Expectations for Growth Remain High with Increased Activity in 4th Quarter
The economic recovery remains a key point of interest for many companies trying to plan for the future. As a full service employment partner, AppleOne offers a unique perspective, and many of our clients continue to ask us for indications as to how the economy is likely to progress. With that in mind, we have just completed a survey of our clients to better understand their expectations for future growth. As the economic recovery progresses, companies remain largely positive about their growth potential this year. However, companies are projecting that most of that growth will occur in the 4th quarter.
Nearly 60% of surveyed clients are anticipating growth by the end of the year. This represents a slight drop from our survey at the end of 2009 in which 62% were anticipating growth in 2010. Of those expecting growth, 46% expect slight growth while 13% expect significant growth of more than 10%.
Companies believe that the recovery will need to draw out a bit longer though with 45% of respondents projecting no change in the next three months compared to 43% that expect to grow during that timeframe. Of those expecting growth in the next three months, 35% are expecting slight growth while 8% are expecting significant growth of more than 10%.
We're seeing continued growth in hiring with 36% of respondents reporting that they plan to increase headcount within the next three months. By comparison 57% expect to keep staffing levels the same.
We asked clients what would be most important to meeting their goals for the remainder of the year, and they identified maximizing productivity as a top priority followed very closely by growing new business, expanding existing business and staff retention.
Temporary staffing continues to be productivity boosting strategy for companies who aren't prepared to commit to hiring yet. Nearly one in every 10 companies that don't currently use temporaries are reporting that they plan to add temporaries into the mix in the next three months.