January is always a good month to take a look at what’s trending in small business in the areas of people and process. Here’s a summary of some trends for 2015 that I’ve gathered from my colleagues and research.
CareerBuilder’s 2015 U.S. Job Forecast shows what’s ahead in hiring and compensation:
Fulltime hiring: 29% of small businesses with 250 or fewer employees are planning to add fulltime workers this year. That’s up from 22% in 2014. Seven percent will downsize, an improvement from 9% last year.
Part-time hiring: 23% of employers expect to recruit part-time workers over the next 12 months, which is up from 17% last year. Although a variety of factors are influencing this trend, 14% attribute their hiring part-time workers to the Affordable Care Act.
Wage increases: 82% of employers plan to increase compensation for current employees and 64% say they’ll offer higher starting salaries for new employees. Sales and Information Technology are the top functions earmarked to receive increases.
Other trends we’re seeing include:
Social media policies: More employers are implementing social media use policies. Social media abuse disciplinary actions were up in 2014, with reasons ranging from divulging confidential information to harassment of coworkers to defamation of company brand.
Social media recruiting: The other side of that coin is that companies will begin using social media more to represent their brand for both attracting and retaining employees. A recent study showed that 58% of people are more likely to want to work at a company that uses social media. Social media posts that convey company culture are perceived as more “real” than press releases and traditional marketing materials.
Ongoing performance management: Many small businesses are changing from an annual performance review to an ongoing performance management process where feedback – both good and developmental – is given as it’s needed. This contributes to employee engagement by providing employees with the feedback they need to build on strengths or improve development areas throughout the year, rather than in annual intervals.
January is also a good time to review your Employee Handbook to ensure that your policies and procedures reflect the latest state and federal laws. Contact me today for a free 45-minute consultation.