While the majority (77 percent) of small businesses expects to hire in the New Year, they should plan for higher than expected attrition.
According to results from job site Indeed’s new survey, half of small businesses say replacing existing staff is a main reason for expected hiring, but expert job market watchers predict even more attrition is in store.
“Small businesses should anticipate higher attrition levels because an improved economy means more confident job seekers,” said Tara Sinclair, Chief Economist at Indeed. “Small businesses have always competed for talent, but that will be more pronounced this year as companies of all sizes increase hiring.”
While turnover is an issue, small businesses say sudden growth is boosting hiring. Seventy-one percent cite growth as the reason for hiring additional staff in the next six to 12 months, and 54 percent say they need workers with new skills.
“We work with small businesses every day on their hiring needs, and we have seen an increase in job postings from our clients,” said Jason Whitman, Senior Vice-President at Indeed. “Small businesses have found that posting a job online is the most efficient way to fill vacant roles.”
Indeed’s survey found the vast majority (83 percent) of small businesses use online job sites to find new employees.
However, they struggle with writing accurate and appealing job descriptions (58 percent) and with finding the time to review large volumes of applications (52 percent).
Adding to the hiring difficulty, nearly all (95 percent) struggle at least occasionally to find the right person for the job.
Robust business growth is the main reason for hiring expectations, but replacing existing staff is a growing concern—particularly in the short-term.
Turnover is a common reason for hiring, underscoring the challenge small business has with finding the right fit. Majority of small businesses hire part-time workers, mostly to handle busy/seasonal periods.
“Many of our clients don’t have dedicated HR or recruiting staff, so hiring becomes just another item on the owner’s to-do list,” Whitman said. “To keep up with growth and stay ahead of attrition, it’s important that small businesses get additional help with their hiring.”
Indeed surveyed 350 small business owners and employees who are actively involved in hiring.
Image credit: kimacworth-recruitloop.com.au