Unemployment Relief Unlikely: Survey Finds 74 Percent of Small Business Owners Have No Plans to Increase Employee Headcount

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Thu Nov 5, 2009 7:00am EST

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 lcushman@cushmanamberg.com

Copyright Business Wire 2009

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