As businesses slowly emerge from the country's recent economic woes, growth is still sluggish. For small and mid-sized businesses, that growth is happening at a much quicker pace than for larger companies, with D&B Credibility Corp. reporting a revenue increase of 2.14 percent for micro businesses and 1.18 percent for small businesses. But despite that slight improvement, small businesses are still reluctant to bring on a new staff member.
As Harvard Business Review recently pointed out, an investment in a new employee has a much more significant impact on a smaller organization. Larger businesses have reserves in place to protect themselves against any risks with taking on an additional worker. The salary and benefits, along with the cost of recruiting and training, have a much more severe impact on a smaller enterprise's budget.
SMBs also have a tougher time securing a bank loan, according to a study from Pepperdine University. In surveying businesses of various sizes, researchers found that only 34 percent of small businesses and 19 percent of microbusinesses were successful in securing a requested loan.
This lack of access to capital means SMBs must be much more cautious as they grow. It isn't enough to add a big client or notice that current staff can't keep up with demand. Even when a new team member is added, small businesses realizing the commitment they're making. Each team member must be carefully screened to ensure the company's investment in recruiting and training that worker will pay off.
An experienced staffing company can help SMBs locate the perfect fit with each new hire. By working with professionals, your business can build a team that will remain on board long term, ensuring each investment is a wise one. Call Sonata Talent today to discuss your staffing needs and let us help you determine how you can grow without taking big risks.