For small business owners, employees are among their greatest assets. One of the things that sets many smaller firms apart from large corporations is their ability to take a more personalized approach to customer service, and this wouldn't be possible without great workers. With the right staff members, enterprise owners can ensure that their patrons remain happy and their bottom lines stay strong.
However, in the past few years, small businesses have changed their hiring practices due to the struggling global economy. Even as the outlook for American firms improves, many organizations are still experimenting with the number of employees they can support. By using payroll software, leaders can guarantee that all workers are accounted for and that they are receiving accurate payments. This also benefits companies as a whole, preventing overpayments from taking a toll on financial results over time. Additionally, having a reliable way to conduct these essential operations is key to staving off any mistakes that could lead to U.S. payroll legislation violations, which can be costly and time-consuming to rectify.
According to the quarterly Wells Fargo/Gallup Small Business Index survey, many American small business owners are still hesitant to add new staff. On average, the net hiring index was -12 in April 2013, compared to -9 at the same time in 2012. The reading stood at -10 in January. Twenty percent of respondents expect to bring on more employees at their enterprise, up from 17 percent in January. Still, 14 percent of owners anticipate the number of jobs will decrease over the next 12 months.
The source explained that one major factor leading to small firms cutting down on hiring could be the Affordable Care Act. One in five respondents said that they let workers go due to rising healthcare costs, which may put a strain on some organizations' budgets.
The Small Business Authority also noted that in a poll on more than 2,600 respondents, 70 percent of company owners did not plan on hiring within the next six to 12 months. The source also found that these enterprises were split on whether to employ individuals who have recently graduated, with 49 percent saying they hire workers who are new graduates and 51 percent admitting they do not hire these less experienced individuals.
The current economic climate is a complicated one. Small business owners need to make strong choices about whether they are able to hire, and payroll technology can facilitate smart decision-making.