Hiring on past experience isn’t all it’s cracked up to be, worker demographics are changing, and Ohio politicians battle over small business taxes.
Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
We’re half way through the week, with a three-day weekend in sight for many. Get ready for BBQs and backyard parties by considering the way that office culture is changing for many small businesses, checking out new research on old hiring practices, and checking in on the fate of Ohio’s tax cuts for small businesses.
Small business culture shifting in response to worker demographics and expectations
Creating an office culture isn’t always at the top of the list of priorities for entrepreneurs launching a business. Increasingly, however, small business owners are finding they must change their workplace culture to keep up with the shifting expectations–and–demands of an evolving workforce. SBOs are finding that they must offer more flexible work arrangements and professional development opportunities, enable employees to achieve a healthy work-life balance, and keep open lines of communication.
The Number: 25%. A recent Bank of America survey indicates that 25% of small business owners were shifting to a more flexible work culture in attempt to attract the kind of talent they want to hire.
The Quote: “They want to be home. They want to be watching the playoffs while they work.”
New research suggests old hiring methods need to go
Hiring a candidate based on past work experience is a mistake, according to research coming out of Florida State University. The five-year research project examined data from over 80 workplace studies spanning the past 60 years and found that many commonly-held notions of what constitutes a good hiring process are actually not accurate indicators of how an employee will perform once they’re onboarded.
The Number: 0. The research found 0 correlation between how long a candidate stayed at pre-hire positions and whether or not they would stay or leave their new employer.
The Quote: “Our research found a very small relationship between the amount or type of experience that employees possessed when they came into a new organization and how they ultimately performed in that job. There’s almost no relationship in most cases.”
Ohio legislature battling over small biz tax cuts
The Ohio House and Senate are battling over rolling back tax breaks for the state’s small business owners. Passed in 2013 and slowly phased in to full effect in 2017, the deductions allow qualifying small businesses to avoid paying taxes on their first $250,000 in revenue. The Ohio House has voted to reduce the threshold to $100,000 in a bid to add $193 million in tax revenue to the state’s budget. The Ohio Senate, however, has not agreed to pass companion legislation, arguing that tax collections were already up 4% this year.
The Number: 86%. Proponents of the rolling back the tax cut say that 86% of small business owners who are currently eligible for the tax break would still qualify under the new law.
The Quote: “Were it not for this deduction, I would be paying essentially the same rate as a Fortune 500 company that was headquartered here in Ohio—actually, probably even a higher rate, because they would probably get all kinds of other deductions that we don’t have access to.”
Can you name all the federal holidays?
Hint: the fourth federal holiday of the year is coming right up. If you need a refresher on federal holiday policies, check out this quick guide for small businesses.