Executives at Midsize Firms Lower Their Hiring Outlook in 2012

May 7, 2012
Midsize companies to focus on improving their cash balances, according to Deloitte survey.

Executives at midsize U.S. companies are less optimistic than they were a year ago about their hiring plans as they focus on managing costs, according to a Deloitte survey released Monday.

The percentage of midmarket executives expecting to grow their U.S. workforce dropped to 42% compared with 48% in 2011, Deloitte reported in its "Mid-Market Perspectives: 2012 Report on America's Economic Engine" survey.

Deloitte defined midmarket companies as firms with annual revenues between $50 million and $1 billion.

Of the 528 U.S. executives responding to the survey, 86% said continued economic uncertainty has dampened their expectations for economic growth this year.

"Because of the significantly slower growth than we've seen in previous recoveries, midmarket executives are increasingly cautious about their expectations for 2012," said Tom McGee, national managing partner for Deloitte Growth Enterprises Services. "Midmarket companies are now trying to meet the challenges of this volatile economy by taking a more adaptable approach to managing certain key business fundamentals."

Instead of adding headcount, 51% of midmarket employers plan to invest in their existing workforce through training, up from 34% last year.

Midsize employers who are expecting to fill positions say they're having trouble finding skilled talent, particularly in engineering, health care and information technology functions, according to the report.

The volatile global economy has executives at midsize firms focused on balance-sheet health and investments.

Thirty-five percent of respondents project higher cash balances in 2012. Another 90% say their capital investments will grow or at least remain stable.

Technology investments are expected to remain strong, particularly in the areas of process automation, cloud computing and software as a service.

See also:

Midsize Firms Choose Technology Over Hiring

Small, Midsize Manufacturers' Confidence Doubles

About the Author

Jonathan Katz | Former Managing Editor

Former Managing Editor Jon Katz covered leadership and strategy, tackling subjects such as lean manufacturing leadership, strategy development and deployment, corporate culture, corporate social responsibility, and growth strategies. As well, he provided news and analysis of successful companies in the chemical and energy industries, including oil and gas, renewable and alternative.

Jon worked as an intern for IndustryWeek before serving as a reporter for The Morning Journal and then as an associate editor for Penton Media’s Supply Chain Technology News.

Jon received his bachelor’s degree in Journalism from Kent State University and is a die-hard Cleveland sports fan.

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