Wednesday, October 1, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Small talk: Waiting game: Why small businesses won’t hire

By
From page B8 | June 08, 2014 |

Joyce M. Rosenberg

NEW YORK — Even as the economy extends its growth and small businesses slowly add jobs, most owners are still holding off on hiring.

Small businesses have not been hiring at the pace that’s needed for a robust economic recovery, and many owners have no plans to add to their payrolls, according to recent surveys. In three released last week, the most optimistic reading came from Bank of America Corp., which found that 52 percent of owners plan to hire over the next 12 months. But Wells Fargo & Co. found only 21 percent planned to hire, and in a Citibank survey, 25 percent had plans – numbers consistent with other surveys in the past year.

Some owners who do want to hire face obstacles like finding workers who can and want to do the job. In monthly reports from the National Federation of Independent Business, owners have said they can’t find people with the skills they need.

What will it take for companies to hire? The answer differs from one business to another.

Wanted: Four clients

Marilyn Trent estimates it would take four more clients bringing in revenue of about $250,000 for her to hire for her company that designs websites and company logos. Trent Creative is based in Detroit, where the local economy has been hurt by the devastation the auto industry suffered during the recession.

Competition is a problem. Even with the city’s troubled economy, plenty of companies do the kind of work Trent does. Trent Creative has enough clients to keep the company’s seven employees busy, but they’re not overworked. So at this point, Trent has no need to hire.

But she’s optimistic she’ll get more clients. Trent specializes in work for manufacturing companies, and their business is picking up as their customers, Detroit’s automakers, sell more cars. She needs to do more sales work to persuade them to create or update their web pages.

“I need to update my website and do more marketing,” she says.

The burnout factor

Mike Coffey isn’t planning to hire now, but he will start recruiting if his staff of 16 shows signs of overload. Coffey’s company, Imperative Information Group, does background checks for employers. Business is good for the Fort Worth, Texas, company because the local economy is strong. Employers are hiring and want information about job candidates.

Rather than hire to meet the increased demand, Coffey gives workers overtime two or three times a week. He’s cautious about hiring because he had to lay off 11 employees in 2009, when the job market froze, and he doesn’t want to cut staff again if business slows.

His workers like the overtime. But he keeps an eye on them, watching for clerical mistakes and other signs of burnout.

“Once you start seeing things like that you think, we’re probably starting to get a little fatigued,” Coffey says.

More money, more workers

Joe Carter wants to hire workers to expand his company that removes asbestos, lead paint and other toxic materials from buildings. Snyder Environmental has two problems: It needs money, and it needs people willing and able to do the work.

Investors who prefer Silicon Valley startups aren’t interested in an unglamorous Little Rock, Arkansas, company, Carter says. And bankers are slow or unwilling to lend to Snyder Environmental or its clients.

“This week, we were delayed again on a project because the bank had not met all the regulatory requirements on the deal,” Carter says.

Snyder Environmental has enough demand to double its business over the next two years, Carter says. But besides the money issue, he can’t find the people he needs to add to his staff of about 55.

Applicants must pass drug tests and they need background checks to get clearance for military projects. They must also pass a physical examination because Carter’s employees work around dust. But Carter’s afraid that those who are hired will leave because they hate the work. He’s had people quit in their first week.

“They have either an unwillingness to perform the work or an inability to meet the criteria,” he says.

Health care fallout

Dr. Omar Ibrahimi’s dermatology practice needs two more employees, one full-time and one part-time, to run more efficiently. But the rising costs of treating patients and the drop in reimbursement from insurance companies prevent the Stamford, Connecticut, office from hiring, says office manager Saida Ibrahimi.

Because of the changes in insurance under the new health care law, the practice gets 20 percent to 30 percent less revenue from insurers than it did last year, Ibrahimi says. Meanwhile, the practice pays more for medications and supplies.

More staffers would free Ibrahimi to talk to insurance companies to get approvals for procedures, something that Dr. Ibrahimi does. Time he spends talking to insurers is time not spent with patients.

The economic saving grace for the practice is cosmetic procedures like Botox injections and tattoo or scar removals, which are not covered by insurance. Patients pay for those procedures out of their own pockets.

“If we weren’t doing cosmetic work, we’d be in the red,” Saida Ibrahimi says.

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | 1 comment

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Mr. PracticalJune 08, 2014 - 6:38 pm

    In California, the primary reasons small business isn't hiring is the uncertainty regarding minimum wage increases and paid sick leave mandates, increasing regulations, the high cost of payroll taxes and workers comp, and the uncertainty regarding health care. Some industries are trying to hire but prospective employees that are collecting unemployment benefit, and there are a lot of them out there, are refusing work and staying on unemployment for the duration of the extended benefits. There is no accountability to prove that you're looking for work or that you have turned work down.

    Reply | Report abusive comment
.

Solano News

 
Middle school students put school candidates on the hot seat

By Susan Winlow | From Page: A1 | Gallery

 
Suisun City candidates get lively in 2nd council forum

By Ian Thompson | From Page: A1, 1 Comment | Gallery

 
Solano focuses on rail safety

By Barry Eberling | From Page: A3, 1 Comment

 
 
Booz and Brewz benefit for the Blue Star Moms

By Amy Maginnis-Honey | From Page: A4

Police search for missing man

By Glen Faison | From Page: A4 | Gallery

 
Salvation Army gears up for annual Red Kettle campaign

By Amy Maginnis-Honey | From Page: A5, 1 Comment | Gallery

Blessing of the animals slated Sunday

By Amy Maginnis-Honey | From Page: A5, 2 Comments

 
Travis airman killed in motorcycle accident

By Ian Thompson | From Page: A5

 
Caltrans cancels nighttime Highway 37 closures

By Barry Eberling | From Page: A5

 
Theaters primed for bevy of new movies

By Amy Maginnis-Honey | From Page: A7

Fairfield police log: Sept. 27, 2014

By Glen Faison | From Page: A9, 2 Comments

 
Suisun City police log: Sept. 28, 2014

By Glen Faison | From Page: A9

Suisun City police log: Sept. 27, 2014

By Glen Faison | From Page: A9

 
Fairfield police log: Sept. 28, 2014

By Glen Faison | From Page: A9, 2 Comments

Fairfield police log: Sept. 29, 2014

By Susan Hiland | From Page: A9, 2 Comments

 
Suisun City police log: Sept. 29, 2014

By Susan Hiland | From Page: A9

 
FBI announces reward for Vacaville bank robber

By Jess Sullivan | From Page: A10

American Legion seeks Korean War veterans for award

By Susan Hiland | From Page: A10

 
Third Annual Ride to Defeat Diabetes is Sunday

By Susan Hiland | From Page: A10

4-H Achievement Night honors county members

By Susan Winlow | From Page: A10

 
Measure A committee plans weekend precinct walk

By Susan Winlow | From Page: A10

.

US / World

Forest areas reopen after huge fire

By The Associated Press | From Page: A6

 
Hong Kong leader refuses to meet with protesters

By The Associated Press | From Page: B7

Secret Service chief on hot seat for WH breach

By The Associated Press | From Page: B7

 
Afghan pact signed amid questions on Iraq pullout

By The Associated Press | From Page: B7

Oklahoma man charged with murder in beheading

By The Associated Press | From Page: A9

 
Luck, instinct determined fates of volcano hikers

By The Associated Press | From Page: A9

Government confirms first case of Ebola in US

By The Associated Press | From Page: A9

 
Mayor of suburban Los Angeles city killed

By The Associated Press | From Page: A9, 1 Comment

Crash, suspicious device lead to 101 closure in LA

By The Associated Press | From Page: A9

 
Gov. Brown governor vetoes ethics bills

By The Associated Press | From Page: A9, 5 Comments

Police on manhunt find pipe bombs in woods

By The Associated Press | From Page: A9

 
California becomes first state to ban plastic bags

By The Associated Press | From Page: A11, 6 Comments

Bay Area looks to expand overnight transit options

By The Associated Press | From Page: A12

 
Gov. Jerry Brown signs California gun restriction

By The Associated Press | From Page: A12, 12 Comments

.

Living

Today in History: Oct. 1, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Oct. 1, 2014

By Susan Hiland | From Page: A2

 
Horoscopes: Oct. 1, 2014

By Holiday Mathis | From Page: B5

One simple slicing trick to bake a beautiful tart

By Sara Moulton | From Page: B6

 
A speedy, kitchen sink approach to pumpkin bread

By J.M. Hirsch | From Page: B6

The flavor of fall – pumpkin pie in a cinnamon bun

By The Associated Press | From Page: B6

 
.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: A5

 
Morgan: ‘Can’t believe’ Walmart blaming him

By The Associated Press | From Page: A7

.

Sports

 
Royals beat A’s 9-8 in 12 in AL wild-card thriller

By The Associated Press | From Page: B1 | Gallery

Local report: Rodriguez volleyball team downs Armijo

By Daily Republic staff | From Page: B1

 
Pirates’ Volquez looks to continue revival against Giants

By The Associated Press | From Page: B1 | Gallery

Raiders make Tony Sparano interim coach after firing Allen

By The Associated Press | From Page: B1

 
FCC will consider petition to ban ‘Redskins’

By The Associated Press | From Page: B2

Training camp essential for NBA’s new head coaches like Warriors’ Kerr

By The Associated Press | From Page: B2 | Gallery

 
No. 14 Stanford trying to jolt stagnant offense

By The Associated Press | From Page: B2

NC State coach apologizes for fake injury remarks

By The Associated Press | From Page: B2

 
NFL says Abdullah should not have been penalized

By The Associated Press | From Page: B2

NFL has laundry list of verboten celebrations

By The Associated Press | From Page: B2

 
Government: NFL TV ‘blackout’ rule unsportsmanlike

By The Associated Press | From Page: B2

Olympian Michael Phelps apologizes for DUI arrest

By The Associated Press | From Page: B2

 
Gravely injured Giants fan sues Dodgers again

By The Associated Press | From Page: B2, 1 Comment

Ex 49ers RB James agrees to terms with Dolphins

By The Associated Press | From Page: B2

 
49ers’ Wilhoite filling the injury void at linebacker

By The Associated Press | From Page: B8 | Gallery

 
.

Business

EU says Apple gets illegal tax benefits in Ireland

By The Associated Press | From Page: A9

 
Could a merger follow the PayPal-eBay split?

By The Associated Press | From Page: A9

.

Obituaries

John ‘Bo’ M. Miller

By Nancy Green | From Page: A4

 
David Earl Butenhoff-Forristall

By Nancy Green | From Page: A4

Marte Abad Lubag

By Nancy Green | From Page: A4

 
Clara May Clift Triplett

By Daily Republic staff | From Page: A4, 3 Comments

.

Comics

B.C.

By Daily Republic Syndicated Content | From Page: B4

 
Pickles

By Daily Republic Syndicated Content | From Page: B4

Garfield

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: B4

Baby Blues

By Daily Republic Syndicated Content | From Page: B4

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: B4

Baldo

By Daily Republic Syndicated Content | From Page: B4

 
Zits

By Daily Republic Syndicated Content | From Page: B4

Wizard of Id

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: B4

Frank and Ernest

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth

By Daily Republic Syndicated Content | From Page: B4

Peanuts

By Daily Republic Syndicated Content | From Page: B4

 
Blondie

By Daily Republic Syndicated Content | From Page: B4

Crossword

By Daily Republic Syndicated Content | From Page: B5

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: B5

Sudoku

By Daily Republic Syndicated Content | From Page: B5

 
Bridge

By Daily Republic Syndicated Content | From Page: B5

.

Breast Cancer Awareness 2014

Breast cancer in younger women

By Green Shoot Media | From Page: BCA2

Talking with your doctor

By Green Shoot Media | From Page: BCA3

Breast cancer myths

By Green Shoot Media | From Page: BCA4

Diet linked to cancer

By Green Shoot Media | From Page: BCA9

Giving emotional support

By Green Shoot Media | From Page: BCA10

After the treatment

By Green Shoot Media | From Page: BCA12

Join the fight: Get involved

By Green Shoot Media | From Page: BCA15