Home | Finance & Ops | Middle market CEOs anticipate job growth in 2016

Middle market CEOs anticipate job growth in 2016

By
Font size: Decrease font Enlarge font
Middle market CEOs anticipate job growth in 2016

In what is good news for job seekers, a survey by executive coaching firm Vistage found that small and mid-sized business owners are planning on increasing their workforce in 2016.

Among all firms surveyed, more than half (55%) planned to increase their workforce in 2016. Few firms (8%) reported that they planned cutbacks in their total employment.

The increased confidence shows that CEOs are feeling more stable overall. When asked about vacation time, CEOs reported taking nearly four weeks of vacation time each year. Almost every CEO surveyed (88%) works up to two hours a day while on vacation, with one-third mentioning their inability to confidently delegate tasks.

The most significant challenge they face continues to be hiring, training and retaining staff members.

“We’re starting to see CEOs take their vacation time and enjoy breaks throughout the year,” says Dr. Richard Curtin, an economist at the University of Michigan, who analyzes the survey results each quarter. “This is a very positive sign, as the shift proves that small and medium-sized businesses have gained a sense of confidence in their stability for the foreseeable future.”

Other notable survey findings include:

  • Nearly three-fourths of survey respondents reported revenue gains in the year ahead. More than half of the firms also expected rising profits, between last quarter’s 56% and last year’s 62%. Only 10% anticipated lower profits in the year ahead, nearly identical to the number of respondents who expected declines in their selling prices.
  • When asked about planned increases in investments in news plants and equipment, 44% reported increased investment in both the third and fourth quarters of 2015, slightly less than last year’s 49%.
  • As CEOs continue to focus on expanding their workforce, the most significant challenge they face continues to be hiring, training and retaining staff members. With a tightened labor market, these challenges will inevitably lead to higher wages and increased benefits to secure key personnel.

 

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha