Hiring still top of mind even as a recession looms

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Small businesses are feeling the pressure with 93% of owners in a new survey from Goldman Sachs saying they expect a recession within the next year. 

Raising capital is already a struggle as the Federal Reserve continues to raise interest rates. Another rate hike is expected when the Fed meets later this month.

Despite the uncertainty and economic struggles, business owners surveyed were positive about their finances with 65% saying they are optimistic about their financial trajectory.

I’m at the Goldman Sachs 10,000 small business conference in DC this week. While the room where Goldman Sachs chief economist David Mericle discussed recession risks was standing room only, the topic prompting the most head nods and groans of frustration is hiring.

In a session on the future of the workforce, owners bemoaned the challenges in finding qualified candidates. Or any candidates. Candidates are shopping around and following the highest wages, and as many entrepreneurs discussed, they are unable to compete with the big players in salaries. “Trying to overpay against the big guys is a losing game,” one said.

Small companies are focusing on culture, offering flexibility and even profit sharing to attract workers.

If you’re here – come say hi! And keep an eye out for future newsletter editions that will have interviews with Drybar founder Alli Webb and renowned chef Marcus Samuelsson.

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