To reach their potential, small businesses need to hire and retain top human capital – and that can be a tough yet rewarding process, according to results of the 2013 Small Business Owner Report released by Bank of America, which surveyed a representative sample of 1,000 U.S. business owners.
Close to half of small business owners (47 percent) say finding qualified employees is difficult, while nine out of 10 (92 percent) are making efforts to hold onto their valued workers, according to the report.
“One of the biggest challenges small business owners throughout the country face is hiring and retaining talent, yet they say managing their staff is one of their greatest sources of pride,” Robb Hilson, small business executive at Bank of America, said in a release.
Other information from the semi-annual report:
One in five small business owners (56 percent) say they plan to hire in expectation of increased business. Other reasons include the desire to introduce fresh or diverse skills to the workplace (36 percent); provide assistance to overworked employees (26 percent); and react or adjust to a new business atmosphere, such as mobile or digital (24 percent).
Small business owners’ strategies for worker retention include paying competitive wages (54 percent); offering accommodating working arrangements (47 percent), such as flexible hours and the option of working at home; paying bonuses (45 percent); and welcoming and putting into practice feedback from workers (38 percent).
Nearly eight in 10 small business owners (77 percent) say that employee health care costs are an important concern (down from 65 percent in the fall 2012 report). Yet more than half (56 percent) say that they will not change their hiring plans, with 26 percent preparing to employ only part-time workers, contractors or freelancers; and 9 percent not intending to hire any new employees.
Another concern: More than three out of four small business owners (76 percent) say they are uneasy about the competence of government leaders (up from 68 percent in the fall 2012 report).
Regarding the holiday shopping season, close to eight out of 10 small business owners surveyed (79 percent) maintain that Black Friday sales will have a negligible influence or no effect on their business (up from 9 percent in the fall 2012 report), while eight out of 10 (81 percent) believe that Cyber Monday is also of little if any benefit to them.
Even so, only 14 percent of small business owners say they do not plan to extend holiday related extras to their workforce, with the majority planning to show their appreciation through salary bonuses (49 percent), a holiday party (43 percent), gift-giving (41 percent), offering flexible holiday hours or vacation (38 percent) or closing the office (35 percent).
