5 Hiring Challenges of Growing Businesses

HR solutions effectively centralizes the workflow and manages hiring-related issues.
HR solutions effectively centralizes the workflow and manages hiring-related issues.

The Human Resource vertical within businesses are undergoing a significant transformation. The onset of Covid-19 has drastically changed the modus operandi for these departments. So HR Softwares are helping companies achieve greater efficiency at affordable prices.

They help in centralizing the workflow systems to make the best use of their limited resources. Several HR software solutions help companies navigate through issues. Organizations need the latest HR tech to manage recruitment, salary, compliance, and hiring-related issues.

Centralization of workflow with HR solutions

Hiring Problems that Growing Companies Face

Small businesses face hiring issues like resource crunch, limited staff, and compliance problems. Dealing with these problems is necessary to ensure a smooth recruitment and onboarding process. Having a dynamic HR software is a must for companies to ensure a smooth and efficient hiring process.

Finding the Right Candidates

Problem: Recruiting the right set of employees for any company requires time, effort, and money. Growing businesses are often found wanting in these areas. They need the best HR software tools to hire and retain talent to remedy this problem. 

HR tech and HR tools can help companies automate the entire recruitment process. Employers need to hire candidates that will help in the company’s growth. 

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Solution: Targeting potential candidates is a difficult campaign. To ensure that you onboard the right candidates, update the crucial details and requirements to attract the top applicants. 

After acquiring a pool of talented candidates, schedule well-structured interviews to know the candidate’s strengths and weaknesses. Using HR software can also streamline and automate the process.

Training Candidates

Problem: Lack of proper training for the new candidates can directly affect the quality of the work output. Budget constraints are another reason that leads to a lack of training. 

Training candidates is extremely important for the growth and development of the organization. With continuous new scenarios, it is crucial to address the issue of training the employees.

Solution: Companies can organize meetings after a certain interval to discuss the changes in the current processes and then make changes in the training modules. During the training, ask the skilled and older employees to share their knowledge. New employees should be taught to deal with conflicts and problems.

Growing businesses can use HR software to fulfill the training and development needs of their employees. Such software eases the process of training the employees.

Q&A sessions during candidate training


Problem: A low payscale is one of the major reasons that many talented individuals choose not to work with growing business. The reason for this is that small-scale business usually have a very limited recruiting budget, and they are not able to pay their employees well. 

This can be a challenge, as it can restrict the companies from hiring talented individuals in their teams.

Solution: Companies can try to make up for the lower salary with other benefits and perks. Growing companies are finding success by giving employees control over their hours and flexible days off that result in more productivity and engagement.

Retaining Candidates

Problem: Retaining candidates is even more difficult than hiring them. If an employee is dissatisfied with anything, they are most likely to leave the company. Any company would not like to lose their skilled and talented employees. 

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However, an employee’s exit can be many, and for any HR, it is a great task to figure out the reason. A solution to this problem is a must because such employees are the backbone for the company’s growth.

Solution: To reduce employee turnover rate or retain employees, make sure to cater to the needs and demands of the employees.

Companies must ensure that their employees receive competitive salaries, have an engaging work environment, and address their issues. Employees should also have job fulfillment and have proper training.

HR software can help the management ensure a glitch-free onboarding process that imparts the right skills amongst employees and ensures employee satisfaction.

Rewards & recognition as a key aspect of employee retention

Lack of Professional HR Staff

Problem: Growing businesses are heavily dependent on the manual function of the HR department, which results in a substandard service when overworked and stressed. Manual work is easy to perform in a small business or firm. 

However, the number of employees and talent pool increases with a growing business. Maintaining and keeping track of all the details is a difficult task.

Solution: Growing businesses may not have the budget for a full-fledged HR department. They can outsource the staffing and recruitment function to professional HR consulting firms. Companies can also check HR websites and use the HR tools to train their staffing and recruitment teams.

Concerns with Regulatory Compliance

Problem: Every startup must operate in compliance with laws. Failure to adhere to these laws and regulations can cause serious troubles for the startups, such as fines, punishments, license cancellation, etc. It can adversely affect the limited capital of the startups.

Solution: Compliance with the regulatory laws that govern recruitment, hiring, staffing, and other HR functions is not easy. Growing businesses must keep track of these rules to ensure that they are not breaking them. They can use HR software to help with these matters.


The right HR software can make or break any business. Companies need these packages to complement sound human resource practices in their business. Payroll, record keeping, regulatory compliance, attendance tracking, benefits administration are some functions where companies need a dedicated HR software solution. 

They can either check the latest HR websites or connect with consulting firms to understand more about the type of HR technology solutions suited to their business. The modern market is brimming with affordable innovations of ATS and other software that can centralize the HR system making the process efficient and accurate. 

The right software can alleviate small businesses by automating the administrative task and giving the HR coordinators the tool to find and retain the top talents. Strengthen your growing task force by hiring the right candidates with PyjamaHR. Register for free to see how it works.

Frequently Asked Questions(FAQ)

What is considered to be the greatest challenge faced in recruitment?

Attracting the top talent is the biggest challenge faced in recruitment.

Why is hiring difficult?

Many candidates lack key skills: A study conducted by the Society for Human Resource Management found that employers may be struggling to find good hires because so many job searchers lack certain basic skills.

What factors make it difficult to recruit qualified employees?

A low number of applicants, candidates without the needed work experience, competition from other employers, candidates’ lack of technical skills and the local market not producing enough qualified candidates are the top reasons for recruiting difficulty, according to HR professionals.

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