There are a number of conflicting reports on the direction of the economy. Bernanke says 3-4% growth this year however every indication I have is this is wishful thinking. Based on my daily conversations with business owners, I can tell you that although conditions have improved the mood for 2011 is subdued. Most clients I have talked to have no plans to hire employees in the next 12 months. Under the current adminstration, owners would rather add equipment or pay overtime than take on another employee expense. It is simpler and more cost affective then having to lay off an employee and pay unemployment benefits.
In fact, many owners are evaluating outsourcing more of their HR and accounting functions to further reduce headcount. As any economist will tell you, to have sustained growth in a consumer driven economy the US will need to have job growth. Based on this mornings jobless claims report, and the prospect of massive layoffs by over budget state governments, we have a long road to travel.
The best advice I have heard for the next few months is to account for every dollar spent, re-evaluate how to further trim costs, and make sure any equipment investment had a payback of 18 months or less.
In fact, many owners are evaluating outsourcing more of their HR and accounting functions to further reduce headcount. As any economist will tell you, to have sustained growth in a consumer driven economy the US will need to have job growth. Based on this mornings jobless claims report, and the prospect of massive layoffs by over budget state governments, we have a long road to travel.
The best advice I have heard for the next few months is to account for every dollar spent, re-evaluate how to further trim costs, and make sure any equipment investment had a payback of 18 months or less.
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