Almost three in four small business owners say their most serious disadvantage when hiring new employees, compared with larger companies, is the ability to provide a competitive package of benefits, including salary, health insurance, retirement and vacation, according to the latest Wells Fargo/Gallup Small Business Index.
The ability to provide health care benefits to new employees was the second most cited competitive disadvantage reported by 68 percent of survey respondents. Additionally, 60 percent of small business owners see the amount of compensation they can offer an employee as a critical disadvantage when compared to larger companies.
Approximately two-thirds of small business owners also report difficulty finding the right qualified employees for their businesses. However, 69 percent say this has not hurt their business in the past 12 months. While only twenty percent say they are currently looking for new employees, if they had hiring needs today, 50 percent would be more likely to hire a temporary or contract worker than a full-time employee.
"Finding the right employees is crucial to the success of our businesses," says Ann Padilla, Owner of SunnySide/Temp Side, a Denver-based staffing company. "The competitive challenges of hiring are offset, however, by the benefits small businesses offer: autonomy, creativity, flex time, and the opportunity to be part of something truly entrepreneurial. People are our greatest competitive advantage, and the ability to find qualified people is a major reason why small businesses have continued to grow."
Small business owners remain optimistic about the future. Eighty-two percent expect a positive financial environment over the next 12 months; 75 percent expect a positive cash flow; and 61 percent expect revenues to increase. Ninety-five percent expressed feelings of success as a small business owner, and 90 percent say they are satisfied as a business owner.
"Although faced with strong competitive challenges, industry data confirms small businesses generate the majority of all job growth in the United States," says Rebecca Macieira-Kaufmann, small business segment manager for Wells Fargo. "Some hurdles remain, namely finding ways to offer competitive benefits packages."
Wells Fargo & Co. is a diversified financial services company providing financial products and services to more than 1 million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada.