Small Business Hiring Shows Little Improvement in July
TriNet’s Human Capital Index results reflect entrepreneurial focus on productivity.
SAN LEANDRO, Calif. (Aug. 17, 2010) – Small business hiring improved only slightly in July after June’s lowest hiring rate of the year, according to TriNet’s Human Capital Index. Layoffs continued to decline in July, indicating that employers continue to focus on productivity improvements rather than new hiring.
“Small business hiring showed little improvement in July reflecting weak overall U.S. economic recovery,” said Burton Goldfield, TriNet’s president and CEO. “Recent guidance from Treasury Secretary Timothy Geithner that companies should focus on productivity improvements seems consistent with the actual behavior of small, high-wage employers.”
The TriNet Hiring Index increased 3 points in July to a monthly reading of 87. Values below 100 indicate a lower rate of hiring compared to the September 2009 base month.
Layoffs continued to decline in July, reaching another low point for 2010, registering a drop of 15 points in July. Fewer layoffs suggest that management teams are efficiently utilizing their human capital increasing levels of productivity.
The HCI is a monthly report that provides direct visibility into the employment practices of thousands of small technology, professional services and financial services companies. It produces a snapshot that is otherwise not tracked in the broader economy. TriNet, the country’s second-largest provider of human resources outsourcing solutions to small businesses, developed the HCI with real-time data from 3,000 companies ranging from 10-200 employees earning an average annual salary of $75,000. These types of businesses represent 99.7 percent of all employer firms, employ half of all private sector employees and pay 45 percent of total U.S. private payroll. In addition, they produce 14 times more patents per employee than large firms and are employers of 41 percent of high-tech workers (such as scientists, engineers, computer workers).
About the Human Capital Index (HCI)
The TriNet Human Capital Index draws on real-time employment information from about 3,000 small companies who employ between 10-200 employees. These companies fall primarily into three broad industry segments: technology, professional services and financial services. The HCI aggregates and reports data reflecting hiring and involuntary terminations not related to performance (layoffs). The HCI is reported monthly, using current payroll and HR data compiled as of the 24th of each month. Additional details can be found on the company’s HCI web page.
TriNet is a trusted partner to small businesses, providing critical HR-related services on an outsourced basis. TriNet’s solutions help contain costs, minimize employer-related risks and relieve administrative burden to keep an entrepreneur’s focus on core business functions. From routine employee benefits service and payroll processing to high-level human capital consulting, TriNet's PEO expertise is integrated with every facet of a client’s business. TriNet specializes in serving fast-moving companies in fields such as technology and professional services, who recognize that top-quality employees are the most critical competitive asset. For more information, please visit http://www.trinet.com.
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