Short Takes, SI Review October 2010
Nearly One-Third of Small Businesses to Hire New Employees in Second Half of Year
Thirty-two percent of companies with 500 or fewer employees plan to add new employees in the second half of the year, a CareerBuilder.com survey reveals. Twenty-one percent will hire full-time, 11% will hire part-time and 6% will hire contractors or temporary workers. Of companies with 50 or fewer employees, 24% plan to hire in the second half of the year.
In addition to new jobs being added, new small businesses may be emerging to serve as a primary or secondary source of income. Of workers who have started a small business in the last year, 96% reported they run a small business in addition to another job. Twenty-six percent of workers who were laid off in the last six months and have not found jobs said they are considering starting their own business instead of finding a new job.
"Historically, it has been the small business sector that has created the most jobs at the end of an economic downturn, allowing the overall job market to bounce back faster," comments Brent Rasmussen, president of CareerBuilder North America. "The intellectual capital that companies were forced to lay off over the last 18-24 months was substantial, and it's not surprising that many individuals are using their business skills to create their own opportunities."
According to the U.S. Small Business Administration, small businesses employ just over half of all private sector employees and account for more than half of non-farm private gross domestic product. They also have generated 64% of new jobs over the past 15 years.
The following are a sample of the new businesses CareerBuilder survey participants indicated they have started over the past year:
- board game design
- cleaning company
- computer services
- craft and antique business
- ecommerce retail site/eBay
- event planning
- freelance journalist
- HR consulting
- lawn service
- recycled yarn retail store
- scented candle business
- sports camp for kids
Half of All Workers Being Poached
Fifty-two percent of employees report they were approached by another employer with a possible job offer in the last year, a survey by Right Management reveals. "Our findings suggest there is some movement in the job market and that employment prospects are beginning to improve," comments Right Management CEO Owen Sullivan.
Among the survey's key findings:
- Those who held managerial titles and higher were most in demand, with 56% being approached by another company to discuss job opportunities.
- The largest organizations were most at risk of employee defection, with 60% of employees being approached.
- Individuals in consulting, engineering, sales and business development were most in demand, as were workers 24 to 35 years of age.
"While hiring is likely to remain conservative for the rest of the year with many organizations holding the line on costs, managers need to balance that against the need to invest in their employees," adds Sullivan. "Our research clearly shows that career development pays huge dividends in terms of engagement and retention, both for the individual and the organization."
Employers Have Unfavorable View of Healthcare Legislation
Executives are pessimistic that the new healthcare reform will help their companies, according to a poll taken by Strategic Benefits Solutions at its boot camp. Eighty-eight percent of CEOs, CFOs and HR executives polled at the event said they were expecting higher costs, and 65% have an unfavorable impression of the new law. Eighty-three percent believe they'd be forced to share the additional cost to their employees in the form of increased contributions. Despite their unfavorable view of the law, only 46% feel repeal efforts have a chance of succeeding.