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Unemployment Relief Unlikely: Survey Finds 74 Percent of Small Business Owners Have No Plans to Increase Employee Headcount
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Two-Thirds Have Received More Job Applications in the Last Month PARK RIDGE, Ill.--(Business Wire)-- While some economic experts believe that the recession is over, today`s job market remains dismal and small businesses - the largest employer group - fear the economy will not sustain the need for more employees, according to a recent poll by George S. May International. A new survey of 830 small business owners across the United States by management consulting firm George S. May International found that 74 percent of respondents do not plan to increase employee headcount in the next 90 days. "The term `Help Wanted` has become obsolete in this recovery setback period," said Paul Rauseo, managing director of the George S. May International Company. "Small business owners feel they do not have the need for more employees and, in fact, see sizable portions of their staff as an unnecessary expense." Among the respondents not hiring, 62 percent say they have no confidence in the economy sustaining the need for more employees, while 38 percent are simply replacing hours from employees cut by adding them on to existing employees` workloads. Too many small businesses cut staff when they need to cut costs, according to Rauseo. "Make the changes that will make the company better instead of damaging the very thing that made it successful in the first place - its employees," Rauseo said. According to the survey, 65 percent of small business owners have received more requests for job applications in the last month. "Business owners should view the high demand for employment as an opportunity to design commission-only sales forces, or employ part-time, seasonal workers," Rauseo said. "The idea is to keep productivity high and employees motivated. If staffing new positions is not an option, employees should be cross-training to conduct different and more tasks to increase productivity." About George S. May International Company George S. May International Company is one of the most established management consulting firms in the United States. Since 1925, it has been helping business owners improve their operations, profits, efficiency and effectiveness. The company is headquartered outside of Chicago in Park Ridge, Ill. For more information, visit www.georgesmay.com. Cushman/Amberg Communications Luke Cushman or Mary Pettersen 312-499-5235 or firstname.lastname@example.org Copyright Business Wire 2009