Insperity, Inc. (NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today announced the results of its Business Outlook Survey of its client base. The survey, conducted at the end of the third quarter, analyzed recent client business and hiring activities, while also determining their expectations for 2020. The general findings indicate that the current health of small businesses is strong and the outlook for 2020 is even better.
Insperity also announced the economic indicators it monitors from its base of 7,700 small and medium-sized Workforce Optimization® and Workforce SynchronizationTM clients. Compared to 2018 third quarter data, average pay increased over four percent and commissions received by worksite employees reflected an increase of over eight percent. Overtime pay was more than 11 percent of regular pay, above the 10 percent level that generally indicates a need for additional employees.
“Our survey results demonstrate the strong health of the small business community and a positive outlook for 2020,” said Paul Sarvadi, Insperity chairman and chief executive officer. “While small business owners often tend to be an optimistic group, we found that their sentiment is consistent with the economic indicators we monitor within our client base.”
According to the survey, clients generally feel their businesses are performing as planned for 2019, with 60 percent of respondents reporting their businesses are performing as expected and 22 percent are performing above expectations. In addition, over the past six months 88 percent of respondents increased or maintained their number of employees.
Fifty-three percent of respondents feel the general outlook for 2020 is better than 2019, while 43 percent feel they will maintain the same level of performance. Sixty-one percent expect their sales pipelines to increase going into 2020. Nineteen percent expect the economy to have a positive impact on their business in the coming months, 59 percent expect no real change and 22 percent anticipate it will have a negative impact on their organization over the next six months.
With regard to their optimism about the outlook for their business over the next six months, 72 percent of respondents were optimistic or moderately optimistic.
When asked about how they expect to manage employees over the next six months, compared with the past six months, respondents anticipate the next six months will have a slightly stronger emphasis on maintaining employee numbers (43 percent vs. 51 percent), while 44 percent of respondents anticipate an increase in their employee base over the next six months.
Fifty-one percent of respondents plan to maintain current compensation levels, while 40 percent intend to increase compensation.
Regarding concerns about their business, overall, driving revenue growth and recruiting/retaining talent were the top two at 56 percent and 51 percent, respectively. These were followed by managing operational costs at 48 percent and managing health care costs at 46 percent. However, in the larger client segment, managing operational costs and driving revenue growth at 63 percent and 60 percent, respectively, edged out recruiting/retaining talent and managing health care costs, both at 51 percent.
Insperity conducted the survey of business owners and on-site supervisors in a variety of industries from its base of approximately 7,700 Workforce Optimization and Workforce Synchronization clients throughout the United States in October 2019. The national survey has a statistical confidence level of 95 percent with a margin of error of 3.6 percent.
Insperity, a trusted advisor to America’s best businesses for more than 33 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 Traditional Payroll and Human Capital Management, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2018 revenues of $3.8 billion, Insperity operates in 78 offices throughout the United States. For more information, visit http://www.insperity.com.