The Hiscox People and Programs Report 2024
Nearly 3 in 5 small businesses are already using AI or plan to do so within two years
The Hiscox People and Programs Report found that 76% of small businesses in the US see AI knowledge as valuable for the future, however the most common recruitment method is still offline (66%), like through word of mouth or family members, ahead of using digital tools (62%).
The Hiscox People and Programs Report explores US business owners’ attitudes towards AI and developing technology, as well as the impact it has on their business, the recruitment process and how it can be complementary to human connectivity and engagement. This was achieved by surveying 1,000 small business owners with 1 to 50 employees.
Life is better working for a small business
On average, for every four employees that move from a small business to a large corporation, five go the other way — leave a large corporation to join a small business.
Happiness is one of the most human of qualities, and work-life balance can be the main enhancer or detractor of happiness. Previous studies* have also shown that creativity, a quality which distinguishes humans from AI, is positively impacted by happiness. According to the Hiscox People and Programs Report, small businesses may be able to provide better work-life balance for candidates and employees alike. They enjoy a healthy work-life balance, with employees working an average of 8 hours a day, small business owners retiring at 63, and potential employees only spending 3 weeks on average in the recruitment process with an average of 2 interviews.
For most small businesses, hybrid working is here to stay
Hiring is getting easier for small businesses
For small businesses, the ‘great resignation’ (approximately 2021 – 2022) proved to be a major challenge to securing quality candidates. During this time, a staggering 61% of small business owners surveyed were not able to fill any vacancies. For those who did successfully fill open roles, it took on average five weeks to hire a new employee.
The difficulties of hiring may be calming for small businesses. In 2023 it proved to be easier for small businesses to hire new employees. On average, they successfully filled open roles within four weeks of their search.
Although the hiring landscape is improving, 60% of small businesses still report facing challenges when it comes to hiring employees.
Small businesses are AI-curious
While only 26% are currently using AI, 76% of small business owners see AI knowledge as valuable for the future, and among those who don’t have AI but want to, 75% plan to implement it into their business within two years’ time. Small businesses are well-prepared for an AI future, with 62% of small business owners reporting that they or their employees already have the know-how to use AI tools. Of the businesses that have no plans to use AI, 85% may be currently using AI software unknowingly.
Why are some business owners hesitant about using AI?
The topic that’s dominating headlines and minds across the world right now is AI. What does it mean for our businesses, our people and where can it add value. This research shows that small businesses are more than dialed into the conversation; they’ve already identified where AI can drive benefits, but most importantly, where the human connection matters most. Small businesses are the guardians of our local communities, and perhaps, our humanness too.
Laila Gillies
Head of People
Hiscox USA
Small businesses are community superheroes
Small businesses are loyal champions of their local communities, despite the challenges it may bring. Small businesses both drive and rely on community connections as many still recruit employees through word of mouth (49%). However, keeping things local may ultimately hurt their chances of finding the right person for the job, as one third say they can't find enough qualified applicants. Even with these challenges, most small businesses still plan to recruit employees through word-of-mouth connections in the future (56%).
So how do small businesses stack up when it comes to recruitment? Most small businesses appear as attractive destinations for candidates, as 78% indicated that offering a competitive salary is not a challenge for them in hiring employees.
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The content is provided for general information purposes and is not intended to and does not constitute business or legal advice to any particular person or entity.
Data is based on 1,000 US small business owners surveyed as part of the Hiscox People and Programs Study.
* https://www.scientificamerican.com/article/happiness-good-for-creati/