Paychex Study Finds 63% of Business Owners Feel the Worst of the COVID-19 Pandemic is Behind Them
As business owners across the country focus on getting back to business, 63 percent feel the worst is behind them when it comes to the impact of COVID-19 on their operations, according to new research from Paychex, Inc., a leading provider of human resources, payroll, benefits, and insurance solutions for 670,000 small- and medium-sized businesses. However, 4 in 5 business owners are somewhat or very concerned about a possible second wave of infection.
“Over the past couple of weeks, as all 50 states have begun some phase of reopening, many business owners have turned their attention to determining how to best operate safely and efficiently in this new landscape,” said Martin Mucci, Paychex president and CEO. “After an extended period of uncertainty, with more questions remaining, it’s encouraging to see that business owners are optimistic about their recovery from this crisis while remaining cautious about the economy and a potential second wave."
As part of a COVID-19 survey series, Paychex polled 300 randomly selected business owners with two to 500 employees beginning April 17, 2020. The most recent wave of the survey, conducted from May 15 to May 17, 2020, revealed the following insights:
Businesses’ current status:
- 46% of business owners report they are fully open and operational
- 42% are open on a limited basis
- 12% are closed, but plan to reopen
- Of the businesses that are open, 30% closed at one point during the pandemic
- Of the businesses that are closed, half plan to open by July, and 25% will open as soon as they are allowed
Paycheck Protection Program (PPP) loan status:
- 44% of businesses have applied for a PPP loan
- Of those that applied, 58% have now received payment, twice as many as wave three (May 1-4)
- Businesses with 2 to 49 employees are now twice as likely to have received a PPP loan as businesses with 50 to 500 employees
- 37% of businesses are not clear on how to apply for PPP loan forgiveness
- That said, 68% are very or extremely confident they will meet the requirements for loan forgiveness
- 26% don’t think the PPP loan will be enough for them to survive
Expected time to return to normal:
- 45% of respondents think it will take three or fewer months for their business to return to pre-COVID norms
- 57% of respondents think it will take seven or more months for the U.S. economy to return to normal
- 19% of businesses say they have already returned to pre-COVID revenues
- Business resilience has remained steady since wave one of the survey (fielded April 17-20), at 70 on a scale of 1-100
- Businesses with 50 to 500 employees (80), fast-growth businesses (79), and Midwestern businesses (76) are more resilient than their peers
Business owners’ top priorities:
- 23% are focused on maintaining customer relationships
- 21% on managing business as usual
- 14% on reducing expenses
- 5% on revising their go-to-market approach
- Reopening their businesses has become a higher priority since wave three of the survey (fielded May 1-4)
- 33% of businesses are concerned that they won’t have sufficient customer demand upon reopening
- 31% are worried about keeping employees safe at work
Concerns of a second wave:
- 84% of businesses are somewhat or very concerned about a possible second wave of infection
- 64% feel they could survive a second wave financially
“Paychex will be with these businesses every step of the way, helping them navigate each challenge from access to federal relief to applying for loan forgiveness to bringing employees back to work,” Mucci added. “We will do this by continuing to offer resources online, tools in Paychex Flex®, and effective recommendations from our team of certified HR professionals.”
For more data insights from this survey, visit Paychex WORX. Business owners can also visit the Paychex Coronavirus (COVID-19) Help Center on paychex.com for more resources on managing business operations during the pandemic.
About the Paychex Business Survey
As part of a four-week survey series, Paychex polled 300 randomly selected business owners with 2-500 employees. The survey was administered online by Bredin, a third-party research firm, between April 17 and May 17, 2020, and yielded a +/- 5.66% margin of error.
Disclaimer: The data cited in this news release represents the opinions of the survey respondents and not those of Paychex or its employees.
Note: The information contained within is not tax or legal advice. These issues are complex and applicability depends on individual circumstances. Businesses should consult tax or legal counsel before acting on any of the items identified above.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex serves approximately 670,000 payroll clients as of May 31, 2019 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.