For those respondents who said they are stepping up hiring to drive business growth, this was more prominent for those operating from two or more locations and earning less than $500,000 in revenue.
How would you describe the hiring your business will do in the next 12 months?
16% Stepped up hiring to drive growth
25% More hiring than in the past year to fill existing gaps in the business
59% Nominal hiring on an as-needed basis
We researched the hiring practices deployed by small business owners and learned that the majority (51%) “rely on a combination of internal employee development and external hiring.” Some 19% “routinely look externally before filling roles,” and a further 30% said they “have a good pipeline of developing employees to cover most of our needs.”
The employment market is flooded with good people looking for work, which makes hiring external talent a complex process to find the precise skills and cultural fit needed in a small business. Owners and managers who have a clear set of selection criteria and a highly effective candidate recruitment process will reduce the risk that so many face in spending too much time and resources finding the right person.
While 50% of respondents reported they “aim to offer competitive compensation,” 13% said they “only pay the basic level of compensation,” and 11% said they “only pay above the going rate to top-performing employees.” For those employers paying above the going rate, many of these owners earned less than $1 million in revenue and had been in business fewer than 10 years, signaling they may be trying to gain a competitive edge in the market by attracting talent to their organizations.
Professional Employer Organizations (PEOs), like Oasis, a Paychex® Company, help small business owners to offer world-class benefits and competitive compensation to enable them to vie for talent on equal footing with much larger employers. Employees today are informed and know their value, so it’s critical that small businesses offer competitive rates and make themselves an attractive employer of choice.
If you are interested to learn more about this survey and the implications for your business, download a free copy of the white paper here.