If the Economy is Improving, Why Aren’t Small Businesses Hiring?

It’s been reported that economic confidence is approaching its highest level in four years, with U.S. small business owners optimistic about their businesses and the future. However, that optimism hasn’t been translating into increased hiring efforts.

In fact, according to a recent Gallup poll, 85% of the 600 small business owners surveyed aren’t hiring. Considering that small businesses employ approximately 50% of the private sector workforce, this is a startling statistic.

So why aren’t small businesses hiring?

According to the poll, there are a variety of reasons, including:

• 76% say they don’t need additional employees at this time
• 71% are worried that revenues and sales won’t justify adding new employees
• 66% are worried about the state of the economy
• 53% are worried about cash flow and the ability to meet payroll
• 48% are worried about the potential cost of healthcare
• 46% are worried about new government regulations
• 24% are worried that they will no longer be in business in 12 months
• 20% cited some other reason

Further results from the poll demonstrated that when small business owners do need more help, but can’t hire due to financial constraints, they turn to those closest to them for unpaid support, including a spouse (21%), friends (16%), and children (15%). One in 20 also get help from unpaid interns.

However, if you find yourself in this boat and do need to extra help – but can’t justify the expense of hiring a full-time employee – there are other options besides turning to friends and family.

For instance, working with a temporary staffing agency in Houston, Texas is an ideal option for accessing the people you need, only when you need them. Likewise, temporary to hire staffing is another solution where you have the ability to “test out” an employee for a short-term period of time, before making a hiring decision. Not only do you get the opportunity to ensure the person is the right fit for your company, but you can also gain a better sense of whether you can justify a full-time hire.

If you’re interested in learning more about these staffing options, let us know. As one of the leading temporary staffing agencies in Houston, Texas, we can help you increase productivity, without adding to your fixed expenses. Contact us today to learn more.