The last month of 2010 ended on a high note for small business employees, with pay up 0.6 percent over November, according to the Surepayroll Small Business Scorecard. There’s no doubt we can attribute much of December’s increased pay to heightened holiday hours. The good news is that wages are up 1.2 percent year-to-date. While that’s not enough of an increase to significantly change the life – or spending habits – of any small business employee, it’s not bad considering pay has been nosediving since January 2008.
This is not a huge surprise and it bodes well for showing that a recovery is occurring at some level. The challenge is that the next steps will include working the current staff past their normal schedule and then taking into consideration the hiring of additional staff.
It is becoming more challenging and difficult to justify the hiring of new staff with the uncertainty that exists both in the economy and in the regulation that emploeyrs must deal with when it comes to policy from the Federal and state level. Why would you want to have more employees on staff when the regulatory issues involving healthcare benefits and related issues are unsettled and looking more onerous.
We need less government, not more, in order to spur economic recovery and business expansion. Remember this when you talk with your elected officials. Even those who “bring home the bacon” from DC are doing us all a mis-service by continuing to fill the trough with dollars that are not supported by tax revenue.
Small Business and all business have had to tighten their belts. It is now time for our governmental entities, especially at the Federal level, to tighten theirs.