Wizehire's survey reveals SMBs are optimistic about their growth
prospects, with 96% of employers planning to hire within the next
six months.
HOUSTON, May 16, 2024
/PRNewswire/ -- Wizehire, an end-to-end hiring solution for growing
small and medium-sized businesses (SMBs), recently released its
2024 Small Business Report. The study surveyed 1,000 small business
owners and operators, ranging from 10 to 200 employees. This
research provides insights into hiring challenges, business growth,
and people management in the evolving landscape of small businesses
in 2024.
96% of employers plan to hire within the
next six months.
Small Businesses Forecast Growth for 2024
Federal reports expect job growth and the economy to be sluggish
in 2024, but Wizehire's survey revealed many SMBs plan to expand.
Ninety-six percent of employers plan to hire within the next six
months, with 80% looking for full-time hires, 50% hiring part-time
employees, and 30% filling roles with contractors or freelance
work. Eighty-four percent of businesses are very likely or somewhat
likely to give out raises this year, another positive indicator of
small business growth and optimism in the
United States.
Digging into Recruiting, Hiring, and Retention
Wizehire's findings highlight the most effective recruitment
practices for small businesses. Employee referrals were the top
recruitment method for nearly half (49%) of businesses, closely
followed by job boards (45%) and business career pages (44%).
When onboarding new hires, 44% of businesses leverage a dedicated
HR department, and 27% have at least one dedicated HR staff
member.
Thirty-six percent of businesses were generally satisfied with
the quality of their job candidates, but 30% acknowledged that
finding suitable applicants was time-consuming. Moreover, 22%
believe there's room for improvement regarding talent quality,
highlighting the need for more strategic approaches in
recruitment.
While 25% of businesses shared that high turnover significantly
impacts their business, another 25% manage to refill positions
quickly. It is important to note that most of those surveyed are in
the retail (18%), food service (14%), or home service (13%)
industries, which are known for their high turnover rates. On the
upside, 28% shared they have a good employee retention track
record.
Snapshot of Small Business Performance
Although small businesses plan to hire, many face challenges
with stability and growth due to inflation on spending and market
competition. Thirty percent expressed uncertainty about the economy
and consumer spending, and 41% felt pressure from increasing market
competition.
However, 62% experienced growth over the past year, with less
than 1.5% of small businesses needing help to stay afloat. A mere
9% observed a decline, but another 8% mentioned their business did
experience a decline but is now rebounding.
Recruiting Obstacles Facing Small Businesses
Recruiting top talent is one of the biggest obstacles for SMBs,
with 43% of businesses struggling and 41% facing stiff competition
for highly qualified candidates. Additionally, 35% of businesses
identify employee retention as a significant concern
Alongside these primary challenges, businesses and business
owners also face secondary obstacles. Thirty-four percent noted
that limited resources for employee training are particularly
concerning—possibly restricting the development and upskilling of
new and existing staff. Funding to deal with increasing wages and
inflation is also a problem (30%), with one respondent sharing,
"People are seeking the highest salary even for non-high-paying
jobs."
Other challenges small businesses face are the need for more
qualified candidates (29%) and the waste of resources from
candidate ghosting (24%). These issues add unexpected complexity to
the hiring process, possibly slowing business growth.
Small Businesses Are Building Inclusive Company
Cultures
The study also revealed that a significant majority of small
businesses, 88%, prioritize building inclusive company cultures and
valuing diversity, equity, and inclusion. Nearly half (46%) have
taken proactive steps to implement employee diversity training, and
45% foster a diverse leadership team that actively promotes
individuals from diverse backgrounds to higher positions. Nearly
40% of businesses regularly host open discussions and listen to
employee feedback on diversity and inclusivity matters.
Summary
Wizehire's 2024 Small Business Report reveals that small
businesses are optimistic about their growth prospects, with most
employers planning to add talent to their teams in the next six
months. Despite the obstacles small businesses face, such as
limited resources for employee training and increasing competition
for highly qualified hires, the study highlights that many small
businesses are building inclusive company cultures and taking
proactive steps to implement employee diversity training. To learn
more about the current trends and challenges in hiring and people
management for small businesses, read the full report.
Methodology
All figures, unless otherwise stated, are from Pollfish. The
total sample size was 1,000 adults in the US who own (86%) or are
responsible for running a small business (14%), ranging from 10 to
200 employees. Most businesses evaluated had a team size of 10 to
20 employees. The survey was distributed online between
April 3, 2024, and April 15, 2024.
About Wizehire:
Founded in 2014, Wizehire is an award-winning, end-to-end hiring
solution that marries innovative software with hands-on, expert
coaching to help business leaders build their teams with
confidence. The solution offers an applicant tracking system,
industry-optimized job templates, and research-driven screening
methodologies. Over 18,000 businesses trust Wizehire to help grow
their teams and perfect their hiring process.
Media Kit
Media Contact:
Lauren Miley
Lead Communications Strategist, Wizehire
laurenm@wizehire.com
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SOURCE Wizehire