Administaff Announces Results of Business Survey and Compensation Data HOUSTON–(BUSINESS WIRE)

Nearly 86% of small business owners say their companies are either growing as predicted or at a faster pace than forecasted, according to a Business Confidence Survey released May 8, 2007 by Administaff, with Headquarters located in Houston and a leading provider of human resources services for small and medium-sized businesses.

Most of the companies – 81% – said they were positive about business conditions for the remainder of 2007, with 46% saying they plan to hire more new employees this year than they added in 2006. To fill positions, 52% said they are hiring full-time employees, while 16% said they planned to hire part-time workers.

Administaff also released compensation data compiled from its client base of more than 5,700 small and medium-sized businesses throughout the country. A comparison of first-quarter data against the same period in 2006 shows that average compensation is up 6.6%.

“It’s clear from the survey results and compensation data that owners of small and medium-sized businesses across the nation are upbeat about the current business climate despite the reported slowdown in economic growth that made the headlines recently,” said Paul Sarvadi, Administaff’s chairman and chief executive officer. “Their optimism is refreshing. It’s the sort of confidence that fuels this country’s economic engine and boosts employment.”

Other highlights of the survey:

Companies are filling gaps in their workforce from a combination of sources: 52.4% are hiring full-time employees; 41% make do with same staff; 24% rely on outsourcing; 18% pay overtime; 17% hire temporary employees; and 16% hire part-time employees. Only 13% plan to hire fewer employees this year compared to 2006.

Despite their positive outlook, employers are still grappling with a number of business challenges. Fifty-eight percent said the biggest issue they face this year is “hiring the right new employees,” while 40% said the cost of medical coverage/insurance was a major concern.

Other issues cited by respondents were as follows:

• Increased business competition
• Employee retention
• High cost of fuel
• Regulatory compliance
• Immigration issues

Most of the respondents expressed confidence in the current business climate. “Even though we are a little behind projections, we are moving forward with expansion plans by opening at least two new offices and hiring at least eight new associates during the year,” said one business executive. Another wrote: “We are looking forward to an outstanding year, which will ultimately elevate employee morale and reinforce company stability.”

About the Business Confidence Survey