Hiring Crunch Drags Down Small Business Revenues

Even as large corporations such as Target are posting forecast-beating earnings and reporting little difficulty attracting talent, smaller businesses say they’re struggling to hire workers, hurting their bottom line. A new survey by Salesforce (pdf) shows that 53.3 percent of small and medium-sized businesses said staffing issues have been a drag on revenues. For those businesses that said hiring woes were pressuring profits, 56.6 percent reported a hit to revenues of at least 11 percent. Echoing this sentiment were small-business owners surveyed for the National Federation of Independent Business (NFIB) July jobs report, which found that 49 percent of owners reported job openings that couldn’t be filled—a 48-year record high. At the same time, small-business owners’ plans to fill open positions remain at record high levels, and many are boosting wages to attract workers. Finding qualified workers remains a key problem for small-business owners, with 93 percent of those who …
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