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Talent attraction and retention: A sustainable talent strategy for SMEs

Talent retention is a challenge for SMEs competing with larger companies. What can SMEs do to develop a sustainable talent strategy? Learn how.
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Four of the top 10 people risks in Asia are driven by talent and workforce issues.1 Competing for talent is a constant challenge for companies of all sizes, including small and medium-sized enterprises (SMEs), due to the perception that larger companies can offer more stability, career advancement, and better employee benefits. 

Uncompetitive talent attraction and retention strategies, along with labour shortages, have been identified as key people risks. 

Your company can develop a sustainable talent strategy that balances pay, rewards, benefits, career development, and employee experience in a practical and cost-effective manner.

Here are two actionable talent strategies that you can adopt:

1. Talent upskilling and reskilling: 39% of SMEs are concerned about the implications of not providing employees with career growth opportunities.

This concern is especially pressing for securing critical lower-wage workers or high-quality supervisors, which poses a risk to core services and overall business operations.

Your company need to ensure your workforce is well-equipped to remain competitive. Upskilling and reskilling not only help your employees develop their careers, but also to bridge skill gaps required for the growth of your business, and support talent retention. 

2. Boost healthcare affordability: Amid soaring medical trend rates of 13% in Asia,2 60% of SMEs rated healthcare affordability support as moderate or minimal. 

Healthcare is one of our basic human needs, and employee benefits related to healthcare are important to employees. According to Mercer Marsh Benefits Health on Demand 2023, about 20% of employees globally express concerns about their ability to afford family healthcare. Inevitably, these worries affect employees’ well-being and work performance.

A robust and comprehensive health and benefits plan that addresses your employees’ diverse needs and outlines ways to alleviate their financial strains can effectively address your talent attraction, retention, and engagement challenges.

Did you know that we have helped many SMEs attract and keep the best people? 

Size should not limit your ability to offer outstanding benefits. We can help you gain a competitive edge by offering more comprehensive benefits tailored to the needs of your workforce.

Choose Mercer Marsh Benefits to Select More Competitive Advantage

Get in touch for a non-obligatory discussion.

1 People Risk 2024 (Mercer Marsh Benefits)
2 Health Trends 2025 (Mercer Marsh Benefits). Definition of medical trends: Medical inflation + Changes in treatment mix + Utilisation changes + Regulatory changes = Year-over-year cost increase for claims on a per-person basis made under a medical scheme