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.

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