Hiring: Why Holding Back Will Probably Backfire

The economy is rebounding, the stock market is soaring and yet small business hiring is lagging the economic recovery. Are entrepreneurs being too cautious?
Contributing Writer, SmallBizTrends.com
April 03, 2013

Although it is still not the best of times, the worst of times seem to have passed. With this news, you might expect entrepreneurs to invest more in their businesses. This could take many forms. You can buy stuff, open a new location or hire more people. But the news on the hiring front is mixed. The March 2013 SurePayroll Scorecard, which monitors small-business hiring and payroll trends, found a decided split among small business owners in its survey. While half are planning to invest in their businesses, including hiring, the other half are still a bit cautious.

Some parts of the country seemed to hit recovery mode earlier than others, but geographical location didn’t seem to have a great impact on whether business owners in that region hired or not. SurePayroll found hiring was down month over month in every region except for the South, where it was up 0.1 percent. The West is hurting most, with hiring down by 4.3 percent.

If your region is still smarting from the economic downturn, I can see why you’d be cautious about hiring. However, there comes a time when your team isn’t going to be able to keep doing more with less, and you may need to bite the bullet and bring on staff (even if it’s hiring part-time or using temporary workers). Otherwise, continually failing to invest in your business will come back to bite you in the end.

[MarketWatch]

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Contributing Writer, SmallBizTrends.com