Survey Says a Majority of U.S. Small Businesses Still Planning to Hire
Nearly half of white-collar respondents express economic optimism, see market conditions at least as good as 2008
SAN LEANDRO, Calif. (April 2, 2009) – Small businesses are still looking to hire in 2009 but at a declining rate and those who are planning to add staff are looking to fill fewer slots, according to a quarterly survey of more than 300 small businesses focused on hiring practices.
Conducted for TriNet, a leading provider of human resources outsourcing and consulting services to small businesses, the TriNet HR Trends Survey found diminished optimism from respondents when comparing first quarter 2009 responses with those from the fourth quarter of 2008. While more than half of small companies are still looking to hire in 2009, it trends downward when compared to the same results from November/December 2008. Over the past three months, intent to hire in 2009 has diminished from 80 percent to 55 percent among small businesses. Further, among the 55 percent planning to still add staff in 2009, most now say that they are planning to add fewer people.
The quarterly survey also found that small businesses are finding an abundance of qualified candidates in the applicant pool, with nearly two-thirds of respondents (65 percent ) saying the talent currently available is somewhat to much better than normal.
“The results point to both an opportunity and a challenge for small businesses looking to fill a few key slots from a growing pool of talent,” said Burton Goldfield, president and CEO of TriNet. “Now more than ever it is critical that small businesses take the right approach to land new hires that will bring the most value and ensure ongoing growth in a difficult economy.”
Goldfield says TriNet couples its performance management tools with consulting services to aid its small business clients in identifying desirable employee attributes so they can single out top talent and choose the right people for their open positions.
The survey also found there was no clear consensus among companies when asked what they would do if faced with the challenge of needing to reduce personnel costs. The largest group (31 percent) said they would reorganize staffing to optimize efficiency. One-quarter of companies surveyed would choose layoffs over reduced salaries and benefits while one-fifth would reduce salaries and benefits for all or some employees to avoid layoffs.
The survey was fielded to executives of small businesses in the industries of technology, financial services and professional services.
The entire TriNet Quarterly HR trends report will be available on the HR Resources section of TriNet.com.
About TriNet Group, Inc.
Founded in 1988 in the San Francisco Bay Area, TriNet provides strategic, cost-effective payroll, benefits, and HR outsourcing services to companies throughout the United States and Canada. TriNet specializes in helping small businesses reach their corporate goals and become destinations for top talent, enabling them to compete successfully with larger, more established organizations. TriNet’s comprehensive offerings include HR administration, online employee benefits administration and support, employer risk management, payroll processing, tax compliance, workers compensation, group health and welfare products, and strategic human capital consulting services. For more information about TriNet, visit http://www.trinet.com.