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How to Grow Your Small Business In A Shrinking Economy

Monday September 22, 2008

In fact, a recent survey of 500 business owners, conducted by the National Small Business Association in February 2008, found that sales and profits have dropped and job growth is at the lowest point in 15 years.

So, what’s the secret when it comes to staying afloat during these trying financial times? Gevity (NASDAQ: GVHR), a full service Professional Employer Organization (PEO) HR company serving small businesses, has worked in partnership with A & M Hospitality, to deliver a powerful solution that keeps their businesses on the growth track.

Doug Leonard, vice president of marketing for Gevity, says, “Now more than ever, our customers are looking for ways to hire and keep the best talent they can find while keeping a tight control on their costs. The opportunity is to reduce the cost associated with employee overhead, while establishing processes and procedures to improve performance and guide behavior of management and staff.”

A & M Hospitality is a Knoxville-based company that operates a variety of hotels under the brands of Hampton Inn, Quality Inn and LaQuinta. With excellent customer service as their trademark, A & M knew they needed to continue to invest in their people to stay competitive. They also knew they needed to get smart about their rising employee overhead costs. So they partnered with Gevity as their PEO.

“With Gevity as our HR partner, we have been able to attract, develop and retain great employees,” says H. Michael Weiner, Managing Partner of A & M Hospitality. “We’ve also been able to increase the quality of our employee benefits package, including Gevity Perks™, the implementation of formalized employee management practices, and an employee assistance program at a time when our competitors have had to offer less attractive employee benefits. Best of all, Gevity provides a single source to handle a number of employee-related issues and administrative functions such as payroll processing, workers’ compensation administration and much more. All of this not only saves us a lot of time and headaches but also frees us up to do what we do best, that is improve our hotel assets through excellent operations.”

The end result? Even in a struggling economy, A & M has enjoyed strong revenue growth in the last 12 months.

Gevity offers the following tips for growing your business and optimizing your workforce in a shrinking economy:

Invest in your best: Payroll costs typically account for a small business’ largest investment. Now is a good time to make sure that you have the right employees in place and that your dollars are allocated to compensating your best employees. Consider a pay for performance compensation structure where your best employees are paid more than your under performers.

Stay compliant: HR, payroll and employment-related tax issues are complex and ever-changing. And a single fine for non-compliance could cripple your business. You can avoid hefty fines by outsourcing these areas to the experts. The cost of outsourcing is less than the potential costs of non-compliance.

Focus on what you do best: More than ever, business owners today are challenged with wearing multiple hats. Much of their divided time is spent juggling non-revenue generating activities. It is imperative that business owners spend more time on making profits than processing payroll and employee-related paperwork. Conduct an analysis of your business and consider outsourcing, so you can re-allocate those resources to activities that will generate revenue.

About Gevity

Gevity (NASDAQ: GVHR) is a leading provider of HR solutions. We help small businesses nationwide maximize performance by providing world-class HR expertise and services – including payroll, benefits, administrative processing, risk management, policies and procedures, new hire support, performance management, and employee development and retention.

A copy of this press release can be found under “Investor Relations” on the company’s website at gevity.com. For more information about Gevity, contact Frances Wilhelm at 941-744-3122 or by email at .(JavaScript must be enabled to view this email address).

Contacts

Gevity
Frances Wilhelm, 1-800-243-8489, x3122
Director of Marketing Communications,
.(JavaScript must be enabled to view this email address)

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