- 54% expect a sales increase for 2015,
close to the 58% in July 2014
- 37% plan to add new employees versus
41% a year ago
- Overtime pay remains high at 11% of
base pay, reinforcing a need for more employees
Small business owners still maintain a positive view of their
economic prospects through year-end, while following a familiar
pattern of easing growth plans as the year progresses, according to
the 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. Responses
indicate that 37 percent of business owners are adding employees
compared to 41 percent in July 2014 and 40 percent last quarter; 56
percent are maintaining current staffing levels versus 54 percent a
year ago and 52 percent in April. Seven percent are planning
layoffs, up from four percent this time last year.
“Compared to July 2014, business owners are a bit more
conservative operationally, but continue to implement growth plans
wherever possible,” said Paul J. Sarvadi, Insperity chairman and
chief executive officer. “The survey results suggest over 50
percent of respondents still expect sales to increase for the
remainder of the year – and that remains a positive indicator for
near-term economic activity in the small business sector.”
Insperity also announced compensation metrics from its base
of thousands of small and medium-sized Workforce
Optimization® clients from across the United States.
Average compensation for the second quarter of 2015 increased 2.0
percent over the second quarter of 2014, and bonuses were up 19.1
percent compared to the year-ago period. Overtime pay for the
second quarter of 2015 was 11.0 percent of regular pay, above the
10 percent level that generally indicates a need for additional
employees for the fourth consecutive quarter.
According to the survey, 71 percent of participants say they are
meeting or exceeding their starting 2015 performance objectives,
down from 79 percent in July 2014 and 74 percent in April. The
current survey indicates 29 percent expect to do worse in 2015
versus 21 percent this time last year and 26 percent in April. When
asked how the current economy is affecting the bottom line of their
business, 18 percent say it is increasing earnings, 47 percent
replied with no real change, 31 percent state that it is decreasing
earnings and 4 percent are unsure.
Hiring the right people and controlling operational costs top
the list of short-term concerns at 54 percent and 49 percent,
respectively, followed by the economy at 48 percent. Government
expansion and its effect on business is the leading long-term
concern at 48 percent, followed by potential tax increases at 44
percent, the federal deficit and the total national debt at 41
percent, and the economy at 39 percent.
Regarding plans for employee salaries and wages for the
remainder of 2015, 27 percent plan to increase compensation, the
same as in July 2014, but down from 39 percent in April. The survey
indicates 59 percent plan to maintain compensation at current
levels, versus 63 percent last year at this time and 48 percent
last quarter; 3 percent expect decreases versus 1 percent in July
2014; and 11 percent are unsure, compared to 9 percent last
July.
Concerning their current profit-generating activities, 71
percent list selling new accounts and 66 percent cite increased
service to existing clients, both the same percentages as in July
2014. This is followed by 39 percent who selected adding new
services or products, and 34 percent chose negotiating with vendors
to improve margins.
Insperity conducted the survey July 7-9, 2015, of chief
executive officers, chief financial officers and other executives
in a variety of industries from its base of approximately 5,400
Workforce Optimization clients throughout the United States. The
overall sampling error of the national survey is (+/- 4.8) percent
at the 95 percent confidence level.
Insperity, a trusted advisor to America’s best businesses for
more than 29 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 Optimization 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 2014 revenues of $2.4 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) the competitive environment in the PEO industry may
impact growth and/or profitability; (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;
(xi) an adverse final judgment or settlement of claims against
Insperity; and (xii) the actions of certain stockholders could
disrupt our business. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150728005165/en/
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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