HRM in SMEs Under Turbulence: An Employee-Centric Perspective

SMEs increasingly operate within a volatile, uncertain, complex, and ambiguous (VUCA) context, often turning to their employees as a source of flexibility and extra-role performance. Yet, turbulence may shake the survival of the firm and lead to cost-cutting employee practices. As a result, during times of crisis, employees may deviate from exhibiting ‘expected’ behaviours concomitant of a family-oriented SME environment. The aim of the chapter is to examine how turbulence may influence employee experience of work and, in particular, the role of HR practices in shaping employee’s conceptualisation of the crisis. In contrast to previous work that has focused more on espoused processes reported by SME owner-managers, the chapter adopts an employee-centric perspective and pays attention to implemented HR processes as experienced by SME employees. In progressing understanding, the chapter draws upon a novel application of ‘Coleman’s boat’ advocating multi-level research approaches.