Many small business owners across the country have likely experienced significant problems in trying to hire more workers over the last few years, and a number of those issues persist even today. However, companies seem to be leaning more and more heavily toward taking on more workers nonetheless, at least when the market will bear it.
For the month of May, roughly 2 out of every 3 small business owners say that if they see an increase in demand for their goods or services, they would be more than happy to hire additional employees, according to the latest data from the SurePayroll Small Business Scorecard. That’s more than double the 30 percent who responded similarly when asked the same question a year ago.
“If the demand is there, small businesses will hire,” said SurePayroll Vice President of Marketing Scott Brandt. “Put differently, hiring should track sales and revenue more than other factors, such as needing to fill specific roles or workload. The weather is finally improving, the economy seems relatively stable, so you’re seeing optimism back up around its high. It’s the growth piece that may be missing before we see a breakout in demand and then hiring. It’s just not clear when we’ll get there.”
Other issues still persist
However, it should be noted that only one-third of entrepreneurs said that they wouldn’t hire new employees simply because the work was piling up or that clients needed to work with people who came from specific areas of expertise, the report said. Moreover, the demand for administrative help almost dropped off the chart, even though 28 percent of owners said they needed some just a year earlier.
Fortunately, optimism is at the highest point seen in the last 12 months, rising to 75 percent of owners who felt good about their chances for success in the future, the report said. At the same time, hiring dropped 0.1 percent in May, and paychecks declined 0.2 percent. Meanwhile, the use of independent contractors rose just .02 percent, and settled at 6.54 percent of all small businesses.
Owners who want to position their companies for the best possible chances of success might want to consider the ways in which cutting internal costs, like those for small business insurance, can help shore up bottom lines. For instance, shopping around for more affordable errors and omissions insurance could save companies thousands of dollars per year.