Small businesses move ahead in the face of sluggish economic growth
according to insperity survey
Houston--(business wire)--small business owners are hiring more workers and boosting compensation in anticipation of increased business in 2011, according to the most recent business confidence survey released today by insperitytm (nyse:nsp), a leading provider of human resources and business performance solutions to america’s best businesses. while 23 percent believe that an economic rebound is currently under way, 40 percent expect it to occur in the last half of 2011 or later and 35 percent remain unsure. while business owner sentiment as gauged by the survey indicated an increasing willingness to be more aggressive in coming months, insperity internal data suggests that these same entrepreneurs are still taking a more conservative approach to employment-related business decisions. compensation metrics from insperity’s base of more than 5,700 small and medium-sized businesses indicated that compared to last fall, average commissions paid to sales staff were down to 5.4 percent versus 8.8 percent last november. overtime pay was 8.0 percent of regular pay, down from 8.9 percent reported last november and remaining under the 10 percent level that often prompts a need for additional employees. in the survey conducted april 19-21, when asked how they are managing the number of company employees, 37 percent of respondents said they are adding new positions, up from 24 percent previously; 57 percent stated that they are maintaining current staffing levels, down from 67 percent; and only 6 percent are laying off employees. “small and medium-sized businesses are taking steps consistent with a slow-growth economy, while finding ways to convert obstacles into opportunities. we’re starting to move in the right direction, led by the flexibility and adaptability of this vital segment of the business community,” said paul j. sarvadi, insperity’s chairman and chief executive officer. the economy was again listed as the leading short-term concern by 68 percent of business owners, but down from 77 percent in november; followed by 46 percent specifying rising health care costs versus 54 percent previously; 45 percent citing government health care reform; and 36 percent listing controlling operating costs. for longer-term concerns, 73 percent said they were either very concerned or had elevated concerns about the federal deficit and the total national debt; 61 percent designated the economy; 60 percent listed potential tax increases; and 59 percent cited government expansion and its effect on business. when asked about their pipelines for new business for the remainder of 2011, 53 percent of survey respondents said that they expect sales to rise versus 38 percent last fall, representing a significant increase; 31 percent predicted it will stay the same; 8 percent anticipated decreasing sales and 7 percent were unsure. in addition, 76 percent of owners and managers of small and medium-sized businesses said that they are either meeting or exceeding their 2011 performance plans, up from 67 percent in the last survey; while the remaining 24 percent reported that they are doing worse than expected. the survey also found that 54 percent of participants expected to maintain employee compensation at current levels throughout 2011; 31 percent planned increases - up from 26 percent in the last survey; 3 percent expected decreases and 13 percent were unsure. concerning their current profit-generating activities, 72 percent named increased levels of service to clients as the leading strategy. this was closely followed by 69 percent who expected to sell new accounts; 41 percent who said they were adding new services or products; 30 percent of survey respondents listed negotiating with vendors; and 27 percent named investing in new improvements. about insperity insperity, a trusted advisor to america’s best businesses for more than 25 years, provides an array of human resources and business solutions designed to help improve business performance. insperity business performance advisors offer the most comprehensive workforce optimizationtm solution in the marketplace that delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity. additional offerings include midmarket solutions, performance management, expense management, time and attendance, organizational planning, employment screening, recruiting services, retirement services, business insurance and technology services. insperity business performance solutions support more than 100,000 businesses with over 2 million employees. with 2010 revenues in excess of $1.7 billion, insperity operates in 55 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 and other insurers, 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 return on our adjacent business strategy, including 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.
