PR Newswire US, January 11, 2005, Tuesday

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PR Newswire US

January 11, 2005 Tuesday

HEADLINE: Gevity Institute Study With Cornell University Confirms Link Between People Management And Small Business Success;
Research Also Yields Practical Guidelines For Small Businesses On Best Practices For Finding, Developing, Managing, And Retaining People

DATELINE: BRADENTON, Fla. Jan. 11

BODY:
BRADENTON, Fla., Jan. 11 /PRNewswire-FirstCall/ -- Gevity (NASDAQ:GVHR) reported today the publication of the second phase of a landmark study by Gevity Institute and Cornell University researchers on how people management practices affect small business performance.
The study's first phase concluded that employees and employee management are widely recognized as key elements in the success of small firms. However, 90% of the small business owners surveyed said they were unsure of which people management practices could help them achieve the best results for their firms.
Following up on these findings, the second phase of the study, under the leadership of Dr. Christopher Collins of the Cornell University School of Industrial and Labor Relations, focused more specifically on the relationship between employee management practices and a firm's performance. The study included responses from approximately 300 small businesses in various industries and locations. It yielded answers on the type of people management practices that work best to achieve optimal employee contributions in building a small firm's success.
The Clear Connection Between "Workforce Alignment" And A Small Firm's Success
* Confirming the link between employee performance and a small firm's success, the study showed that "workforce alignment," or having the right people in the right places doing the right things, helped the firm succeed and was a clear characteristic of the most successful firms surveyed. In effect, the investment made by these firms in having an "aligned workforce" was perhaps as crucial as any other investment they have made to grow their businesses.
* The study further confirmed that the most successful firms, measured by sales growth, profitability, market share, as well as other key metrics, were able to use good people management practices to achieve an "aligned workforce."
Best Management Practices
On a more practical level, the researchers also looked at key alternative approaches to the principal elements of people management leading to "workforce alignment," namely, how to find the right people, how to best manage them on a day-to-day basis, and how to retain them. Among the key conclusions were the following:
* To find the right people, the most effective practice is hiring the best talent available that can become long-term contributors to the firm, as opposed, for example, to applicants that "fit the current job best" or fit best with the company's "values and culture."
* To achieve superior employee motivation and retention, the best technique is "creating a family-like community." This succeeds even more than above market salaries and jobs that offer growth and development.
* With regard to day-to-day management of employees the study found that "formal" HR processes and procedures and the institution of professional standards do the best job promoting workforce alignment. Conversely, close monitoring of employees or the use of peer pressure are much less effective.
No Question About It -- Good People Management Boosts Business Success
According to Erik Vonk, Chairman and Chief Executive Officer of Gevity, "A key benefit of this study is the extent to which it spells out the HR practices that constitute 'good management' and leads to a company's success." Mr. Vonk continued, "Today, Gevity provides employee management solutions such as applicant screening and assessment, job description and performance appraisal development, and HR consultation designed to align and engage our clients' workforces. Needless to say, we at Gevity will continue to apply the knowledge gained from ongoing Gevity Institute studies to achieve the practical, bottom-line oriented solutions that our clients seek."
The Gevity Institute
The Gevity Institute sponsors research in cooperation with prestigious universities and other organizations, sharing quantifiable data on the positive impact that solid human resource practices can have on business performance.
About Gevity
Gevity is a leading provider of comprehensive, fully integrated human capital management solutions to small and medium-sized businesses. Our solutions allow us to effectively become the insourced human resource department for our clients. We create value for our clients by helping them to find, develop and retain talent, manage all human resource related paperwork and protect their businesses from employment-related risks. We deliver our solutions through a combination of highly skilled human resource consultants and our scalable, Web-enabled technology platform.
A copy of this press release can be found on the company's Web site at http://www.gevity.com/ . An executive summary of this study, and the complete Cornell report, is available on the Gevity Institute Web site at http://www.gevityinstitute.com/ .
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), Gevity HR, Inc. ("Gevity" or the "Company") is hereby providing cautionary statements identifying important factors that could cause the Company's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of the Company herein, in other filings made by the Company with the Securities and Exchange Commission, in press releases or other writings, including in electronic form on its internet web site(s), or orally, whether in presentations, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will result," "are expected to," "anticipated," "plans," "intends," "will continue," "estimated," and "projection") are not historical facts and may be forward-looking and, accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. These factors are described in further detail in the Company's Annual Report on Form 10-K and in other filings by the Company with the Securities and Exchange Commission. The Company cautions that these factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors. Further, management cannot assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
CONTACT: Anne-Marie Megela, Senior Director, Investor Relations, Gevity
HR, +1-800-243-8489, ext. 4672, or annemarie.megela@gevityhr.com
Web site: http://www.gevityhr.com/
SOURCE Gevity HR