Mark Marcon: Actually pretty good considering the environment. Is it getting a little bit worse by month or has it been holding steady?
Gary Burnison: No, no, no. Yes. No, it’s steady. I mean it’s exactly like the executive search business. I take trailing four months, and it’s about the same. It’s down kind of 13%, 14%. This is new business, not revenue. And consulting, by the way, is up 14% trailing four months. So, the strategy is absolutely bearing out.
Mark Marcon: Great. Can you talk a little bit about…
Bob Rozek: Hey, Mark. The only thing I would add to that is when you look at the interim businesses, we’re feeling more in the — similar to what’s happening in the industry in the IT vertical than in the executive or F&A areas in that business.
Mark Marcon: But the IT is a little bit softer, Bob?
Bob Rozek: Yes. That’s the area that’s where we’re feeling the predominant decline.
Mark Marcon: Yes. And then EMEA, with regards to executive search was fairly resilient. There’s lots of reports about Germany going into recession. The UK is having issues. What would you explain the resilience in EMEA on a constant currency basis. What’s driving that? And then, can you also like drill down a little bit on the margins, because the margins did decline significantly in that portion of the business despite revenue being relatively resilient?
Gary Burnison: I’ll let Bob comment on the margins. I do have good line of sight into EMEA, because I was there for quite some time. There are parts of EMEA that you could probably guess that are growing extraordinarily well, then there are other parts such as the country you mentioned that that’s not quite the case. I think it’s — I think, number one, you have to look at our global marquee and regional account strategy. And I think that that is working globally and it’s certainly working in EMEA. And I think the investment that we’ve made and how we’ve positioned the portfolio there has turned out to be exactly right. We have world-class people. The cross-referral rates are very, very healthy. So, I think it’s a combination of all of those.
But you’re right. I mean, look, it’s not — one size does not fit all. And there are a couple of countries that are more challenged certainly than others. But again, you just step back and you look at this and you say, labor markets have not grown. There is — there continues to be, despite what I talked about, look, look at labor hoarding. There continues to be skill shortages, and there’s going to be demographic shortages, too. So, I’d point to those factors for the EMEA growth. And then, Bob, on the margins?
Bob Rozek: I would say, Mark, on the margin side, one of the things we’ve talked about over the past couple of calls is workforce rebalancing, right? And so, one of the things we’re doing very consistently nowadays is taking a look at our workforce, where are the opportunities, where do we have capacity and readjusting the staffing levels accordingly. And as I’m sure you’re aware, when you do any sort of rebalancing in Europe, the cost of doing that is a bit higher than it is across the rest of the globe. So what you’re kind of seeing there is the output from us looking at the search business in Europe and going through with the workforce rebalancing?
Mark Marcon: Got it. Great. And then, when you think about this environment — and I don’t know if this is for Gary or Bob, but just when you think about the environment and thinking about it lasting for a while longer, outside of normal seasonality, do you feel like we’re basing, or do you think things could get a little bit worse and trying to get a sense for if you think that the margins that you’re projecting for this — the current quarter that we’re in are kind of like towards the bottom end of the range or if there’s more downside that could occur based on what — how you think the environment will end up shaping up?
