job seekers and help identify the right candidate for the job.

For more information about how Robert Half can assist your business in navigating the hiring landscape, visit www.roberthalf.com.

About the Survey Research
The survey was developed by Robert Half and conducted by an independent research firm in June 2024. It includes online survey responses from more than 1,700 managers with hiring responsibilities in finance and accounting, technology, marketing and creative, legal, administrative and customer support, and human resources at companies with 20 or more employees in the United States.

About Robert Half
Robert Half (NYSE: RHI) is the world's first and largest specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti^®, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half, including Protiviti, has been named one of the Fortune^® Most Admired Companies™ and 100 Best Companies to Work For and a Forbes Best Employer for Diversity. Explore talent solutions, research and insights at roberthalf.com.

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SOURCE Robert Half

FAQ

What are the main hiring challenges for SMBs in 2025 according to Robert Half (RHI)?

According to Robert Half's survey, the main hiring challenges for SMBs in 2025 are meeting salary expectations, finding candidates with required skills, dealing with slow hiring processes, and finding candidates who match company culture.

How many hiring managers were surveyed in Robert Half's (RHI) 2025 SMB research?

Robert Half surveyed more than 1,700 hiring managers at small (20-99 employees) and midsize (100-999 employees) companies for their research on 2025 hiring challenges.

What solutions does Robert Half (RHI) recommend for SMBs' hiring challenges?

Robert Half recommends four strategies: promoting company strengths beyond salary, making quick hiring decisions, being flexible with candidate requirements, and partnering with specialized recruiters.

What percentage of SMBs face turnover issues due to slow hiring according to Robert Half (RHI)?

According to Robert Half's research, nearly half of SMB hiring managers are experiencing higher rates of turnover because of prolonged hiring cycles for open positions.