Nearly 4 in 10 (39 percent) of executives at small and mid-size businesses plan to increase employee compensation, down only slightly from 41 percent last quarter. And rising health care costs are a concern to 44 percent of these, according to new research.
Insperity, a provider of human resources and business performance solutions, unveils this finding in its latest Business Confidence Survey of chief executive officers, chief financial officers and other U.S. executives in Insperity’s database of 5,400-plus Workforce Optimization clients.
The report shows that 40 percent of business owners are adding employees compared to 50 percent in January and 31 percent in October. And 52 percent are maintaining current staffing levels versus 47 percent last quarter and 64 percent in October. Eight percent are planning layoffs, up from three percent in January.
“Business owners are continuing the solid growth pattern reflected in the January survey, but at a somewhat slower pace,” says Insperity Chairman and CEO Paul Sarvadi. “One of the key contributions made by the nation’s small business community is the ability to adjust quickly to economic uncertainties and turn them into profitable opportunities. The survey results suggest they are doing just that.
Findings from Insperity’s compensation metrics — data based on thousands of U.S. small and midsize workforce optimization — show that average compensation for the first quarter of 2015 increased 2.5 percent over the first quarter of 2014. Also, bonuses were up 11.6 percent compared to the year-ago period.