Small and medium-size business owners do not have any immediate plans to staff up, a new report says. Just one-quarter of the business owners surveyed said they have hired new employees or will hire new employees before the end of the year.
On the other hand, 47 percent of businesses said they will keep their staffing levels consistent throughout the year; just 7 percent of businesses said they will cut staff, according to a study conducted by Sage Small Business Solutions.
Eighty-two percent of companies looking to hire employees said they will be adding full-time workers, while 29 percent said they will hire part-time workers. Additionally, 10 percent plan on hiring contract workers, and 19 percent will hire seasonal workers.
Businesses said the demand for products was the most likely reason for hiring or firing workers. Business owners also said they have a cautious view of hiring because of uncertainty about the government, the economy and the cost of doing business.
"In previous Sage surveys, small and midsized businesses have repeatedly reported that taxes and regulations are a roadblock for their business growth," said Connie Certusi, executive vice president and general manager at Sage Small Business Solutions. "However, what this survey indicates is that while taxes and regulations are factors that influence hiring, the No. 1 driver is a demand for products and services, or lack thereof. Uncertainty in Washington, the Affordable Care Act, the minimum-wage increase and other issues are secondary.
The research was based on the responses of 973 businesses for the Sage SMB Hiring Outlook.