Expanding a business is a challenge. Many critical factors need to be taken into consideration, and among them is how many new employees to hire. Over the past few years, American enterprise owners have been asking themselves this question less frequently due to fiscal hardship, but as the economy rebounds, it may be time to think about adding jobs once again. After all, building up one's company can lead to greater success.
However, managers must be careful to support growth with the right solutions. Using payroll software, for example, is a necessity when it comes to onboarding new employees. Without a way to easily keep track of payouts to staff members, it's possible that these individuals won't receive proper compensation, which could result in workers or organizations losing money. In addition, failing to keep accurate financial records could lead to violations of U.S. payroll compliance standards.
A complex job market
The latest ADP National Employment Report found that while job growth is occurring throughout the country, it is currently falling short of economists' predictions. From March to April, 119,000 non-farm private sector jobs were added, while USA Today noted the consensus forecast had stood at 150,000 jobs. Small businesses were the most significant source of employment gains, with 50,000 positions added.
Experts pointed out that there may be a few major issues contributing to the results.
"Job growth appears to be slowing in response to very significant fiscal headwinds," said Mark Zandi, chief economist of Moody's Analytics. "Tax increases and government spending cuts are beginning to hit the job market. Job growth has slowed across all industries and most significantly among companies that employ between 20 and 499 workers."
According to Forbes, a recent study from the Ewing Marion Kauffman Foundation and LegalZoom cited startups as a future driver of economic improvement. In a survey of 1,650 entrepreneurs, 84 percent of respondents said they are confident in their business' ability to succeed in the first quarter of this year. While only 32 percent plan to hire in 2013, Forbes explained this represents a trend of individuals creating work opportunities for themselves. As these very small firms continue to grow, it's possible that their outlook on bringing in new staff members will do so as well.