HOUSTON–(BUSINESS WIRE)–
Small business owners continue to hire and maintain employees at rates
similar to last quarter and are continuing their recent pace of business
activity, according to the most recent Business Confidence Survey
released today by Insperity,
Inc. (NSP), a leading provider of human
resources and business performance solutions for America’s best
businesses. More than 40 percent of respondents say they are adding
employees, the same as in our April survey; 56 percent are maintaining
current staffing levels versus 55 percent in April; and 4 percent are
laying off employees, slightly below last quarter’s 5 percent.
Insperity also announced compensation metrics from its base of 5,500
small and medium-sized Workforce OptimizationTM clients.
Compared to the 2012 second quarter data, average compensation is up 2.8
percent and bonuses are down 1.2 percent. Average commissions received
by worksite employees reflected an increase of 6.2 percent versus a 5.2
percent increase in the second quarter of 2012. Overtime pay is still
low at 9.5 percent of regular pay, below the 10 percent level that
generally indicates a need for additional employees, but up slightly
from 9.3 percent in the second quarter of 2012.
In the survey, 72 percent of respondents said they are either meeting or
exceeding their 2013 performance plans, down slightly from 74 percent in
the last survey; meanwhile, 28 percent report that they are doing worse
than expected, unchanged from the response in April. Concerning the
timing of an economic rebound, 34 percent think one is currently in
process versus 28 percent in April; 27 percent expect a rebound in the
fourth quarter or later; and 38 percent said they are unsure, falling
below the 40 percent mark for the first time in over a year.
“While many business owners continue to add workers and anticipate sales
increases through year-end, the economic uncertainty of the last few
years is becoming a regular part of forming and executing business
plans,” said Paul
J. Sarvadi, Insperity chairman and chief executive officer. “In
facing this challenge, entrepreneurs are combining economic flexibility
with strategic activity to meet current marketplace demands.”
The overall economy still leads the list of short-term concerns of
business owners, but at 50 percent compared to 62 percent in April and
72 percent last October. Rising health care costs were second on the
list at 49 percent, and government health care reform fell to third at
43 percent from 51 percent last April, followed by hiring the right
people, at 39 percent.
For the list of longer-term concerns, 60 percent indicated they are
either very concerned or have elevated concerns about government
expansion and its effect on business; potential tax increases ranked
second at 56 percent; the Federal deficit and the total national debt
was third at 55 percent; and the economy remained in fourth place,
decreasing to 46 percent from 50 percent in April and 66 percent last
October.
When asked about their pipelines for new business through 2013, 55
percent of survey respondents expect sales to increase, down from 59
percent in April; 29 percent anticipate no change versus 28 percent last
quarter; 8 percent again predict decreasing sales and 9 percent are
unsure, up from 7 percent in the previous survey.
The survey results show that 58 percent of participants expect to
maintain employee compensation at current levels through 2013, versus 59
percent in April; 29 percent plan increases, up from 26 percent last
quarter; 2 percent expect decreases; and 12 percent are unsure.
Concerning their current profit-generating activities, 59 percent list
selling new accounts, and 56 percent cite increased service to existing
clients. This was followed by 40 percent saying they were adding new
services or products, and 27 percent listing negotiating with vendors.
Insperity conducted the survey July 9-11, 2013, of more than nearly
5,000 chief executive officers, chief financial officers and other
executives in a variety of industries at its more than 5,500 client
companies throughout the United States. The overall sampling error of
the national survey is +/- 4.5 percent at the 95 percent confidence
level.
Insperity, a trusted advisor to America’s best businesses for more than
27 years, provides an array of human resources and business solutions
designed to help improve business performance. Insperity® Business
Performance Advisors offer the most comprehensive suite of products and
services available in the marketplace. Insperity delivers administrative
relief, better benefits, reduced liabilities and a systematic way to
improve productivity through its premier Workforce OptimizationTM
solution. Additional company offerings include Human Capital Management,
Payroll Services, Time and Attendance, Performance Management,
Organizational Planning, Recruiting Services, Employment Screening,
Financial Services, Expense Management, Retirement Services and
Insurance Services. Insperity business performance solutions support
more than 100,000 businesses with over 2 million employees. With 2012
revenues of $2.2 billion, Insperity operates in 57 offices throughout
the United States. For more information, visit http://www.insperity.com.
The statements contained herein that are not historical facts are
forward-looking statements within the meaning of the federal securities
laws (Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934). You can identify such
forward-looking statements by the words “expects,” “intends,” “plans,”
“projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,”
“goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,”
“guidance,” “predicts,” “appears,” “indicator” and similar expressions.
Forward-looking statements involve a number of risks and
uncertainties. In the normal course of business, Insperity, Inc.,
in an effort to help keep our stockholders and the public informed about
our operations, may from time to time issue such forward-looking
statements, either orally or in writing. Generally, these
statements relate to business plans or strategies, projected or
anticipated benefits or other consequences of such plans or strategies,
or projections involving anticipated revenues, earnings, unit growth,
profit per worksite employee, pricing, operating expenses or other
aspects of operating results. We base the forward-looking
statements on our expectations, estimates and projections at the time
such statements are made. These statements are not guarantees of
future performance and involve risks and uncertainties that we cannot
predict. In addition, we have based many of these forward-looking
statements on assumptions about future events that may prove to be
inaccurate. Therefore, the actual results of the future events
described in such forward-looking statements could differ materially
from those stated in such forward-looking statements. Among the
factors that could cause actual results to differ materially are: (i)
continued effects of the economic recession and general economic
conditions; (ii) regulatory and tax developments and possible adverse
application of various federal, state and local regulations; (iii) the
ability to secure competitive replacement contracts for health insurance
and workers’ compensation contracts at expiration of current contracts;
(iv) increases in health insurance costs and workers’ compensation rates
and underlying claims trends, health care reform, financial solvency of
workers’ compensation carriers, other insurers or financial
institutions, state unemployment tax rates, liabilities for employee and
client actions or payroll-related claims; (v) failure to manage growth
of our operations and the effectiveness of our sales and marketing
efforts; (vi) changes in the competitive environment in the PEO
industry, including the entrance of new competitors and our ability to
renew or replace client companies; (vii) our liability for worksite
employee payroll, payroll taxes and benefits costs; (viii) our liability
for disclosure of sensitive or private information; (ix) our ability to
integrate or realize expected returns on our acquisitions; and (x) an
adverse final judgment or settlement of claims against Insperity. These
factors are discussed in further detail in Insperity’s filings with the
U.S. Securities and Exchange Commission. Any of these factors, or
a combination of such factors, could materially affect the results of
our operations and whether forward-looking statements we make ultimately
prove to be accurate.
Except to the extent otherwise required by federal securities law, we
do not undertake any obligation to update our forward-looking statements
to reflect events or circumstances after the date they are made or to
reflect the occurrence of unanticipated events.
Insperity, Inc.
Investor Relations Contact:
Douglas S. Sharp, 281-348-3232
Senior Vice President of Finance,
Chief Financial Officer and Treasurer
or
News Media Contact:
Jason Cutbirth, 281-312-3085
Senior Vice President of Marketing
jason.cutbirth@insperity.com