Calif. Small Business Worry No.1, Workers' Comp
NU Online News Service, Feb. 20, 12:15 p.m. EST?A poll of small businesses in California has found that the rising cost of workers' compensation insurance is tops on their list of concerns.[@@]
The findings were the results of an annual statewide survey released by Union Bank of California, N.A.
According to the survey, the issues surrounding workers' comp reform continue to be a chief concern of most small-business owners, as 65 percent of businesses polled identified the rising cost of workers' comp insurance as one of their top challenges of owning a business in California.
Reacting to the survey, California Insurance Commissioner John Garamendi commented that "California's workers' comp system must be reformed if we intend to lure businesses back to the state. The current system lacks the predictability and stability companies have been seeking. The results of this survey show that we must fix this system now. California's economy cannot afford to wait any longer."
Despite their worries over workers' comp, the survey found that 72 percent of California small-business owners polled are expecting 2004 to be an overall better year than 2003, and about 37 percent anticipate their staffing levels to increase in 2004.
The survey found that providing healthcare insurance to employees remains a challenge for businessowners. Fifty-two percent currently offer health benefits, and of those, 21 percent said they shifted a higher portion of healthcare costs to their employees last year, while 12 percent reduced health benefits.
Only about 31 percent of respondents said they offer their employees a retirement plan, such as a 401(k) plan or employee stock ownership plan.
Union Bank said its research consisted of surveying more than 1,300 small-business owners statewide last month. Respondents were asked questions regarding their company's sales performance, hiring plans, health benefit costs and other financial and economic issues affecting them.
The survey defined small businesses as California companies in operation for at least two years, with annual sales under $5 million for the fiscal year 2003.
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