SME Report 2025 Highlights Geographic Advantages in Recruitment

The Stepstone SME Report 2025 reveals that small and medium-sized enterprises (SMEs) attract over 80% of applicants due to their geographic location, flat hierarchies, and family atmosphere. Proximity to home is a key draw, with 56% of respondents citing it as a decisive factor. This appeal is heightened outside major cities, fostering a strong work-life balance.

Despite the advantages, SMEs face challenges in meeting salary expectations. Half of SME recruiters report difficulty in offering competitive pay, with 42% of employees expressing dissatisfaction with compensation. However, SMEs benefit from lower employee turnover compared to larger companies and are encouraged to emphasize their flexible working models and short decision-making paths to enhance their employer brand.