66% of U.S. middle market firms expect hiring surge
ILLINOIS, UNITED STATES — A record-high 66% of middle market companies in the United States expect to increase hiring over the next six months, according to a recent survey by professional services provider RSM US LLP and the U.S. Chamber of Commerce.
Middle-market companies in the U.S. are those with annual revenues from $10 million to $1 billion.
The survey of 403 middle market leaders across various industries, conducted from October 2 to 20, 2023, provides a comprehensive perspective on overcoming persistent labor shortages and maximizing productivity.
The tight American labor market, evidenced by 97% of respondents foreseeing staffing difficulties, is pushing firms towards investments in digital transformation, improved compensation and benefits, and enhanced human capital management.
How are #middlemarket businesses approaching persistent #staffing challenges? The RSM US LLP Middle Market Business Index special report describes the three-pronged approach to worker efficiency and productivity.
Learn more: https://t.co/80YnTNvUmL
— RSM US LLP (@RSMUSLLP) January 25, 2024
“To adapt, we see businesses of all sizes and sectors working with a smaller workforce by making investments in new technologies like automation and AI, as well as upskilling and reskilling, embracing flexibility, and filling open roles by hiring previously overlooked talent such as veterans and military spouses, formerly incarcerated individuals, individuals with disabilities, and retirees seeking to re-enter the workforce,” said Curtis Dubay, Chief Economist at the U.S. Chamber of Commerce.
Technology plays a pivotal role, with two-thirds (57%) of executives planning increased capital spending on automation and information technology (IT) to boost workforce efficiency and the majority (85%) aiming to increase workforce productivity. However, only 12% view technology as a direct substitute for labor.
Over half (52%) of companies have already raised wages, with an average increase of 5.5% expected in 2024. Firms are also adopting flexible scheduling (47%) and career development initiatives (41%) to attract and retain employees.
“It is essential that firms attempt to get ahead of the curve and identify the proper mix between labor and investment capital to create the conditions under which they can grow, anticipate and meet future demand,” said Joe Brusuelas, chief economist with RSM US LLP.
