but 91% would cut back if faced with a recession.
small business employers have a relatively positive outlook on the economy and their ability to hire more people this year.
nevertheless, 91% say the economy will influence their hiring plans, according to new survey findings from quickbooks payroll.in the event of a recession or economic downturn in 2019, 19% of business owners said they would cut spending on hiring first. and 18% would cut employee bonuses first.
in 2018, reports showed a strengthening economy was curbing unemployment, and job candidates found it easier to get work in line with their experience.
despite the seemingly boundless economic growth and record-breaking unemployment rates, there have been a few signals and warnings recently indicating a recession could be on its way.
whether the job market will remain stable is uncertain, but one would think predictions to the contrary could affect whether employers will be more cautious about their hiring budgets in the new year.
could the simple fear of the unknown play a part in how business owners and recruitment managers end up hiring this year, or will they continue hiring as planned based on current trends?
top hiring challenges
even in a time of economic prosperity, with so many great candidates already scooped up by other companies, business owners still face significant hiring challenges, including:
- finding qualified candidates.
- new hires not living up to expectations.
- a high rate of staff turnover.
if finding qualified candidates is the biggest challenge, what business owners do after they find that dream candidate is crucial. that could be why the most important quality employers search for in applicants is experience. in fact, relevant experience was more important to our respondents than a relevant degree.
why businesses reject candidates
some 81% of respondents said they have seen at least some evidence of a lack of qualified candidates in the workforce. only 17% said they had not seen any evidence of lack of qualified candidates.
one reason given was that schools and colleges aren’t preparing students for the workplace. about 33% listed this belief as their top reason for the lack of qualified candidates.
one to watch: social media
and despite protections against such acts, 20% of respondents say they have rejected a candidate based on nationality or race. candidates have also been rejected for being too young or too old.