Human resource management as a tool for SME employee engaging. Case: Company X

This study presents a review of Finnish SME’s human resource management. The topic is approached by previous researches, observation and HRM literature. The study focuses on offering information on how SME can use HRM as an effective tool to engage employees and generate through engagement competitive advantage, while HRM isn’t largely noted in Finnish SMEs yet. The main topics are human resource management, engagement and competitive advantage. The study provides suggestions on how to enforce HRM through the company. The theoretical part focuses on explaining what HRM is and what it means in different kinds of SMEs. For this study, the most relevant issues of HRM were chosen to support the research. These are leadership, industrial relations, engagement from employee and organization perspective, competitive advantage, future HR trends, and HR strategy. Research is made for Finnish SME Company X and it offers an HRM guide and development plan for them. Idea is to make HRM easier to approach and suggest how to achieve better employee engagement to ensure the sufficiency of the future workforce. In Company X’s industry, this can give a competitive advantage to them. The results show HRM's importance in SME as employee engagement, creating value and generating competitive advantage purposes. To achieve most of HRM benefits HR must be implemented align with business strategy, HR functions are clarified, and the employee has a possibility to learn. Employee satisfaction is an important factor in generating competitive advantage by HRM. A good atmosphere attracts the workforce. Few Finnish SMEs use HRM and it is waiting to be used for generating competitive advantage