-- Most small businesses meeting or exceeding growth projections
-- Majority of small businesses adding staff
HOUSTON, Aug 07, 2007 (BUSINESS WIRE) -- Slightly more than 82 percent of small-business owners say their
companies are either growing as predicted or at a faster pace than
forecast at the beginning of the year, according to the results of a
quarterly Business Confidence Survey released today by Administaff, a
leading provider of human resources services for small and
medium-sized businesses.
The majority of respondents - 59 percent - said they are meeting
their initial business projections this year. Another 23 percent
stated that they were exceeding their initial 2007 expectations.
To fill gaps in their work force, 50 percent said they were hiring
additional full-time employees and 13 percent were turning to new
part-time help. Forty-one percent were making do with existing staff.
Administaff also announced compensation data from its base of more
than 5,800 small and medium-sized businesses. A comparison of second
quarter data with the same period in 2006 indicates that average
compensation is up 6.4 percent, and average commission rates have
increased 11.7 percent. In addition, overtime pay is running 10.2
percent of regular pay.
"The owners of small and medium-sized businesses are dedicated to
attracting and retaining solid workers and capitalizing on business
opportunities, according to our latest survey results and compensation
data," said Paul Sarvadi, Administaff's chairman and chief executive
officer. "Such commitment bodes well for our national economic growth
and indicates a strong demand for qualified employees to help business
owners reach their goals."
Other highlights of the survey:
-- 58 percent of the executives surveyed said that a competitive
salary and wage package is the top incentive for attracting
new employees, while 26 percent pointed to a good benefits
package. Others cited flexible scheduling, training and
development, and vacation and additional paid time off.
-- Companies reported several strategies to retain employees, as
47 percent offered higher salaries, 46 percent provided
workers with "new challenges and responsibilities" and 35
percent extended opportunities for advancement.
-- Among those firms actively hiring, 61 percent said they were
attempting to attract older, more experienced workers.
Although most survey respondents reported meeting or exceeding
their financial goals, they also said they face serious business
challenges this year. Fifty-three percent said the greatest issue is
"hiring the right employees," while 31 percent cited the cost of
medical insurance coverage and 29 percent were concerned about
increased competition from other businesses. Other concerns cited by
respondents included economic conditions, the housing market, capital
issues and regulatory compliance.
A number of business owners and managers stated that they expect
their performance in the second half of 2007 to exceed that of the
first six months, while others more directly tied to the sluggish real
estate market were more cautious in their outlook.
About the Business Confidence Survey
Respondents to the Administaff Business Confidence Survey are
owners and managers of the small and medium-sized companies
Administaff serves throughout the country. The questions were designed
to measure the pulse of the small-business community regarding
year-to-date performance and the range of economic expectations for
the remainder of 2007. The survey was conducted from July 23 through
July 25 and has an overall sampling error of +/- 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 46 sales
offices in 23 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, including but not
limited to the California State Unemployment Tax matter; (iii) changes
in our direct costs and operating expenses including, but not limited
to, 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.
SOURCE:
Administaff, Inc.
Administaff, Inc., Houston
Investor Relations Contact:
Vice President, Finance
Chief Financial Officer and Treasurer
Douglas S. Sharp, 281-348-3232
Douglas_Sharp@Administaff.com
or
News Media Contact:
Managing Director, Marketing and Corporate Communications
Jason Cutbirth, 281-312-3085
Jason_Cutbirth@Administaff.com
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