• 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.

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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