CreativeSourcing, one of the premiere sales recruiters in Chicago, would like to wish you a very Happy New Year. Now that Congress ‘averted’ the “fiscal cliff”, you may be wondering how that may affect your 2013 hiring decisions. Many HR managers are looking for ideas to answer that question.
It appears that congress merely postponed the mandatory budget cuts associated with the fiscal cliff. As we understand what happened, the U.S. House of Representatives approved a bill allowing tax hikes on the wealthy. It also extended unemployment benefits. Additionally, politicians voted in a two-month automatic across-the-board spending cut delay.
All this delay could cause management to hesitate growing their business for the time being. That means hiring freezes could continue for a while if they’re already in place. Or hiring freezes may need to be initiated. One thing’s for sure, business everywhere is taking a cautious ‘watch and see’ approach for their commercial endeavors.
Your company needs quality people to keep you successful. The only way to keep business moving is through new customer acquisition and new business development initiatives. Now is the best time to augment or top grade your sales staff. More times than not, a great salesperson is currently employed, so you need an aggressive recruitment firm to go after hidden talent in the marketplace – traditional recruiting ads and resume databases are not enough. Also, there has never been a better time to assess sales talent – if someone can sell in a recession and a imminent bear market, can you imagine the production they will do when the market climate improves?
Congress creates budget deficits by approving expenditures that exceed the amount of received revenue. As part of the Budget Control Act of 2011, the underpinning of the “fiscal cliff”, congress has yet to deal with raising the debt ceiling. As of Monday December 31, 2012, the U.S. Congress reached its legal borrowing limit. Congress now has about two months before it must raise the debt ceiling or risk causing the government to default on its bills and financial obligations. As part of its recent deal, Congress delayed dealing with the mandatory “fiscal cliff” budget cuts.
The Congressional Budget Office projected that the approved legislation would increase the deficit by $3.9 trillion over the next 10 years. Increased debt can potentially thwart growth in both the economy and business. Combined with the added regulations, expenses, and tax increases associated with healthcare legislation, job growth and business opportunities look stymied. How?
One need only search the thousands of pages of legislation and regulations. For example, government regulations require companies to provide ‘adequate’ employee health insurance. Companies failing to comply with this health care requirement will have imposed on them a $2,000 per worker penalty in companies with 50 or more workers. This provision means companies either have to provide government-approved insurance or pay a steep fine.
Health care legislation also discourages small businesses from growing their company to more than 50 employees. When a company hires its 50th employee, it must contribute an additional $40,000. And the penalty increases for every additional employee hired.
Imagine that the economy and business function like an engine driven by many factors. Since 2007, the economy has been like a misfiring engine. Small business is ‘the little engine that can.’ It’s the engine that drives America’s economy. And large business is the big engine affected by the economy.
Take into account the government’s less than stellar track record for fiscal responsibility. Focus on their trends and leverage them into your company’s 2013 growth plan. This includes your staffing needs. Doing so can be part of your business’ success strategy to avoid a bleak economic future. CreativeSourcing can provide your quality staffing needs to keep your business engine chugging profitably ahead.
Let us know if we can help you deal with the “fiscal cliff”.