Small Businesses Report Health Care Concerns

August 1, 2011 ( – A recent survey from Insperity finds health care concerns are top of mind for small business owners, second to the economy.

Forty-seven percent of respondents to Insperity’s Business Confidence Survey cited rising health care costs as a top concern, while 46% cited government health care reform.

The report included the compensation metrics from more than 5,700 small and medium-sized businesses. Respondents reported that average compensation is up 4.2% compared to last year’s second quarter data, while average commissions received by worksite employees saw a drop of 2.8%. Bonuses are down 3.9%, while overtime remains low at 8.5% of regular pay, falling under the 10% level that is generally used as an indicator of need for additional employees, but up slightly from 8.0% in the first quarter of 2011.

Sixty-three percent expected to maintain employee compensation at current levels throughout 2011, up from 54% last quarter. Only 24% planned increases, however, down from 31%. Another 4% predicted decreases, while 10% remained uncertain.

When asked how they are managing their employee numbers, 32% claimed to be adding new positions; 62% are maintaining current staff levels, and 6% are going through layoffs.

Insperity Inc., a provider of human resources and business performance solutions, conducted the survey between July 12 and 14.


-Sara Kelly