Majority of businesses likely to add staff, but continue to face
challenges finding qualified talent
A majority of midsize business leaders remain optimistic that
the U.S. economy will continue to improve and plan to engage in
growth activities in 2016, according to The Hartford’s 2015 Midsize
Business Monitor.
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The second annual survey of owners and C-level executives of
U.S. businesses with annual sales or revenues of $10 million to $1
billion found that 60 percent are optimistic that the national
economy will strengthen in the next six months, down slightly from
66 percent in 2014. Their optimism is reflected in plans for 2016,
with nearly all (96 percent) midsize businesses likely to engage in
one or more activities that drive growth for their businesses,
including:
- Investing in technology – 87
percent
- Investing in their operations – 87
percent
- Providing new product or service
offerings – 72 percent
- Hiring additional staff – 71
percent
- Expanding into new customers segments –
71 percent
- Expanding into new geographies – 59
percent
The Hartford’s survey also found 44 percent of midsize
businesses are likely to engage in merger and acquisition activity
and 42 percent are likely to engage in business activities outside
the U.S.
“This continued optimism and focus on growth among midsize
businesses is a positive signal for the economy overall and for
businesses that provide the products and services they will need,”
said David Carter, executive vice president of Middle Market
insurance at The Hartford. “As we head into 2016, businesses that
are investing in their operations, expanding their footprint and
growing their customer base will look to business partners and
service providers who can help them protect their business and
manage risk as they capitalize on new and emerging market
opportunities.”
Midsize vs. Small Businesses: More Likely to Add Staff, But
Face Talent Shortage
A majority of midsize businesses (71 percent) are likely to add
staff in 2016. By comparison, nearly half (49 percent) of small
business owners are likely to add staff in 2016, according to The
Hartford’s 2015 Small Business Success Study (SBSS). While most
midsize businesses (86 percent) had hired employees in the prior 12
months, the SBSS found that just 35 percent of small business
owners had hired employees in the 12 months prior to the study.
As midsize business leaders look to add staff in 2016, finding
employees with the desired skills may continue to challenge hiring
plans. Nearly half of midsize businesses that hired employees,
hired fewer than desired. Among those businesses, the most common
reason was a lack of qualified talent (60 percent).
By comparison, the SBSS found that among small business owners
that had either not hired any
employees or hired fewer than desired, just 17 percent cited a lack
of qualified talent as a reason. The most common reasons for these
small business owners not hiring or hiring fewer than desired were
that the business was not growing (34 percent), the business could
not afford to hire (28 percent) or the owner was taking on
additional responsibilities (26 percent).
Retaining Talent, Promoting Wellness
Midsize businesses are offering a variety of benefits to help
retain employees. Aside from health insurance, which 89 percent
offer, common benefits include:
- Paid time off – 69 percent
- Professional training and development –
51 percent
- Flexible work schedule – 50
percent
- Merit-based cash bonuses – 48
percent
Midsize businesses are also offering wellness programs for
employees, with the majority (71 percent) offering at least one
program. The most common offerings include employee assistance (36
percent), programs to encourage physical activity/fitness (32
percent), and smoking cessation (31 percent). One in five (22
percent) midsize businesses offer employees weight management
programs and 10 percent offer biometric screening.
“Attracting and retaining top talent is a priority shared by
business leaders, regardless of the size or industry in which they
operate,” said Carter. “Offering benefits that are meaningful to
employees and support their health and well-being can help midsize
businesses compete effectively for talent, increase productivity
and enhance overall company performance.”
Technology Use
Midsize businesses continue to integrate technologies into their
operation, including employer owned mobile devices (64 percent),
cloud computing (53 percent), Internet phone service (50 percent)
and employee owned devices accessing company systems (34 percent),
among others. Midsize businesses are also considering the use of
newer, cutting edge technologies.
Technology
Currently Using
Considering in the nextthree
years
Internet of Things 16 percent 43 percent 3-D printing
9 percent 33 percent Wearable technology 7
percent 38 percent Drones 3 percent 16 percent
Autonomous/driverless vehicles 2 percent 16 percent
“These and other emerging technologies bring potential benefits
as well as risk considerations,” said Carter. “The technology
landscape is changing rapidly, so it is critical for midsize
businesses to work with insurers, agents and brokers who can guide
them in these new areas of risk, so they can protect their business
and prevail in their pursuit of new opportunities.”
The Hartford’s Middle Market segment provides comprehensive,
multiline commercial insurance coverage for midsize and larger
businesses, associations and organizations. Coverage offerings
include property, general liability, workers’ compensation,
commercial auto, umbrella liability, management and professional
liability and marine protection, as well as specialty coverages for
target industry segments, including technology, life sciences,
construction, manufacturing and private education.
Survey Methodology
The Hartford’s 2015 Midsize Business Monitor was fielded from
August 11-19, 2015. More than 500 owners and C-level executives of
midsize businesses headquartered in the U.S. with annual sales or
revenues of $10 million to $1 billion participated in the online
survey, which had a margin of error of +/- 4.3 percentage points at
the 95 percent confidence level.
More information about this survey is available at
www.thehartford.com/midsizemonitor.
For more information about The Hartford’s 2015 Small Business
Success Study results, including survey methodology, visit
www.thehartford.com/successstudy.
About The Hartford
With more than 200 years of expertise, The Hartford (NYSE: HIG)
is a leader in property and casualty insurance, group benefits and
mutual funds. The company is widely recognized for its service
excellence, sustainability practices, trust and integrity. More
information on the company and its financial performance is
available at www.thehartford.com. Join us on Facebook at
www.facebook.com/TheHartford. Follow us on Twitter at
www.twitter.com/TheHartford.
HIG-M
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Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
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The HartfordPamela Rekow,
860-547-8990pamela.rekow@thehartford.com
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