Overcoming the Personnel Shortage in Small and Medium-Sized Industrial Enterprises

Abstract

The shortage of labour is one of the most acute problems faced by small and medium-sized industrial enterprises in a dynamically changing external environment and economic instability. Due to the limited scope of activities, it is difficult for small and medium-sized enterprises to compete with large enterprises both in terms of wages and working conditions. The situation is aggravated by the growing number of government defense orders, which are the reason for the outflow of personnel from small and medium-sized enterprises. The lack of highly qualified and specialized employees has a negative impact on productivity, costs, growth opportunities and business competitiveness. The article analyzes the causes of the labour shortage and its impact on the activities of small and medium-sized industrial enterprises, examines the ways to attract employees with the necessary competencies, including through interaction with educational institutions, highlights the possibilities of increasing the loyalty of the existing staff. The paper shows that the problem of personnel shortage in small and medium-sized industrial enterprises is facilitated by the diversification of recruitment tools, using the modern labour management technologies and improving the efficiency of HR management through the development of a quality control system and process documentation. Attention is also paid to ways of increasing the current employees’ loyalty based on the use of flexible work arrangements and social benefits. The results of the research can be used in the strategic planning of personnel recruitment and retention by small and medium-sized industrial enterprises.