A Guide to Challenges Faced by SMEs in Singapore

Small and medium-sized enterprises (SMEs) are the backbone of Singapore’s economy. They employ around 70% of the workforce and contribute to the nation’s economic growth. Despite their vital role, these businesses often face unique challenges.

While they may be quick to adapt to market changes, a crucial area that often becomes a bottleneck is human resources (HR). From administrative tasks to talent management, HR challenges can hinder the very growth that makes them so critical. This blog aims to explore these common difficulties and highlight how specific HR strategies can turn these hurdles into opportunities.

The HR Challenges Faced by SMEs in Singapore

Managing human resources in Singapore presents a specific set of hurdles for SMEs. Lacking the large, dedicated HR teams and extensive budgets of multinational corporations, they often face various operational and strategic difficulties.

One of the most pressing issues is the volume of administrative tasks. HR professionals in SMEs are often burdened with manual, repetitive work — from onboarding new hires and managing leave applications to processing payroll and ensuring compliance with local regulations. This leaves little time for strategic initiatives that could contribute to the business, such as talent development and employee engagement.

Another significant challenge is talent management. Attracting and retaining top talent in a competitive market can be difficult for smaller companies. They may struggle to offer the same salaries or benefits as larger corporations.

This is further complicated by the latest HR trends, which emphasise a strong employee experience and positive company culture, often requiring dedicated time and resources that many SMEs simply don’t have. The combination of these factors can lead to high employee turnover and a constant cycle of recruitment.

Why SMEs Need Smarter HR Tools

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To overcome these hurdles, SMEs in Singapore are encouraged to move beyond traditional HR methods. Smarter HR tools are no longer a luxury but a necessity for survival and growth. By leveraging the right technology, SMEs can automate their mundane, time-consuming administrative tasks, freeing up their valuable HR professionals to focus on strategic activities.

For instance, a modern HRMS can be the most effective solution. This type of platform streamlines a wide range of HR functions, from managing employee records in a central personnel hub to automating payroll calculations and ensuring compliance with statutory requirements.

By centralising these processes, a good HR tool minimises errors, enhances efficiency, and provides a clear overview of the workforce. It empowers SMEs to operate with the agility of a large enterprise without the overhead.

How BIPO’s Solutions and PSG Grant Can Help

BIPO offers a suite of HR solutions specifically designed to help businesses overcome their challenges and thrive. Our comprehensive HR automation software automates your entire HR workflow, from onboarding to off-boarding.

This includes modules for time and attendance, leave and claims management, and seamless payroll processing, all delivered on a cloud-based platform accessible via a mobile app. This end-to-end service allows your HR team to move away from administrative burdens and focus on what truly matters: building a productive and engaged workforce.

Our expertise also extends to global payroll services, helping SMEs in Singapore manage their workforce across borders with ease.

What makes BIPO’s offering particularly advantageous for Singaporean SMEs is our status as a pre-approved vendor under the Productivity Solutions Grant (PSG). This grant offers eligible companies an opportunity to receive up to 50% funding support for adopting BIPO’s HR and payroll solutions. It’s an investment in your company’s future that not only boosts HR efficiency but also positions you for sustainable growth.

Transform your HR processes with BIPO’s solutions — get in touch with us today.