Benefits June 4, 2002

Small Businesses Spend Big on HR

June 3, 2002 (PLANSPONSOR.com) - Small Businesses will spend around $50 billion on human resource related services in 2002, a new survey by Access Markets International (AMI) Partners finds.
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According to the survey,

  • temporary employment and staffing accounts for $25.3 billion of total HR related spending,
  • followed by outsourced HR services at $17.6 billion, and
  • employee training $8 billion

Further Findings

AMI expects US small business spending on alternative staffing option to grow at a compound annual rate of 13% between 2001 and 2005.

The study also noted that small businesses also turn to the Internet to find new employees. According to the study, 300,000 small businesses have turned to the Internet to recruit employees, while another 200,000 have purchased HR services online. AMI expects this number to double in 2002.

The survey also shows that skills development has become a key concern for employers. About 30% of small business owners in AMI’s annual study indicated that employee education and skills enhancement would be a very important business focus in 2002 and beyond.

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