It looks like small business owners will enjoy a strong end to the year. SurePayroll Inc., a leader in providing online payroll to small businesses nationwide, just announced results for the November 2013 SurePayroll Small Business Scorecard® and survey, which indicates small business owners on Main Street may be in for a surprisingly good end to the year.
The Scorecard exclusively tracks real hiring and paychecks data for tens of thousands of micro businesses with 1-10 employees nationwide and provides important survey information giving a voice to small business owners on Main Street. The November Scorecard optimism survey found that 55 percent of small business owners plan to give holiday bonuses this year compared to only 38 percent a year ago. At the beginning of 2013, they indicated their goals were to cut costs to increase profitability. They seem to have accomplished that goal – not only are more able to give bonuses, but 80 percent of those bonuses will be the same or bigger than last year’s, according to the SurePayroll Scorecard survey.
“Year-end and holiday bonuses are positive winds of change. Even in the midst of heavy macro-economic uncertainty, the small business economy appears to be in for a stronger fourth quarter than expected,” said SurePayroll CEO and President Michael Alter. “While hiring is slightly down and the average paycheck has stayed flat, it’s clear that small business owners are doing more with less, growing revenues and now they’re able to give their employees significantly more spending power through year-end bonuses than we saw a year ago. I’d expect a nice boost going into 2014, which would be great for local small businesses that have had to exercise caution and sacrifice hiring to a great extent much of the last two years.”
Optimism stayed flat at 63 percent in November, after being as high as 72 percent in August, but as low as 57 percent in January. Month-over-month hiring and the average paycheck were both down 0.1 percent.
Year over year, nationwide hiring is down 1.7 percent and paychecks are flat. Year over year, the South is the only region where hiring is up at 0.9 percent and paychecks there are up 1.1 percent. The West shows a hiring decline of 1.9 percent, with paychecks down 1.0 percent. Hiring in the Midwest is down 3.1 percent and paychecks are positive, up 1.0 percent. In the Northeast, hiring is down 4.1 percent and paychecks are down 1.6 percent.
As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look at national hiring and paycheck trends since October 2004. SurePayroll’s Scorecard compiles data from small businesses nationwide, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with1-10 employees. The average business reflected has six employees.
The full SurePayroll Small Business Scorecard – Main Street Matters infographic includes data for SurePayroll’s top 35 MSAs. The November 2013 Scorecard is available now on the SurePayroll blog.