Small Business Optimism Remains High
The SurePayroll Small Business Scorecard® shows businesses still in holding pattern
GLENVIEW, IL —May 31, 2012 — SurePayroll Inc., the leader in providing online payroll to small businesses nationwide, today announced May results for its monthly SurePayroll Small Business Scorecard® showing small business owners' optimism at 64 percent, with hiring and paychecks showing little change (both down 0.1 percent month over month). Optimism remains well off its low of 33 percent in September of last year.
The Scorecard optimism survey found 50 percent of respondents are experiencing increased revenue and growth in their businesses, but they say productivity is outpacing the need to hire.
“We’re seeing small businesses circling the runway right now. They’re not sure when and where to land,” said SurePayroll CEO and President Michael Alter. “Small businesses have made themselves more efficient through technology during this recovery, which is a good thing for them. However, it creates a holding pattern situation for the economy where increased hiring is not yet necessary.”
Month-over-month SurePayroll Scorecard data shows hiring and paychecks just barely negative (-0.1 for both). Month-over-month regional hiring was down except in the South, where it was up 0.2 percent. Month-over-month regional paychecks were up in the Midwest and flat in the South and West. Paychecks were down only in the Northeast (-0.4 percent).
Year-over-year, nationwide hiring is down only 1.5 percent and paychecks are down 1.1 percent. The South continues to show promising signs with hiring up 1.7 percent and paychecks up 0.5 percent. The West has had the steepest hiring decline at 5.3 percent.
As the first economic indicator created by a payroll company, the SurePayroll Scorecard has provided a monthly look on national hiring and paycheck trends since September 2004. SurePayroll's Scorecard compiles data from over 35,000 small businesses, and exclusively reflects the trends affecting the nation's "micro businesses" — those with an average of eight employees. The full SurePayroll Small Business Scorecard including data for the top 35 MSAs will be available later today at www.SurePayroll.com/scorecard.
SurePayroll is a wholly owned subsidiary of Paychex, providing an easy, online, convenient payroll service that keeps our more than 35,000 small business customers in control. SurePayroll also offers efficient online solutions for managing 401(k) plans, health insurance, workers’ compensation, employee screening and more. For accountants and banking partners, SurePayroll provides private-label and co-branded services that enable them to offer online payroll processing to their small business clients. The company has received numerous prestigious awards for its innovative technology, and outstanding customer service and sales teams, including recognition from PC Magazine, Accounting Today, the American Business Awards and many others. For more information, please visit www.SurePayroll.com.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 564,000 payroll clients nationwide as of May 31, 2011. For more information about Paychex and our products, visit www.paychex.com.