MIDSIZE FIRMS CHOOSE TECHNOLOGY OVER HIRING

Author: Glenn Levar

February 1st, 2012

Technology advances for small and midsize firms have enabled companies to be much more efficient and productive.  This trend benefits the startup companies as well.  This is an excellent article by Glenn Levar of Shared Time Human Resources Management. www.sthrm.com

Executives attribute productivity increases to business process improvements and tech investments.

Technology spending trumps hiring for most executives at midsize companies as they seek to control labor costs while boosting productivity, Deloitte reported in its Mid-market Perspectives survey.

The survey, conducted by OnResearch in July and August, questioned 696 executives at midsize U.S. companies with annual revenues between $50 million and $1 billion.

Of those executives surveyed, 70% said productivity has increased since the recession began. But the two most-cited reasons for the increase in productivity were improved business processes and technology.

Thirty-eight percent of respondents said "strategic hiring in critical areas" offers a path to higher productivity. But 45% of executives responding said the need for their companies to become more productive is restraining new hiring.

Despite uncertainty regarding regulations, credit availability and the overall economic outlook, three out of four respondents said they are maintaining or boosting the level of long-term investments.

Productivity is crucial to hiring increases, with 58% of executives saying they would engage in strategic hiring in critical areas with appropriate productivity gains.

More than 40% of midsize companies say they're prepared to increase the size of their U.S. workforce over the next 12 months. Another 27% said they expect to reduce the size of their U.S. workforce. January 24, 2012 Jonathan Katz industrialweek.com