Mid-market companies are paying workers more money, amid a tightening labor force, according to a survey released Monday from Deloitte LLP. The survey polled 525 executives from mid-market companies with revenue between $50 million and $1 billion per year. Some 32 percent of respondents expect to pay their workers more during the next year, compared to 24 percent in a survey conducted during fall 2014. ‘We’re seeing increasing voluntary turnover in these businesses,’ said Roger Nanney, a vice chairman with Deloitte. ‘With a strengthening labor market, it’s important for these executives to pay more attention to retaining these employees.’ Meanwhile, the survey also found mid-market companies are spending less on capital investment. Some 43 percent said they’ll increase spending on capital investments, compared to 47 percent last fall. ‘There’s a pause when it comes to companies that are making major investments,’ he said. As the Federal Reserve looks to hike short-term interest rates for the first time in nine years, capital expenditures might be more costly in a rising interest rate environment.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
