Hiring hesitancy

The most recent Wells Fargo/Gallup Small Business Index indicates that small business owners remain hesitant to add more employees despite recent government incentives to promote hiring.

When asked whether tax credits for hiring unemployed workers would encourage them to hire new employees in 2010, 52% of respondents said “very unlikely.”

“This has been a challenging period for small businesses. They are looking for assurance of an economic rebound before staffing for growth,” noted the statement from Wells Fargo.

For the last 28 quarters, the Wells Fargo/Gallup Small Business Index has surveyed small business owners on current and future perceptions of their business financial situation. Results are based on telephone interviews with 603 small business owners in all 50 United States conducted April 12-16.

SURVEY FINDINGS
• 53% of business owners maintaining current staffing levels —only hiring as many employees as needed.

• When asked about changes in available weekly hours for employees, 67% of business owners say they have kept weekly hours the same, and 19% are reducing hours.

• While many business owners are hiring only as many workers as they need, 34% reported hiring fewer employees than needed. Of the reasons cited, 81% say they worry revenues or sales won’t be sufficient to justify adding more employees. Other reasons given include concerns about the potential cost of providing healthcare (65%).

• Despite a challenging economy and uncertain times, the survey showed that small business owners retain their characteristic perseverance, with the majority (80%) saying they would become a small business owner all over again if they had to.