Talent Acquisition in MSMEs: Learning from Best Practices

Organisations are made up of people, and finding the right people is one of HR's most important responsibilities. This is even more critical for MSMEs because they often have limited resources and lower visibility when compared to large corporations. This is where talent acquisition, employer branding, and employee value proposition (EVP) can make a real difference in shaping the quality of hires for the organisation.

Talent Acquisition (TA)

Talent acquisition is an important part of HR. It starts when the TA specialist/HR SPOC gets a mandate from the hiring/business manager regarding what kind of person is needed for a role. The first step is job analysis, understanding the position's duties and the characteristics of the person we want to hire. For greater accuracy, the outgoing incumbent should ideally be consulted. This helps in preparing:

1. Job Requirements (JR): What the job entails, roles, responsibilities, mode of work, reporting structure, location, shifts, etc.
2. Job Specification (JS): What kind of person is suitable? Competencies, qualifications, skills, and behavioral/domain-specific knowledge.
3. Job Description (JD): JD is a combination of JR & JS. A compelling, purpose-driven summary of the job and its connection with the bigger picture gives the role immediate relevance. Use of action-oriented language while defining responsibilities showcases the impact of the role. Highlight skills that matter to the role.

In the case of a new role, it is prudent to do the compensation benchmarking and market mapping—identifying competitors, what they are paying for the same roles, and where the right talent is available. Keep space for the organisation's cultural DNA and a snapshot of the hiring process. Well-written job descriptions (JDs) excite & attract talent.

Sourcing Strategy: The TA/HR SPOC decides from where to hire, i.e., campuses, job boards, portals, job fairs, walk-ins, newspapers, employee references, promotions, IJP, social media, returnees, alumni, recruiters, and careers pages. Prepare the pitch aligned to the employee value.

Proposition: Upload the job description on the appropriate channels and make the application process prospect-friendly.

Assessment & Selection Process: The HR pre-screening, based on the JD, is the first step in the process.

Knowledge Round: Technical tests, case studies/situations, and structured interviews (standardized questions, defined scoring rubrics, and aligned evaluation criteria) for improved reliability, data-informed assessment & predictability, and reduced reliance on intuition and subjectivity.

Psychometric Tools: Leveraging scientific data around critical competencies and values helps in unveiling what interviews do not.

Final Round: Validation of Inputs from the previous rounds and questions from the prospect bring this process to a closure

Preboarding and Onboarding Process: The offer is made following negotiations based on documentary evidence to the selected candidate. Preboarding engagement follows the acceptance of the offer, mitigating the risk of a “no show”/“offer drop.” Background and reference checks are necessary for securing the organisation against hiring risks

Immersive onboarding is set up on joining to reinforce the brand promise.

Why Employer Branding and Employee Value Proposition (EVP) Matter

Attracting talent is one of the most important tasks for any HR department. Because the kind of people we attract defines the quality of the business outcomes

What is Employer Branding?

Employer branding is about how a company positions itself as a great place to work, both internally and externally. It acts like a magnet that attracts people. Build your employer brand by creating listening systems, viz., social media analytics, surveys, stay/exit interviews, and all-hands meetings, to understand the themes and what needs improvement. Additionally, activate employees as brand advocates to build trust ... real work experiences, BTS moments, stories of growth, and employee advocacy programs.

What is an Employee Value Proposition (EVP)?

EVP is a unique value that an employer offers to employees in return for their work. It answers the question: Why should a prospect select to work with an employer and choose to show up each day once selected? An EVP is not just about money but also the employee experience. The ecosystem across all talent touchpoints includes meaning, purpose, values, culture, well-being, career growth, learning, safety & inclusion, being seen, heard & valued, and work-life harmony. A strong EVP helps employees feel valued and respected, especially when high salaries aren’t possible. In the War for Talent, let your employer brand speak louder than money. If intentionally designed and consistently delivered, it serves as a magnet for talent.

Can the MSMEs convert their hiring constraints into strengths by leveraging the Talent Acquisition Practices?

A quick dipstick into their struggles reveals that they:

• can’t compete with big brands on money or benefits
• Are often founder-family owned & run
• Operate informally, without defined roles or processes
• have a weak digital footprint
• We are located in Tier 2/3 cities with poor connectivity
• Work on short-term goals instead of long-term vision
• Low visibility on hiring channels/social media pages/campuses

Taking one Step at a Time, investing in the Employer Brand, Activating Employees as brand ambassadors, and creating a unique employee value proposition that is honest, real, and trustworthy is the Secret Sauce for winning the Talent War when all other things are “unequal,” as stated above.

Going Beyond Hiring for the Present: Building Future-Fit Talent for MSMEs

Here’s what you can do:

• Break down business needs/outcomes into talent quality/quantity.
• Conduct skill gap analysis of the current workforce
• Align learning and development to address skill gaps
• Build internal talent mobility—cross-functional exposure, job rotation
• Partner with external talent ecosystems—state skill universities
• Redesign hiring strategies—shift from degree-based to skill-based hiring
• Tap into non-traditional pools—freelancers, women returnees, wisegens
• Promote cross-skilling and dual-skilling—like Sales + Data Analysis, HR + Digital Tools, Marketing +

If you have personal experiences to share that support this prescription or add to it, write to [email protected].

By Sunny Sharma, MHROD Class of 2023 | Edited and Researched by Triveni Mehta, Senior Human Resource Consultant