Less Hiring Planned for ’09 Among Small Businesses

While small business owners may still be hiring new employees in 2009, they are doing so at a declining rate according to research from TriNet. Additionally, those who are hiring at all are looking to fill fewer positions.

This information comes from a survey conducted by TriNet, in which 300 small businesses participated, lending their input on hiring practices.

Optimism has dwindled from late last year by the looks of it. Over half of small companies are still hiring, but the trend is downward. Over the past three months, intent to hire this year has gone from 80% to 55% among small businesses. Of the 55% planning on hiring, most still say they are going to add fewer employees.

65% of the survey respondents did however acknowledge that the talent pool is greater than usual. These people rated the abundance of qualified applicants from somewhat to much better than normal.

"The results point to both an opportunity and a challenge for small businesses looking to fill a few key slots from a growing pool of talent," says Burton Goldfield, president and CEO of TriNet. "Now more than ever it is critical that small businesses take the right approach to land new hires that will bring the most value and ensure ongoing growth in a difficult economy."

The survey indicated that there isn’t a clear consensus among small businesses when it comes to the question of what they would do if they found themselves in a position where they had to reduce personnel costs. 31% – the largest group – said they’d "reorganize staffing to optimize efficiency." About 25% would choose layoffs over reduced salaries and benefits. A fifth would reduce salaries and benefits for all or some employees in order to avoid layoffs.