DUBLIN, Calif., April 17, 2020 /PRNewswire/ -- To better
understand broad COVID-19 sentiment, beyond its own small and
medium size business (SMB) customers, TriNet, a leading provider of
comprehensive human resources, teamed with The Harris Poll on
three industry-wide pulse surveys on the topic of cash flow and
liquidity. Surveys were conducted April 3–12 and included more
than 500 SMBs with an employee base between 5 – 249 employees.
Results of the surveys, which are the first in a series the
companies will be doing together, were discussed on a
webinar that was held earlier today and is available for
replay on TriNet's website. Michael
Mendenhall, senior vice president, chief marketing officer
and chief communications officer TriNet, hosted the webinar and was
joined by Paula Stratton, senior
consultant, brand strategy and experience at The Harris Poll.
Highlights from The Harris Poll administered survey reveal that
despite the current economic environment and the difficult
decisions being made, SMB optimism was surprisingly resilient. In
fact, nearly 80% of polled companies have made strategic
investments to keep their businesses operational through the
pandemic, and 76% of those who have made investments are confident
these investments will pay off after COVID-19. Furthermore, 65%
believe that the US economy will recover in a year.
"The resilience of this population is evident in their
willingness to counter cost-cutting measures with investments in
infrastructure, their employees and their communities," said
Stratton.
According to the survey, SMBs are confident that they can
weather the storm in the near future. 96% of respondents were
confident that under current circumstances, their business will
survive one month, while 92% were confident that they could last
three months. However, confidence levels begin to slip at the 6 and
12 month time frame.
The survey highlights that revenue is down for 78% of SMBs
responding – and they're looking for liquidity. When asked how much
cash for operating expenses they have on hand and how long can it
last:
- 4 in 10 don't have the cash reserves to last longer than three
months without help
- 31% can last more than six months
However, SMBs being the entrepreneurs they are, are taking
necessary steps to control their costs:
- 67% have reduced payroll costs (including 40% taking a reduced
salary for themselves)
- 54% have made changes to their business model or product /
service offerings since the crisis began
- 48% have applied for financial support through the CARES
Act
While awareness of government programs to help SMBs like the
CARES Act and Paycheck Protection Program (PPP) is high among
surveyed participants, many don't know what it does – or doesn't –
provide. Half of respondents say aspects of the program are
confusing, especially the tax implications.
- 95% aware of the CARES Act overall (either by its official name
or as the $2 trillion stimulus bill
for COVID-19 relief)
- 83% aware of the Paycheck Protection Program
- 54% plan to take advantage of funding
- 27% aren't sure if they are eligible, or don't yet know enough
about the program to say if they plan to apply
- For the PPP loans, 61% had no idea that they have a term of two
years, 58% had no idea that they have a set interest rate of 0.5%,
and 45% had no idea that they may not be offered by all banks
To help, TriNet is diligently providing ongoing and timely
information, resources and offerings to SMBs and its customers that
helps them navigate the rapidly changing and complicated COVID-19
business landscape. These resources include a webinar series
outlining legislative updates, COVID-19 blog series, and various
offerings and benefits for customers. All of this information is
also housed in the COVID-19: TriNet Business Resiliency &
Preparedness Center.
SMB optimism at implementation of the PPP fell upon initial
confusion, but quickly rebounded:
- By April 6, 4 in 10 had tried to
apply for funding, and 1 in 5 of those were unable to complete the
process
- 6 in 10 feel that the loans are 'difficult to access'
- In the April 3-6 survey, 58% felt
that the government is doing enough to support 'businesses like
yours,' which dropped to 46% during the April 8-10 survey, and jumped to 51% during the
April 10-12 survey
In order to adapt to the current situation, SMBs are making
strategic operational choices, including cutting costs, in order to
invest in the long-term success of their business. They're spending
less on:
- 46% have reduced employee hours
- 40% of business leaders have taken a lower salary for
themselves
- 34% have reduced marketing/advertising spend
- 32% have worked with creditors to reduce obligations
- 29% have cancelled services
- 26% have laid off employees
- 19% have reduced inventory
- 13% have furloughed employees
SMBs are strategically investing in infrastructure, employees,
and customers and community.
Of the 78% of SMBs who have made strategic investments, they've
focused on:
- Infrastructure: 46% have invested in increased
infrastructure to be more virtual, online, or contact-less
- Employees: 37% are continuing to offer health insurance
benefits to laid off or furloughed employees; 37% are offering pay
to employees who are not currently working
- Customers and community: 37% are donating to or
sponsoring local causes for COVID-19 relief (15% are donating to
national relief); 36% are offering assistance to customers (such as
free services, discounts, delayed/forgiven payments, waiving fees,
etc.); 14% increased marketing / advertising spend
This is the latest installment in TriNet's ongoing webinar
series focused on business resiliency around COVID-19 in
addition to its blog series.
TriNet is supporting SMBs through this current crisis, as it has
throughout a number of events during the company's 30-year history.
SMBs represent the backbone of our economy and they will be the key
to our nation's economic recovery.
For this research, TriNet teamed with The Harris Poll to conduct
an online survey of between 150-200 small business leaders in U.S.
companies with 5 to 249 employees between April 3-6, 2020 for the first wave, April 8-10, 2020 for the second wave and
April 10-12, 2020 for the third wave.
Business leaders were qualified as either owners/partners or
C-level executives.
About TriNet
TriNet (NYSE: TNET) provides small
and medium size businesses (SMBs) with full-service HR solutions
tailored by industry. To free SMBs from HR complexities, TriNet
offers access to human capital expertise, benefits, risk mitigation
and compliance, payroll and real-time technology. From Main Street
to Wall Street, TriNet empowers SMBs to focus on what matters
most—growing their business. TriNet, incredible starts here. For
more information, visit TriNet.com or follow us on Twitter.
TriNet and the TriNet logo are registered trademarks
of TriNet. All other trademarks, service marks, registered
trademarks, or registered service marks are the property of their
respective owners.
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SOURCE TriNet Group, Inc.