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01-04-2007, 05:28 PM
Source: http://news.yahoo.com/s/usatoday/20070104/bs_usatoday/smallemployersstruggletofilljobs
Small employers struggle to fill jobs
By Jim Hopkins, USA TODAY
Thu Jan 4, 8:23 AM ET
SAN FRANCISCO - Small employers ramping up hiring plans to levels not seen in two years face a labor shortage that's forcing many to increase wages and benefits.
The pinch is tightest in 26 states with below-average jobless rates, new Labor Department data and private surveys show. More than half those states are especially dependent on small employers, those with fewer than 500 workers.
Nationwide, the share of small firms planning to hire through early 2007 rose to 19% in November from 16% the month before, say surveys by the National Federation of Independent Business trade group. November's share was the highest since November 2004.
In New Hampshire, Jody Rodgers plans to hire up to 20 workers as she expands her 55-employee pet boarding and grooming chain, The Barking Dog. She offers "great benefits," including health insurance, bonuses and paid vacations.
Still, Rodgers struggles to find qualified applicants amid a tight labor supply. "It's not pretty out there," she says.
New Hampshire is one of the 26 states. Its jobless rate rose slightly to 3.5% in November. But it remains well below the 4.5% U.S. average.
Small-business advisers say many of the USA's 5.7 million small employers must consider raising wages and adding benefits such as flexible working hours to better compete with big corporations.
"This position that you have traditionally paid $12 an hour for, you're going to need to now pay $14 to $15 an hour," says Sandra Dickerson, CEO of Your People Professionals, a recruiter and employment manager in Santa Maria, Calif.
The National Federation of Independent Business says wages already are headed higher. In November's survey of 451 companies, 20% planned to raise wages, up from 18% the month before.
"More owners are paying more, trying to keep workers and to get workers," says Bill Dunkelberg, the 600,000-member trade group's chief economist.
Small employers that don't want to raise wages can try other carrots that don't require spending more right away, says Tim Doherty, CEO of Doherty Employer Services in Minneapolis. Non-cash incentives include letting employees work from home one day a week or giving more personal time off.
Those are options small companies can offer to be more competitive with corporate giants that have less-flexible workplace policies. "They don't need to be bound by large-company constraints," Doherty says.
Small employers struggle to fill jobs
By Jim Hopkins, USA TODAY
Thu Jan 4, 8:23 AM ET
SAN FRANCISCO - Small employers ramping up hiring plans to levels not seen in two years face a labor shortage that's forcing many to increase wages and benefits.
The pinch is tightest in 26 states with below-average jobless rates, new Labor Department data and private surveys show. More than half those states are especially dependent on small employers, those with fewer than 500 workers.
Nationwide, the share of small firms planning to hire through early 2007 rose to 19% in November from 16% the month before, say surveys by the National Federation of Independent Business trade group. November's share was the highest since November 2004.
In New Hampshire, Jody Rodgers plans to hire up to 20 workers as she expands her 55-employee pet boarding and grooming chain, The Barking Dog. She offers "great benefits," including health insurance, bonuses and paid vacations.
Still, Rodgers struggles to find qualified applicants amid a tight labor supply. "It's not pretty out there," she says.
New Hampshire is one of the 26 states. Its jobless rate rose slightly to 3.5% in November. But it remains well below the 4.5% U.S. average.
Small-business advisers say many of the USA's 5.7 million small employers must consider raising wages and adding benefits such as flexible working hours to better compete with big corporations.
"This position that you have traditionally paid $12 an hour for, you're going to need to now pay $14 to $15 an hour," says Sandra Dickerson, CEO of Your People Professionals, a recruiter and employment manager in Santa Maria, Calif.
The National Federation of Independent Business says wages already are headed higher. In November's survey of 451 companies, 20% planned to raise wages, up from 18% the month before.
"More owners are paying more, trying to keep workers and to get workers," says Bill Dunkelberg, the 600,000-member trade group's chief economist.
Small employers that don't want to raise wages can try other carrots that don't require spending more right away, says Tim Doherty, CEO of Doherty Employer Services in Minneapolis. Non-cash incentives include letting employees work from home one day a week or giving more personal time off.
Those are options small companies can offer to be more competitive with corporate giants that have less-flexible workplace policies. "They don't need to be bound by large-company constraints," Doherty says.