Isn't it great to hear such fantastic optimism from small business owners after a difficult few economic years that have made growth challenging.
The article suggests that there is a lag between the expected growth and the rate at which these SMEs are recruiting new staff. I totally agree with the thought that companies are more cautious about simply adding heads when times are good and growth is positive. Companies are now more concerned about growing profitably than being impressed by top line sales. What's the point in hanging a heavy weight around your neck when you can choose a more agile approach that is easier to scale up and down relevant to the economic cycle.
At Collingwood we have found that our clients would now rather invest a little bit more salary in a real superstar who can grow and in turn drive the company forward rather than recruit 2 heads with less capability simple to cover tasks. Companies are thinking and acting smarter too, using technology to remove mundane tasks usually taken up by human hands. There is less rush to fill seats and it is fueling success.
In 2018, 51 percent of business owners plan to hire new employees, even though a whopping 90 percent expect a successful year ahead. Why the disconnect? One reason is that small business owners have learned to do more with less. Coming out of the last recession and painfully slow recovery, entrepreneurs tightened their belts and found a way to get by without adding new employees, even when revenue rebounded. It used to be that if your business was doing well, you were hiring. As indicators of Main Street's health, optimism and job growth went hand-in-hand. That's just not the case anymore. The definition of a "good year" has changed. Now, growing sales without growing payroll looks pretty good to most business owners.