Insperity handles the payroll so you don't have to. The company
provides an array of human resources services to small and midsized
companies (employing about 2,300 workers) in the US. As a PEO
(professional employer organization), Insperity offers payroll and
benefits administration, workers' compensation programs,
and personnel records management through its flagship
Workforce Optimization product. It also offers what it calls
"adjacent businesses" that include performance and expense
management, employment screening, recruiting, and organizational
planning services. Most of its client companies are engaged in the
administration, financial, manufacturing, and computer
Insperity has nearly 60 Workforce Optimization sales offices
serving about 25 US markets. Its business in Texas accounts for 25%
of Workforce Optimization sales, while California represents its
second-largest market, accounting for 18%. The
company's long-term strategy is to operate approximately 90
sales offices in 40 markets.
Sales and Marketing
Insperity markets its services through various business
promotions and a broad range of media outlets, such
as television, radio, newspapers, periodicals, direct mail,
and the Internet. The company spent about $22 million on
advertising and promotion expenses during fiscal 2014 (compared to
$23.8 million the previous year).
Insperity's revenue increase by 5% in fiscal 2014 compared to
the previous year. The company reported revenue of $2.3 billion for
fiscal 2014, up $101 million from the $2.2 billion in revenue it
reported for fiscal 2013.
Despite the increased revenue, the company's net income
decreased by $4 million in fiscal 2014 compared to fiscal 2013. Its
net income fell to $28 million in fiscal 2014 as a result of
increased expenses such as higher salaries, wages, and payroll
The company's cash flow increased significantly during fiscal
2014 compared to fiscal 2013 levels. The company had $141.7 million
in cash on hand at the end of the fiscal period, an increase of
about $107 million compared to the prior period.
Insperity works hard to make its products "best-in-class" as a
way to differentiate itself from competitors. Insperity
consistently launches additional Software-as-a-Service (SaaS)
products designed to help with payroll processing and expense
Insperity intends to open five new sales offices during 2015.
The company will expand to the new markets of Philadelphia and
Seattle, while also adding new offices in its existing markets of
Chicago, Dallas, and New York.