Addressing SMME recruitment headaches with smarter and faster hiring processes

Many small, medium and micro enterprises (SMMEs) in South Africa are struggling to reach their full potential because of the costs and complexities involved in finding and recruiting the right people. Affordable solutions that help connect them to high-quality candidates are key to changing this picture.

“With an estimated collective turnover of nearly R5.3 trillion and a workforce of around 13.5 million according to FinMark, South Africa’s SMME sector is a force to be reckoned with,” says Ilana Bouwer, Head of Sales at Pnet. “Yet many smaller businesses are struggling to scale and grow due to the challenges in finding the right people with the right skills.

 “We’ve just kicked off our Haibo campaign to highlight the uphill struggle SMMEs face in finding the people to fill their vacancies. We believe that it’s essential to make recruitment faster, more flexible and more affordable if we are to unlock growth in the SMME sector and drive job creation.

“We showcase how SMMEs can turn ‘Eish’ into ‘Ayoba!’ when they have access to a large database of quality candidates, a high volume of applications for their job ads, and a quick turnaround time to fill a vacancy. Our campaign is full of fun South Africanisms to show how local expertise and partnership are key to successful recruitment in the South African market.”

Research such as the Xero State of Small Business (2024) report shows that South African SMMEs are facing difficulty in finding the right talent. A fifth of respondents in this survey report that a skills shortage is a barrier to their growth. GeoPoll’s Pulse Survey, meanwhile, reveals that 45% of African SMMEs are finding it difficult to locate qualified staff.

More than 60% of South African companies see skills gaps as a key barrier to business transformation by 2030, according to the World Economic Forum’s (WEF’s) Future of Jobs Report 2025. “That means SMMEs are competing against larger and better resourced companies for rare skills such as engineering, finance, technology and management,” says Bouwer.

“Their challenge is compounded by the high costs and slow speed of recruitment. Unlike larger companies, most SMMEs don’t have dedicated recruitment teams and haven’t invested in technologies such as application tracking systems (ATSs). Neither can they afford to pay a recruitment agency tens of thousands of rand for each placement.” The upshot is that many SMMEs are battling to find high-quality pools of talent to recruit from.

What’s more, the stakes of recruitment are particularly high for SMMEs. Because they run a tight ship, they generally need to hire fast in response to a business opportunity or the loss of a key member of the team. This reactive approach can lead to hasty decisions and mis-hires, especially when a company doesn’t have access to a pool of strong candidates.

“With South Africa’s strict labour laws, SMMEs simply can’t afford to make a mistake when they hire. The costs of a bad hire can be high, when onboarding and training expenses, lost productivity, and severance pay are added together. To overcome these challenges, SMMEs should consider adopting more strategic and technology-driven recruitment solutions,” says Bouwer.

Here are some pointers from Pnet to consider:

1. Use affordable platforms to reach high-quality candidates:  Specialist, local recruitment platforms with searchable databases and smart algorithms can help SMMEs home in on the best candidates among the applications they receive. They should include candidate filtering tools to cater for nuances in South African recruitment, such as employment equity targets.
2. Leverage advanced recruitment technology: Leading specialist job-matching platforms today incorporate features such as ATS that allow SMMEs to track candidates throughout the hiring experience. Not only can SMMEs search millions of jobseekers, but they can also keep track of their interactions with each candidate.
3. Choose smart partners: Data-driven job-matching platforms should include tailored, personalised service to reduce admin for SMMEs. For example, they may offer response handling teams to manage the recruitment process, so business owners can focus on running the business. This cuts down on work without the need for high agency fees. Local platforms will also offer smart, South Africa-specific insights on local recruitment trends.
4. Define the role clearly: Write a precise job description with key responsibilities and required skills to attract the right respondents. Highlight growth opportunities to entice candidates looking for career progression. Be sure to point out non-monetary perks like flexible work arrangements, training, and mentorship.
5. Streamline the interview process: Spend time brushing up on interview techniques, using structured questions to assess skills and cultural fit. Skills tests or practical tasks can be helpful for evaluating a candidate’s real-world ability.
6. Screen carefully to hire right: When it’s nearing time to offer a job to a candidate, it’s important to do a careful background check. Speak to their references. Also, use online services to verify their qualifications, driver’s licence and identity as well as check their credit and criminal record.
7. Act fast on good candidates: Don’t lose out on a good potential hire due to slow hiring decisions. SMMEs should streamline the decision-making process to secure top candidates quickly.
8. Strengthen your employer value proposition (EVP): Competing with big companies for top talent requires a compelling EVP. SMMEs should highlight what makes them unique—whether it’s a close-knit team, faster career growth, diverse responsibilities, or a strong workplace culture.
9. Invest in upskilling: Xero’s survey shows that 55% of SMMEs are planning to invest in upskilling their current employees. Investing in employee development is a great way to build a talent pipeline and reduce the pressure to hire fast when the business grows or changes.

 Addressing recruitment risks and costs

“Recruitment costs and risks can be overwhelming, especially for SMMEs with limited budgets. But with the right tools and processes, smaller businesses can overcome their biggest recruiting challenges and build the right team says Bouwer. “This, in turn, can help an SMME to create a positive workplace, grow its business, and ensure long-term success.”