Robert Half Research Highlights Top Hiring Challenges for Small and Midsize Businesses Heading Into 2025

New research from global talent solutions and business consulting firm Robert Half identifies the primary recruitment obstacles small and midsize businesses (SMBs) face as they prepare for the year ahead. Based on a survey of over 1,700 hiring managers at small (20-99 employees) and midsize (100-999 employees) companies, the research provides insights into the complex hiring landscape and strategies to help SMBs compete for talent.

The top hiring challenges reported by SMBs include:

• Meeting Salary Expectations: Nearly half of SMB hiring managers cited aligning salaries with candidates’ expectations as their primary hiring challenge. Robert Half’s 2025 Salary Guide aims to support managers in understanding competitive salaries for various roles.
• Talent Shortages: Over 40% of hiring managers listed finding skilled candidates as a major obstacle. Many SMBs are looking to expand their teams but face difficulties in locating individuals with the required expertise.
• Extended Hiring Cycles: Close to 40% of hiring managers reported losing top candidates to competitors due to prolonged hiring processes. Extended hiring cycles also contribute to increased workloads, burnout, and turnover among existing staff, with nearly half of SMB hiring managers noting higher turnover rates as a result.
• Cultural Fit: More than 40% of managers anticipate challenges in finding 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 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.”

Strategies for Navigating the Hiring Landscape

Robert Half suggests four strategies for SMBs to overcome these challenges:

1. Highlight Company Strengths Beyond Salary: Promote aspects like corporate culture, flexible work options, paid time off, and career growth opportunities on your website, job descriptions, and social media channels.
2. Streamline the Hiring Process: With fewer stakeholders involved, SMBs have the potential to make quick hiring decisions, allowing them to extend offers faster than larger companies.
3. Consider Training High-Potential Candidates: Be flexible on experience requirements and consider upskilling promising candidates. Contract workers can also help fill skills gaps on the team.
4. Partner with Specialized Recruiters: Recruiters can help SMBs market their company effectively to job seekers and identify suitable candidates.

About the Survey

The survey, conducted by an independent research firm in June 2024, gathered responses from over 1,700 U.S.-based managers in fields such as finance, technology, marketing, legal, and customer support at companies with 20 or more employees.