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
Q3 2014
HIRING OR DOWNSIZING
IN NEXT QUARTER
The percent of SMBs who plan to hire in the
coming months is up 6 points from this same
time last year.
ECONOMIC PROSPECTS
FOR YOUR COMPANY
HIRE
ADDITIONAL
EMPLOYEES
NO CHANGE
IN WORKFORCE
OR DON’T
KNOW
DOWNSIZE
WORKFORCE
COMPANY POSITION
A majority of SMB executives report their
companies to be in a healthy condition of either
stability or growth.
3%
8%
41%
48%
Survival
Controlled
Retrenchment
Growth
Maintaining
Stability
#1 BUSINESS ISSUE FACING SMBS
Health care costs continue to be of chief concern to
SMBs, though talent availability challenges have
steadily increased, narrowing the gap to 3 points.
Rank:
44%
45%
11%
SMBs generally continue to be optimistic about
the economic prospects for their own companies.
1%
Very pessimistic
10%
Somewhat pessimistic
21%
Neither optimistic
nor pessimistic
46%
Somewhat optimistic
22%
Very optimistic
9%
Uncertainty in tax policy
6%
Environmental
regulations
29%
Talent availability
21%
Domestic and
international costs
32%
Health care costs
3%
Other HIRING DIFFICULTY
SMB leaders report ongoing and increasing
challenges in finding qualified talent for
open professional positions.
11%
EXTREMELY
DIFFICULT
50%
DIFFICULT
7%
EASY
32%
NEITHER EASY
OR DIFFICULT
IMPACT OF PATIENT PROTECTION
AND AFFORDABLE CARE ACT
The majority of SMBs report that they expect
full ACA implementation to project some level of
impact onto their businesses.
Close to half of respondents say their
companies have prepared and are ready for
ACA implementation, the highest percentage
ever recorded by the
SMB Outlook.
15% NO IMPACT
18% A LITTLE IMPACT
41% SOME IMPACT
26% A LARGE IMPACT
45% A LOT OF PREPARATION,
AND WE’RE READY
38% WE’RE WORKING ON IT,
BUT WE’RE NOT READY YET
5% WE HAVE NOT DONE ANYTHING TO
PREPARE, BUT WE PLAN TO
15% WE WILL NOT DO ANYTHING TO PREPARE
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...........................21%
We will reduce our new
hiring plans......................................17%
We will reduce our
current workforce............................15%
We will eliminate all new hiring....... 6%
We will not stay in business..............1%
Increasing the minimum wage
will not impact my business............59%
Other.................................................. 3%
Don’t know........................................ 2%
$7.25–$8.20...................................27%
$8.21–$9.15....................................26%
$9.16–$10.10..................................23%
$10.11–$11.05................................ 11%
$11.06–$12.00...............................13%
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.
55%
SOME IMPACT
14%
VERY BIG IMPACT
31%
NO IMPACT AT ALL
For more survey results and data from
the Q3 2014 SMB Job Generation Outlook,
download the full report here.
Join the conversation on
Twitter @Lucas_Group.
HOW RETIREMENT IMPACTS COMPANIES
“Brain drain” continues to be the chief
retirement effect expected by SMBs.
(multiple responses allowed)
24% ENHANCES PROSPECTS
FOR FUTURE INNOVATION
AND GROWTH
34% IMPROVES ABILITY TO
CONSIDER NEW
APPROACHES & PROCESSES
64% CREATES A KNOWLEDGE
GAP THAT’S DIFFICULT
TO BRIDGE
16% IMPAIRS ABILITY TO
COMPETE
4% OTHER