It wasn’t like we could pinpoint one area, one group. Previous in the year, we did have customers by industry category, the mortgage business, some other companies that were hitting more obstacles and lowering staff. But in the fourth quarter, it was more kind of across the board. Some of that is a seasonality effect. You don’t have as much hiring typically in the holiday season. But as we look forward, we see the optimism there. And as far as customers expecting staff reductions, it’s interesting because 54% are expected to add employees and then only 4% expected staff reduction. So that’s the sentiment and their plan. We’re in a situation, we thought it was prudent for us to weigh what happened last quarter with that optimism and with the potential for a tougher economic environment.
And so we’re just being prudent to start the year, and we think that’s the right thing to do.
Mark Marcon: That’s really helpful. Thanks a lot and congrats again on a great year.
Paul Sarvadi: Thank you.
Operator: Your next question is coming from Jeff Martin from ROTH Capital Partners. Your line is live.
Jeff Martin: Thanks. Good morning, fellas. Paul, I wanted to get a sense of the renewals. January is a big month for renewals, but also there’s some into February. Can you characterize renewals on the traditional Workforce Optimization versus Workforce Acceleration? And then also on the mid-market and wanted to dig in a little deeper in terms of where you’re seeing the biggest growth potential in the business, is it mid-market? Is it Workforce Acceleration or the traditional offering?
Paul Sarvadi: Yeah. That’s a great question. We always talk internally about a three pronged growth effort. So it is our core Workforce Optimization, sales and retention, our mid-market efforts and then also our Workforce Acceleration. And we, man, we had all three gen in beautifully last year. We have optimized, like I mentioned, about the commission to make all that work together. We’ve really tweaked it to where we believe, we really have a great focus on the quarterly production with quarterly bonuses, people earned for hitting their objectives on both sides, whether it’s — on all three of those actually, whether it’s mid-market, core or Workforce Acceleration. So we’re really excited about where that’s going, and we think we’re in great shape on that front.
Jeff Martin: Great. And then other question was in terms of lead flow, maybe segment how you’re — how strategically you’re doing things differently now versus several years ago? I know digital marketing has been a key component in conversion of those leads. Maybe give us some color on the sales and marketing initiatives?
Paul Sarvadi: Yeah. What we’ve done, the marketing efforts really been effective because we continue to localize what we’re doing. So different markets you’re able to reach our target customer base with different approaches. And that takes a lot of work to go market by market and figure it out and work with our local folks. But when you have a good overarching marketing program, including the digital and everything from radio or TV to billboards, different markets have different ways that it works best to hit our target market. So having localized campaigns has really helped a lot, having them multiple times within a year, timing it right to boost activity. And then coupling that with our two other things that have really made a huge difference, and that is our partnering programs that we have with different folks who refer people to us and that’s been very effective.
