Hiring, Salaries up Among Small and Mid-sized Employers

This compares to 50% who said the same for the same period in 2007. According to an Administaff press release, 13% of small business owners are turning to new part-time help, while half are making due with their existing staff. Among firms actively hiring, nearly 57% indicated they are attempting to attract older, more experienced workers.

In addition, compensation data from Administaff’s base of more than 6,100 small and medium-sized businesses indicates that average compensation is up 5.8% and average commission rates have increased 3.9% for 2008. Fifty-five percent of executives surveyed said a competitive salary and wage package is the top incentive for attracting new employees.

More than a quarter (26%) of respondents pointed to a good benefits package as the top bait for new employees, though 30% named the cost of providing health care benefits as their greatest business-related challenge. More than 56% identified the slow economy as their leading obstacle and 42% cited hiring the right employees, the release said.

Strategies used to retain employees cited by survey respondents included paying higher salaries (45%), providing workers with new challenges and responsibilities (45%), and offering extended opportunities for advancement (36%).

More than 75% of small-business owners said their companies are either growing as predicted (54%) or better than forecast at the beginning of the year (21%).

Respondents to the Administaff Business Confidence Survey are owners and managers of the small and medium-sized companies Administaff serves. The survey was conducted from August 6 through August 8.