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45% unsure when economy will rebound, up from 40%
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51% expect sales increase through year-end, vs. 56% in March
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28% plan to add new employees, down from 38% last quarter
HOUSTON--(BUSINESS WIRE)--Jul. 31, 2012--
Small business owners are increasingly concerned about business
prospects compared to last quarter, 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. Over 30 percent of respondents are now saying they are doing
worse than expected compared to what they projected at the beginning of
2012, a 25 percent increase from last quarter; while 69 percent said
they are meeting or exceeding their earlier 2012 performance plans, down
6 percent from March. More than 45 percent are now unsure about the
timing of an economic rebound compared to 40 percent in the previous
quarter.
Insperity also announced compensation metrics from its base of more than
5,700 small and medium-sized Workforce OptimizationTM clients.
Compared to the 2011 second quarter data, average compensation is up 1.9
percent, and bonuses are up 4.7 percent. Average commissions received by
worksite employees reflected an increase of 5.2 percent versus a 2.6
percent increase in the first quarter of 2012. Overtime pay is still
low, running 9.3 percent of regular pay, under the 10 percent level that
generally indicates a need for additional employees, but up from 8.6
percent in the first quarter of 2012.
In the survey conducted July 17-19, when asked how they are managing the
number of company employees, 28 percent said they are adding new
positions, down from 38 percent in the prior quarter; 65 percent are
maintaining current staffing levels, versus 56 percent in March; and 7
percent are laying off employees, up from 6 percent in the prior quarter.
“Increasing economic uncertainty in the face of the 2012 national
election is forcing many owners of small and medium-sized businesses to
scale back the somewhat optimistic plans they formulated at the start of
this year,” said Paul
J. Sarvadi, Insperity’s chairman and chief executive officer. “These
businesses can react to economic changes more quickly than larger firms,
but they have not seen the positive signs that justify solid business
expansion.”
The economy remained the leading short-term concern listed by 74 percent
of business owners, up from 68 percent last March; government health
care reform jumped from 44 percent to more than 52 percent to take
second place; rising health care costs was cited by 46 percent versus 49
percent previously; and controlling overall operating costs dropped to
34 percent from 46 percent. For the longer-term, the top responses were
led by more than 67 percent saying they were either very concerned or
had elevated concerns about government expansion and its effect on
business; and 66 percent designated the federal deficit and the total
national debt, as well as potential tax increases, up from 60 percent
last quarter. Concerns for the economy rose to 65 from 57 percent in
March.
When asked about their pipelines for new business through 2012, 51
percent of survey respondents said that they expect a sales increase,
down from the 56 percent reported in March; 36 percent predicted it will
stay the same; 9 percent anticipated decreasing sales, up from 5 percent
last quarter; and 5 percent were again unsure.
In addition, 69 percent of owners and managers of small and medium-sized
businesses said that they are either meeting or exceeding their 2011
performance plans, down from 75 percent in the last survey; while 31
percent reported that they are doing worse than expected, a sharp
increase from 24 percent in March.
The survey also said that 66 percent of participants expected to
maintain employee compensation at current levels throughout 2012, versus
62 percent in March; 19 percent planned increases, down from 23 percent
in the last survey; 2 percent expected decreases; and 12 percent were
unsure.
Concerning their current profit-generating activities, 69 percent listed
increased service to existing clients; and 68 percent of respondents
named selling new accounts as the leading strategy, down from 73 percent
last March. This was followed by 48 percent saying they were adding new
services or products; and 31 percent listing negotiating with vendors.
Insperity, a trusted advisor to America’s best businesses for more than
25 years, provides an array of human resources and business solutions
designed to help improve business performance. InsperityTM
Business Performance Advisors offer the most comprehensive Workforce
OptimizationTM solution in the marketplace that delivers
administrative relief, better benefits, reduced liabilities and a
systematic way to improve productivity. Additional offerings include
MidMarket SolutionsTM, Performance Management, Expense
Management, Time and Attendance, Organizational Planning, Recruiting
Services, Employment Screening, Retirement Services and Insurance
Services. Insperity business performance solutions support more than
100,000 businesses with over 2 million employees. With 2011 revenues of
$2 billion, Insperity operates in 56 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)
continued effects of the economic recession and general 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) 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 Adjacent Business strategy,
including acquisitions; and (x) 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.
Source: Insperity, Inc.
Insperity, Inc.
Investor Relations Contact:
Douglas
S. Sharp, 281-348-3232
Senior Vice President of Finance,
Chief
Financial Officer and Treasurer
or
News Media Contact:
Jason
Cutbirth, 281-312-3085
Senior Vice President of Marketing
jason.cutbirth@insperity.com