A Study on the Role of HR Consultancy Firms in Improving Recruitment Efficiency in SMEs with reference to Nexplace Private limited

Small and Medium Enterprises (SMEs) form the backbone of the Indian economic growth by contributing significantly to increasing employment and GDP. However, although important in terms of strategies, SMEs typically face difficulties in concrete terms of implementing recruitment practices successfully, much of which is based on limited resources, scattered human resource (HR) procedures, and usage of informal channels of hiring. This paper looks into ways that HR consultancy firms can boost the efficiency of their recruitment among SMEs, focusing on a mid-sized HR consultancy firm based out of Bangalore in India. A qualitative research design was used, and the empirical evidence was obtained using the semi-structured interview of 20 SME owners and HR managers in combination with documentary evidence gathered using the records of consultancy operation. Thematic analysis provided patterns that were repetitive on the issue of recruitment difficulties, consultancy-related interventions, and certain outcomes that are measurable in terms of time-to-hiring, cost-per-day, and staff retention. Research results point to the involvement of SMEs and HR consultancy companies to decrease hiring times, increase job candidate quality and decrease turnover. The research is also indicating that SMEs that are strategic in integrating HR functions to consultancy services achieve a higher degree of scalability between the need of businesses and skills of the workforce. Finally, the study adds to the academic discussion and the practical implementation of HR management as it proposes a framework of SMEs and consultancies working together and suggests the most appropriate practices to organise a recruitment process and maximise its effectiveness.