Poll offers insight into small business hiring

A recent Gallup poll revealed that the country's small business owners are reticent to hire because of potential healthcare costs, government regulations and uncertainties about revenue, the economy and the future of their companies.

Specifically, more than three-quarters (76 percent) said they're not hiring because they don't need additional workers, 71 percent are worried their revenues or sales won't justify adding employees, 66 percent are worried about the economy, 53 percent believe they might struggle to make payroll, 48 percent pointed to healthcare costs and 46 percent named federal regulations. Nearly one-quarter (24 percent) were concerned they might not be in business this time next year.

Among those who are hiring, 64 percent cited expanding business operations and increased consumer or business demand as the primary reason. More than half (55 percent) said their sales or revenues justify taking on more workers, while 44 percent are looking to replace a former employee. A total of 13 percent said they were increasing their workforce because they'd managed to secure capital and 7 percent cited government incentives.

The 600 small business owners who took part in the quarterly survey tended to gravitate toward more traditional means of seeking workers. Nearly two-thirds (65 percent) said they use word of mouth as a major way to find new employees, while 48 percent cited employee referrals.

Just 19 percent said the internet plays a major role in their efforts, ahead of 9 percent who cited newspaper ads and 3 percent who named recruiters.

According to the latest Small Business Optimism Index from the National Federation of Independent Business, job growth improved in January, but only by a slight 0.15 percent. More than three-quarters (78 percent) of company owners reported making no net change in employment.