Despite more than one-third of polled small business owners reporting that they are somewhat or significantly understaffed, most don’t plan to hire in the upcoming months, according to a new survey by TD Bank. The survey polled more than 500 small business owners from Maine to Florida.
“Our survey results indicated that over half (51 percent) of polled small business owners are not optimistic about the U.S. economy,” said Fred Graziano, head of Regional Commercial Banking, Government Banking and Small Business, TD Bank. “Uncertainty about the future path of fiscal policy and the outlook for the global economy will keep businesses cautious about investing and hiring in the upcoming months.”
The survey asked small business owners to identify their biggest human resources challenges. According to the results, when small businesses are in a position to hire, they struggle to find qualified candidates to fill open positions.
The biggest challenges in employee management include:
- Finding new qualified candidates (42 percent)
- Training existing employees (23 percent)
- Offering competitive compensation (22 percent)
- Laying off inadequate employees (8 percent)
- Continuous employee turnover (5 percent)
TD Bank’s survey also asked small business owners to identify their biggest challenge in the next six months. Declining sales (29 percent) topped the list, followed closely by rising healthcare and insurance costs (27 percent) and cash flow concerns (23 percent). The other challenges were pressure from larger competitors (12 percent) and rising energy costs (10 percent).
Receive Industry Examiner email alerts, subscribe here.