Despite staffing woes, small and midsize businesses increasingly upbeat

Owners of small and midsize businesses are increasingly confident despite challenges around staffing, according to the Q2 2021 CBIZ Main Street Index released today by CBIZ Inc.

The index recorded notable changes from first quarter to the second quarter, particularly when it came to revenue and staffing, said Philip Noftsinger, executive VP at CBIZ.

“The data tells us that within the last few months, both the number of businesses that grew revenue and the number that grew headcounts increased considerably,” Noftsinger said. “Even so, businesses are finding that they can’t keep up with their hiring needs, especially for entry-level and associate-level roles.”

CBIZ’s index is based on a survey of more than 2,000 businesses with fewer than 100 employees in 27 industries across the US. The survey took place from May 18 to May 27.

It found 52% of business cited significant or modest revenue growth in the second quarter. That’s up from 22% who said the same in the first quarter.

Among the other findings:

• The impact of Covid-19 is also appearing to fade with 60% of business expecting to operate in a “business as usual” capacity in the next six months and 36% expecting to face only moderate challenges within the next six months.
• Staffing concerns rose. The second-quarter survey found 46% of businesses are concerned with staffing shortages, up from 27% in the first quarter survey. Still, 32% of businesses reported modest or significant growth in their employee headcounts in the second quarter, up from 14% in the first quarter.
• When it comes to vaccinations, 5% of businesses have mandated vaccination for employees. Meanwhile, 48% of businesses surveyed said they are encouraging employees to get vaccinated. A small percentage of businesses specifically noted that they are offering incentives or taking additional measures such as providing on-site vaccination or paid time off for employees receiving a dose.

“With employee vaccinations and plans for the work environment becoming more concrete, the focus for Main Street businesses has turned to staffing,” Noftsinger said. “While concern over revenue outweighed concern over staffing shortages in Q1, the trend has taken a turn in Q2. The ability of businesses to quickly meet their staffing needs could significantly impact the trends we see for Q3.”

The original article can be found at: Staffing Industry Analysts