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Bridging the skills gap in SMEs: Invest in digital technologies or enhance skill acquisition and retention?
Title Bridging the skills gap in SMEs: Invest in digital technologies or enhance skill acquisition and retention? Author info Ján Huňady, Mária Stachová Author Huňady Ján 1985- (50%) UMBEF04 - Katedra financií a účtovníctva
Co-authors Stachová Mária 1981- (50%) UMBEF05 - Katedra kvantitatívnych metód a informačných systémov
Source document 48th EBES conference - program and abstract book. Pp. 29-29. - Istanbul : Eurasia Business and Economics Society (EBES), 2024 ; EBES conference medzinárodná konferencia Keywords zručnosti - abilities digitálne technológie - digital technologies digitalizácia - digitization - digitalization malé a stredné podniky - malé a stredné podniky (MaSP) - small and medium-sized enterprises - small and medium-sized companies - small and medium enterprises Form. Descr. abstrakty - abstracts Language English Country Turkey Annotation The rapidly changing economic environment poses several challenges for small and medium-sized enterprises (SMEs). One of the main challenges is the lack of adequate skills and the problem of obtaining them. This paper examines four main solutions to the skill shortage and factors affecting their usage and effectiveness. Our main focus is on investments in digital technologies as a potential substitute for human resources. Other three measures include enhancing the training of current staff, refining recruitment processes, and improving working conditions and retention efforts for current employees. Business decision-making regarding the best solution of skill shortages is influenced by business characteristics and external factors, which we examine in more detail. The aim of the paper is to examine factors affecting the choice of these measures while also considering the potential effects of public financial and non-financial support. Furthermore, it also identifies the consequences of these measures for future skills shortages and turnover. The analysis is based on the firms’ level micro-data from Flash Eurobarometer 537 (2023) with more than 15000 respondent SMEs from 27 EU countries and 8 non-EU countries. We used a set of statistical and machine learning techniques. Firstly, the paper uses logistic regression, classification trees, and random forests to identify factors affecting the choice of measures to address skills shortages. Secondly, it synergistically combines logistic regression with quasi-experimental methods to identify the potential effects of each measure on actual skill shortages and turnover. The results also suggest that the factors influencing the use of digital technologies are often significantly different from those affecting the introduction of other measures. SMEs that substitute human skills with digital technologies are mainly established firms involved in industry clusters. Non- financial government support, unlike financial support, appears to be positively correlated with the adoption of digital technologies in SMEs. The use of digital technology did not solve their shortage of skills. It even further amplifies them because this step requires hiring new people with new skills. Nevertheless, the substitution of employees with digital technology leads to significantly higher turnover. However, a similar effect can be seen when firms enhance the process of hiring new employees or improve the working conditions for current employees. Our study brings several new findings, which allow us to propose several recommendations for dealing with the skill shortages in SME during uncertain economic conditions and the transition to a digital economy. Public work category BFA No. of Archival Copy 54738 Catal.org. BB301 - Univerzitná knižnica Univerzity Mateja Bela v Banskej Bystrici Database xpca - PUBLIKAČNÁ ČINNOSŤ 
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