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Though Arkansas business executives were split down the middle about whether the recession was ending, responses to a recent survey indicate that caution still dominates most business decisions.
Many execs still seemed to question whether the stock market run-up was truly the bellwether of a vanishing recession as they budget for the upcoming year, the results of the quarterly Inc. Tanc survey show.
(Click here to view charts about staffing and pay levels at Arkansas businesses and social networking, smart phone usage and retirement stats.)
This wary attitude means business execs are tiptoeing into the first quarter of 2010. More than half of 523 respondents intend to freeze salaries until the economy's vital signs are clearer.
"Folks are really in a wait-and-see kind of mode," said Kathy Deck, director of the University of Arkansas' Center for Business & Economic Research at the Sam M. Walton College of Business in Fayetteville.
The Inc. Tanc survey is a joint venture between Arkansas Business and MarketSearch, the research division of Mangan Holcomb Partners of Little Rock. It targets key executives and Arkansas business decision-makers. Most questions asked during the first two weeks of October received 523 responses, although some questions received fewer.
Despite the hesitation, employment levels seem to be firming up. During the third quarter, 70 percent of respondents intended to maintain current staff levels for the remainder of 2009, which is up from 64 percent in the previous quarter.
"Employment looked stable, which I think is good right now," said David Bell, research director at MarketSearch. "Everybody was expecting to keep their employment levels the same. They weren't hiring anybody, but they weren't going to reduce staff either."
Only 11 percent of executives expect to lay off any more employees in 2009, which is down from 13 percent in the previous quarter. On the other hand, fewer businesses plan to add staff before the year is done. Only 15 percent expect to hire new employees compared with 18 percent in the previous quarter.
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