Employment 101: Employers Cautiously Optimistic for 2012
Posted on Wed, Jan 18, 2012
By Koleen Singerline
The unemployment rate at the end of 2011 was 8.5 percent, which is a substantial decrease from the 9.1 percent unemployment rate at the beginning of the year. This is the lowest level of unemployment since February 2009.
CNN reports that the economy added 200,000 jobs last month, closing out the year with 1.6 million jobs gained in 2011. This is a substantial increase to job creation when compared to only 940,000 jobs added the year before.
The National Federation of Independent Business Optimism Index showed that for the fourth time since September and the second month in a row, small-business optimism has risen. The survey is based on the responses of 725 small businesses during the month of December and measured 10 components, including plans to increase employment, plans to make capital outlays, expectations of economy to improve, expectations of real sales to be higher, current inventory, and whether now is a good time to expand.
A poll of 7,502 small businesses by Pepperdine and Dun and Bradstreet Credibility Corp. found that small businesses are projected to grow their staffs through new hires and increased employee retention. Nearly half of small businesses (40.7 percent), say they will hire employees in the next six months. The research also showed that economic uncertainty was the biggest concern facing small businesses.
A second challenge facing business is the lack of key talent available. Those were the findings of the 2011 HireRight Employment Screening Benchmarking Report, which indicated that 49 percent of respondents listed finding and retaining qualified employees as a top business challenge.
Businesses will need to lay out a comprehensive hiring strategy to identify top performers. A hiring plan should include multiple sources for finding applicants. Many companies are finding the services of a staffing agency provide them the flexibility in staffing necessary to manage an uncertain economy, as well as availability to a wide range of skills and talent.
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