Small Medium Enterprises (SMEs) play a vital role for the development of any economy. Mul-tiple studies with respect to various aspects and dimensions of SMEs have been undertaken. Some of the problems faced by SMEs from the side of the employees include performance management issues, employee issues like strikes, go slow tactics, and so on. However, studies that explore the issues as perceived by employers are scarce. The present research is undertak-en to find out the various human resource issues as perceived by employers. Data for the present study was collected from 60 SMEs. The organizations belonged to various sectors. Factor Analysis was performed to identify the factors. The analysis identified two factors as perceived by employers regarding human resource issues in SMEs. The reliability and validity of the factors were also assessed, which was found to be sufficiently high. A few suggestions for further research are also presented.