Pharos-Tribune

Business

June 1, 2014

Waiting game: Why small businesses won't hire

Some companiescite dearth of willing employees

NEW YORK — Even as the economy extends its growth and small businesses slowly add jobs, most owners are still holding off on hiring.

Small businesses have not been hiring at the pace that’s needed for a robust economic recovery, and many owners have no plans to add to their payrolls, according to recent surveys. In three released last week, the most optimistic reading came from Bank of America Corp., which found that 52 percent of owners plan to hire over the next 12 months. But Wells Fargo & Co. found only 21 percent planned to hire, and in a Citibank survey, 25 percent had plans — numbers consistent with other surveys in the past year.

Some owners who do want to hire face obstacles like finding workers who can and want to do the job. In monthly reports from the National Federation of Independent Business, owners have said they can’t find people with the skills they need.

What will it take for companies to hire? The answer differs from one business to another.

WANTED: FOUR CLIENTS

Marilyn Trent estimates it would take four more clients bringing in revenue of about $250,000 for her to hire for her company that designs websites and company logos. Trent Creative is based in Detroit, where the local economy has been hurt by the devastation the auto industry suffered during the recession.

Competition is a problem. Even with the city’s troubled economy, plenty of companies do the kind of work Trent does. Trent Creative has enough clients to keep the company’s seven employees busy, but they’re not overworked. So at this point, Trent has no need to hire.

But she’s optimistic she’ll get more clients. Trent specializes in work for manufacturing companies, and their business is picking up as their customers, Detroit’s automakers, sell more cars. She needs to do more sales work to persuade them to create or update their web pages.

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