Human resource development in SMEs in a context of labor shortage: a profile analysis

Abstract

Purpose The purpose of this paper is to examine small and medium-sized enterprises’ (SMEs) level of participation in human resource development activities during a labor shortage. Drawing on human capital theory, it examines whether SMEs’ profiles, determined according to their participation in different types of training activities, relate to perceived benefits of training, barriers to participation in training and learning culture. Design/methodology/approach This study applies latent profile analysis (LPA) to 10 training practices of 427 SMEs in Quebec, Canada. Findings The LPA distinguished four profiles of SMEs, reflecting differing capacities for mobilizing training resources during a labor shortage. These four profiles show differences with regard to perceived training benefits, barriers to participation in training and learning culture. Originality/value To the best of the authors’ knowledge, this study is among the first to focus on the specific ability of SMEs to invest in their human capital in the unique and recent context of a labor shortage.