The Daily Rundown: Hiring Slows, Baby Boomers’ Retirement Changing Main Street, Benefits of Holiday Pay
Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
Let’s dig into the day’s news. Today we’re going to look at some conflicting reports about small business optimism and hiring numbers. Meanwhile, the times are a-changin’ and Main Street will start to look a little different as more Baby Boomers retire. Finally, we’ll wrap things up by considering the benefits of offering holiday pay.
Hiring slows, optimism jumps for small businesses
The National Federation of Independent Businesses released a report indicating that small business optimism has jumped, reaching the highest point since May of this year. This report comes on the heels of last Friday’s DOL jobs report that exceeded expectations for the overall economy. Despite these positive indicators, recent numbers from ADP indicate that small business, in particular, has slowed — and is unlikely to pick up any time soon.
The Number: 60%. Small business owners are spending, with 60% of SBOs reporting capital outlays since October.
The Quote: “Owners are aggressively moving forward with their business plans, proving that when they’re given relief from the government, they put their money where their mouth is, and they invest, hire, and increase wages.”
Main Street changes as Boomer business owners retire
Change is coming to Main Street. As Baby Boomer business owners retire in droves, nearly one-third of Americans and their jobs will be impacted. A lack of coherent and comprehensive succession planning as well as shifting attitudes on the part of younger generations toward taking over the family business means that Main Street businesses are about to change.
The Number: 25 million. Baby Boomers own 2.34 million businesses across the U.S., making them responsible for the employment of 25 million Americans.
The Quote: “If our nation’s Baby Boomers don’t get more focused on planning for the sale or transition of their businesses on an urgent basis, then we’ll have millions of citizens whose jobs and careers are in peril and millions more who will not be able to properly retire.”
The benefits of offering holiday pay
Heading into the holidays, small business owners are well-served to stop and consider the benefits of offering holiday to employees. The Fair Labor Standards Act does not require employers to pay their employees holiday pay and business owners are left to create their own policies. The upside of offering holiday pay: a happier workforce.
The Number: 7.6. On average, American workers get 7.6 paid holidays.
The Quote: “I firmly believe that happy employees are more productive employees.”