We don’t really make assumptions of growth and/or downsizing within those — within our current part — across a 30,000-plus client base seems — it tends to have averaged out over the last 25 years that I’ve done this with the exception of the 2020 — some in 2021 time period.
Arvind Ramnani: Terrific. And if you can just kind of help me to reconcile the 8% growth in new logos versus 14% employee expansion? How should I interpret those two numbers?
Chad Richison: Well, I mean, that would tell you that the client size is growing as well there. We — I’ve been continuing to call out that we’re having success continuing to be pulled further and further up market. A couple of years or about 6 years ago, we went from 2,000 to 5,000. A couple of years ago, I mentioned that we’re going up to 10,000. I talked about how we’re continuing to go up even further. And so that’s going to get you a larger employee count with potential for less of a unit count. But I would also say, I don’t want to overlook the fact that we’ve had a lot of success on the small business unit. And when you’re looking at unit count growth, they’re all created equal. I mean everything is — whether you’re a 1 employee unit or whether you’re a 10,000-employee unit, you’re created equal on that report from a unit count percentage.
But it’s just been a trend to larger clients with the exception of the 2 years where we decided we’re going to add our small business, emerging business units, our groups, of which now we have 10 teams and that really hasn’t grown. The teams haven’t grown. Of course, we continue to add small business units.
Operator: The next question comes from Bhavin Shah of Deutsche Bank.
Bhavin Shah : Chad, I know we touched on this a bit earlier in the call, but are you seeing anything as it relates to changes in the pipeline generation or sales cycles over the past few months? Maybe even reasons why customers are maybe looking to switch and selecting take up.
Chad Richison: I mean we continue to have strong product demonstration leads, but that’s oftentimes a function of our marketing and advertising, and we pay for those leads. I can say for us, it’s been business as usual. We’ve been back in the field since September last year, meaning actually back on site on every single call, where before we were doing more of a hybrid some were virtual, some were in person. So I would say, if anything, we’re having less calls with the client to get to close. I can’t necessarily say that’s speeding up the process, but I think we’re having better conversations as we go through the process. So really nothing to call out there. Other than today, when a client calls Paycom and looks to have a product demonstration, it’s about Beti. And I would say, in times past, it could be about whatever thorn had in their paw that we’d be looking to pull out. So it’s a little different today in the type of lead we are generating.
Bhavin Shah : Got it. And just a follow-up, how do you think about the par opportunity in 2023 relative to some of the growth that you saw in 2022? Any specific areas of modules that are —
Chad Richison: Well, Beti definitely drives PEPM, because you definitely have to have a certain product set for us — from us purchased and being used — so I would say that the clients that we are selling in 2022 have a better, stronger product mix than those clients we would have been selling in 2018 in or 2019. We still do have an opportunity with current clients. We do have to really work at their pace to get them over to Beti and really to get them to achieve the value that it can deliver, and we continue to look at that. And there’s still opportunities obviously, within our current client base to deliver more PEPM as well as on new business sales.
