2016 Hiring Plans Show Promise According to Vistage Survey
PR Newswire, SAN DIEGO (Jan. 6, 2015) — Good news for job seekers – small and mid-sized business owners are planning on increasing their workforce in 2016, according the Vistage CEO Confidence Index Survey, the largest survey of chief executives from small and medium-sized businesses in the U.S.
Among all firms surveyed, more than half (55 percent) planned to increase their workforce in 2016. Few firms reported that they planned cutbacks in their total employment, just 8 percent in the most recent survey.
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 percent) works up to two hours a day while on vacation, with one-third mentioning their inability to confidently delegate tasks.
“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 percent and last year’s 62 percent. Only 10 percent 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 percent reported increased investment in both the third and fourth quarters of 2015, slightly less than last year’s 49 percent.
- 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.
How is the Vistage CEO Confidence Index calculated? (Percent of respondents who give favorable replies - percent of respondents who give unfavorable replies) + 100. The Index was 95.5 in the fourth- quarter 2015 survey, just below last quarter’s 96.3 and well below last year’s 107.5.
About the Vistage CEO Confidence Index
The Vistage CEO Confidence Index, established in 2003, is a quarterly survey of small- to mid-sized business CEOs about the U.S. economy. The Q4 2015 Vistage CEO Confidence Index includes responses from 1,355 U.S. CEOs, surveyed between November 30 and December 9, 2015, with a margin of error of 3 percentage points. Since its establishment in 2003, the Index has proven to be a reliable indicator for changes in GDP and employment, two to three quarters hence.
About Vistage Worldwide, Inc.
Vistage Worldwide members get results. Founded in 1957, Vistage assembles and facilitates private advisory groups for CEOs, senior executives and business owners. An exclusive community of more than 20,000 business leaders across a broad array of industries in 16 countries, Vistage provides powerful networking opportunities and allows members to tap into different perspectives to solve difficult challenges, evaluate opportunities and develop effective strategies for better professional and business performance. Vistage groups are facilitated by successful independent leaders who provide valuable professional insight, executive coaching and corporate training based on their own extraordinary achievements. Vistage: Leading executives to achieve more than they ever imagined possible. Visit vistage.com for more details.