- 50% plan to add new employees, up from
31% in October
- 61% expect sales increase in 2015, up
from 49% previously
- Overtime pay increases to 11.8% of base
pay indicating a need for more employees
Small business owners began 2015 with the strongest optimism
since January 2014 as evidenced by plans to hire more workers,
increase compensation and boost sales, 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. Responses
indicated that 50 percent of business owners are adding employees
compared to 31 percent in October and 41 percent last July; 47
percent are maintaining current staffing levels versus 64 percent
last quarter and 54 percent in July. Only three percent are
planning layoffs, down from five percent in October.
When asked about their pipelines for new business through 2015,
61 percent of survey respondents expected sales to increase,
compared to 49 percent in October and 66 percent in January last
year; 24 percent anticipated no change versus 41 percent last
quarter and 25 percent a year ago; 10 percent predicted decreasing
sales and 5 percent were unsure.
“The positive economic view for 2015 that business owners
suggested in our October Business Confidence Survey was solidly
confirmed in their January survey responses,” said Paul J. Sarvadi,
Insperity chairman and chief executive officer. “By instituting
plans to add employees, increase compensation levels and improve
sales, they are acting on that optimism.”
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 fourth
quarter of 2014 increased 2.4 percent over the fourth quarter of
2013, and bonuses were up 1.8 percent compared to the year-ago
period. Overtime pay for the fourth quarter of 2014 was 11.8
percent of regular pay compared to 10.3 percent in the fourth
quarter of 2013, above the 10 percent level that generally
indicates a need for additional employees for the third quarter in
a row.
According to the survey, 87 percent of participants expect to
meet or exceed their 2014 performance, up from 72 percent in
October, while 13 percent expect to do worse in 2015 compared to 28
percent in October and 8 percent in January 2014. When asked how
the current economy is affecting the bottom line of their business,
25 percent said it is increasing earnings, 38 percent replied with
no real change, 29 percent stated that it is decreasing earnings
and eight percent are unsure.
Hiring the right people and the economy ranked on top of the
list of short-term concerns at 47 percent each. Controlling overall
operational costs rose to third place at 41 percent, while rising
health care costs dropped to fourth at 40 percent from 49 percent
in October. Long-term issues of concern to respondents were led by
government expansion and its effect on business at 50 percent,
potential tax increases at 45 percent versus 56 percent in October,
the federal deficit and the total national debt was 40 percent, and
national security was 39 percent.
The survey results show that 41 percent plan to increase
employee compensation, up from 23 percent in October and 28 percent
in July; 43 percent plan to maintain compensation at current
levels, down from 69 percent last quarter; two percent expect
decreases; and 14 percent are unsure compared to six percent last
October.
Concerning their current profit-generating activities, 69
percent listed selling new accounts and 65 percent cited increased
service to existing clients, both down slightly from the previous
quarter. This was followed by 50 percent who indicated adding new
services or products, and 32 percent listed negotiating with
vendors to improve margins – the first time this response has made
the list in some time.
Insperity conducted the survey Jan. 13-15, 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 (+/- 4.5) percent
at the 95 percent confidence level.
Insperity, a trusted advisor to America’s best businesses for
more than 28 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 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 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 and federal 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.
InsperityInvestor 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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