A positive report gives hope for the near term but doubts still linger.
"Consistent with the quarterly PayScale Index, the results of the 2013 Compensation Best Practices Report show more optimism amongst small and large businesses than in past years," said Katie Bardaro, Lead Economist and Director of Analytics at PayScale.
Highlights from the report:
- A whopping 70% of small businesses - and 61% of large companies - expect their business performance to improve in 2013.
- Companies are planning to invest in new talent to grow their business with 15% more companies planning to hire in 2013 than in 2012.
- The number of organizations hiring employees has consistently risen, with 2012 growth exceeding original expectations by 12%.
- As more companies look to hire in 2013, skilled labor is in demand. In the survey, 59% of respondents cited retention as a main concern.
- Obamacare is essentially a non-issue for executives, with 75% saying it will have little or no effect on hiring and staffing plans.
- In 2012, small business wage growth increased significantly, demonstrating the little guy is competing with large companies for skilled employees
According to Mike Metzger, Payscale’s CEO, this last point is of growing concern to many small business leaders.
“As small businesses plan for growth, they are challenged to compete with large enterprises for skilled employees. In the past, only large companies could afford expensive compensation surveys to ensure they were attracting the right employees,” he said..
Metzger argues that new technologies like cloud compensation and crowdsourcing enable small businesses to access this rich treasure trove of data to avoid the constraints of the ‘skills gap.’
An Infographic providing a summary of the report can be found here, as well as the full Compensation Best Practices report here.