Insperity, Inc. (NYSE:NSP) Q3 2023 Earnings Call Transcript

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I think they’re effectively in a big objective of ours in that area is a more stable environment for the customer base. That’s why just this year is an example where we took a hit because of the volatility and the timing, but we keep a steady view of how this should happen over time, and our customers get the benefit of that. So it’s another benefit of how we do this as a premium service provider that is something we can point to in the dynamic you’re referring to. So good confidence on that front as well.

Operator: Thank you very much. Your next question is coming from Jeff Martin of ROTH MKM. Jeff, your line is live.

Jeffrey Martin: Paul, I wanted to see if you could expand on the efforts of the fall campaign strategy. It sounds like you’ve made some pretty strategic pivots there. Sounds like it’s a combination of client retention as well as going after new clients. And is that more of a shift relative to Workforce Acceleration sales trends that you’ve seen versus Workforce Optimization? Or are there other things going on there?

Paul Sarvadi: No, it’s actually kind of across the board in terms of — I mentioned the efforts on the marketing side of the business, driving lead flow. We’ve also — I would say that maybe the best way to understand it is that there’s 3 elements to driving sales success in a campaign. It’s the activity, it’s the attitudes in the incentives. And we have that triple braided cord in a really strong position as we go forward to the balance of the year. And yes, it is directed at both our campaign is both the sales and retention campaign. And so I think the level of alertness across the company, the level of focus and the level of enthusiasm gives us a good feeling about the campaign. And it’s important to have that level of all those things.

When you have an environment that’s a little tougher. And I think what I’ve laid out today is what we’re seeing in the current client base and in the sentiments from the survey information what we’re seeing across the country, what we’re seeing by industry, that means that in a period like this, you’ve got to be on the top of your game. And that’s what we’ll be continuing to emphasize across our employee base. And we’ll give it our very best shot, and I like that kind of selling and retention season that we have ahead of us.

Jeff Martin: For my follow-up, it’s a 2-part question. First part is, could you discuss BPA retention trends year-to-date and then hiring plans for next year? And then second part is, could you touch on the middle market and sales and retention trends you’ve seen there?

Paul Sarvadi: Yes, absolutely. We really have had an excellent year on that front and the Workforce Acceleration strategy has played in well to reducing the turnover rate, we think that’s significant. Our turnover rate this year is significantly down from last year, and that is — that includes that we had a significant number to promote from the BPA roll into a sales management role. So even with all of that weighed in there, we’re in a really strong position. I see that for next year, we can probably grow the BPA staff even below our 8% or 9% target, maybe a little — maybe the low end of our range because we have such a high number that are in that ramp-up in their sales efficiency mode. So feel good about that and how we can manage that going into next year. What was that second half of your question?

Jeffrey Martin: It was on middle market, sales and retention trends.

Paul Sarvadi: Yes, absolutely. So middle market continues to develop. It is a smaller team, but we have been adding strategically there. That will probably continue to add normally, but it’s nominal in terms of the numbers on the investment side. But our connection between our core market and mid-market teams and the ongoing flow continues to improve and be strong, which requires us to grow that team in addition. So that will be going out throughout next year.

Operator: That appears to be the end of our question-and-answer session as there are no more questions in the queue. I will now hand back over to Paul Sarvadi for any closing remarks.

Paul Sarvadi: So once again, we’d like to thank you for your participation today. We’re looking forward to this fall selling and retention campaign and achieving a decent starting point for next year. And on the next call, we will have all that baked into a going-forward scenario for 2024, and we look forward to sharing that with you at that time. Thank you again.

Operator: Thank you very much. This does conclude today’s conference call. You may now disconnect your phone lines. Have a wonderful day. Thank you for your participation.

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