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We've Got To Get Our Hands On Some Workers


Frontier -- In Box

We've Got to Get Our Hands on Some Workers

Will the tight labor market be the Achilles' heel of small business in 2000? A new Small Business Administration study suggests that small companies are squeezing as much as they can out of their existing staff, and this could inhibit their ability to expand in the year ahead. The study, which was based on U.S. Census Bureau data and a special labor-market survey of 752 small companies conducted in September, 1998, by the National Federation of Independent Business, found that 63% of companies hiring had some trouble finding workers.

An increased workload is unleashing a nasty ripple effect on existing workers. Forty percent of companies with hiring problems said employee morale was flagging, while 36% said their product or service quality suffered. Some 35% of the companies with hiring problems reported that growth and hours of operation were constrained by lack of staff. "That's indicative that output could be struggling," warns SBA economist Brian Headd.Edited by Dennis BermanReturn to top

TABLE

Help Wanted (Desperately)

Percentage of Companies seeking workers who say staffing woes affect:

Employee productivity 43%

Profitability 35%

Sales revenue 28%

Employee turnover 27%

Introduction of new 23%

products/services

DATA: Joel Popkin & CO. for the SBA

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