Looks like small businesses are on a hiring spree.
The ADP Small Business Report for September 2016 has revealed that small businesses created 34,000 jobs in September.
ADP (NASDAQ:ADP) defines small businesses as those with 1 to 49 employees. For the survey, it partnered with Moody’s Analytics to provide a monthly snapshot of U.S. nonfarm private sector employment based on actual transactional payroll data.
September 2016 ADP Small Business Report
A Closer Look at the Numbers
It’s worth noting that both very small (1 to 19 employees) and other small (20 to 49 employees) companies added more jobs last month.
While observing the two sectors, however, it becomes abundantly clear that the service-providing sector has singlehandedly driven this job growth. The sector added 36,000 jobs while the goods-producing sector cut 2,000 jobs.
In a press release, Mark Zandi, chief economist of Moody’s Analytics said, “The current record of consecutive monthly job gains continued in September. With job openings at all-time highs and layoffs near all-time lows, the job market remains in full-swing. Job growth has moderated in recent months, but only because the economy is finally returning to full-employment.”
Optimism Contributing to Job Growth
So, why are small businesses suddenly hiring more employees?
Quite possibly because they are more confident about their business growth in the near future. A recent study supports this assumption.
According to the 2016 State of Small Business Report by software solutions provider, Wasp Barcode Technologies, about 71 percent of small businesses expect revenue growth and 50 percent plan to hire employees.
How to Hire the Right People
At a time when businesses are booming and requiring more people to keep growing, it is important for companies to have the right hiring strategy in place.
“Great people versus okay people is the difference between success and mediocrity,” Brett Lewis of Skillbridge tells Mashable. For small businesses working on tighter budgets, it’s even more important to understand this.
That’s why, small business owners should be clear about who they want and for what. To give an example, what special skills should you look for in a digital marketing expert? What are the KPIs the resource should meet? How is a digital marketing expert going to add value?
A clear hiring strategy needs to be supported by a clear job description to attract the right people. “Help potential applicants to see that this is an important position for your company and that they will be making a valuable contribution,” advises Laura Hampton, digital marketing manager at Hallam Internet Ltd.
Another tip is to look at long-term goals when recruiting new people. It’s of course, not possible to predict the future in today’s uncertain economy. But a long-term picture can ensure businesses get the best out of employees who have more than one skill to keep adding value.