HOUSTON--(BUSINESS WIRE)--Nov. 3, 2008--Despite current economic and political uncertainties, more than 37 percent of owners and managers of small and medium-sized businesses expect a higher rate of growth for their operations in 2009, and 38 percent anticipate the same level of growth as 2008, according to the latest Business Confidence Survey released today by Administaff (NYSE:ASF), a leading provider of human resource services for small and medium-sized businesses.

In the survey conducted late last month, 38 percent of respondents also said they intend to maintain current staffing levels in their 2009 hiring plans, and 36 percent even expect to add new positions. To help attract and retain employees, more than 32 percent plan to increase compensation, while 45 percent predict that they will maintain current levels. Less than three percent have plans to decrease 2009 employee salaries and wages.

Given the current economic conditions, expectations are more cautious than this time last year. In a similar survey conducted in Oct. 2007, 55 percent of respondents said they were somewhat or very optimistic about the economy's future performance, while 31 percent expressed the same sentiment for 2009. Nonetheless, more than 61 percent of respondents anticipate either increasing or maintaining current capital spending plans, while 22 percent plan to decrease the amount and 16 percent have no capital spending plans.

"Faced with significant business challenges, small and medium-sized businesses continue to exhibit remarkable resilience and determination in serving clients across many industries and locations," said Paul J. Sarvadi, Administaff's chairman and chief executive officer. "Uncertainties generate opportunities, and we see business owners leading by example as they take advantage of current market conditions."

Administaff also announced compensation data from its base of more than 6,200 small and medium-sized businesses. Compared to the third quarter 2007 data, average compensation is up 5.9 percent in 2008, bonuses are down 2.9 percent and commissions declined by 8.3 percent. In addition, overtime pay is running 9.4 percent of regular pay.

    Other highlights of the survey:

    --  47.6 percent said they would boost efforts to retain workers.
        Strategies include offering a 401(k) plan; flexible work
        schedules; bonuses; work-from-home programs; increasing
        benefits; and improving training programs.

    --  61 percent expect to pay about the same amount of overtime in
        2009 compared with 66.9 percent in 2008; 2.8 percent expect to
        pay more overtime, while 19.7 percent said they would pay
        less.

The economy was listed by 81.5 percent of business owners as their biggest concern for 2009 versus 45.8 percent last year. More than 60 percent listed controlling costs as a leading concern, compared to 53.3 percent in Nov. 2007. Rising health care costs were another concern for 43.1 percent of respondents, a slight decrease from 44.6 percent in 2007. Retaining their most valued employees ranked fourth by 31.2 percent of those polled, and 28.9 percent of respondents listed hiring the right people.

About the Business Confidence Survey

Respondents to the Administaff Business Confidence Survey are among the small and medium-sized companies Administaff serves throughout the country. The questions were designed to measure the pulse of the small-business community and gauge the expectations of business owners going into 2009.

Administaff conducted the survey Oct. 28-30 of chief executive officers, chief financial officers and other executives in a variety of industries at its client companies throughout the United States. The overall sampling error is +/- 5 percent at the 95 percent confidence level.

Administaff is the nation's leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. The company operates 49 sales offices in 24 major markets. For additional information, visit Administaff's Web site at http://www.administaff.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," "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, Administaff, 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 current expectations, estimates and projections. 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) changes in general economic conditions; (ii) regulatory and tax developments and possible adverse application of various federal, state and local regulations; (iii) increases in health insurance costs and workers' compensation rates and underlying claims trends, financial solvency of workers' compensation carriers and other insurers, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims, changes in the costs of expanding into new markets, and failure to manage growth of our operations; (iv) the effectiveness of our sales and marketing efforts; (v) changes in the competitive environment in the PEO industry, including the entrance of new competitors and our ability to renew or replace client companies; (vi) our liability for worksite employee payroll and benefits costs; and (vii) an adverse final judgment or settlement of claims against Administaff. These factors are discussed in further detail in Administaff'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.

CONTACT:
Administaff, Inc.
Douglas S. Sharp, 281-348-3232 (Investor Relations)
Senior Vice President, Finance
Chief Financial Officer and Treasurer
Douglas_Sharp@Administaff.com
Jason Cutbirth, 281-312-3085 (News Media)
Managing Director, Marketing and Corporate Communications
Jason_Cutbirth@Administaff.com

SOURCE:
Administaff, Inc.