Survey: How Small Companies Respond to Recession

SAN LEANDRO, Calif.–( BUSINESS WIRE)–As the U.S. recession deepens and monthly job losses reach historic highs, a recent survey of more than 400 white-collar small businesses is shining a light on how small employers are evolving their human capital management practices in a down economy, and how employer practices are directly influenced by whether the small business owner is considered an “economic optimist” or an “economic pessimist.” Conducted by TriNet, a leading provider of human resources outsourcing and consulting services to small businesses, the TriNet Recession Practices Survey polled businesses in the technology, financial and professional services fields. The survey found that nearly half of the respondents fall in the category of being “economic optimists” and saw market conditions as least as good as in 2008. Of the economic pessimists, 34 percent viewed the economy as worse and 18 percent viewed it as much worse than 2008. When it comes to hiring and talent acquisition practices for white-collar small businesses, the survey found that hiring plans are still on the table, but are being scaled back overall, with more than half of respondents saying they will hire fewer employees in 2009. Just as consumer confidence influences the performance of the market, employer confidence influences their business’s response to it . Specifically, 28 percent of economic optimists are planning to hire more employees in 2009 than the previous year and only 4 percent of economic pessimists are planning to hire more in 2009. ( Read the entire release.)

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