Contributed by Nidhi Sehgal, Knowledge Buddy
KB - What are the major HR challenges which the MSMEs face ?
Mr Vikram Hoon: The major HR challenge faced by any MSME is attracting the right and best talent which is inevitably followed by retaining quality employees. The reasons behind this may be several. Firstly, there is the apprehension of limited learning and a stunted growth path. The general perception is that learning and growth are directly proportional to the size of an organization. Also, MSMEs are not seen as being well organized companies.
Secondly, there is the dilemma of whether an MSME will have a professional work environment where employees are given enough opportunity and space to realize their true potential or a controlled atmosphere with a mechanical style of working.Last but not the least; prospective employees have the doubt of whether the compensation would be commensurate with the market standards and the individual’s skills and competencies.
However, it needs to be realized that the learning opportunity offered by an MSME is unparalleled to that of a large organization. An MSME, because of its inherent DNA has a smaller workforce, which means a larger spectrum of areas which an employee handles, thus gaining varied experience across the functions of the organization. This is in contrast to a large organization where an individual’s role constitutes a small share in the larger canvas.Also, unlike the rigid compensation structure of larger organizations there is much more flexibility in the compensation and benefits structure of small or medium organizations.
KB: What are the building blocks of a strong organization structure with respect to a start-up?
Mr Vikram Hoon: For a small to medium sized start-up business, it is crucial to identify the critical requirements of the nature of the business and build a small nucleus of key people who are knowledgeable in the areas critical to the business.
This nucleus of key people should be empowered sufficiently to expand business opportunities. The organization should nourish this nucleus with the support of people, processes and technology to enable them to attain the desired organizational objectives.
KB: What are the steps that an MSME should take to ensure a smooth scale-up?
