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Empowering small businesses with human resource competency

10 Mar 2025
People 1st International

Small businesses are the foundation of many industries but as they grow, their human resource (HR) needs often grow more complex. Recognising this, we partnered with the European Bank for Reconstruction and Development (EBRD) to drive meaningful change through the Skills in Business project.

Since its inception in 2019 the Skills in Business project has equipped small and medium-sized enterprises with the HR frameworks and strategies they need to develop a more productive, engaged and inclusive workforce. The project focuses on key HR functions such as recruitment, retention, performance management and employee development – all critical to supporting the growth and sustainability of small businesses and improved human capital development in the sectors and countries the projects take place in.

A transformative HR competency framework for SMEs

At the core of the Skills in Business project is a recruitment, retention and work-based learning competency framework, designed in partnership with the Chartered Institute of Personnel and Development to give businesses a structured approach to developing their HR capacity. The funding from EBRD has allowed us to offer SMEs a comprehensive set of tools for assessing their current HR capabilities and developing tailored action plans that drive improvement.

Through these interventions, SMEs receive support to improve their HR practices in a way that is scalable as the business grows. Whether it’s implementing structured career progression paths, enhancing recruitment strategies or promoting a more inclusive work environment, the framework has empowered businesses to grow their own talent, boost retention and attract the best employees.

What’s worked: Successes and measurable impact

The results of our collaboration have been tangible and powerful. SMEs that have participated in the Skills in Business project report a wide range of successes, from improved employee retention to the adoption of new digital HR tools that have streamlined recruitment and performance management.

  • HR strategy development: Many businesses successfully developed and implemented long-term HR strategies, aligning workforce planning with business goals. These strategies have helped companies clarify roles, structure performance management systems and set clear expectations for their employees.
  • Retention and career progression: One of the standout results of the project has been improved retention, particularly among younger workers. Businesses introduced structured career pathways, offered tailored training programmes and provided clearer routes for professional growth, leading to stronger employee engagement and reduced turnover.
  • Performance management: With the introduction of standardised performance evaluation systems, businesses have been able to better assess employee performance, provide constructive feedback and create targeted development plans.
  • Technology adoption: Several businesses embraced digital HR tools, which helped improve data tracking, recruitment processes and performance reviews. This shift not only increased operational efficiency but also helped businesses streamline their HR functions, making them more adaptable and scalable.
  • Diversity and inclusion: Efforts to improve gender inclusivity and diversity have led to more gender-balanced recruitment processes, better maternity leave policies and more flexible work schedules. These changes have contributed to a more inclusive workplace culture that supports caregivers and promotes diversity.

While the project has led to many successes, we’ve also encountered challenges that provide valuable learning opportunities. Some businesses struggled with limited internal HR resources, inconsistent tracking of key performance indicators (KPIs), and the regional instability that affected their ability to fully implement changes. These obstacles highlight the importance of flexible implementation strategies and robust KPI tracking mechanisms.

Empowering businesses through global expertise and local insight

A key strength of the Skills in Business project has been expertise in international best practices, complemented by local HR experts who provided culturally relevant, practical solutions tailored to each business’s needs. By combining global experience in strategy development, talent management and workforce planning with the local knowledge of in-country consultants, we ensured that the changes made were not only effective but also aligned with the unique market and workforce of each business. This blend of international and localised insight has made the HR strategies more impactful, actionable and suited to the realities of each business.

Learn more through our case studies

The success of the Skills in Business project goes far beyond improving the HR function within individual businesses. It has been instrumental in building a more skilled and engaged workforce, creating better opportunities for youth and promoting gender equality in workplaces across the regions we’ve served. By enhancing skills training and career progression, employees are better positioned to find roles that align with their skill sets, leading to greater job satisfaction and career growth. As businesses enhance their HR practices and invest in their workforce, they contribute to a more resilient and skilled labour market, positioning themselves for long-term growth and sustainability.

To see how the Skills in Business project has transformed businesses, view our case studies:

The technical assistance for the following projects was supported by funding from the Swiss State Secretariat for Economic Affairs (SECO).

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“Through the partnership with People 1st International and the European Bank for Reconstruction and Development (EBRD), our Daily team in Georgia has embarked on a transformative journey towards enhanced HR management. With a focus on nurturing talent and fostering inclusivity, our collaboration underscores the importance of investing in our workforce and aligning with global best practices. From refining recruitment processes to championing diversity and implementing robust performance evaluation systems, our commitment to excellence shines through. Together, we pave the way for sustained success in the competitive retail landscape, empowered by the expertise and support of People 1st International and the EBRD.” – Salome Godzelandze, HR Director – Daily
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