- 68% maintain staffing levels, only 26%
plan to add new employees
- 45% expect sales increase through the
remainder of 2013
- Average compensation up 2.9%,
commissions increase by 4.0%
- 26% think economic rebound now in
process, 48% are unsure
- Infographic depicts findings
Small business owners are returning to more guarded management
techniques as evidenced by a decline in the rate of new hires and
an increase in those maintaining current compensation levels,
according to the most recent Business Confidence Survey released
today by Insperity, Inc. (NYSE: NSP), a leading provider of human
resources and business performance solutions for America’s best
businesses. Slightly more than 26 percent of respondents say they
are adding employees, down from 40 percent in the July survey, and
under the 28 percent level from October 2012; 68 percent are
maintaining current staffing levels versus 56 percent in July and
63 percent last fall; and five percent are laying off employees,
slightly above last quarter’s four percent, but down from nine
percent this time last year.
Insperity also announced compensation metrics from its base of
5,500 small and medium-sized Workforce OptimizationTM clients.
Compared to the 2012 third quarter data, average compensation is up
2.9 percent and bonuses are down 11.7 percent. Average commissions
received by worksite employees reflected an increase of 4.0 percent
versus a 1.5 percent increase in the third quarter of 2012.
Overtime pay was 9.7 percent of regular pay, below the 10 percent
level that generally indicates a need for additional employees, but
up slightly from 9.4 percent in the third quarter of 2012.
In the survey, 68 percent of respondents said they are either
meeting or exceeding their 2013 performance plans, down from 72
percent in the last survey; meanwhile, 32 percent report that they
are doing worse than expected, up from 28 percent in July.
Concerning the timing of an economic rebound, 26 percent think one
is currently in process versus 34 percent in July; 26 percent
expect a rebound in the first quarter of 2014 or later; and 48
percent said they are unsure, up significantly from 38 percent last
quarter.
“Survey responses indicate that business owners are returning to
more cautious management strategies to safely execute their
short-term and long-term business plans,” said Paul J. Sarvadi,
Insperity chairman and chief executive officer. “Regardless of
industry, businesses continue to balance the current challenging
risk-reward ratio in creative ways to serve clients and grow
profits.”
The economy again leads the list of short-term concerns of
business owners, listed by 67 percent of survey respondents
compared to 50 percent in July and 72 percent last October.
Government health care reform ranked second at 55 percent, followed
by rising health care costs at 53 percent, and controlling overall
operating costs at 39 percent.
Regarding longer-term concerns, 64 percent of respondents
indicated they are either very concerned or have elevated concerns
about the federal deficit and total national debt; 63 percent
pointed to the economy, a large increase from 46 percent in July
but slightly lower than the 66 percent reported last October; 60
percent listed government expansion and its effect on business; and
potential tax increases ranked fourth at 55 percent.
When asked about their pipelines for new business through the
remainder of 2013, 45 percent of survey respondents expect sales to
increase, down from 55 percent in July and 59 percent in April; 36
percent anticipate no change versus 29 percent last quarter; 10
percent predict decreasing sales and eight percent are unsure, down
from nine percent in the previous survey.
The survey results show that 71 percent of participants expect
to maintain employee compensation at current levels through 2013, a
sharp increase over 58 percent in July; 17 percent plan increases,
down significantly from 29 percent last quarter; one percent expect
decreases; and 11 percent are unsure.
Concerning their current profit-generating activities, 68
percent list selling new accounts, and 62 percent cite increased
service to existing clients. This was followed by 46 percent saying
they were adding new services or products, and 28 percent listing
investing in new improvements.
These findings are visually depicted in an infographic that can
easily be shared with other online resources.
Insperity conducted the survey Oct. 8-10, 2013, of chief
executive officers, chief financial officers and other executives
in a variety of industries from its base of approximately 5,500
Workforce OptimizationTM clients 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, 281-348-3232Senior Vice President of Finance,Chief Financial
Officer and TreasurerorNews Media Contact:Jason Cutbirth,
281-312-3085Senior Vice President of
Marketingjason.cutbirth@insperity.com
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