Forty-one percent of business executives across the state of Michigan plan to hire additional staff in 2013, according to the 2013 Business Trends Survey Report released this month by The Employers’ Association.
Forty-four percent of respondents expect to maintain current staffing levels.
Seventy-eight percent are expecting 2013 to be slightly or significantly better than 2012.
Respondents were less optimistic this year than last overall in the business environment.
Businesses cited concerns over the economy and consumer demand as the top two barriers to business growth in their industry, 38 percent and 24 percent respectively. Due to these concerns, the majority of companies are not in a hurry to make new investments this year, with just 37 percent planning to do so.
The Employers’ Association attributes the decline in optimism to the turbulent economic and political environment of the fourth quarter of 2012, which included concerns over the fiscal cliff and the Affordable Care Act. Data for the survey was collected in October and November 2012.
The data reflects responses provided by 289 organizations throughout the state. Of those organizations, 48 percent have less than 100 employees. Industries represented in the survey include:
- 46 percent from the manufacturing-durable industry
- 11 percent from the manufacturing-nondurable industry
- 9 percent from the professional and business services industry
- 9 percent from the financial services industry
Despite their less optimistic, more cautious responses, there are some bright spots reflected in the survey.
“Seventy-two percent of the respondents reported plans to award wage/salary increases in 2013, 42 percent are planning to award variable/bonus awards, and 13 percent will give lump sum awards during the year,” according to the report.
Concerns remain regarding recruitment and retention, and a little more than half of the companies surveyed plan to focus their efforts on training in 2013 to combat this problem.
The Employers’ Association releases the Business Trends Survey Report annually.