SMB Job Generation Outlook – Q1 2013

www.lucasgroup.com Respondent title:

46% $50M - $150M

28% $151M - $300M

17% $301M - $600M

9% $601M - $999M

2012 company revenues of responding executives:

51% President

49% CEO

www.lucasgroup.com

Describe how your workforce and related expenses changed in 2012.

39% Stayed the same

WORKFORCE

45% Increased

16% Decreased

31% Stayed the same

WAGES & SALARIES

62% Increased

7% Decreased

30% Stayed the same

BENEFITS EXPENDITURE

60% Increased

10% Decreased

www.lucasgroup.com

For those expenses that increased in 2012, select the percent they increased over 2011.

WORKFORCE WAGES & SALARIES BENEFITS EXPENDITURE

<5%

5% - 10%

11% - 15%

16% - 20%

20% - 25%

>25%

44%

33%

15%

4%

2%

2%

64%

24%

8%

4%

0%

0%

25%

42%

27%

3%

3%

0%

www.lucasgroup.com

For those expenses that decreased in 2012, select the percent they decreased over 2011.

46%

18%

18%

18%

0%

0%

58%

14%

14%

14%

0%

0%

18%

36%

46%

0%

0%

0%

<5%

5% - 10%

11% - 15%

16% - 20%

20% - 25%

>25%

WORKFORCE WAGES & SALARIES BENEFITS EXPENDITURE

www.lucasgroup.com

Looking ahead, share your hiring or downsizing plans for the following timeframes:

25% N/A or Don’t know

52% Hire additional employees

23% Downsize workforce

NEXT QUARTER

26% N/A or Don’t know

55% Hire additional employees

19% Downsize workforce

NEXT 12 MONTHS

www.lucasgroup.com

Rate the level of difficulty your company faces in finding qualified candidates for professional and management positions.

6% Easy

35% Neither difficult or easy

54% Difficult

5% Extremely difficult

www.lucasgroup.com

Share whether your company has specific plans to recruit and/or hire military veterans in 2013.

16% Yes, we have

specific plans to hire military veterans

60% We hire military veterans but don’t have a specific plan

24% No, we don’t have

specific plans to hire military veterans

www.lucasgroup.com

Describe the type of employees your company is considering adding in 2013: contract employees, permanent employees, or a combination.

47% Combination of

contract and permanent employees

23% Neither contract nor permanent

employees

21% Permanent

employees only

9% Contract

employees only

www.lucasgroup.com

For each professional/management area, describe your company’s planned 2013 workforce change.

69% Stay the same

ACCOUNTING

18% Increase

13% Decrease

71% Stay the same

FINANCE

15% Increase

14% Decrease

70% Stay the same

HUMAN RESOURCES

13% Increase

17% Decrease

51% Stay the same

INFORMATION TECHNOLOGY

36% Increase

13% Decrease

73% Stay the same

LEGAL

11% Increase

16% Decrease

60% Stay the same

MANUFACTURING MGMT.

25% Increase

15% Decrease

52% Stay the same

MARKETING

33% Increase

15% Decrease

39% Stay the same

SALES

51% Increase

10% Decrease

www.lucasgroup.com

Select the percentage of your company’s workforce that will retire in 2013.

79%

9%

3% 4%

5%

<5%

www.lucasgroup.com

Describe the level of impact that Baby Boomer retirement has on your company.

45% Some impact

37% No impact

at all

13% Very

big impact

5% Don’t know

www.lucasgroup.com

Describe how the retirement of Baby Boomers impacts your company.

48% Creates a

knowledge gap that’s difficult

to bridge

23% Enhances our prospects for

future innovation and growth

18% Improves our

ability to consider new approaches & processes

8% Impairs our

ability to compete

3% Other

www.lucasgroup.com

Share whether your company is hiring retirees back on a contract basis.

53% No

23% Considering it,

but haven’t decided

19% Yes

5% Don’t know

www.lucasgroup.com

The percentage of employees eligible for retirement who delayed retirement, during the past three years, due to economic constraints:

<2%

3% - 4%

5% - 7%

8% - 10%

>10%

Don’t know

27%

20%

18%

5%

14%

16%

www.lucasgroup.com

28%

20%

12%

14%

12%

14%

The percentage of employees you expect to delay retirement, during the next three years, due to economic constraints:

<2%

3% - 4%

5% - 7%

8% - 10%

>10%

Don’t know

www.lucasgroup.com Please indicate your feelings about the following:

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

4%

17%

15%

45%

19%

ECONOMIC PROSPECTS FOR YOUR COMPANY IN 2013

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

26%

23%

14%

32%

5%

ECONOMIC PROSPECTS FOR THE UNITED STATES IN 2013

www.lucasgroup.com Please indicate your feelings about the following:

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

13%

12%

24%

40%

11%

JOB GROWTH PROSPECTS FOR YOUR COMPANY IN 2013

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

23%

23%

26%

24%

4%

JOB GROWTH PROSPECTS FOR THE UNITED STATES IN 2013

www.lucasgroup.com Please indicate your feelings about the following:

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

62%

19%

11%

5%

3%

BIPARTISANSHIP IN FEDERAL GOVERNMENT

Very pessimistic

Somewhat pessimistic

Neither optimistic nor pessimistic

Somewhat optimistic

Very optimistic

32%

32%

19%

11%

6%

BIPARTISANSHIP IN STATE GOVERNMENTS

www.lucasgroup.com

Select the statement that best describes your company’s position for 2013.

57% Growth

32% Maintaining

stability

6% Controlled

retrenchment

5% Survival

www.lucasgroup.com

Please indicate the extent to which you agree or disagree with the following statements.

Disagree strongly

Disagree

Neither agree nor disagree

Agree

Agree strongly

0%

1%

12%

48%

39%

SMB’s ARE THE JOB GENERATORS OF THE U.S. ECONOMY.

2%

5%

17%

55%

21%

I SEE MY COMPANY AS A JOB GENERATOR.

Disagree strongly

Disagree

Neither agree nor disagree

Agree

Agree strongly

www.lucasgroup.com

Describe the level of tangible impact federal budget negotiations have on your hiring considerations.

48% Some

impact

38% A great deal

of impact

14% No impact

www.lucasgroup.com

If the federal government fails to reach a budget accord, will your company change its current 2013 hiring plans?

43% No

27% Yes,

somewhat

21% Yes,

dramatically

9% Don’t know

www.lucasgroup.com

35% 32%

21%

6% 6%

Describe the level of impact the Patient Protection and Affordable Care Act has on your business plans.

Considerable negative impact

Minor negative impact

No impact Minor

positive impact

Considerable positive impact

www.lucasgroup.com Select your company’s industry.

18% Finance, Insurance,

Real Estate

12% Business Services

12% Healthcare

10% Automotive 9%

Manufacturing

9% Transportation

Services

7% Construction

7% Consumer Services

3% Nonprofit & Membership Organizations

2% Legal Services

2% Arts,

Entertainment & Recreation

2% Energy, Oil,

Gas & Utilities

1% Information Technology

7% Other

www.lucasgroup.com How long has your company been in business?

0 - 2 years

3 - 5 years

6 - 10 years

11 - 20 years

More than 20 years

1%

3%

13%

13%

70%

www.lucasgroup.com

Select the number of workers your company currently employs.

1,500 – 4,999

1,000 – 1,499

500 - 999

100 - 499

1 - 99

1%

5%

15%

9%

13%

42%

15%

5,000 – 9,999

10,000 or more

www.lucasgroup.com Describe your company’s ownership structure.

58% Private

17% Public

15% Family- owned

10% Private equity

portfolio company