In a sure sign that the labor market is heating up, growing numbers of small businesses and midsize companies say they are struggling to manage rising levels of employee turnover. So, where are these companies turning to find talent?

Our recent Greenwich Market Pulse Study found that most small businesses rely on referrals from colleagues, peers and friends to fill positions and about 40% of them use online job sites, and slightly less than a third use recruiters or employment agencies. About half of midsize companies use each of these three resources.

The study results also showed a significant number of companies are hiring new employees as temp workers and then bringing them onboard as full time team members if things work out.

Read our recent Greenwich Market Pulse: Trends in Sourcing Talent to learn more.