MSME Owners Confused About HR? Maximizing Your Workforce

Stratefix Consulting reported 93% of MSME entrepreneurs confused about HR.

Employees are an important capital for doing business in the 20th century and the HR department was created to make the most use of this human capital investment.

A survey of 1000+ Micro, Small, and Medium-sized (MSME) Entrepreneurs was conducted by a management consulting firm named Stratefix Consulting, holding more than 12 years of extensive experience in the field of HR Consulting.

Core Objective of Survey :

This Market survey was designed and executed to map the present understanding and clarity about the role of the HR Department from the angle of MSME Entrepreneurs.

Important Topics covered under this survey from the perspective of MSME Entrepreneurs:
  1. Top Most 2 important roles of an HR Department
  2. Is the thinking and focus of the HR department more inclined towards the employees and less towards the Organization?
  3. The purpose of setting up the HR department is being fulfilled or Not?
  4. How responsible is the HR department for Organization’s Growth or Degrowth?
  5. Do you think, your company’s HR should be aware of the financial information about the company: Turnover and Profitability?
Survey Point 1: First and Second Priority among all the Roles of HR Department

What is the important role of the HR department?

The options for answering this question were given below

  1. Recruitment of employees Improving employee efficiency
  2. Taking care of the convenience of the employees of the company
  3. Staff Training
  4. Resolving employee grievances

Do you think, you have 100% clarity about the role of the HR Dept.?

  • First Priority of an HR:  67% of businessmen believe that HR’s first role is to Recruit Employees and build up the right team for the Organization while 23% has choose Staff Training and Only 10% has chosen the option of Improving the Employee Efficiency
  • Second Priority of an HR: 54% of Entrepreneurs believes staff training is the 2nd most important role while 26% Business owners believes, the second most priority is Resolving the employee grievances
  • 93% of business people openly admit that they are not 100% clear about the exact role of HR.
Survey Point 2: The attitude of the HR department is more inclined towards the employees and less towards the company.
  • According to 71% of business people, the HR department is more inclined about employees’ interests and less towards the company while HR’s important role is to maintain a balance between employees and the company.
Survey Point 3: The purpose of setting up the HR department is being fulfilled or not?

Only 23% of business people feel that the goal of setting up an HR department is coming true otherwise for rest 77% are still dreaming of the Productivity of the HR dept.

Survey Point 4: How responsible is the HR department for Organization’s Growth or Decline?


Surprisingly, according to a survey conducted by Stratefix Consulting, Only 18% of business people believe that the HR department is majorly responsible for the company’s progress, profit or loss, good or bad times.

Survey Point 5: Do you think, your company’s HR should be aware of the financial information about the company: Turnover and Profitability?

According to 58% of company owners, their company’s HR is not aware of the company’s turnover and profit. They believe, the HR department does not need in-depth information about the company’s financial statistics.


According to Chirag Patel co-founder of
Stratefix Consulting,

  1. Ignorance about the HR department by MSME is obvious as HR is a concept developed in the last Few years while 50% to 60% of small and medium-sized businessmen have completed their education before this period.
  2. At the same time, confusion or not having clarity about the role of the HR department can be dangerous for MSME in today’s era as Human Asset is the most crucial asset of the Organization.
  3. Most Importantly, Over the last few years, there have been many changes in the needs of employees in the company. Pay scale is no more the first reason to stay or leave the organization as many other critical parameters are scrutinized by People to sustain their present job like:

    1. Right Culture of Learning and fun while working
    2. Present Role’s suitability considering Future of Talent
    3. Perks and Facility apart from Salary

Let’s Accept the Bitter Truth: Days are gone when Only Employers were choosing the Employees. Employees are also being choosy in selection of Organization, Role and Culture. 

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