For National Small Business Week, let’s acknowledge the tenacity and grit of Main Street businesses across the country. They are the backbone of our economy and the soul of our communities. Small businesses are nearly 40% of the country’s GDP, and they create about two-thirds of all new jobs, employing nearly half of all private sector workers in the US.

When you picture a small business, maybe you conjure the classic image of a brick and mortar storefront with an “open” sign hanging in the window. While many businesses today maintain this nostalgic exterior, a closer look reveals that they’re constantly evolving and innovating to keep up with the world around them.

In a fast-changing world, it’s adapt or die. And now more than ever, small businesses face this reality with a host of new obstacles in front of them. Starting with the slow recovery from the pandemic, to its resulting labor shortage among hourly workers, to fast-rising inflation, to a looming recession. And on top of all this, competition from big business has never been more fierce. 

But small businesses are mighty and rise to the challenge. With grit and determination, Main Street is constantly modernizing; there’s no other option. With tools like Homebase in their arsenal, small businesses can build unstoppable hourly teams so they can face their greatest challenges head on, keep up with the competition, and even stay ahead of the curve. 

What does the data say?

To mark National Small Business Week, we’re shining a light on the tenacity of small business owners as they rise to economic challenges with new research research from our latest study survey 550+ small businesses.

Here’s what we learned…

Click here to access our key findings and survey infographics.

The post Small businesses stay ahead of the curve appeared first on Homebase.

Recent weeks have seen the Federal Reserve monitoring the impacts of its rate hikes closely, with chatter around likelihood of an ever-impending recession. 

Homebase data from the US and Canada shows that, despite regulators’ best efforts, wages have continued to rise at SMBs.

In economic conditions where forecasts and expectations can change seemingly daily, real-time data on activity across North American businesses shows that warmer weather is bringing shoppers and diners out and about. Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the beginning of Q2 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: From wages to economic activity, things have heated up a bit at small businesses – but not necessarily across the board.

• Employment growth is behind historical seasonal trends; SMBs have shown a modest growth in employment metrics; driven by service-sector businesses, monthly trends aren’t quite as rosy as we’ve seen in previous years.
• Service sectors saw a return to employment growth. Employees working increased in the entertainment industry (+3.0%), but trended down for caregiving and hospitality (-1.4% and -1.1%, respectively), reversing recent trends.
• Regionally, the Northeast has seen the highest growth. This follows an unseasonably warm winter and spring.
• Wage inflation increased from March, jumping 1.23% m/m despite efforts from fiscal policymakers to curb its growth.

Employment growth is behind historical seasonal trends 

SMBs have shown a modest growth in employment metrics; driven by service-sector businesses, monthly trends aren’t quite as rosy as we’ve seen in previous years.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Data compares rolling 7-day averages for weeks encompassing the 12th of each month; April data encompasses the subsequent week to account for Easter holiday. Source: Homebase data.

Service sectors saw a return to employment growth

Entertainment¹ saw the largest monthly growth in employees working (3.0%), outperforming other industries relative to pre-COVID levels.

Caregiving and hospitality took a hit (-1.4% and -1.1%, respectively), reversing recent trends and indicating that activity and spending is focused on service sectors.

Percent change in employees working

(Mid-February vs. mid-January, using Jan. ‘19 and Jan. ‘23 baselines)²

1. Entertainment includes events/festivals, sports/recreation, parks, movie theaters, and other categories.

2. April 8-13 vs. March 10-16 (2019) and April 15-22 vs. March 12-18 (2023). Source: Homebase data

Regionally, the Northeast has seen the highest growth

This follows an unseasonably warm winter and spring.

Note: April 15-22 vs. March 12-18. Source: Homebase data

Wage inflation increased from March, jumping 1.23% m/m despite efforts from fiscal policymakers to curb its growth

Wage inflation

Month-over-month change in average hourly wages

Employee Pulse Check

An April pulse survey of nearly seven hundred employees shows a slightly decreasing optimism towards job prospects.

Looking ahead, employees see a plateau in their prospects moving forward

A plurality of employees surveyed see their job prospects remaining the same (40%) in a year, and 36% foresee them improving. While we see similar levels of pessimism (5%) and uncertainty (18%) as in prior months, we’ve seen a decline since mid-2022 in the share of surveyed employees who think that the job market will pick up for them a year out.

The downturn in reported optimism coincides with increased speculation about a market that isn’t as favorable to labor, and shows that small business workers are internalizing that doubt.

Survey question: Do you think your job options will be better, about the same, or worse in 12 months compared to today?

Source: Homebase Employee Pulse Survey. N = 666 (Apr. 2023)

While happiness on the job has remained consistent, SMB employees are less likely to search for a new role in the short-term

As in February, a majority of workers report being happy with their job (78% of those surveyed in both months); however, we saw an 8% increase in reported interest in re-entering the job hunt. 64% of SMB employees report no plans to look for a job in the next 3-6 months, up from 56% in February and a strong indicator that satisfaction is less tied to voluntary separation.

It appears that the macroeconomic fears of an impending recession are working their way to the frontlines, as workers show less appetite for risk and change.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. 2023)

Inflation remains top of mind, as other stress factors increase for workers

As in our February survey, April showed a majority of workers surveyed cited inflation as a top concern through the remainder of 2023 (59%). We’ve also seen an uptick in worry about personal burnout (48%, up 3%) and the likelihood of recession (40%, up 3%) since the last time we asked.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. 2023)

Competitive pay as important as ever for the average employee

Wages remain the most compelling factor in workers’ decision on where they work, with 56% of those surveyed citing it as a top 3 criteria (vs. 53% in February). In uncertain economic conditions, consistent pay is a key tool to attract and retain talent.

Source: Homebase Employee Pulse Survey. N = 666 (Apr. 2023)

For a PDF of our April report, please visit this link; if you choose to use this data for research or reporting purposes, please cite Homebase.

April 2023 Homebase Main Street Health Report

The post Things Start to Heat Up Nationwide appeared first on Homebase.

For example, using Sling requires you to use one platform to run payroll, another to manage HR, and another one still for hiring. It doesn’t have tools for onboarding, staff happiness, or perks either.

Introducing our alternative option, Homebase. 

Just like Sling, Homebase is designed to make staff scheduling easy and alert your team to new changes, fast. It also features timesheets and templates. But unlike Sling, our platform includes payroll, HR, compliance, and employee happiness tools.

Basically, Homebase covers everything your small business needs. That’s why in this piece, we’ll explore its stand-out features and explore why it’s a top-notch Sling alternative. 

We also get that as a responsible business owner, you want to do your research. That’s why we’ll also compare nine other Sling alternatives, so you can be certain you’ve chosen the best option for you.

10 best Sling alternatives

1. Homebase: Best all-in-one for small businesses
2. When I Work: Best for speedy scheduling
3. Connecteam: Best for non-desk teams
4. Deputy: Best for simplicity
5. 7shifts: Best for restaurant staff
6. Paylocity: Best for automation
7. Paychex: Best for biometric features
8. ZoomShift: Best for ease of use
9. Humanity: Best for larger companies
10. Clockify: Best for low budgets

1. Homebase: Best all-in-one solution for small businesses

Homebase is truly an all-in-one, one-stop shop for any small business owner looking for a new scheduling tool that doesn’t require any training and fits seamlessly into their regular business operations.

Scheduling

Homebase’s scheduling tool does much more than just schedule. Yes, it lets you assign shifts easily and includes templates and auto-scheduling features, so you never have to start from scratch. But it also automatically tracks staff availability for fewer shift clashes and errors and ensures much less risk of no-shows or staff dissatisfaction. Plus, you can build schedules in line with your sales forecasts for even more efficient, sustainable planning.

Time tracking

Homebase’s scheduling tool works hand-in-hand with its time tracking system to make managing staff hours and payroll super easy. You can track labor costs and optimize them in real time for the most cost-efficient scheduling. In addition, you’ll save money and stress on overtime and labor law violations with automatic alerts and be able to send accurate timesheets to the payroll tool for accurate pay in minutes.

Team communication

There’s no point in building the perfect schedule if your team doesn’t know about it! That’s why Homebase puts staff communication and autonomy at the heart of our platform. No more post-it notes, missed emails, spreadsheets, or paper noticeboards!

You can automatically remind staff about their shifts by text, send alerts for breaks or overtime, and add personalized notes so team members have everything they need to do a good job. Plus, Homebase lets employees trade shifts themselves for greater autonomy. Workers can even request and manage their time off within the same app for coordinated PTO, accurate availability, and improved advanced planning.

HR and compliance

Managing staff well isn’t just about scheduling shifts. You also need excellent HR management and processes. Homebase has all the tools you need to manage staff details, keep track of certifications, and store important legal documents. You can also automate onboarding, send welcome packets, manage PTO, and ensure you don’t break overtime laws. Our platform means scheduling can be an effortless part of your daily operations, keeping both staff and managers happy.

Pricing

• Basic: Free for one location and up to 20 employees. Includes timesheets, scheduling, messaging, and hiring.
• Essentials: $24.95 per month per location. Everything in Basic, plus team communication and performance tracking.
• Plus: $59.95 per month per location. Everything in Essentials, plus labor control budgets, time off limits, and PTO features.
• All in One: $99.95 per month per location. Everything in Plus, plus new hire onboarding and HR.

2. When I Work – Best for speedy scheduling

Features

With scheduling at its core, When I Work includes quick-build calendars, as well as team messaging to keep staff up to date without needing to use personal numbers. It also creates timesheets and tracks breaks, PTO, and attendance. However, it doesn’t offer many extra features like payroll.

Pricing

• Standard: $4 per user per month. Includes standard scheduling and time and attendance tools.
• Advanced: $8 per user per month. Includes advanced scheduling with more dynamic and customizable features, plus time and attendance tools.

3. Connecteam: Best for non-desk teams

Features

Connecteam is a scheduler designed for a “non-desk workforce,” making it a good option for team members who are constantly on the go. It includes a wide range of features, including team communication, time clocks, and even some HR tools. Plus, it’s color-coded and easy to use. However, it’s mobile-only, so it may be less useful for managers who want to manage schedules from a desktop computer.

Pricing

Operations hub (includes scheduling and time clock tools):

• Small Business: Free for up to 10 users.
• Basic: $29 per month for up to 30 users. Extra users cost $0.50 per month.
• Advanced: $49 per month for 30 users. Extra users cost $1.50 per month. Everything in Basic, plus extra features like time clock tasks.
• Expert: $99 per month for 30 users. Extra users are $3 per month. Everything in Advanced, plus GPS features and automation. 

Connecteam also offers packages named Communications and HR & Skills, but they don’t include scheduling features.

4. Deputy: Best for simplicity

Features

Deputy makes managing teams, schedules, and time clocks simple. It includes crucial tools for sharing shifts and keeping track of staff attendance. The platform also helps coordinate onboarding and retention to ensure you stick to your labor budget and avoid paying for too much overtime. It also has a mobile app. However, Deputy doesn’t have many other features for tasks like onboarding, HR, or employee happiness.

Pricing

• Starter: Free for 100 shifts per month.
• Scheduling: $3.50 per user per month. Scheduling with team communication, but no payroll or time tracking.
• Time & Attendance: $3.50 per user per month. Scheduling with attendance tracking and timesheet management, but no automation, reporting, or SMS alerts, as well as fewer communication tools.
• Premium: $4.90 per user per month. All scheduling, time, attendance, and reporting tools.
• Enterprise: Price on request. For businesses with 250+ employees. Everything in Premium, plus custom features.

Deputy also offers a free 31-day trial.

5. 7shifts: Best for restaurant staff

Features

7shifts is a powerful platform that offers scheduling as a core tool. Other features include budget tracking, staff attendance, integrations with payroll and hiring tools, and a feedback feature that lets staff communicate suggestions or issues. However, it’s designed primarily for the restaurant industry, so it may not be the best choice if your business is in another sector.

Pricing

• Comp: Free for one location and up to 30 employees. Includes scheduling, time clock, and hiring.
• Entrée: $29.99 per month per location for up to 30 employees. Includes everything in Comp, plus templates, budgeting, and time off tracking.
• The Works: $69.99 per month per location for unlimited employees. Includes everything in Entrée, plus payroll integration and state-based compliance tools.
• Gourmet: $135 per month per location. Includes everything in The Works, plus onboarding, labor forecasting, and closer support.

7shifts also offers a free 14-day trial.

6. Paylocity: Best for automation

Features

Paylocity’s Workforce Management System is just one product the company offers, which includes features under the banners of Time and Attendance, Employee Scheduling, and Time Collection. It aims to automate administrative tasks, reduce manual work and errors, and make keeping to budget and legal requirements simple. However, its pricing isn’t transparent, so it may not be the most straightforward option.

Pricing

Paylocity doesn’t publish pricing publicly on its website. Instead, it asks users to request a demo. 

7. Paychex: Best for biometric features

Features

Paychex offers solutions for small companies with just a few employees right up to 1000 workers or more, with tools for payroll, HR, business insurance, and employee benefits. Its specific Time & Attendance product is cloud-based and works on most devices, including smartwatches. Features include punching in and out, overtime alerts, PTO requests, and biometric iris and fingerprint scanning for super accurate time tracking. However, you have to upgrade to use the advanced features.

Pricing

Paychex doesn’t publish pricing on its website and instead asks people to request it. Its Time & Attendance product has two options for time tracking: the “full package” Paychex Flex Time and the less-comprehensive Paychex Flex Time Essentials.

8. ZoomShift: Best for ease of use

Features

ZoomShift is designed for scheduling and is simple and easy to use. It lets staff clock in and out from anywhere and tracks time via GPS and IP address to reduce time theft and increase timesheet accuracy. It also has payroll features and easy timesheet exportation. However, its simplicity means it lacks other important tools, like staff communication.

Pricing

• Starter: $2 per month per team member. Includes scheduling, PTO, timesheets, and payroll reporting tools.
• Premium: $4 per month per team member. Includes everything in Starter, plus overtime alerts, geofencing, and more advanced timesheet tools.
• Custom: Price on request for companies with 100+ employees. Includes everything in Premium, plus onboarding, personalized support, and training.

9. Humanity: Best for larger companies

Features

As a cloud-based platform, Humanity works on nearly all devices, making management possible from a smartphone, desktop, tablet, and even smartwatch. Its powerful features include not only scheduling and auto-scheduling, but also predictive labor forecasting, staff shift trading, legal compliance, and accurate reporting. However, as it’s designed for larger companies and doesn’t publish its pricing online, it may not be your best option if you have a small, lean operation with a tighter budget.

Pricing

Humanity doesn’t publish pricing details on its website but instead invites you to request a trial.

10. Clockify: Best for low budgets

Features

As its name suggests, Clockify makes it easy for managers to coordinate time clocks, staff clock-ins and outs, and scheduling. It’s simple, intuitive, and cloud-based and has tools for invoicing, expenses, and data reporting. It’s also one of the few platforms to work on all browsers and operating systems, including Linux. It’s also completely free! However, its features are limited compared to all-in-one platforms.

Pricing

100% free.

Scheduling with Homebase: At the heart of your business

With so many different tools available, it can feel like a full-time job to find the right scheduling platform for your business. But getting it right is crucial as scheduling is just one part of a wider whole when it comes to effective, efficient, and stress-free staff management.

That’s why our all-in-one platform Homebase could be an excellent Sling alternative for your business. 

It’s quick to set up, has no limits on the number of employees that can use it, and includes all the features you need for easy and accurate scheduling, time tracking, and attendance, as well as tools for hiring, easy team communication, payroll, HR & compliance, hiring, and employee happiness. There’s also a mobile app and integrations with other tools for a comprehensive, powerful package under a single digital roof.

**The information above is based on our research on Sling alternatives. All user feedback referenced in the text has been sourced from independent software review platforms, such as G2 and Capterra, in March 2023.

The post 10 Sling alternatives for 2023 appeared first on Homebase.

But while Gusto is a robust platform, it’s not the best fit for everyone. Some small businesses may find Gusto lacks key features like scheduling and communication and they don’t want to juggle all its integrations. Others might find Gusto’s prices don’t suit their budget and paying per employee makes it more challenging to expand. 

Fortunately, there are many Gusto alternatives that are also worth considering. Our article shows you the top ten companies like Gusto and explores their pricing, features, and best use cases. 

Best Gusto alternatives:

1. Homebase
2. Rippling
3. ADP
4. Paylocity
5. Paychex
6. Zenefits
7. Namely
8. Paycor
9. BambooHR

1. Homebase: Best all-in-one solution for small businesses

If you’re looking for the whole package, Homebase is your best option. The versatile HR software lets you schedule employees, track their hours, and run payroll from almost any device. That means you can run your business and check in on your team even if you’re offsite.

You can also contact team members from inside the app to effortlessly arrange covers or leave notes about specific shifts. And when you have a vacancy, Homebase boosts your job listings, screens applicants, and streamlines the onboarding process for successful candidates. 

But what makes Homebase really stand out from the competition is its free plan. For one location, you can access basic scheduling, time tracking, and chat features free of charge and for up to 20 employees. So, if you’re just starting out, you don’t have to worry about paying until you’re ready.

Scheduling

As Gusto doesn’t have scheduling tools, users have to rely on its integrations. But switching between different apps can slow you down and split your focus. That’s why busy managers may prefer Homebase’s built-in scheduling feature — we sync everything so you can go straight from assigning shifts to tracking hours and paying your team.

We also have a range of scheduling tools. Create instant timetables based on your team’s availability with autoscheduling and templates. Or give employees more flexibility by letting them decide their hours with open shifts and shift trades via the app.

Time tracking

Recording your team’s hours accurately stops you from overspending on labor and keeps your business profitable. So, the best HR apps like Homebase and Gusto have robust time clocks. Both let you verify your staff’s location as they clock in with GPS — whether that’s your storefront, a venue, or a client’s house. They also have clock in controls which save you money by preventing early arrivals and late departures.

But while Gusto charges for all its time tracking features, Homebase includes nearly all the basics on its free account. That means you don’t end up spending the money you save on labor.

Team communication

Although Gusto integrates with Slack, it doesn’t have its own messaging system. That means you can’t contact staff directly from the platform to leave notes about specific shifts or get schedule confirmations. Whereas Homebase links its chat app to all its features so you can efficiently manage schedule changes, request cover, and more.

Homebase also has a variety of messaging options. You can contact individuals, custom groups (like who’s working or who’s available), or the entire team — no need to bother everyone with messages intended for one person. There’s also the option to leave shift notes for specific employees and post important announcements on the dashboard where nobody can miss them.

Payroll

Automating payroll spares you the expense of hiring an accountant or the headache of doing the paperwork yourself. It also prevents you from making costly mistakes and helps you pay employees on time. So, top payroll software like Homebase and Gusto lets you automatically calculate wages, pay employees, and file taxes.

But Homebase has a serious advantage over Gusto because users can sync schedules, timesheets, and payroll in one place. That’s less time you have to spend moving between tools and checking you’ve inputted the data correctly. 

Pricing

Unlike Gusto, Homebase has a robust free plan with basic schedule, time tracking, and communication features for one location. There are also three plans:

• Essentials for $24.95 monthly to get extra scheduling and time tracking features like shift notes and GPS clock in verification.

• Plus for $59.95 monthly to access tools like clock in controls and late alerts.

• All-in-one for $99.95 monthly for access to qualified HR professionals and onboarding tools.

Payroll is on a separate plan for $39 per month plus $6 per employee. Homebase also integrates with popular payroll providers so you can choose whether to keep your existing accounting system or keep all your data on one platform. 

2. Rippling: Best for global workforce management

Rippling is a cloud-based platform like Homebase that provides employee onboarding, payroll, and benefits administration. What makes it stand out from the competition is its global workforce management. While other competitors limit themselves to specific regions or countries, Rippling helps you manage HR and payroll across the world. That makes it an interesting option for small businesses with remote employees in different countries who are struggling to manage payments.

Features

• Employee management: Automatically track your team’s hours and create alerts for overtime and missed breaks. 
• Payroll: Manage HR and payroll globally so you can pay employees in their own currency and stay compliant with each country’s laws and regulations. Rippling helps you do this by setting up a separate entity in your team’s home country.
• Benefits: Choose benefits from over 4000 plans and enroll team members. Then let Rippling handle deductions and add new hires.
• Training: Create learning courses, add employees to them, and track their progress over time.

Pricing

Rippling offers a custom price for its services. 

3. ADP: Best for a scope of services

ADP (which stands for Automatic Data Processing) is a global HR management system. It’s noteworthy for its wide range of features from payroll and compliance to talent management and benefits. Businesses with complex laws and regulations like healthcare, IT, and financial services may appreciate the choice of different HR support. Then you’ll find it easier to manage challenging compliance issues like following Health Insurance Portability and Accountability Act (HIPAA) guidelines in hospitals or ensuring you don’t violate data protection laws at your software company.

Features

• Employee management: Automate schedules and track time using ADP’s time clock. Also, manage leave and analyze patterns of absences with its analytics tool.   
• Payroll: Choose from two packages to run your payroll — small business or medium to enterprise level.
• HR and compliance: Use HR tools, speak to professionals, or use ADP’s consultants to receive guidance on compliance issues.
• Talent management: Offer different training programs and create review cycles to provide feedback on employee performance.
• Benefits: Manage all your benefits, insurance, and compensation programs in one place.

Pricing

ADP offers custom pricing based on the size of your team and what features you need.

4. Paylocity: Best for employee experience

Paylocity is an HR and payroll provider for businesses of all sizes. It differentiates itself from the competition with its emphasis on employee experience. The software isn’t just intuitive and accessible but also includes survey, collaboration, and feedback tools to improve your work culture. That way you don’t just run your business more smoothly but also keep your team happier — leading to less turnover.

Features

• Employee management tools: Schedule teams and accommodate a diverse workforce by giving them multiple ways of clocking in.
  

• Payroll: Pay employees and file their taxes no matter where they are in the world.
  

• Employee experience tools: Boost morale by collecting feedback via surveys and letting employees praise each other on the app.

Pricing

Paylocity offers custom pricing for its services.

5. Paychex: Best for personalized service

Businesses with 50 to 200 employees may be especially interested in Paychex’s payroll and HR services. While you’re large enough to have complex needs, you still may not be able to afford internal HR personnel and accountants. So, Paychex’s team of experts can give advice and create custom action plans for your specific context instead. It also includes benefits management and time-tracking tools in its packages. 

Features

• Payroll: Autocalculate taxes and pay employees while a team of experts oversees your processes to ensure you’re staying compliant.
• Time and attendance: Use biometric data like facial recognition and iris scanners to prevent employees from clocking in for each other. 
• Benefits: Offer affordable benefits packages and manage employee enrolment. 
• HR and compliance: Outsource your HR and benefit from expert advice on the specific challenges your business faces.

Pricing

Paychex paid plans start at $39 per month plus $5 per employee but you need to contact them for an exact quote.

6. Zenefits: Best for benefits administration

With Zenefits, you can shop for benefits programs or manage your existing ones online. They have a range of packages you can choose from based on your team’s needs and preferences. For example, construction workers may be especially interested in disability insurance as they’re more likely to have an accident that prevents them from doing their jobs. So, if you’re in a low-turnover industry like IT or financial services, and employees are more likely to benefit from long-term programs, you may appreciate Zenefits.

Although Zenefits is primarily a benefits administration software (hence the name), they also have payroll and HR tools.

Features

• Payroll: Zenefits lets you pay businesses of all sizes — from individuals to companies with thousands of employees.
• Benefits: Arrange coverage from the platform and let employees self-enroll to save time inputting data manually.
• Hiring and onboarding: Post job listings to multiple websites to raise your chances of getting the best applicants. Then rank and track each candidate’s progress. After you’ve offered someone the job, collect all their documents and let them enroll in your benefits packages.

Pricing

Zenefits offer three paid plans:

• Essentials for $8 monthly per employee to receive onboarding and employee management tools.
• Growth for $16 monthly per employee for access to access compensation and performance management.
• Zen for $21 monthly per employee and you get surveys and task-tracking tools.

There are also separate HR, payroll, and recruiting tools for an extra cost.

7. Namely: Best for employee self-service

Transform your HR system into your company’s social networking site with Namely. The platform lets employees create their own profiles and receive updates via the company news feed. That way you can be sure everyone sees your important updates and announcements. Namely is also notable for its robust employee self-service tools including time-off requests and benefits enrollment. 

Features

• Employee self-service: Let employees log into the system to create profiles, request time off, and upload essential documents.
• Newsfeed: Keep team members up to date by sharing information on a custom-made feed. Integrate with Slack so your news will spread further.
• Performance management: Conduct regular reviews and help your employees create goals to develop their job skills.

Pricing

Namely offers three plans but you have to contact them for an exact quote.

8. Paycor: Best for industry-specific features

Paycor separates itself from the competition by offering plans tailored to different industries. For instance, restaurants have more scheduling features whereas manufacturers can use production tracking tools. Paycor also has partnerships with companies in different industries which helps it stay current with recent trends and ensure its products meet current needs. You can find plans for the following types of businesses:

• Healthcare
• Manufacturing
• Restaurants
• Retail
• Professional services
• Nonprofit
• Education

Features

• Performance management: Combine one-on-one meetings, performance reviews, and goal-setting sessions to develop your team.
• HR and compliance: Paycor’s expert team will help you navigate your industry’s specific compliance issues.
• Benefits: Automate benefits enrolment to spare yourself the paperwork and introduce new hires to your packages more efficiently.
• Employee experience: Conduct surveys to get an insight into your team’s well-being and find what improvements your business needs to make.

Pricing

Paycor has four plans for small businesses and custom pricing for companies with more than 50 employees. You have to contact them for a quote.

9. BambooHR: Best for performance management

BambooHR is a human resources platform designed with small to medium businesses in mind. It’s known for its focus on employee experience — there are tools to streamline onboarding, improve performance, and collect feedback from team members. These features make sure staff know exactly what they need to do their jobs well and perhaps develop their skill set further. Plus, there are self-service features, which enable employees to manage their own data, time off requests, and other HR tasks. 

Features

• Performance management: Write custom questions for one-on-one meetings, 360 reviews, and self-assessments to get a clear picture of each employee’s progress.
• Onboarding and offboarding: Create tasks and assign them to team members who are just starting or about to leave.
• Leave management: Let staff request time off and report absences to reduce unnecessary paperwork.
• Surveys: Ask your team questions about what affects their performance and happiness at work.

Pricing

Bamboo prices are not readily available but there are two plans and the following add-ons:

• Benefits
• Payroll
• Time tracking
• Performance management

Discover which Gusto alternative is best for you

Despite its popularity and high ratings, Gusto might not be what’s best for your business. The limited employee management features and restrictive pricing may make running your business more challenging instead of less.

If you’ve got over 50 employees, and you’re still growing fast, consider platforms like Zenefits, or BambooHR. Both apps specialize in different areas so choose depending on whether you need to prioritize benefits or employee experience.

But if you’re a small business that’s looking for a robust employee management solution, choose Homebase. Our platform covers:

• Scheduling
• Time tracking
• Payroll
• Hiring and onboarding
• HR and compliance
• Communication

These help you streamline all your essential tasks to have your business running more smoothly than ever. Plus, we have a free plan and only charge per location. That means if you’re planning to expand, you won’t get slowed down by extra costs as you hire more staff.

**The information above is based on our research on Gusto alternatives. All user feedback referenced in the text has been sourced from independent software review platforms, such as G2 and Capterra, in March 2023.

The post 9 Gusto alternatives for 2023 appeared first on Homebase.

In the face of these broader economic headwinds, our data from the US and Canada shows a month-over-month decline in employment activity at SMBs.

Another rate hike from the Federal Reserve in March has led many to worry about the persistently hot economy and the efficacy of national leaders’ approach to curbing inflation. As in prior iterations of this report, Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the start of 2023 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: Core activity markers are flat to down from mid-February levels, and the downward trend accelerated through the end of March.

• A once-hot economy is showing signs of slowdown; core indicators have shown none of the seasonal growth we’ve seen in prior years.
• Hospitality and entertainment diverged from other industries with increased activity in March – driven by spring break, activity in leisure industries has outpaced a downward trend across the board.
• The average metropolitan area saw little to no economic growth from February to March.
• Wage inflation ticked back up by 0.58% in March, in line with moderate growth seen at the end of 2022.

Main Street economic activity is showing signs of slowdown 

After a strong start to the year, employees working and businesses open have both shown a downward trajectory in the past month. This is against usual seasonal patterns.

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Hours worked

(Monthly change in 7-day average, relative to January of reported year)

Source: Homebase data.

Hospitality and Entertainment continue to be the bright spots of growth as other industries decline in activity 

Hospitality and entertainment both saw major upticks in employees working in the past month (4.5% and 5.5%, respectively), though the March spring break lift in entertainment was less significant than we saw pre-COVID.

Beauty & wellness showed the greatest decline from February to March, dropping about 3%, while other industries were relatively flat.

Percent change in employees working

(Mid-February vs. mid-January, using Jan. ‘19 and Jan. ‘23 baselines)1

1. March 10-16 vs. February 10-16 (2019) and March 12-18 vs. February 12-18 (2023).  Pronounced dips generally coincide with major US Holidays. Source: Homebase data

The average metro area saw little growth in employment activity

Note: March 12-18 vs. February 12-18. Source: Homebase data

Wage inflation ticked back up in March, in line with modest growth seen at the end of 2022 and below 2022 average

Wage inflation

Month-over-month change in average hourly wages

For a PDF of our March report, please visit this PDF; if you choose to use this data for research or reporting purposes, please cite Homebase.

March 2023 Homebase Main Street Health Report

The post Eventful March Sees SMB Economy Simmer appeared first on Homebase.

Our data from the US and Canada reflects a slight decline in core employment metrics during February – and notably, a stark decline in wage inflation. 

Higher non-farm payroll adds than expected in February have renewed interest in the Federal Reserve’s immediate plans to raise rates in an effort to put the brakes on a hot economy. As in prior iterations of this report, Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the start of 2023 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: February saw a slowdown in hours worked and employees working, across most industries and major metro areas

• Core indicators have been relatively flat through the first 2 months of 2023; compared to the same time period last year, we do not see the monthly growth that we saw at the same time in 2022.
• Core indicators have been relatively flat through the first 2 months of 2023; compared to the same time period last year, we do not see the monthly growth that we saw at the same time in 2022.
• We see relatively low month-over-month variance in economic performance across metro areas, with the average MSA experiencing declines across core employment metrics.
• Wage inflation, while still positive, hit its lowest point since October 2021.

February employment grew slower than in recent years 

After a strong January, February saw a large drop in employment growth. Homebase data also showed declines across hours worked for employees

Employees working

(Monthly change in 7-day average, relative to January of reported year)

Businesses open

(Monthly change in 7-day average, relative to January of reported year)

Source: Homebase data.

Most industries saw a decline in employment, with Hospitality and Entertainment as the outliers 

After a strong start to the year, key industries declined in February. Entertainment, food and drink, and hospitality are still up relative to December employment.

Employment metrics are down about 1% for the retail sector, which has seen a significant downturn in recent weeks

Percent change in employees working

(Mid-February vs. mid-January, using Jan. ‘19 and Jan. ‘23 baselines)1

1. February 17-23 vs. January 13-19 (2019) and February 19-25 vs. January 15-21 (2023).  Pronounced dips generally coincide with major US Holidays. Source: Homebase data

Regions fared differently in February, with weather and seasonality driving some of the differences

Note: February 19-25 vs. January 15-21. Source: Homebase data

February saw wage inflation hit its lowest level since 2021

Wage inflation

Month-over-month change in average hourly wages

Employee

Pulse Check

A February pulse survey of approximately eight hundred employees shows a consistent, positive outlook towards job prospects.

Employees see their job prospects improving in the coming year

Most employees surveyed see their job prospects improving (40%) or staying the same (35%) in a year, while only 6% think they’ll have worse options than they do today. This represents a slightly less negative outlook compared to mid-2022, and increased uncertainty compared to the beginning of last year. With inflation top of mind for many, small business workers have remained confident that they’ll continue to have options on where they work in the future.

Survey question: Do you think your job options will be better, about the same, or worse in 12 months compared to today?

Source: Homebase Employee Pulse Survey. N = 873 (Feb. 2023)

Nearly 25% of employees plan to look for a new job in the coming months

While a majority of workers are generally pleased with their jobs, that doesn’t necessarily mean that they plan to stay with their current employers long-term; just 57% of workers surveyed have no plans to look for a new opportunity in the next 6 months, even though 78% report being happy with their job. As the labor market stays hot, small business employees are aware of the choices that they have in front of them.

That said, our October survey saw 48% of employees say that they weren’t planning to look for a new job in the coming year, indicating that economic fear is boosting retention compared to prior months.

Source: Homebase Employee Pulse Survey. N = 873 (Feb. 2023)

Inflation isn’t just a talking point for economists – it’s the top concern for workers, too

Of all issues that employees are facing – both at and outside of work – only inflation was cited as a concern for a majority (64%) of those surveyed. Workers feel secure about their jobs and the hours available to them, but worry about how far their paychecks will go for them in an inflationary environment.

Source: Homebase Employee Pulse Survey. N = 873 (Feb. 2023)

In the face of inflation, wages remain the top priority for worker

It should come as no surprise that the biggest factor in where respondents decide to work is wages, as 54% cited wages as a top 3 factor in their employment decisions. Benefits and employer-sponsored upskilling are close behind, indicating that employers need to be investing in their workforces in order to attract and retain talent.

Source: Homebase Employee Pulse Survey. N = 873 (Feb. 2023)

For a PDF of our February report, please see below; if you choose to use this data for research or reporting purposes, please cite Homebase.

February 2023 Homebase Main Street Health Report

The post With Eyes on Policymakers, Cooldown Begins to Take Hold appeared first on Homebase.

Our data from the US and Canada reflects a new year ebb in economic activity at small businesses.

Past versions of this report have discussed continued concern over the pace of wage growth and low jobless claims leading the Fed to maintain its strong approach to rate hikes. As signals of an economy running hot begin to abate, Homebase seeks to understand how the broader economic environment is affecting small businesses and their employees during the start of 2023 by analyzing behavioral data from more than two million employees working at more than one hundred thousand SMBs.

Summary of findings: Homebase high-frequency timesheet data indicate continued slowdown in hours worked and employees working, across most industries and major metro areas

• January has seen a slow start with a continuing downward trajectory; whereas 2022 saw growth in hours worked through Q1, 2023 levels for employees working and hours worked are 4-5 percentage points below their January 2022 marks.
• Post-holiday declines across industries are softer than what we saw pre-COVID with the exception of caregiving; workforce participation in entertainment has rebounded the most significantly from holiday lows, only 2.3% below mid-December levels.
• Hours worked across metro areas remain slightly below their pre-holiday levels, a trend similar to prior years; however, January 2023 levels have remained relatively constant through the month, rather than rising as they did in 2021 and 2022.

January has seen a slow start with a continuing downward trajectory; whereas 2022 saw growth in hours worked through Q1, 2023 levels for employees working and hours worked are 4-5 percentage points below their January 2022 marks.

Employees working

(Rolling 7-day average; relative to Jan. of reported year)

Main Street Health Metrics¹

(Rolling 7-day average; relative to Jan. 2022)

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Dip in late September coincides with Hurricane Ian. Source: Homebase data.

Post-holiday declines across industries are softer than what we saw pre-COVID with the exception of caregiving; workforce participation in entertainment has rebounded the most significantly from holiday lows, only 2.3% below mid-December levels.

Percent change in employees working

(Compared to January 2022 baseline using 7-day rolling average)¹

Percent change in employees working

(Mid-January vs. mid-December of prior year, using Jan. ‘22 and Jan. ‘19 baselines)¹

1. January 15-21 vs. December 11-17 (2022/2023) and January 12-18 vs. December 8-14 (2019/2020). Pronounced dips generally coincide with major US Holidays. Source: Homebase data

Hours worked across metro areas remain slightly below their pre-holiday levels, a trend similar to prior years; however, January 2023 levels have remained relatively constant through the month, rather than rising as they did in 2021 and 2022.

Hours worked

(Rolling 7-day average; relative to Jan. 2020 (pre-Covid))

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Source: Homebase data.

For a PDF of our January report, please visit this PDF; if you choose to use this data for research or reporting purposes, please cite Homebase.

Link to PDF of: January 2023 Homebase Main Street Health Report

The post Slowdown Continues for Small Businesses appeared first on Homebase.

The good:

• Jobless claims remain low by historical standards
• Wages continue to rise, but so is inflation
• GDP for Q3 was positive after two quarterly declines
• Consumer continue to spend (for now)

The bad:

• Consumer confidence ebbed in October
• After declining for several months, gas prices are up month-over-month and year-over-year
• Home prices are still up year-over-year, but the rate of increase has decelerated at a record rate
• A recession is the base case in many forecasts
  • Accordingly, many large corporations are scaling back or freezing hiring or initiating layoffs

Recession? Inflation? Stagflation? Soft or hard landing? Consensus is increasingly converging on the view that a recession is imminent. The prevailing questions now are when it will officially hit; how deep and long it will be; and who it will impact most. To help understand how small and medium sized business (SMB) owners and employees are experiencing and perceiving business and employment, we analyzed behavioral data from more than two million employees working at more than one hundred thousand SMBs. We also conducted a pulse survey in mid-October of 520 owners and 1,256 employees to gauge changes in sentiment.

Summary of findings: Homebase high-frequency timesheet data and mid-October owner and employee sentiment surveys indicate a deceleration in hours worked and employees working, as well as a dip in owner and employee optimism:

• Our key Main Street Health Metrics — hours worked and employees working — are down in October vs. September. Overall hours worked were down 2.2 percentages points in October 2022 vs. September 2022. Generally, the trend in 2022 most closely resembles the trend observed in 2018 at this point in the year.
• Most industry categories exhibited declines in employees working in mid-October vs. mid-September, consistent with historical season trends. Leading declines were food, drink, & dining (-2.2%) and Beauty & Wellness (-2.1%). Entertainment (-0.4%) and hospitality (-1.0%) continued to outperform relative to other industries in 2022, as well as compared with the pre-pandemic period.
• Average (nominal) hourly wages in mid-October remained approximately 13% above figures from January of 2021 and increased modestly month-over-month. Wages continue to rise. However, the rate of increase has moderated modestly.
• Sixty-nine percent of SMB owners are optimistic about how their organizations will likely perform this coming Holiday Season. This is especially true of those owners who founded their businesses after 2020. Forty-three percent of owners expect the 2022 Holiday Season to be more profitable than it was in 2021.
• Owners remain optimistic, but the trend is downwardly biased. Fifty-eight percent of SMB owners believe that their organization will be better off financially in one year relative to today. This figure represents a month-over-month decline of six percentage points. Much of shift occurred into the bucket of owners who believe that their organization’s financials will look like their financials this year.

Detailed findings

The percentage of employees working in mid-October was down 2.2 percentage points relative to mid-September. This month-over-month deceleration is in-line with results from the pre-pandemic period.

Employees working
(Rolling 7-day average; relative to Jan. of reported year)

Main Street Health Metrics¹
(Rolling 7-day average; relative to Jan. 2022)

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Dip in late September coincides with Hurricane Ian. Source: Homebase data.

Most industries experienced modest month-over-month declines in employees working, consistent with seasonal trends. 

Context: Save for caregiving, most industries have performed relatively well in 2022 with shallower declines than those observed in the corresponding period in 2019.

Percent change in employees working
(Compared to January 2022 baseline using 7-day rolling average)¹

Percent change in employees working
(Mid-October vs. mid-September, using January 2022 and January 2019 baselines)¹

1. October 9-15 vs. September 11-17 (2022) and October 6-12 vs. September 8-14 (2019). Pronounced dips generally coincide with major US Holidays. Source: Homebase data.

Hours worked in the New York and Los Angeles MSAs decreased modestly in mid-October vs. mid-September. The Houston and Chicago MSAs remained flat month-over-month, and the Dallas MSA increased.

Hours worked
(Rolling 7-day average; relative to Jan. 2020 (pre-Covid))

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Source: Homebase data.

Nominal average hourly wages are 13% higher in October of 2022 compared to January 2021

Average (nominal) hourly wages are approximately 13% higher in mid-October relative to January 2021. The rate of increase in mid-October was in-line with the rate of increase observed in mid-September.

Percent change in nominal average hourly wages and CPI Purchasing Power of the Consumer Dollar relative to January 2021 baseline¹

1. Nominal average hourly wage changes and the (monthly) CPI for all Urban Consumers: Purchasing Power of the Consumer Dollar in U.S. Cities. Average (non-seasonally adjusted) calculated relative to a January 2021 baseline. Sources: Homebase data, U.S. BLS.

Generally, SMB owners remain optimistic about the future. However, the relative level of their optimism declined month-over-month.

Fifty-eight percent of SMB owners believe that their organization will be better off financially in one year relative to today. This figure represents a month-over-month decline of six percentage points. Much of the shift occurred into the bucket of owners who believe that their organization’s financials next year will look the same as their financials this year.

Owners of organizations founded in 2022 were the most optimistic, with 82% believing next year will be better for them financially vs. this year. Organizations founded in 2019 or earlier were more likely to believe that next year will either be the same (48%) or worse (12%) than this year, with the remainder uncertain.

Survey question: Do you think your organization will be better off, the same, or worse off financially 12 months from now compared to today?
Source: Homebase Owner Pulse Survey.

Twenty-five percent of SMB owners intend to open new locations of their current businesses in the next one to two years 

As of mid-October, 25% of SMB owners intend to open new locations of their current businesses in the next one to two years. This figure represents a decrease of four percentage points since mid-September and the lowest reading since July 2022.

Survey question: Do you intend to open a new location of your current business in the next 12-14 months?
Source: Homebase Owner Pulse Survey.

As of October, most SMB owners intended to hire additional workers in the next 12-24 months

Eighty-six percent of owners plan to hire one or more additional workers in the next one to two years. The most frequently cited range was between one to five additional workers (46%) followed by six to ten additional workers (17%).

Although most owners intend to hire additional workers, the percentage of owners who now intend to make no additional hires increased notably from 8% in September to 14% in October, which is the highest figure we have recorded since we began asking this question in November 2021.

Survey question: How many additional workers do you intend on hiring in the next one to two years?
Source: Homebase Owner Pulse Survey.

The percentage of owners who believe it will be easier to hire workers a year from now increased month-over-month

The overwhelming majority of SMB owners intend to hire additional employees. We thus asked them whether they believe it will be easier, the same, or harder for them to hire workers next year vs. what they are experiencing in today’s labor market to infer their views on the direction of the labor market. Forty percent of owners expect the labor market a year from now to be the same as it is today. Twenty-two percent of owners believe that it will be easier to hire next year vs. today. This figure represents a 10% increase relative to September.

Survey question: Do you think it will be easier, the same, or harder for your organization or business to hire workers 12 months from now compared to today?
Source: Homebase Owner Pulse Survey.

More than two-thirds of SMB owners are optimistic about how their organizations will perform this coming Holiday Season 

Sixty-nine percent of SMB owners are optimistic about how their organizations will likely perform this coming Holiday Season.

Survey question: Are you optimistic about how your organization will perform this Holiday Season?
Source: Homebase Owner Pulse Survey.

Although owners are generally optimistic about the holidays, their expectations about profitability are down slightly in 2022 vs. 2021

46% of SMB owners expected to have a more profitable Holiday Season in 2021 vs. 2020. In October of 2022, 43% of SMB owners expect to have a more profitable Holiday Season vs. the prior year.

This decline in optimism can be attributed to an increase in uncertainty as 35% of SMB owners are not sure whether Holiday Season 2022 will be more profitable than in 2021 when 31% expressed uncertainty about organizational profitability relative to the prior (Covid) year.

Survey question: Do you expect to have a more profitable Holiday Season this year compared with last year?
Source: Homebase Owner Pulse Survey.

Thus far, most owners have yet to see a rise in customer activity related to the Holiday Season

We asked SMB owners whether they have seen a rise in customer activity in anticipation of the 2022 Holiday Season. As of mid-October, roughly 30% of owners have seen an uptick in customer activity whereas the majority have not.

Some news sources have reported that holiday sales will start earlier this year. We asked SMB owners whether they intended to do likewise.

• Early sales: Twenty-nine percent of owners are planning on offering holiday promotions earlier; fifty percent report not doing so, and the remainder are unsure of whether they will offer earlier discounts to entice shoppers.
• Discounts to offset inflation: Thirty percent of SMB owners plan to offer discounts to help shoppers contend with inflationary pressures; 52% are not planning on offering discounts and 18% are unsure if they will do so.

Survey question: Thus far, have you seen a rise in customer activity related to the Holiday Season (e.g., more traffic, stronger sales)?
Source: Homebase Owner Pulse Survey.

For forty-one percent of owners, the holiday season contributes more than twenty percent of yearly revenue

For 35% of SMBs, the Holiday Season contributes ten percent or less of total yearly revenue. A quarter of SMBs derive between 11-20% of yearly revenue during the Holiday Season. For the remaining forty-one percent of owners, the Holiday Season in a typical year is when more than twenty percent of yearly income is generated.

• What month is busiest for holiday sales? We asked owners what month they expected to be the busiest for their holiday sales. The response was overwhelming: 65% indicated it would be December, followed by November (29%), and October (6%).

Survey question: How much of your yearly revenue is made during the Holiday Season in a typical year?
Source: Homebase Owner Pulse Survey.

SMB owners face a host of challenges. However, hiring enough seasonal workers is not a matter that is concerning owners right now

Only a relatively small percentage of owners (23%) are concerned about finding enough workers to cover their holiday staffing needs.

On average, owners expect to expand their employee bases by eighteen percent for the holidays.

Perhaps as a consequence of these views about labor needs, 31% of owners plan on paying employees more during the holiday season; 53% do not; and 17% are unsure.

Survey question: Are you concerned about finding enough workers to cover your holiday staffing needs?
Source: Homebase Owner Pulse Survey.

When looking for seasonal workers, SMB owners get the best results with hourly workers looking for additional shifts followed by college students

Hiring for the holidays–or any short duration–entails additional challenges because of the need to get workers quickly up to speed. We thus asked SMB owners where, based on their experience, they find the best seasonal workers. The number one response was hourly workers looking to pick up additional work, cited by 38% of SMB owners. The second most frequently cited response was college students (28%). Gig-workers tend to rate relatively low (4%), on the other hand.

Survey question: Based on your experience, which of the following types of workers make the best seasonal workers for your business?
Source: Homebase Owner Pulse Survey.

Nearly forty-five percent of owners are experiencing difficulties obtaining basic materials or ingredients–primarily due to cost increases or shortages

The primary reasons cited for difficulties obtaining basic materials or ingredients were:

• Product shortages (74%)
• Cost increases in intermediate goods (62%)
• Longer shipping times (52%)
• Some combination of all these factors (5%)

Survey question: Are you having a more difficult time obtaining material/ingredients you need?
Source: Homebase Owner Pulse Survey.

Most SMBs view other SMBs or local chains as their biggest competitors

Contrary to conventional wisdom that focuses on the impact of large businesses on “local” business opportunities, SMB owners primarily view other SMB businesses as their biggest competitors (59%), followed by local chain stores (26%) and, finally, large stores or Amazon or other industry-relevant “Big Box” stores.

The picture is, however, more nuanced for those SMBs in retail or consumer goods. For these businesses, other SMBs were still the biggest competitors (41%). However, the gap between local chains (30%) and Amazon/“Big box” stores (29%) narrowed.

Survey question: Who is your biggest competitor?
Source: Homebase Owner Pulse Survey.

What are SMB owners’ favorite aspects of owning a business? (Hint: It isn’t the money.)

Business ownership is a cornerstone of the “American Dream.” SMBs are also a key driver of the US economy and labor force. We thus asked SMB owners what they liked most about owning a business.

Interestingly, SMB owners are not (primarily) in it for the money (28%), lack of a boss to answer to (27%), or for the autonomy it can afford (34%). Rather, the most frequently cited “favorite” facets of owning an SMB include flexibility (60%), followed closely by creative freedom (55%), being part of a community (54%), and control over one’s schedule (49%).

Survey question: What are your favorite parts of owning a small business (check all that apply)?
Source: Homebase Owner Pulse Survey.

Consistent with results from July and August, generally, employees do not intend to look for a new job

Since July of 2022, the percentage of employees who do not intend to look for a new job in the next one to two years has remained above approximately 49% (reaching a near-term high of nearly 50% in August).

Survey question: Do you intend to look for a new job in the next 12-24 months?
Source: Homebase Employee Pulse Surveys.

Most employees expect to work more shifts this holiday season, and about a third have seen more opportunities for seasonal work this year

Most employees (54%) expect to work more shifts during the Holiday Season.

When compared with this time last year, 32% of employees have seen more opportunities for seasonal work, 33% have not, and the remainder are uncertain at this point.

Survey question: Do you expect to work more shifts this Holiday Season?
Source: Homebase Employee Pulse Surveys.

Bah humbug: 43% of employees do not expect to receive a holiday bonus this year

43% of employees do not expect to receive a holiday bonus this year and 27% are uncertain whether they will or will not receive a holiday bonus. For those employees who expect to receive a bonus, a slightly higher percentage (14.9%) expect to receive a larger bonus than last year vs. those who expect to receive the same amount as last year (12.2%).

Although a high percentage of employees do not expect to receive a holiday bonus this year, a higher percentage of employees feel more valued by their employers (35%) vs not (32%) during the holidays.

Survey question: Do you expect to receive a larger, the same, or a smaller holiday bonus this year vs. last year?
Source: Homebase Employee Pulse Surveys.

Employees expect it to be harder to afford gifts this year vs. last year

Approximately forty percent of employees believe that it will be harder to afford gifts this year vs. last year; about a third believe it will be about the same and only eighteen percent think it will be easier.

Survey question: Do you think it will be easier, about the same, or harder to afford the gifts you hope to purchase this year vs. last year?
Source: Homebase Employee Pulse Surveys.

Without a holiday bonus and higher gift costs, employees are working extra hours, picking up more shifts, or finding additional work

With a high percentage of employees not expecting a holiday bonus and a similarly high percentage expecting gifts to be less affordable this year vs. last year, employees are working extra hours (48%), picking up more shifts (42%), or getting another job (25%) to afford holiday gifts.

Survey question: Are you doing any of the following to afford holiday gifts this season (check all that apply)?
Source: Homebase Employee Pulse Surveys.

As consumers, SMB employees shop “small” to support community members, for unique items, and for better service 

SMB employees are also consumers. As we think about the Holiday Season, we asked SMB owners what the benefits of shopping at a small business are. The number one reason they cited was to support a community member (72%), more unique items (67%), or better service (61%)—suggesting these are all factors small businesses can emphasize to compete with large companies. Interestingly, 35% also shop at small businesses so that they are not supporting a large corporation. As one employee:

  “Small businesses are amazing because there’s more care put into the work and products you buy.”

Survey question: What are the benefits of shopping at a small business (check all that apply)?
Source: Homebase Employee Pulse Surveys.

SMB employees are attracted to work at small businesses for a sense of community, flexibility, and relationships

SMB employees’ preference for community is a key driver of their attraction to work at a small vs. large business (70%). Like SMB owners, SMB employees also highly value flexibility (69%).

Consistent with the emphasis of community, SMB employees also highly value relationships, with 66% citing close relationships with co-workers as a reason they were attracted to work at a small vs. large business, and 53% citing a closer relationship with their managers.

Survey question: What attracts you to work at a small business vs. a large business (check all that apply)?
Source: Homebase Employee Pulse Surveys.

The post How Did Main Street Restaurants Fare in October? appeared first on Homebase.

Large bellwether companies continue to experience and forecast significant macroeconomic challenges. FedEx’s CEO, for example, now expects a global recession.  A host of related forces contribute to this prediction, including softening consumer spending; higher interest rates; currency exchange rates that make US exports more expensive; negative wealth effects as assets (e.g., stocks) decline; and shifts in business investment  Hence, regardless of whether we are in (or will enter) a technical recession, economic growth has and will slow relative to trend.

The restaurant industry was especially hard-hit by Covid. However, the industry has made progress recovering: Total restaurant sales increased from $66.3 billion in January 2021 to $86.2 billion in August 2022 (adjusting for inflation). Anecdotes of hard to get reservations at certain restaurants abound. Furthermore, despite significant macroeconomic clouds, there are countervailing forces that may moderate the impact of a recession on restaurants by affording alternative sources of demand. These include: Workers are increasingly returning to their offices, which should increase demand for restaurants, coffee shops, and bars that cater to office workers; Increases in domestic and international tourists who, for the time being, evidence a heightened appetite to travel; and Employment in the restaurant industry remains substantially below the pre-pandemic trendline. This suggests that modest shocks to demand that might arise in a macroeconomic contraction should have a comparatively lesser impact on “lean” or short-staffed operations such as restaurants

Recession? Inflation? Stagflation? Competing narratives and evidence make it hard to understand where small and medium-sized restaurants and their workers stand. To help reconcile competing claims, we analyzed employment data from hundreds of thousands of employees working at more than fifty thousand restaurants. Homebase also conducted pulse surveys in mid-September and mid-July of more than one hundred restaurant owners to understand how they are doing in light of current events.

The number of hours worked by restaurant employees in September 2022 is down relative to September of 2021, as well as September 2020, after a relatively robust spring and early summer

Hours worked
(Rolling 7-day average; relative to Jan. of 2020 (i.e., pre Covid))

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Source: Homebase data.

The percentage of restaurant employees working in September 2022 is down approximately six percentage points relative to the same period in 2021¹

Employees working
(Rolling 7-day average; relative to Jan. of 2020 (i.e., pre Covid))

1. Some significant dips due to major U.S. holidays. Pronounced dip in mid-February 2021 coincides with the period including the Texas power crisis and severe weather in the Midwest. Source: Homebase data.

Restaurant owners are evenly split about whether they intend to open a new location of their current businesses in the next one to two years

As of mid-September, approximately 39% of restaurant owners intend to expand their businesses by opening a new location in the next one to two years. This figure is up nearly four percentage points from July 2022. The percentage of owners who do not plan to open a new location of a current business decreased by more than four percentage points in the corresponding period. For both July and September, restaurant owners were significantly more likely than owners in other industries to have expansion plans. In September, for example, the overall percentage of owners who planned to open a new location in 12-24 months was nine percentage points lower than the figure for restaurant owners.

Survey question: Do you intend to open a new location of your current business in the next 12-14 months?
Source: Homebase Owner Pulse Survey. Ns >100 in mid-July and mid-September

Owners’ hiring intentions for the next one to two years were adjusted upwards in September

Approximately 95% of restaurant owners anticipate hiring at least one additional worker in the next one to two years. As of mid-September, restaurant owners intend to increase their employment rolls by more than 56% in the next one to two years. This contrasts with an intended increase of 44% in July of 2022. These figures are consistent with owners’ increasing intentions to properly staff their operations and open new locations of their existing businesses.

Although owners now intend to hire more employees in the next one to two years than they did in July, they also expect it to be more difficult to hire employees

Most restaurant owners intend to hire new employees in the next one to two years, as indicated in the previous slide. However, when compared with July 2022, restaurant owners now believe that hiring employees is going to be more difficult. Indeed, 27% of owners now believe it will be harder to hire workers in the next one to two years, which is up from 22% of restaurant owners who expressed the same sentiment in July of 2022.

Survey question: Do you think it will be easier, the same, or harder for your organization or business to hire workers 12 months from now compared to today?
Source: Homebase Owner Pulse Survey.

Given how hard it is to hire, we asked restaurant owners which are the best ways to find good employees (hint: referrals)

Turnover in the restaurant industry is comparatively high. Finding good workers in the best of times is difficult. In a tight labor market, it can be daunting. The Homebase September Pulse Survey reveals that owners view referrals as particularly effective as they represent three of the top five search channels owners use to hire good employees.. Online job search sites, as well as direct job post links on a company website, round out the top five.

Survey question: Based on your experience, which of the following is the best way to find good employees?
Source: Homebase Owner Pulse Survey.

Hiring and employee management continue to be some of the most challenging aspects of running a restaurant

Hiring employees (37%), managing employees (12%) and related employment costs (9%) were amongst the top five cited challenges restaurant owners must contend with. Intermediate supply costs (15%) and to a lesser degree economic uncertainty (6%) round out the top five challenges owners face today.

Survey question: What are the most challenging aspects of running a business today?
Source: Homebase Owner Pulse Survey.

To retain and manage their employees, restaurant owners are using a variety of strategies

Hiring and retaining good workers is challenging in the current environment. Consequently, we asked restaurant owners what strategies they are using to retain workers. Of those owners who are using any retention strategy, the most frequently cited strategy was the use of achievement awards (29%). Twenty-two percent of owners cited the implementation of new tip policies. Approximately nineteen percent of owners are offering employees their preferred shifts. Rounding out the top five were offering more pay (12%) or gift cards or gas cards (10%).

Survey question: Are you implementing any of the following strategies to retain workers (select all that apply)?
Source: Homebase Owner Pulse Survey.

With leaner workforces and an increase in sales, restaurant owners report a (nominal) increase in worker productivity

More than a third of restaurant owners report that their employees are more productive this year compared to last year and more than 10% of owners report that their employees are significantly more productive than they were at this time last year.

When asked what accounts for this increase, several owners indicated improvements in managerial processes and technology:

“Clearer expectations communicated, step by step processes made available, clear punitive action”

“Keeping morale high. Communication. Treat employees with respect and understand that without them you cannot run a business.”

Economic and staffing challenges have impacted employee camaraderie in surprising ways

More than 45% of restaurant owners believe their employees are either more (or significantly more) productive this year versus last year. With leaner operations, 67% of owners believe that the current economic environment has created more camaraderie amongst their teams.

The primary way this greater camaraderie is evident is in employees’ willingness to jump in to pick up their teammates’ shifts (50%). Employee communication has also increased (16%) with better processes and tools. Owners also observed a more general willingness amongst their employees to help one another (14%) as they spend more personal time together (12%).

Survey question: How, if at all, has the current economic climate created more camaraderie amongst your team?
Source: Homebase Owner Pulse Survey.

California recently passed landmark legislation protecting fast food workers. Restaurant owners in the state have some concerns

The State of California recently passed landmark legislation (AB 257) that included the establishment of a Fast Food Council to set a minimum standard for wages, hours, and working conditions for restaurant workers. Our Owner Pulse Survey included fifty-three restaurant owners in the State of California. These restaurant owners expressed concerns about the unintended consequences of the bill, including driving up costs to consumers (51%), heightened competition for labor (40%), and the need to cut labor costs (32%) that might provoke a move towards more automated operations (21%). Given the recency of the legislation, only one owner has communicated with his/her/their employees about the legislation and only one owner has been asked about the bill from an employee.

Survey question: [Summary of AB 257]: Given this bill, do you have any of the following concerns (select all that apply)?
Source: Homebase Owner Pulse Survey.

The post How Did Main Street Restaurants Fare in September? appeared first on Homebase.

For small employers, the current economy presents numerous challenges — but also numerous opportunities — suggests new Homebase research, which shows workers at small companies feel more valued than those at large companies. Read the full report below or download it as a pdf.

We have survived numerous supply chain disruptions and shortages in the last few years. Still, there’s probably at least one asset whose short supply continues to keep business owners up at night: labor. In fact, small business owners in June 2022 told Homebase that hiring new employees and motivating/engaging existing employees are their top business concerns, trumped only by high rental or real estate costs. And as recently as August 2022, less than a third of workers told Homebase they were worried about becoming unemployed at some point in the next two years. When it comes to the job market, that suggests that workers continue to see themselves in the driver’s seat.

It’s the continuation of a trend that began in 2021, when more than 47 million Americans voluntarily quit their jobs, according to the U.S. Department of Labor. Ever since, U.S. employers have continued to have more job openings available than there are workers to fill them. As recently as July 2022, for example, there were 11.2 million job openings in the United States and just 6.3 million new hires.

But there’s good news on the horizon, suggests new research from Homebase: Despite continued labor shortages across the U.S. economy, there are signs that conditions are improving — and that small businesses might enjoy a unique advantage when they do.

Small is strong: Small employers have unique connections with employees

Employees judge job satisfaction based not only on what their job pays them, but also on how their job makes them feel. We surveyed 3,300 hourly and gig workers in June 2022, and found that it’s small businesses that most excel at making employees feel good. Compared to workers at companies with more than 500 employees, workers at companies with fewer than 10 employees: 

Can be themselves at work: The majority (53%) of employees at smaller companies strongly agree that they can be themselves at work compared to only 36% of employees at big companies. 

Feel valued and supported at work: A staggering 81% percent of employees at smaller businesses say they feel valued and supported at work compared to 71% of workers at big companies. 

Feel connected to their employer: 35% of employees at smaller businesses feel extremely connected to their employer compared to only 21% of employees at big companies. 

Therein lies the opportunity for small businesses: The best way to find and keep hourly workers could be leaning into the things they already do well — assets like leadership, learning, respect, and culture. In other words, emphasizing people as much as paychecks.

And our research bears this out: Our June survey finds that in the last 12 months, 59% of workers at small businesses never considered resigning or quitting from their job, compared to 46% of workers at large companies. Or put another way, more than half of workers at large companies have considered quitting compared to fewer than half of workers at small companies. 

What hourly workers want: Wages — but not just wages

Not surprisingly, our survey finds that compensation is king: When asked what one thing their employer could offer to make them more engaged, nearly half of current employees (49%) chose “10% higher salary.” Likewise, prospective employees rank salary as the No. 1 thing they consider when they’re evaluating a potential job opportunity.

However, that also means that for more than half of hourly workers, the No. 1 thing they want from their employer is not money. Let that sink in. 

Money isn’t everything, agrees Brian Willis, general manager of Persnickety Prints in Orem, Utah. Not long ago, he surveyed his employees to determine what they value most. “Most of them valued culture and workplace environment … more than monetary value, which was kind of surprising to us,” says Willis, who describes his company’s culture as one where employees feel empowered and respected. “Our employees feel safe enough that they can bring a concern to us and know we’ll help them fix it … And we encourage them to bring us suggestions. If they come up with a new process or a new idea, we’re happy to look into it.”

So even if small businesses can’t pay more, they can compete by paying differently. Wages may remain the top driver of increased employee engagement, but workers say their employer could make them feel more engaged by offering (in order of importance):

• 10% higher salary or wages (49%)
• More opportunities to learn new skills (12%)
• A four-day work week (8%)
• Paid time off (7%)
• Better health insurance (4%)
• 10% higher bonus (4%)
• More respect from management (4%)
• Improved company culture (3%)
• Remote work options (3%)
• A greater commitment to diversity (2%)
• Child care assistance (2%)
• Hybrid work options (1%)
• More autonomy (1%)

“We try to think ahead about what’s going to be important to high school students or college students or stay-at-home moms. And when we interview them, we focus on those things that in our experience are important to them. And honestly, a lot of them are not money-related. It’s feeling appreciated. It’s having flexibility. Things like that,” says Rob Brucato, owner of Scentcerely Yours, a custom candle store in Geneva, Ill., where employees enjoy flexible scheduling, quarterly team-building events, and meals for the team when they are busy and short-staffed. “We’re always mindful of other perks that are non-monetary.” 

All of this resonates with small business owner Andy Sommer, founder and CEO of Forth & Nomad, a Houston-based lifestyle marketplace for clothing, home goods, and wellness products. Although he recently raised base pay for hourly employees in order to compete with surrounding businesses, he also has cultivated a brand with which job applicants want to be associated.

“We’re all about the feel-good lifestyle. We think everything you own should inspire you and make you feel good,” explains Sommer, who says employees are drawn to his company’s values of sustainability, self-expression, and creative release. “People have a connection to our brand, and they want to work for us for that reason.”

Mentoring matters: The appeal of entrepreneurship

Our survey finds that employees at small businesses are more likely to aspire to become entrepreneurs than those at larger companies (39% vs. 26%). And this is particularly true of younger workers.

When you own a small business, entrepreneurship is in your blood. Leveraging your knowledge and sharing it with employees through mentorship, education and development, or other means could give you a unique advantage among employees who want to follow in your footsteps.

“The manager of our store teaches yoga classes on the side, and we encourage that. In fact, we let her use our space to teach yoga classes,” says Sommer, whose store also has a coffee bar inside it, the manager of which recently conceived a coffee tasting experience for local Airbnb guests with Sommer’s blessing. “We like to give our people autonomy. If they have an idea, we tell them to run with it and make it happen.”

The upside of down: Smaller economy creates bigger workforce

Employers of all sizes and in all sectors have struggled to fill open positions. It’s not just finding employees that’s been challenging, however. Also, it’s been negotiating with them. In a November 2021 survey of more than 500 small business employers and 2,300 employees, Homebase found that both groups perceived an advantage for prospective employees in the hiring process, giving them the ability to negotiate higher pay, more desirable schedules, and better benefits. 

Adding insult to injury is the broader U.S. economy. GDP, for example, continues to trend downward. Meanwhile, growth in consumer sentiment and wages is slowing. And then there’s inflation, which reached a 40-year high in June and has stubbornly remained. In August, workers told Homebase that inflation was impacting how much they pay for gas, food, rent, and electricity. All this as major corporations — FedEx, Gap, Tesla, Compass, Netflix, Microsoft and Target, just to name a few — announce either layoffs or earnings slumps. It’s no wonder that approximately 80% of small business owners and employees told Homebase that they are concerned about a recession (from our survey to 500 small businesses and 700 workers in July 2022).

Whether a recession actually materializes remains to be seen. From a hiring perspective, however, a contracting economy could actually benefit small businesses.

Our research is already bearing this out. In September 2022, small businesses are posting fewer jobs on Homebase than they did in prior months, and the jobs they are posting are attracting more applicants. And our surveys show sharp declines in employee turnover intentions compared to last year:

• The number of workers believing they’ll have better job options 12 months from now fell 11 percentage points, from 44% in November 2021 to 33% in June 2022.
• The number of workers believing they’ll have worse job options doubled in the same period, from 6% in November 2021 to 12% in June 2022.
• The number of hourly workers who say they don’t plan to look for a new job in the next 12 to 24 months increased from 39% in November 2021 to 50% in August 2022. 

* Sample sizes of surveys to hourly employees: 2,300 respondents in Nov 2021, 1750 respondents in Jun 2022, and 1,000 respondents in August 2022.

“Earlier this year, we had a hard time just getting applicants,” says Andy Sommer, owner of Forth & Nomad. “Now it seems to be getting a little bit easier.”

The bottom line

Businesses of all sizes are struggling with hiring and retention. By being in tune with employee sentiment — and by investing time and resources to create the benefits and culture workers want — small businesses can set themselves up for success today, tomorrow, and for years to come.

Homebase can help

The economy and labor market are always changing, but one thing that never changes is the need for small businesses to attract, engage, and retain great employees. Although this has been especially difficult in the last couple years, small businesses do have opportunities to build and reinforce their teams with quality talent.

Homebase helps by giving small businesses the means to not just manage hourly workers, but to engage them in ways that build trust, loyalty, and a culture that sets the business apart. Our convenient and easy-to-use app includes:

• Online scheduling and time tracking tools that give employees transparency and tools to manage their shifts, hours, time off, and pay. 
• Built-in messaging to improve team communication and collaboration, including shout-outs to recognize a job well done.
• Pay advances that come from Homebase to give employees early access to their earned wages with no cost or liability to the business.
• Built-in shift feedback and performance tracking to keep a pulse on the state of the team.

Want to learn more about the Future of Local Work? Check out all our reports and subscribe for future updates. 

The post The Future of Local Work: Small Businesses Win by Putting People First appeared first on Homebase.