The management consulting firm surveyed 830 small business owners across the U.S. and found that 74 percent of respondents do not plan to increase their staff numbers in the next 90 days, even as applications increase.

The results should not come as troubling news for small business owners as 62 percent of the respondents not hiring feel their businesses are healthy but have no confidence in the economy sustaining the need for new employees.

Still, Paul Rauseo, managing director of George S. May International, encourages small business owner to cut costs before staff. "Business owners should view the high demand for employment as an opportunity to design commission-only sales forces, or employ part-time, seasonal workers," Rauseo said.

A recent report by the Guardian Life Index suggests motivated employees are key in small businesses' ability to draw consumer spending.