Talent management is associated with large corporations and global companies. However, this mindset limits the growth and expansion of smaller businesses. How to use talent management in small and medium enterprises? Take a look to find out and discover new ways of development in your company!

Talent management in small and medium enterprises – table of contents:

  1. Does talent management in small and medium enterprises always give a competitive advantage?
  2. Productivity
  3. Loyalty
  4. Customers
  5. Talent management in small and medium enterprises
  6. 5 proven steps on how to design Talent Management in small and medium enterprises
  7. Summary

Does talent management in small and medium enterprises always give a competitive advantage?

Talent management is a process of managing human resources, which brings two-sided benefits. HR attracts the right candidates and then takes care of their needs and career ambitions. On the other hand, employees show true loyalty and commitment to their duties.

Progressive companies are aware of the considerable potential of such policies. It is a win-win situation that should be exploited by human resource command professionals. What are the practical benefits?


The high effectiveness of talent management is due to its focus on the natural predispositions of candidates. This approach is recommended by the Gallup Institute itself, which has conducted very interesting research.

According to the Strengths-Based Leadership report, employees without identified strengths have a 9% productivity rate. What’s more, those department leaders who identify and leverage the specific skills of their employees raise the effectiveness of the entire team to 73%! The difference is indisputable!


This is a very important issue that guarantees a stable and functional group of experts. Frequent employee turnover lowers the morale of the remaining members, as well as the profitability of the establishment.

The overall cost of hiring includes recruitment procedures as well as expenses related to training, education and even the consequences of reduced productivity. It’s worth quoting the SHRM report, which calculates the average monetary outlay of hiring and the number of days spent on induction. The data shows $4129 and 42 days, which is a significant expense for any institution.

This is why talent management becomes an effective tool to mitigate the risk of candidate shortages. An optimal approach to these issues will maintain a loyal and motivated group of employees.


A pleased customer is a key outcome of responsible talent management. Satisfaction with partner relationships within the company directly affects the level of service provided to consumers.

But that’s not all, as some individuals manifest special skills and qualifications to build positive customer relationships, talent management allows such professionals to thrive in those sectors that draw on their skills.

Talent management in small and medium enterprises

The way to lead talent becomes tailored to the characteristics and nature of the institution. Many analyses and studies prove that the size of an organization influences the style of HR departments. In what way?

Corporations rely on the very thorough and detailed selection of potential employees, as well as motivation with rewards, promotion prospects, and official evaluation surveys. Large companies focus on development, so training, courses and broadly understood education are part of regular practices.

Small and medium-sized companies focus on organization and administration. However, a lower financial budget does not mean underestimating the talent management domain!

The right team is the ladder through which an organization reaches new customers and markets. It is the right specialist who is the most valuable asset, regardless of the scale and momentum of the activity.

Why should SME owners develop talent management? Here are the arguments:

  • The current recruitment procedure requires full professionalism. The multitude of available advertisements makes it necessary for the job offer to be attractive, advantageous, and well-thought-out. Only in this way does the employer get a chance to attract the most desirable candidates – losing such an opportunity destroys the chance for good cooperation and a quick end of the search.
  • An outstanding candidate knows the potential of their services very well, so talent management becomes a necessity rather than a mere add-on in the whole process. Unfortunately, the competition also sees a huge interest in potential candidates, which motivates even more strongly to develop a special strategy. The entire tactic should function as a form of investment to reach more consumers.
  • Moreover, talent management is a way to communicate your brand. Branding is a form of affirmation of modernity and agility, as well as a strong trademark. The right people work for the image, guaranteeing the highest quality of service and the desired recognition and reputation.

5 proven steps or how to design Talent Management in small and medium enterprises

Small and medium-sized companies experience some limitations in the HR arena. However, it only takes the following 5 simple steps to implement efficient talent management tools – without huge costs and sophisticated procedures!

  1. Remanence – Small size is often associated with smaller budgets and hiring a large pool of candidates is impossible. A thorough analysis of current staffing levels together with the company’s clear mission should precede the selection process. Thanks to this, the right candidate will meet all expectations and will prove himself during future challenges and responsibilities.
  2. Recruitment – the fundamental stage of talent management is the moment of recruitment. Traditional and schematic questions make it difficult to detect the competencies of the interviewee and, as a result, to define the right role in the organization. An interesting idea is to use the Gallup Test, which indicates the user’s strengths.
  3. Development – the results obtained in an atypical test can come in handy for the next stage, i.e., development. Many companies do not conduct any form of systematic training and education of their staff, which greatly reduces the possibility of talent management. A good solution is an individual development plan, which ensures full customization of courses to the preferences of a particular candidate.
  4. Future – lack of coherent vision and promotion options forces people to break the existing cooperation, and proper talent management must be based on a clear direction. Conscious companies create circumstances dedicated to the qualifications of their employees, offering in return numerous ways to promote and build a career.
  5. Past – resignation is an excellent premise for developing new talent. Employees who leave their current position can pass on the knowledge and experience gained to successors. The process generates huge operational savings, so important in the reality of tight SME resources.
Talent management in small and medium enterprises

Talent management in small and medium enterprises – Summary

Talent management is a means to generate great competitive advantage, regardless of scale. Today’s publication is a practical resource for all SME owners who want to increase their reach.

Read also: Talent management in company

If you like our content, join our busy bees community on Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest.

Talent management in small and medium enterprises nicole mankin avatar 1background

Author: Nicole Mankin

HR manager with an excellent ability to build a positive atmosphere and create a valuable environment for employees. She loves to see the potential of talented people and mobilize them to develop.