Small Business Climate Making Turnaround

The majority (93%) of small and mid-sized businesses plan to keep staff and add new hires this year, according to a new survey from human resources firm Insight Performance.

The Small Business and Human Resources 2011 Outlook Survey also found that 38% of companies plan to offer base-pay raises, as optimism for business conditions increases to 80% for 2011.

“The survey shows that small and mid-sized businesses see the business climate turning around,” said Nancy R. Mobley, Founder and CEO, Insight Performance, Inc.

“Despite last year’s economy, many companies not only retained staff levels, but also added employees. This trend is expected to continue in 2011, as companies continue to recognize that their employees are integral to business growth.”

The survey also found the following trends:

*Salary freezes subside. While 38% of companies are planning base-pay increases in 2011, as compared to 43% projected for 2010, only 23% are planning to freeze base pay this year, as compared to 41% in 2010.

*Companies expect benefit costs to rise. Eighty-six percent of respondents anticipate that their companies’ costs for benefits will be higher than 2010, with average cost increases expected to be 11% higher. Forty-seven percent expect an employee’s benefit costs to rise. The average expected increase is 14% higher than last year.

*Companies see employee morale on the rise. Eighty-three percent of companies feel that their employees are confident about their jobs, compared to 47% last year.