HOUSTON--(BUSINESS WIRE)--May 12, 2008--Nearly 78 percent of
owners and managers of small businesses say their companies are either
growing as planned or at a faster pace than forecast at the beginning
of the year, according to results of a Business Confidence Survey
released today by Administaff (NYSE:ASF), a leading provider of
human-resources services for small and medium-sized businesses.
Survey respondents also are actively filling open positions with
44 percent saying they are hiring full-time employees and 11 percent
planning to bring in part-timers.
Administaff also released compensation data compiled from its
client base of more than 6,000 small and medium-sized businesses
throughout the country. A comparison of first-quarter data against the
same period in 2007 shows that average compensation is up 4.9 percent
and average commissions have increased 6.8 percent. In addition,
overtime pay is running 9.5 percent of regular pay.
"While many small and medium-sized businesses are doing quite well
even in the midst of a challenging economy, others seem dedicated to
turning problems into profits wherever possible, and we're committed
to helping both reach their goals," said Paul Sarvadi, Administaff
chairman and chief executive officer.
The survey also found that business owners and managers are
willing to fight to keep valued employees. To do that, more than half
of respondents said they are turning to pay increases or providing
workers with new challenges or responsibilities.
Overall, over 26 percent of employers plan to increase salaries
this year, according to the survey, while 50 percent will maintain
current wage levels. Sixty-four percent expect overtime to remain
about the same.
More than 60 percent of companies cited the economy as their
biggest concern for 2008, followed by 52 percent who said finding ways
to control operating costs was a key challenge and 40 percent listed
hiring the right employees. Remaining concerns cited by business
owners and managers included retaining their most valued employees
(contrasted with hiring), rising fuel costs, increased health-care
costs and more business competition.
Still, most survey participants expressed a guarded confidence in
the current business climate.
"Despite some natural cautiousness about the economy, our growth
continues unabated," one business executive wrote in the survey. "We
haven't seen any evidence to support the gloom-and-doom predictions."
Another wrote: "Our business is still strong, but I see signs of
weakness in other areas. Some people are delaying plans for
expansion."
About the Business Confidence Survey
Respondents to the Administaff Business Confidence Survey are
among the small and medium-size companies Administaff serves
throughout the country. The questions were designed to take the pulse
of the small-business community and gauge the expectations of business
owners through the remainder of 2008.
Administaff conducted the survey over a five-day period in early
May. Researchers surveyed chief executive officers, chief financial
officers and other executives in a variety of industries at its client
companies across 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.
Investor Relations Contact:
Douglas S. Sharp, 281-348-3232
Senior Vice President of Finance,
Chief Financial Officer and
Treasurer
Douglas_Sharp@Administaff.com
or
News Media Contact:
Jason Cutbirth, 281-312-3085
Managing Director, Marketing and
Corporate Communications
Jason_Cutbirth@Administaff.com
SOURCE:
Administaff, Inc.
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