SurePayroll Small Business Scorecard®: Small Businesses on the Hunt for New Hires
Focus of hiring shifts from cost to finding the right candidates
GLENVIEW, IL — Feb. 23, 2015 — Small businesses are undergoing a major change in their approach to hiring, according to February 2015 SurePayroll Small Business Scorecard. While a year ago their primary concern was the cost of salary and benefits, it has now shifted to finding the right candidate, and they’re becoming more aggressive in how they accomplish this task.
The Scorecard features survey data with insights from small and microbusiness owners, primarily those with 1-10 employees. SurePayroll Inc. is a leader in providing online payroll to small businesses nationwide since 2000.
With the level of optimism about the economy high (77%) and coming off a profitable 2014, small business owners are looking to increase their sales and administrative staffs, with 36% going as far as to say there are no barriers to hiring right now.
For those that do see barriers to hiring, only 29% see the cost of salary and benefits as the biggest one, compared to 59% a year ago. In 2015, 57% see finding the right candidate as the biggest barrier to hiring, compared to just 36% last year.
Last year, just 19% said they would hire a salesperson. This year it’s up to 28%. And 23% said they would hire administrative staff compared to 17% in 2014.
“Business is picking up in the small business economy. That’s the simple answer,” said SurePayroll General Manager Andy Roe, describing the dramatic changes in how small businesses see hiring. “Last year, small business owners were still being very cautious about spending, and so naturally their main concern was the cost of hiring someone. Now revenues are up, profits are up and cost isn’t nearly as much of a factor.”
Small businesses have also made some big changes from a year ago in how they recruit job candidates:
- 25% are using LinkedIn compared to just 5% in 2014.
- 37% are using job websites (i.e., Careerbuilder, Monster, Indeed) compared to 21% in 2014.
- 65% are using word of mouth compared to 44% in 2014
Survey respondents also mentioned using local newspaper ads, job fairs, internship programs and recruiting firms/headhunters significantly more than last year.
“You’re seeing a much more aggressive approach to hiring, as small businesses market themselves on LinkedIn and other sites, in addition to doing more networking,” said SurePayroll Vice President of Marketing Scott Brandt. “The job market is more competitive and small businesses are looking for good people, so they’re expanding their reach in a number of ways that they may not have had the resources to try in the last few years.”
An infographic with all the data from the SureParyoll Scorecard, including more on the small business economy, is available on the SurePayroll Blog.
As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look at national hiring and paycheck trends since October 2004. SurePayroll's Scorecard compiles data from small businesses nationwide, and exclusively reflects the trends affecting the nation's "microbusinesses" — those with 1-10 employees. The average business reflected has six employees.
SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. Whether a business has 1, 10, or 100 employees, SurePayroll delivers peace of mind by combining innovative, industry-leading technology and personalized support from an award-winning, U.S.-based customer care team. SurePayroll also provides private-label and co-branded services for accountants and banking partners as well as offering efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. SurePayroll is a wholly owned subsidiary of Paychex. For more information, please visit www.SurePayroll.com. Follow us on Twitter
— Circle us on Google+
— Connect with us on LinkedIn
— Like us on Facebook
. About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 40 years of industry expertise, Paychex serves approximately 590,000 payroll clients across 100 locations and pays one out of every 15 American private sector employees. Learn more about Paychex by visiting www.paychex.com
and stay connected on Twitter