Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
We made it through another week. Before you head out to your company holiday party or to continue your quest for the perfect gift for Uncle Milton, take a minute to read these stories about the record-breaking number of small business raising wages, the risk of using AI in hiring, and how instant deposits solve the cash flow problem.
SMBs raise pay to stay competitive
The tight labor market is compelling a near record-breaking number of small business owners to raise wages. The National Federation of Independent Businesses reports that finding qualified talent continues to be the biggest challenge for company heads. The last time this many businesses raised wages? 1989.
The Number: 26%. More than one-in-four small business owners plan on increasing wages in the near future.
The Quote: Employers are finding “few or no qualified applicants for the job.”
Consider the legal implications when using AI for hiring help
As technology evolves, hiring managers have the option to use increasingly sophisticated AI tools to help streamline the recruiting and hiring process. Employing artificial intelligence for your HR needs is not without legal implications, however. Though technology companies are working toward removing implicit bias from the algorithms, they do still exist and open up companies to legal repercussions. There are ways to mitigate the risk.
The Number: 25%. The use of artificial intelligence in hiring is becoming more widespread, with 25% of employers acknowledging that they see its potential for recruiting purposes.
The Quote: “Using algorithms that are informed by previous hiring decisions may only perpetuate the obstacles many have faced during their working lives.”
Instant settlements key to keep cash flow moving for SMBs
According to a recent study, over 70% of SMBs believe that it takes too long for payments to settle, delaying access to critical funds. The lag time between when a small business completes a sale or transaction and when the money hits the bank is often a constant concern for SBOs and keeps many up at night.
The Number: 57%. POS providers who provide rapid settlement may well be part of the solution and 57% of SBOs would be interested in making this switch.
The Quote: “So cash flow is really something business owners lose sleep over.”