72% of Indian job seekers prefer SMBs over large enterprises

Bengaluru, 13th September 2022: A recent study by the world’s #1 job site, Indeed, revealed that 72% of job seekers in India prefer SMBs over large enterprises. 

The primary reason for job seekers preferring SMBs, according to the survey, includes challenging job roles (73%) at small businesses and scope for innovation and learning (67%). 

However, Indian jobseekers also know that working at small businesses could mean letting go of a few things. For example, 44% of job seekers surveyed feel SMBs offer low salaries, inadequate benefits and perks (32%), and have limited resources (31%). Despite this, job seekers feel that SMBs offer a faster growth curve and a more dynamic learning environment than larger companies. 

Hiring disparity in the SMB sector

Despite the positive sentiment from Indian jobseekers, SMBs are struggling to capture the right talent. SMB hiring practices are focused on referrals and family connections, because of which they have lost out on a large pool of skilled talent. This is evident from the study, which shows that 74% of SMBs preferred hiring through personal or known references because it is easier or quicker to hire a candidate from within the family or through connections. These hiring practices have pushed SMBs to underscore the importance of a skilled workforce, as 60% of SMBs have highlighted a close to 40% skill gap in their organisations.

However, in contrast, a considerable portion of Indian jobseekers (67%) prefer finding jobs through democratic job sites or portals, giving them more access and freedom to choose from various job opportunities. This indicates the hiring disparity between SMBs and job seekers. 

The primary reason is that SMBs do not have the time or resources to spend on hiring. Many SMBs are micro-SMBs and don’t have dedicated hiring partners, with 33% of them indicating this as a challenge. 

Sashi Kumar, Head of Sales, Indeed India, said, “Today’s SMBs face 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. However, job seekers are focused on SMBs, meaning they need to lay the foundation for strong HR practices and realise the value of hiring right to flourish and contribute to India’s growing economy. SMBs are expected to create 2 million jobs in the next five years, and hence SMBs must adopt democratic hiring practices that allow them to create a more diverse talent pool.”

Tob SMB job roles, cities and sectors

According to the study, top cities where job seekers are highly attracted to SMBs include Bangalore and Mumbai (83% each), Chennai (75%), Hyderabad (71%), and Kolkata (69%). In terms of sector preference, IT (39%) leads, followed by hospitality and food (24%) and e-commerce (23%).

With accelerated digitisation, Indian SMBs are at a crucial phase of growth. They will compete against large enterprises and need to unlock their true potential by leveraging technology in hiring. 

Methodology:

The research was conducted with 610 SMBs and 1320 jobseekers by Valuevox on behalf of Indeed. 

About Indeed:

More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world and allows job seekers to search for millions of jobs on the web or mobile in over 60 countries and 28 languages. More than 250 million people search for jobs, post resumes, and research companies on Indeed.