In the last part of this series, we’ll examine the final results revealed from the recent OPEN from American Express Small Business Monitor, a semi-annual survey of business owners. When asked about activities for the holidays, seventy percent of small business owners said they will do something for their staff this season. However, the percentages are down across the board, with plans for monetary rewards and volunteer activity taking less of a hit than holiday parties, gifts and time off. Only 43% of owners intend to hand out employee gifts, compared to 52% in 2006. The number of small business owners throwing a holiday party for their staff has dropped 10 percentage points from last year to 44%. Other expressions of thanks include year-end bonuses (43% vs. 47% last year) and raises (28% vs. 30%), with another 22% intending to ask their staff to take part in a volunteer activity as a group (vs. 26% last year). Alice Bredin, OPEN from American Express small business advisor, was somewhat perplexed by the decline of those planning to give time off to their employees (44% compared to 55% last year). "Even when spending is down, the gift of time is an easy way to thank staff without breaking the bank. And with improving customer service top of mind, it becomes that much more important to take steps to retain valued employees." When asked if they had plans to acknowledge their staff, 70% of those small business owners who are Baby Boomers (ages 42-64) said yes, compared to 78% of younger small business owners (ages 18-41). Compared to the younger owners, boomers are less likely to reward their staff come the holidays: - Hand out bonuses - Boomers (41%); Ages 18-41 (54%) - Give time off - Boomers (43%); Ages 18-41 (56%) - Throw a holiday party - Boomers (41%); Ages 18-41 (57%) - Volunteer as a group - Boomers (22%); Ages 18-41 (27%) When it comes to recognizing clients and customers, Boomers again fall short compared to younger small business owners. In fact, only 58% of Boomers say they will do something to thank their clients/customers this year, compared to 69% of younger small business owners (18-41). The final area that the survey studied was how budgets are tightening or shifting across the country. More small business owners in the North Central states are likely to do something to thank their staff (82%) - up 8 percentage points from last year. However, the number of owners in other regions planning to reward employees this year dropped especially in the North East (64% vs. 80% last year), but also in the South (73% vs. 83%) and West (61% vs. 67%). On the gift-giving front, more owners from the North Central states (54%) plan to give gifts to their employees than their counterparts in other regions of the country - 41% in the West and South and 34% in the North East. These percentages are in sharp contrast to 2006 findings both in terms of percentage and ranking: South (58%) and North East (56%) followed by the North Central states (48%) and West (44%). In terms of giving raises, the most dramatic change is in the North East - only 19% plan to give raises compared to 28% last year. In other regions the numbers remained fairly steady: North Central (27%), West (26%), South (37%). And though last year owners from the North East were most likely to give bonuses to staff, this year they are least likely (36% vs. 60% last year). Notable also is that 44% of small business owners from the North Central region intend to give bonuses - up from 36% in 2006. In other regions, 49% of Southern small business owners say they will hand out bonuses to staff (on par with last year's findings) as well as 41% from the West, down from 45% in 2006. Throughout the country, percentages of owners giving the gift of time dropped everywhere but in the North Central region: South (52% vs. 68% last year), North Central (46% - same as 2006), West (39% vs. 50%), and North East (31% vs. 47%). Though numbers of small business owners throwing holiday parties for staff are down across the board, fewer holiday parties for employees will take place in the North East (41% vs. 52% last year) and West (34% vs. 47%). In the North Central and Southern states, 49% of owners will throw a holiday party compared to 54% and 58% last year respectively. This year, more small business owners in the North Central and Southern (63% each) states will thank their clients/customers with a holiday gift compared to their North Eastern (59%) and Western (51%) neighbors. Still, these numbers are appreciably down from last year - South (73%), North East and West (71% each) and North Central (64%). But, among small business owners who do plan to send gifts to clients and customers, fewer are spending under the $500 mark compared to last year, with the biggest change in the North East (21% vs. 49% last year), followed by the West (20% vs. 33%), South (25% vs. 37%), and North Central (42% vs. 49%). |
