Vast majority of small businesses optimistic for 2021
Insperity, Inc. a leading provider of human resources and business performance solutions for America’s best businesses, announced the results of its Business Outlook Survey of the company’s Workforce Optimization and Workforce Synchronization clients. The survey, conducted in April, analyzed recent business performance and the outlook for the remainder of 2021; staffing and compensation data; and key organizational and human resource concerns. The general findings indicate that the current health of small and medium-sized businesses is strong and the outlook for 2021 is even better.
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“Our survey results, along with the economic indicators we monitor within our client base, demonstrate the strong health and overwhelming optimism of America’s best small and medium-sized businesses,” said Paul Sarvadi, Insperity chairman and chief executive officer. “These businesses not only overcame the challenges faced in 2020, but they also emerged stronger and well-positioned for greater success in 2021. Their positive outlook is an inspiration for all of us.”
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A noteworthy finding from the survey is a vast majority of respondents – 86 percent – are generally optimistic about the remainder of the year, which surpasses optimism levels in late 2019 and late 2020 of 72 percent and 48 percent, respectively. Businesses’ creativity, innovation and perseverance have enabled them to turn the page for a renewed focus on the numerous opportunities that lie ahead.
According to the survey, 81 percent of respondents believe the outlook for organizational performance will be significantly or somewhat better in 2021 – signaling the possibility for generating greater business success. Furthermore, 49 percent of clients reported significantly or somewhat better performance than expected in 2020, while 22 percent performed as expected, totaling 71 percent – a significant accomplishment during exceptionally challenging times.
With regard to staffing levels for the remainder of the year, 53 percent of respondents expect to increase levels and 38 percent plan to maintain levels, while only three percent expect a reduction in their workforce. In addition, 35 percent intend to increase compensation levels, while 57 percent of respondents plan to maintain current levels.
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According to the survey, the leading organizational concerns are driving growth (62 percent); external uncertainty related to economic, pandemic and political issues (57 percent); managing operational costs (54 percent); and economic recovery (41 percent). These are key indicators that businesses are keenly moving forward compared to six months ago because driving growth and managing operational costs increased by 10 percent and nine percent, respectively; while external uncertainty and economic recovery decreased by eight percent and 10 percent, respectively.
When asked about current human resource concerns for their business, 59 percent of respondents are focused on maintaining/building a strong culture, while recruiting/retaining talent is a priority for 57 percent. The third top concern, at 53 percent, is employee well-being/wellness. Managing health care costs is a concern for 45 percent of the respondents.
Insperity conducted the survey of business owners and on-site supervisors in a variety of industries from its base of Workforce Optimization and Workforce Synchronization clients throughout the United States in April. The national survey has a statistical confidence level of 95 percent with a margin of error of 4.3 percent.
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