Small Business Hiring Is Slowing. But Should You Bring More Employees on Board?

The extra help could potentially go a long way.

These days, jobs are still plentiful across the broad economy and the national unemployment rate is low. But hiring has slowed down among medium and small businesses, according to recent data from Morning Consult.

During the first quarter of 2023, 28% of small and medium-sized business owners said they increased their headcount over the past three months. But during the third quarter of 2022, 43% had said the same.

Of course, it's easy to see why hiring among smaller companies may be slowing. For one thing, inflation is driving operating costs up, and many smaller businesses are operating with tighter margins. So if your bank account isn't looking as robust as you'd like it to be, that alone might fuel the argument to hold off on hiring.

There are also recession fears to grapple with. We don't know if the economy is going to decline at some point this year. And it's easy to see why you wouldn't want to hire new staff members only to potentially lay them off shortly thereafter.

But despite the expense and risk, hiring more employees could work to your benefit. So ask yourself these questions to see if that's the right move.

1. Am I juggling too many things?

When you own a small business, there are a lot of things you're responsible for. And you may be used to the juggling act, for better or worse. But if you've gotten to the point where you truly have no work-life balance, then it may be time to add to your headcount. A few new people might be able to take some of your current tasks off your plate.

2. Are there specific skills my business needs that no one on staff currently has?

Maybe you'd like to open an online store to complement a physical one, only no one who works for you has the skills to set up and manage an e-commerce site. If you're in that sort of boat, then hiring staff could be your ticket to helping your business grow. And it could make a lot more sense to bring in new people with the skills you need than to try to have your current workers build different ones.

3. Are my workers getting burned out?

You may be resigned to long hours and weekend work when you're the one who owns a business -- even if that leaves you dangerously close to burning out. That's bad enough. But one thing you don't want to do is risk having your staff members fall victim to burnout. That could lead to a host of negative consequences, from lackluster performance to resignations. And so if you're worried that your current staff is feeling overburdened, then it definitely pays to bring in more people to share the load.

Hiring may be slowing down among small businesses, but that doesn't mean you shouldn't look to hire in the near term. It could be just the thing that gives your business a lift while easing the burden on existing employees -- and yourself.