About Insperity, Inc.
Insperity handles the payroll so you don't have to. The company provides an array of human resources services to small and midsized companies 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 serves some 100,000 businesses with a combined 2 million employees. It also offers 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 services industries.
Insperity's Workforce Optimization and Workforce Synchronization products encompass a range of HR functions including payroll, employment administration, employee benefits, compensation, compliance, performance management, and training and development services. It has a cloud-based human capital management platform, Employee Service Center.
Insperity has more than 50 Workforce Optimization sales offices serving 30 US markets. Its business in Texas accounts for more than 20% of Workforce Optimization sales, with its hometown of Houston accounting for 10%. Other significant markets are California, about 20% of revenue, and New York, about 10%.
The company has regional service centers in Atlanta, Dallas, and Los Angeles. The Northeast is the largest market, accounting for more than 25% of the company’s revenue, Southwest (nearly 25%), West (more than 20%), Central (more than 15%), Southeast (about 10%).
Sales and Marketing
Businesses that Insperity serves include computer and information services; management, administration, and consulting services; finance, insurance, and real estate; manufacturing; wholesale trade; engineering, accounting and legal services; medical services; retail trade; not-for-profit and similar organizations; and construction.
Insperity’s revenue had increased steadily since 2010, and it jumped 12% in 2017 to $3.3 billion from 2016. The increase came from a 10% increase in the average number of worksite employees paid per month and a 2% increase in revenue per worksite employee per month compared to 2016.
Revenue growth pushed Insperity’s net income to $84 million in 2017, a 27% increase from 2016.
The company’s cash and cash equivalents rose to $354 million in 2017 from $286 million in 2016. It bought back $38.7 million in stock and paid $65.8 million in dividends in 2017.
Insperity has implemented cross-selling channels between PEO (professional employer organization) HR outsourcing business and its other products. It aims to use PEO HR Outsourcing to increase market penetration for its other products, as well as using its other products as leads for its PEO HR Outsourcing in return.
Gerald McIntosh and Paul Sarvadi founded Administaff in 1986. The two entrepreneurs saw growth potential in employee leasing, despite the industry's image problems (Sarvadi had worked briefly for James Borgelt, who founded several Dallas-area employee leasing firms and was sentenced to three years in prison in 1996 for stealing from clients).
By 1991 Administaff had become one of the largest employee leasing companies in the US. That year it joined 17 other leasing companies in filing a suit against the Texas State Board of Insurance, which had tried to prohibit leasing companies from buying workers' compensation insurance. Regulators claimed leasing companies were touting their services as a way to avoid high workers' comp premiums. In 1993 a compromise law allowed employee leasing companies to buy workers' comp insurance based on the clients' on-the-job accident history.
With about 1,500 clients, Administaff went public in 1997. The following year the company formed a marketing agreement with American Express, under which the travel and financial services giant refers smaller business clients to Administaff for a fee. It began offering Web-based services during 1999 with Administaff Assistant (now Employee Service Center) and launched Internet portal site bizzport (now My MarketPlace) in 2000. It also began building its fourth service center in Los Angeles (completed in 2002). By the next year the company's client roster had grown to more than 4,000 companies.
In 2002 Administaff acquired the assets of Virtual Growth Incorporated, which provided outsourced accounting services. Also that year it launched (with IBM) HR PowerHouse, a human resources website targeting small businesses. In 2005 it bought HRTools.com.
After years of minor acquisitions and persevering through the recession of 2008 and 2009, Administaff updated its name to Insperity in March 2011.
19001 CRESCENT SPRINGS DR
Kingwood, TX 77339-3802
Phone: 1 (281) 358-8986
Employer Type: Publicly Owned
Stock Symbol: NSP
Stock Exchange: , NYSE
EVP, Client Services and COO: A. Steve Arizpe
President: Richard G. Rawson
Chairman and CEO: Paul J. Sarvadi
Employees (This Location): 1,900
Employees (All Locations): 3,200
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San Diego, CA
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Downers Grove, IL
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New York, NY
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Mc Lean, VA