The Lucas Group SMB Job Generation Outlook began in 2013 as the only national report defining the economic and employment landscape for small to mid-sized businesses.

1. SMB JOB
GENERATION OUTLOOK
MINIMUM WAGE
SMBs shared how a $10.10 minimum wage increase
could affect their businesses. (Multiple responses allowed)
Asked to identify an ideal
minimum wage via sliding scale,
SMBs expressed varied levels of
acceptance toward an increase.
We will increase prices to
our end customers..........................12%
We will reduce our new
hiring plans......................................15%
We will reduce our
current work force..........................13%
We will eliminate all new hiring...... 5%
We will not stay in business............ 4%
Increasing the minimum wage
will not impact my business...........65%
$7.25–$8.20..................................26%
$8.21–$9.15...................................13%
$9.16–$10.10.................................32%
$10.11–$11.05.................................. 6%
$11.06–$12.00...............................23%
IMPACT OF RETIRING BABY BOOMERS
With 10,000 Baby Boomers retiring every
day for the next 15 years, a majority of SMBs
expect business impact from this generational
workforce shift.
52%
SOME IMPACT
20%
A LARGE IMPACT
28%
NO IMPACT AT ALL
For more survey results and data from the
Q2 2015 SMB Job Generation Outlook, download the full report at
smb.lucasgroup.com/lg_smb_reports/q2-2015-smb-job-generation-outlook-report/
Join the conversation on
Twitter @Lucas_Group.
Q2 2015
Q2 2014
HIRING OR DOWNSIZING
IN NEXT QUARTER
The percent of SMBs who plan to hire in the
coming months is up 14 points from this same
time last year.
HIRE
ADDITIONAL
EMPLOYEES
NO CHANGE
IN WORKFORCE
OR DON’T
KNOW
DOWNSIZE
WORKFORCE
54%
41%
5%
ECONOMIC PROSPECTS
FOR YOUR COMPANY
SMBs generally continue to be optimistic about
the economic prospects for their own companies.
1%
Very pessimistic
8%
Somewhat pessimistic
14%
Neither optimistic
nor pessimistic
54%
Somewhat optimistic
23%
Very optimistic
HIRING DIFFICULTY
SMB leaders report ongoing and increasing
challenges in finding qualified talent for
open professional positions.
14%
EXTREMELY
DIFFICULT
50%
DIFFICULT
4%
EASY
–%
EXTREMELY
EASY
32 %
NEITHER EASY
OR DIFFICULT
MANAGING HEALTHCARE COSTS
SMBs are utilizing a variety of strategies to
address healthcare costs. (Multiple responses allowed)
Review periodically and/or
change plan/provider
Increase employee contribution
Cutting / discontinuing benefits
Employee health education/
wellness program
Higher deductibles/copay
Nothing/absorb cost
Other
43%
18%
16%
14%
9%
9%
18%
CHANGE IN TAKE-HOME WAGES
The majority of SMBs report increases in last
year’s employee take-home wages.
10% ROSE MORE THAN 5%
44% ROSE BETWEEN 3 - 5%
29% ROSE BETWEEN 1 - 2%
12% DID NOT CHANGE
2% DECREASED BETWEEN 1 - 2%
3% DECREASED MORE THAN 5%
COMPANY POSITION
A majority of SMB executives report their
companies to be in a healthy condition of either
stability or growth.
Survival
Controlled
Retrenchment
Growth
Maintaining
Stability
59%
#1 BUSINESS ISSUE FACING SMBS
Healthcare costs continue to be of chief concern to
SMBs, though talent availability challenges have
steadily increased to close the gap.
Rank:
12%
Uncertainty in tax policy
7%
Environmental
regulations
26%
Talent availability
21%
Domestic and
international costs
27%
Health care costs
7%
Other
HOW RETIREMENT IMPACTS COMPANIES
“Brain drain” continues to be the chief
retirement effect expected by SMBs.
(Multiple responses allowed)
27% ENHANCES PROSPECTS
FOR FUTURE INNOVATION
AND GROWTH
20% IMPROVES ABILITY TO
CONSIDER NEW
APPROACHES &
PROCESSES
59% CREATES A KNOWLEDGE
GAP THAT’S DIFFICULT
TO BRIDGE
17% IMPAIRS ABILITY TO
COMPETE
36%
4%1%