Michigan Business Owners Optimistic; Expect to Hire, Raise Pay in 2016
Small- to mid-sized business owners are experiencing substantial growth and are poised to reinvest in their business and employees in 2016, according to the November 2015 Michigan Future Business Index.
The index is published in partnership with Accident Fund Insurance Co. of America and the Michigan Business Network.
The survey shows that many key indicators continue to steadily rise.
- 70 percent of respondents are satisfied with the economy
- 50 percent said sales are up, compared to 35 percent in late 2011
- 44 percent of companies reported rising wages as compared to 15 percent in 2011
- 32 percent of companies hired people in 2015, compared to 11 percent in 2011
Survey respondents expect these trends to continue into 2016. Thirty-eight percent of those surveyed expect an improved bottom line over the next six months — a new high. Forty percent of the companies plan to hire more workers and 42 percent expect to increase wages.
Keeping and attracting good employees remains the greatest challenge to small business owners, according to the survey respondents. Twenty-two percent cite labor market challenges as their biggest concern, up from 16 percent in the June survey.
“Clearly, there is tremendous optimism about the business climate in Michigan and the opportunities for success,” said Mike Britt, president of Accident Fund Insurance Co. of America in a media release. “We should all feel good about the improvements we’ve seen in Michigan over the past few years. However, we can’t lose sight of the challenges we face in attracting and retaining top employees.”
The semi-annual Michigan Future Business Index has been commissioned by Accident Fund Insurance Co. of America and the Michigan Business Network since 2006 and is conducted by the Michigan-based marketing services and survey research firm, Phoenix Innovate. A total of 755 Michigan business owners and C-suite executives were interviewed between Nov. 2 and Dec.3 via phone and web for the November 2015 survey.