Published on March 10th, 2015 | by Millennium Magazine Staff0
Survey Indicates Midsize Business Confidence Rising
(NAPSI)—Good news about the economy: America tops the list in seeking risk, hiring new talent, and recognizing and addressing high turnover as areas of focus for business growth in the coming year. The most confident and healthy sector of the U.S. economy is mid-size business, according to new research from The Sage Group plc. These businesses are comprised of 100 or more employees but fewer than 1,000.
The annual Sage Business Index looked at confidence indicators including business growth, exporting, governmental support and risk. In each of the four categories, the United States showed the most optimism, with the highest or second highest scores among all countries surveyed, though it joins other countries in citing government bureaucracy and logistical costs of exporting as common challenges.
“According to all indications, the economic forecast for the mid-market is rich with growth opportunity,” said Joe Langner, executive vice president at Sage North America. “We anticipate positive activity in the job market with smart companies focused on hiring, developing and keeping a talented workforce.”
With confidence at an all-time high, mid-market companies can leverage this opportunity by putting into practice some basic strategies focused on human capital as its most important asset.
Make a plan. Realistic in its optimism, midsize companies understand that growth, sales and profitability all come from their employees enjoying their roles and performing to the best of their ability.
More than half of the companies surveyed say the number of people employed by their business will increase over the next year. With this in mind, having a clear definition of business goals is imperative in identifying and building an effective workforce. Once business goals are defined, take inventory of current employees and determine where you need to build. Visualize what your winning team looks like, then do what it takes to get them.
Attract the right talent. Sounds simple, but attract the talent you want by offering the positive traits that midsize businesses provide. With 23 percent of mid-market companies planning to hire, the climate is ripe for recruiting smart talent based on those things a company with 100+ employees inherently provides-a mature culture, good benefits and an historical foundation. That being said, talented candidates are also lured to work for companies that foster creativity, offer flexibility and provide opportunities to innovate. By investing in infrastructure and technology, mid-market companies are in a position to appeal to the talent that’s right for them.
Retention is a strategy. A resounding 76 percent of American mid-market companies anticipate an increase in turnover over the next year. Market conditions such as this are a breeding ground for enthusiastic recruiters seeking to snatch your best talent unless you offer them sound reason to stay. While cash is certainly great and employees will take it, appealing to them on another level wins them over for the long haul. Do they want to train and mentor people? Do they need to work remotely during the summer to accommodate family needs? Benefits such as these require that you know your people’s motivations and shows that you are investing in them. Bottom line: Turnover can be a costly leak in the bucket when you consider the price of lost productivity, recruiting and training. Retaining smart talent is a strategy that’s critical to managing operating costs.
For further facts and advice, go to www.sage.com/businessindex.