- 50% now plan to add new employees,
while 47% maintain staffing levels
- 66% expect sales increase in 2014, up
from 45% last October
- Average compensation up 2.9%,
commissions increase by 1.7%
- 38% think economic rebound now in
process, up from 26% last survey
An increased number of small business owners are planning to add
more employees and boost compensation levels, signaling a slightly
more positive economic outlook for 2014, 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. A solid 50
percent of respondents plan to add employees, a significant
increase over 26 percent in October and even up from 40 percent in
the July survey; 47 percent are maintaining current staffing levels
versus 68 percent last fall; and just over 3 percent are planning
layoffs, down from 5 percent in October.
Insperity also announced compensation metrics from its base
of 5,500 small and medium-sized Workforce
Optimization® clients. Average compensation for the fourth
quarter 2013 was up 2.9 percent, while bonuses were down 6.9
percent compared to the fourth quarter 2012. Average commissions
received by worksite employees reflected an increase of 1.7
percent. Overtime pay was 10.3 percent of regular pay, above the 10
percent level that generally indicates a need for additional
employees, and up slightly from 9.9 percent in the fourth quarter
of 2012.
According to the survey, 92 percent of respondents expect to
meet or exceed their 2013 performance, up significantly from 68
percent in October, while 8 percent expect to do worse in 2014.
Concerning the timing of an economic rebound, 38 percent think one
is currently in process versus 26 percent both in October and last
July; 24 percent expect a rebound in the second quarter of 2014 or
later, and 37 percent are unsure.
“The small business community is taking a more positive approach
to 2014 business plans according to our Business Confidence Survey
responses and internal data,” said Paul J. Sarvadi, Insperity
chairman and chief executive officer. “Business owners and managers
seem willing to hire more employees, increase wages and gear up for
improved sales in spite of challenges like an uncertain economy and
the Affordable Care Act.”
The list of short-term concerns now points to government health
care as the number one issue of 52 percent of survey respondents,
followed closely by rising health care costs at 47 percent. The
economy was third at 44 percent, down from 67 percent last October,
and controlling overall operating costs was 43 percent. Long-term
concerns were led by government expansion at 58 percent; the
federal deficit tied with potential tax increases at 54 percent;
and the economy dropped to 40 percent from last quarter’s 63
percent, echoing its sharp decrease as a major short-term
concern.
When asked about their pipelines for new business through 2014,
66 percent of survey respondents expect sales to increase, up
sharply from 45 percent in October; 25 percent anticipate no change
versus 36 percent last quarter; 5 percent predict decreasing sales
and 4 percent are unsure, down from 8 percent in the October
survey.
The survey results show that 46 percent plan to increase
employee compensation, up significantly from 17 percent in October;
43 percent plan to maintain compensation at current levels, down
from 71 percent last fall; 1 percent expect compensation decreases;
and 10 percent are unsure.
Concerning their current profit-generating activities, 71
percent listed selling new accounts, and 69 percent cited increased
service to existing clients. This was followed by 47 percent who
indicated adding new services or products, and 34 percent listed
investing in new improvements.
Insperity conducted the survey Jan. 7-9, 2014, of chief
executive officers, chief financial officers and other executives
in a variety of industries from its base of approximately 5,500
Workforce Optimization clients throughout the United States. The
overall sampling error of the national survey is +/- 4.1 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 2013 revenues of $2.3 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) adverse
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; (x) failure of our information technology systems;
and (xi) 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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