Nearly 80% of polled companies have made strategic investments to keep their businesses going through the pandemic and are confident these investments will pay off after COVID-19
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
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.
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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/trinet-and-the-harris-poll-reveal-pulse-survey-results-on-state-of-small-and-medium-size-business-during-covid-19-301043031.html
SOURCE TriNet Group, Inc.