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Survey finds 40% of small businesses to add jobs

May 22, 2015

Small business owners continue to reflect the optimism seen in January, but plan to add employees and boost compensation levels, according to a business confidence survey released by professional employer organization Insperity Inc. (NYSE: NSP).

The survey found 40% of responding business owners plan to add employees, down from 50% in January but an increase from 31% in October’s survey; 52% are maintaining current staffing levels, up from 47% last quarter; and 8% plan layoffs, up from 3% in January.

The survey found 39%  plan to increase employee compensation, up from 23% in October; 48% plan to maintain compensation at current levels, up from 43% last quarter and 69% in October; 2% plan compensation decreases and 12% are unsure.

Average compensation for the first quarter of 2015 rose 2.5% from the first quarter of 2014, and bonuses increased 11.6% compared to the year-ago period. Overtime pay for the first quarter of 2015 was 10.9% of regular pay compared to 9.4% in the first quarter of 2014, above the 10% level that generally indicates a need for additional employees for the fourth quarter in a row.

“Business owners are continuing the solid growth pattern reflected in the January survey, but at a somewhat slower pace,” said 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.”

Insperity conducted the survey from April 7 to April 9. It included CEOs, CFOs and other executives in a variety of industries from its base of approximately 5,400 US workforce optimization clients.