Posts Tagged ‘small business hiring’

By Rieva Lesonsky

The small business hiring trend that started in October 2009 continued this past month. The most recent Intuit Small Business Employment Index found that small business employment grew by 0.3 percent in September, adding up to an annual growth rate of 3.3 percent. Hours worked and compensation increased as well.

Based on these numbers and revised national employment data from the Bureau of Labor Statistics, Intuit revised its previously reported growth rate for August from 0.18 percent to 0.3 percent, or 65,000 jobs added in August. Since October 2009, Intuit reports that small businesses have added 720,000 new jobs.

“After all the uproar over the threatened European financial meltdown, [this] good news is very welcome,” said Susan Woodward, the economist who worked with Intuit to create the index. “We have some distance to go to make up for growth that didn’t happen during the recession, but this is a good start.” Woodward believes the strong numbers could be due to increases in residential property prices for the past five months in a row. “There are all kinds of small businesses linked to property, such as construction contractors, real estate agents and brokers,” she notes.

The number of hours that hourly small business employees worked increased as well, to an average of 110.4 hours (or a 25.5 hour workweek) in September. This was a 0.3 percent increase from the revised August figure of 110.0 hours.

“In this recession, these smallest businesses have tended to cut back on employee hours rather than lay people off, so it’s good to see hourly people working more,” added Woodward.

In addition to hours, average monthly pay rose as well. Average monthly pay for all small business employees was $2,694 per month in September, Intuit found–a 0.3 percent increase compared to the August revised estimate of $2,685 per month. The equivalent annual wages are about $32,300 per year.

“Compensation is up by a healthy amount and equivalent to an annual growth rate of more than 3 percent,” said Woodward.  “This is very good considering that over the last 30 years real income has grown at a rate of about 1.5 percent per year. We have some distance to go to make up for growth that didn’t happen during the recession, but this is a good start.”

The Intuit Small Business Employment Index is based on online employment data from some 70,000 small business employers with fewer than 20 employees.

Image by Flickr user Dave Bleasedale (Creative Commons)

By Rieva Lesonsky

I love working with young people—they’re inspiring and energizing. But when you’re a small business owner, they can also be frustrating and challenging to work with.

In summertime, many small businesses turn to teenage employees to staff up for busy seasons. Other small businesses, such as fast food restaurants, rely on teen workers all year round. How can you get the most out of teen workers, capitalizing on their enthusiasm and energy? The Los Angeles Times recently took a look at the challenges of managing and motivating today’s teens.

Some issues related to teens are age-old—they don’t always have the best judgment, since they’re still maturing. They may not be physically capable of jobs that older workers could do, such as lifting or moving heavy items. They can sometimes be “flaky,” especially in summer when the lure of the beach or mall may outweigh the commitment to their shift at your shop.

However, the Times also notes some new changes in today’s generation of teens:

They’re digital. Instead of using paper-based schedules posted on an office wall, some companies cited in the story use online scheduling so teens can see their shifts at a glance 24/7. One company even created an online forum where workers could swap shifts.

They question authority–just not necessarily in the way my (baby boomer) generation did. Today’s teens want to know the “why” behind everything, instead of just being told what to do. Explain how their job fits into the overall picture and the reasons for following certain steps or completing certain procedures, and you’re more likely to get compliance.

It’s also important to know the regulations affecting hiring teens. These may include things like total number of hours worked in a day, hours worked in a week, type of work performed and more. Regulations can vary from industry to industry and state to state, so start with your industry trade association and your state labor department to verify what rules apply to your business.

One area it’s important to be aware of, the Times notes, is sexual harassment. Teens may not have the judgment to know what kind of behavior is inappropriate—whether on their part, or on the part of older supervisors or even customers. Make sure you educate your staff about sexual harassment and that they feel comfortable coming to you or their immediate supervisor with any concerns.

From being around teens as an aunt and a friend, the one piece of advice I have for any entrepreneur trying to manage teens is this: Treat them with respect and listen to their ideas. You never know when you might learn something that can improve not only your relationship with teen employees, but your whole business as well.

Image by Flickr user Son of Groucho (Creative Commons)