ADP Survey Finds Small Businesses Feel Challenged by the Hiring Process

March 10, 2016

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ROSELAND, NJ — (Marketwired) — 03/10/16 — In 2015, small businesses added 46 percent of all new jobs in the United States, according to the ADP Research Institute®. Despite this growth, a recent ADP® study found that 40 percent of small businesses felt filling those jobs was more difficult than expected and 32 percent said it took longer than expected.

The study surveyed more than 1,000 U.S. small business owners and managers involved in the hiring process whose companies employed between one and 49 people. It found that seven of 10 small businesses experience problems during the hiring process. The most prevalent issues small businesses identified were a longer hiring cycle (34 percent), a loss of productivity (28 percent) and employees not meeting expectations for the position (25 percent).

“Managing an effective and efficient hiring process can be quite challenging for a small business owner whose primary focus is to run and grow a business,” said John Ayala, president of ADP’s Small Business Services division. “Despite the fact that small businesses have grown at a rate 20 percent greater than large businesses in the last seven years, hiring is still a struggle for small business owners who have limited time and lack HR expertise.”

The study also found that only 20 percent of small businesses have employees on staff with formal HR or hiring training and the vast majority (between 70 percent and 90 percent) complete hiring tasks manually, without the help of hiring tools and resources.

“The war for talent has been heating up and small businesses are finding it much more challenging to find the right employees for their needs,” said Ayala. “In this competitive environment, the hiring process is more important than ever — this includes everything from writing job descriptions that attract qualified candidates, to candidate screening and interviewing. Our small business clients count on us for the expertise they need to effectively staff their business such as connecting with our ADP® HR HelpDesk advisors, downloading our informational guidebooks and many other resources.”

For more information download ADP’s hiring guidebook today.


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