Insight Performance to Host Webinar to Discuss Survey Implications
DEDHAM, Mass. – Jan. 20, 2010 – A survey released today by Insight Performance, Inc., a strategic human resources (HR) consulting firm, and SBANE (Smaller Business Association of New England) found that an increasing number of small to-mid-sized businesses in New England are planning to hire employees this year and offer base-pay increases. The Small Business and Human Resources 2010 Outlook Survey uncovers growing optimism among small and mid-sized businesses. Most companies expect business conditions will continue to improve through 2010, but expect progress to be slow and incremental.
“Despite a tough 2009, small and mid-sized businesses are anticipating more opportunity in 2010,” said Nancy R. Mobley, president and CEO, Insight Performance, Inc. “They recognize the importance of employees as key drivers of business growth, and are planning to invest in new hires and offer raises. One of the most important lessons from the downturn is how critical it is for companies to have the right people in place to help them weather tough times and take advantage of new opportunities as they arise.”
The survey comes at a critical time when companies are rebounding from a tough economic year and determining how they can retain employees and plan for future growth.
The survey polled small and mid-sized
New England companies with on average, less than 50 employees and annual revenues of $20 million or less. The survey reached out to companies across several industries, but respondents were predominately from professional services, manufacturing and financial services.
The largest cluster of data represents companies located within the Greater
Boston area.
The survey identified the following trends:
- Hiring is expected to increase. Forty-two percent of small to mid-sized businesses are planning new hires as compared to 29% last year. Thirty-nine percent plan to keep staff levels the same, while only 19% are planning selective layoffs. No companies are planning company-wide layoffs.
- Salaries are on the rise. Forty-three percent businesses are planning base-pay increases in 2010 as compared to only 29% last year.
- Incentive plans are tied to performance. This year, 43% of companies are basing their incentive plans on company and individual performance, 17% are basing it on individual performance, and 18% are not planning any incentive programs.
- Companies expect higher costs as they increase benefits. Sixty-eight percent of respondents expect their company’s benefits costs to be higher than 2009, with average cost increases expected to be 13.8% higher. Forty-three percent also expect an employee’s benefit costs to rise. The average expected increase is 14.9% higher than last year.
- All companies surveyed are closely watching benefits expenses. Many indicated that they are openly communicating with employees regarding the costs that they will have to cover .
- Less than half (47%) of companies felt that their employees were confident in their jobs and the state of their companies, while 30% felt that their employees were worried about that. Sixteen percent didn’t know their employees’ perceptions on this issue.
The Smaller Business Association of New England, Inc. (SBANE)
SBANE, founded in 1938, is a private not-for-profit association of approximately 800 member companies located throughout the six-state region. SBANE was established to provide a legislative voice for small business at the state and federal levels and to make practical information available to help business owners grow their companies. SBANE runs diverse, educational programs each year and has active chapters in Massachusetts and Rhode Island. The membership is characterized by a high degree of participation, reflected in a large and dynamic committee structure, addressing a range of topics from international trade to human resources. Additional information can be found at www.sbane.org
About Insight Performance, Inc. Founded in 1995, Insight Performance, Inc. is a strategic human resources consulting firm that works with small and mid-sized companies to build exceptional workplaces.
The firm, based in
Dedham, Mass.,
provides proven and cost-effective HR solutions to help companies, in a wide range of industries, solve real-world problems and achieve their business goals. Insight Performance has won 16 awards in six years including: one of the top five companies in “Best Place to Work in Massachusetts,” national recipient of Employer of the Year, national recipient of Best Overall Company of the Year for Service Businesses (under 100 employees), and national finalist for Best Human Resources Organization. Additional information can be found at
http://www.insightperformance.com//.
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