How small businesses can win the race for young talent

One of the most striking findings is that 42% of graduates say they would prefer to work in an organisation with fewer than 250 employees, compared with 32% who favour mid-sized intermediate-sized (ETI) firms, and only 26% who prefer large companies. To explain their preference for SMEs, they highlight human connections with less hierarchy, the diversity of tasks, the opportunity to develop skills across multiple fields, and the ability to see the impact of their work.

This challenges the assumption that graduates instinctively gravitate toward large, big-name employers. Instead, it reveals a structural opportunity for SMEs: That they often start the recruitment process with a perceptual advantage.

However, a perception gap remains. While many young candidates prefer working in smaller companies, they tend to hold a less favourable view of their overall job-market prospects in such organisations. Their broader perception of SMEs is also slightly less positive. SMEs are appreciated – but graduates are still unsure about choosing them.

For small businesses, the takeaway is clear: credibility matters, and it starts with clarity. A well-structured job advertisement, transparent salary information, and a clearly defined hiring process can reduce early-career candidates’ reservations and serve as powerful trust-building mechanisms.

The study identifies several factors that push young job seekers to accept one offer over another.

Three factors stand out:

• Salary transparency is decisive
  
  Across all respondents, the top factor encouraging young professionals to apply for a job is whether the salary is clearly stated. This preference is consistent across company sizes and demographics.
  
  Action for SMEs:
  • Include salary ranges in every job offer.
  • Explain how salary progression works in the first two years.
  • Highlight fairness in your pay scale: “Same role, same pay – transparent grid available on request.”
  
  
• Mission and values matter
  
  Fifty-three percent of respondents who prefer SMEs say that a company’s mission and values, clearly expressed in a job offer, influence their decision to apply. Employers should, however, avoid vague statements such as “we are innovative” or “we care about people.”
  
  Action for SMEs:
  • Use data and fact-based examples to support company values.
  • Use employee testimonials about mission-based projects and achievements.
  
  
• Clear and short recruitment processes encourage applications
  
  One in two respondents says that a detailed recruitment process would make them more likely to apply. Early-career workers fear opacity and wasted time. For them, twenty-three days is the threshold beyond which a process feels too long.
  
  Action for SMEs:
  • Outline the exact steps of your recruitment process from the start.
  • Keep the process short and communicate expected response timelines.

The study confirms three universal expectations among young professionals, especially those drawn to SMEs.

• Work-life balance: 61% of respondents say maintaining a healthy balance between personal and professional life is very important. This is not about a lack of ambition, but about sustainable work rhythms and psychological safety.
  
  
• Good relationships with colleagues: Young workers value positive work relationships just as much as work-life balance. Smaller companies often excel here but rarely highlight this advantage in external communications.
  
  
• Meaningful work: Many graduates want to understand how their contributions fit into the bigger picture. In SMEs, the impact of individual contributors is naturally more visible – a significant advantage over large organisations where responsibilities are siloed.

Interestingly, good pay – the top priority for respondents attracted to large companies (64% consider it very important) – ranks only fifth among respondents attracted to SMEs (very important for only 1 in 2).

• Highlight the organisational and management practices that support balance (remote working, flexible hours, limited meetings).
  
  
• Show the human side of the business: how the team works, how decisions are made, and how learning happens.
  
  
• Explain how the role creates meaningful impact within the company and across its broader activities.

While salary matters, young professionals also report that an employer becomes attractive when:

• The mission feels genuine and socially relevant
• The work environment is caring and respectful
• Employees speak positively about their experience.

Here again, SMEs have natural advantages. Their missions tend to be specific rather than abstract, their teams are close-knit, and their leaders are accessible.

By turning their natural strengths into explicit promises and well-structured processes, small businesses can compete despite their size.

SMEs can outshine large corporations if they treat recruitment as a proper communication strategy built on trust, transparency, and an authentic work culture.