NSP - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Jane and I will be your conference operator today. I would like to welcome everyone to the Insperity First Quarter 2022 Earnings Conference Call. At this time, I would like to introduce today’s speakers.

Joining us are Paul Sarvadi, Chairman of the Board and Chief Executive Officer; and Douglas Sharp, Senior Vice President of Finance, Chief Financial Officer and Treasurer. would turn I to call time, Sharp. Douglas this like the to over At Mr. ahead. go please Sharp,

Douglas Sharp

Thank you We you. appreciate joining us.

Let plan me for our this evening's begin call. by outlining

update behind financial First, return first drivers to the I guidance. guidance the behind to and financial comment the remainder to results I'm key for details provide QX quarter plan going on the our quarter Paul and results. year the will our XXXX our will of then discuss year. an our full second over the

will with We a and answer then question end the call session.

would Now before during we to risks, uncertainties that begin may to looking subject I Mr. I Sarvadi statements make and are forward like or assumptions. you which call, today's remind

financial In addition, some of our GAAP years. measures discussion non may include

For see and reconciliations discussion filings, company's actual any a could cause materially risks website. our please to and including forward-looking are form statements, file of measures, that the the results financial today, uncertainties differ which from X-K available public on the non-GAAP detailed of more

management growth our QX earnings share discuss employee Now, worksite which end XXXX leverage. exceeded employees up effective above number in direct above we of first $XXX achieved pricing increase operating results adjusted EBITDA quarter in of the calls and our our million, results of $X.XX. of XX% over These reflect levels, target strong high expectations. average programs, the paid and of and both adjusted worksite per earnings growth our forecasted range, We of let's

over QX our employees paid the by As XX.X% worksite growth number of XXXX. metrics, for average of increased

XXXX XXXX fall of enroll point, which our and our and aware approximately sales year new clients XX% to you from full therefore clients of most the in year our expectations. our important are we was in existing growth renew starting of campaign, from XXXX, As to transition

number of to last QX X.X% were QX from increase paid strong average of report this year a worksite by year a sequential transition, year. in as are demonstrated the employees very pleased to We in of

this sales employees of drivers XXXX. over the client growth, for the for new paid XX% worksite As first quarter of increased

attrition historical our X.X% over a to spite attrition And quarter low, of our First robust totaling tight and near continue clients of XX%. an XXXX of hiring labor experience client only current QX the market. in improvement was

worksite First areas. was target cost quarter and forecast gross contribution profit pricing above favorable the employee above the in on outperformance a growth, our managed from levels direct

contribution anticipated tax have the As for remained have the course below our payroll rates levels unemployment tax while levels, over profit. state our in fluctuated resulting a area, unemployment of pandemic, favorable gross to

Our status of workers compensation QX from the Workers in ongoing pricing exceeded result the of well employees. favorable management client compensation program costs also safety the our home practices of the expected our our due perform came to of costs work include number a as benefit claims impact from and to while claims. reduction in allocation targets. benefit at of many levels continues

year our in we in environment. cost still for improving although at what trend to levels take believe full is continue to what an budgeted estimating the approach We in appears be conservative benefit uncertain

of the of Now XXXX, Keep in fluctuations and tax the let's growth. this the refunds, in XX% prior in mind pandemic the to profit we which surplus payroll QX costs affected achieved to is year. first quarter put of quarterly the period XXXX, the last care in gross by that payroll health comparison including related additional receipt tax

expenses. operating our look Now for

BPAS quarterly worksite capacity marketing implementation during initiatives discussed includes implemented efficiency. relative the the a salesforce. spend year growth, of ongoing our in previous our QX five improvements incentive to national including quarter and new We our Our the in to reflects sales drive employee program our technology in investments for our earnings spend call. initiatives further in service plan This

labor adjustments our in staff these corporate targeted compensation made current recruiting investments, our given for structure the leverage and of to employee X% while goals. also in cost the operating our levels dynamics and QX overall a decline ongoing of resulted XXXX. market from making retention in We And worksite the management of expense

our Now our returns our financial and strong continue remains growth position as we provide and liquidity investment in to shareholders.

ended million repurchased paid million of QX adjusted During stock of cash in of out $XX and dividends. and the with quarter, of shares debt. million XXX,XXX cash $XX cost $XXX at million a $XXX we We

at Now Paul. like I'd call to over this time, the to turn

Paul Sarvadi

our My three will thank Insperity for areas you And all call. Doug. address for comments key today you, joining Thank stakeholders.

regarding First, QX drivers our I'll momentum the behind results. strong specifics provide

confidence I'll our recently launched and five the provide in momentum for opportunity finish raising XXXX. by Then some our the return this color balance Second, comment our extraordinary plans. around of guidance on of providing initiatives shareholder key I'll how year

drivers, namely new hiring. client Our result retention all sales, in strong was momentum QX performance client growth of the our and continuing

retention increase XX% from dramatic campaign client near successful conversion campaign, worksite base drive growth. to book hiring sales in from historical XX% Our successful fall our with our and in combined unit paid clients nearly from high strong employees of our new into our continued

tier key budget. we've initiative workforce above is and including business revenues capitalizing ago. efficiency budget, of period sales XXX% our sales increase the the comparable initiatives period X% were upon marketplace gain. year. increasing last XX% productive sales most strong higher XX% New This sales XXX% sophisticated strong book was Several XXXX. determined experienced XX%. at HR to based assisted sales XX% quarter efficiency strong a also significant levels. gained sales mid-market on BPAs this books in our employees’ solution, with success, and This worksite over In BPAs XX%. these marketing leads increased over QX sold The quarter the flowed over comparable solutions. of this and period sales for tiered momentum efficiency in sales were in in doubled. sales inbound increase or overall are traditional last in the to Management the contributing performance sales the in was on fewer over momentum, in first this over movement levels over with XXXX continued BPAs demonstrating coming book year coming employment quarter, Book sales core year, behind the the contributor same increasing the recent sales, Sales final booked than the employees Both improvement. results, by these in in XXX% at of programs into came efficiency one and leads successful the converted number three marketing of sales increased first Sales of than marketing advisors XX% evident worksite for up both in service Inbound our demand XX% deals book for increased acceleration into from more traction year last significant

extra Another this showed the achieving BPA sales first results approach effort based excitement, is compensation. of tier key bonus BPA This targets. a validation upon component of and strong results. and quarterly driver their signs these a now of in quarter recent respective targets of immediate exceeding of impressive implementation have levels generating is bonus for these earn new quarterly and

campaign retention excellent the the the throughout was of from and satisfaction quarter fall client highlight continued the that Another quarter.

serving increases of the the sized to employees in sales battle of the support efforts higher the in time, we an above overtime continuing driving impressive with outstanding some our considerable that HR and significant wage client across success do measures recruit community metrics for and pay. XX,XXX support Our the provide well hiring despite net over to also and retain retain service was hiring. At was to have QX clients Demand business medium in staff. also paid services. quarter locations growth. face base seen top the historically. the moving clients done to competence slowdown first base been and them businesses the in to insight NFIB issues reflect the concerns not the at country real in labor the do X% the country across our to market, the job have, small point, this XX% department their team list continues those meeting within were of somewhat employees owner bonuses needs have Client client time has this with than and tight a Both are for to employees be high over At weakening the Commissions business compensate recent and significantly the to our of inflation in we in as same survey. owner to all

owners So small appears have for now, concern more general to about of a be business the future. it

health management effective profit gross higher noise pandemic quarter cost. in due estimation we've we somewhat. the slightly plan Another waned welcome of appropriate. in the and And and to forecasted from highlight this surpluses conservatism during care was allocations price experienced from have the is our pricing drivers, The cost believe than including allocations appears to contribution

we factor business important which in mentioned, our Doug operating an significant also in As also leverage the is saw quarter, model.

excellent first XXXX. to all-in, the So an quarter start was

of expectation recent we of as the in balance many to Now of to raising look year, ahead the is positive to these our trends due guidance continue. our confidence

be paid retention. employees, to and by and tiers their We our current performance fueled expect higher to point our BPA growth continues at starting worksite draw

owner the concern it's tightness levels of private inflation about in in hiring, hiring We believe about expect the rate forward. lower Now business prudent build the going due labor still we're cautious to some recent and we but continuing client a economy. market, to at

based and employee consistent high performed contribution profit Our gross leverage our growth, profitability has confidence upon profitability growth. this our worksite model in This of how expectations of rate and periods with is the historical our in higher operating combination is trends.

initiatives efficiency, key and expectations, effective that pricing, We sales including our also these on organization. clear service have focus growing support a

pricing which quarter, This and our improvements sales continue will some we efficiency to implementing incentives compensation, new business believe management we're priorities. sales the new

this effort markets this continue the marketing all expanding a marketing program markets. going the on organization, our fall quarter in in markets we to launched which successful team development will growth salesforce our to from going further XX campaign also our all and program spring live learnings applied We efficiency the XX across marketing in addition, We're forward. integrated business recently improve into momentum. implementation enrich believe Insperity an fully In the

early company the We the next across of year. expect rest to the implement implementation

of market recruiting felt staff. Another priorities. balance staffing also made tight retention our important client enhancements over labor corporate the targets achieve the and will service initiative plan have this we us and an the effects both growth believe year have to to of support is allow add to and we We've sales aggressive that

to outlook are the an guidance year year profitability plan. groundwork strong what This new has five off year seen our quarter plan five it's on to our the in growth start So potential initiatives we're first capitalize see laying year successful our excellent have in XXXX. and And Also, of previous a our first apparent extraordinary runs. key for ahead. beyond we we five implies

For over XX%. was was rate and example, from compound and annual XXXX, growth to XXXX an over paid XX% worksite EBITDA employees adjusted our

was this Our was total share produce of over leverage an our pace. price return the because average dividends XX% growth double the XX%. and fueled to quarterly a gross that higher and model business increasing period, fivefold. been number This has EBITDA Historically, that over remarkable growth, year, of increased digit digit digit increased is growth BPAs double slightly shareholders adjusted at some even north at to not more surprising each period XXX% producing of than more profit designed unit by growth operating double

significant in plan For I growth annual compound believe even that five the growth growth can distinctions we've adjusted just BPA for The period year described, the EBITDA launched I was XX%. three has just rates higher. example, drive rate

drove marketplace first the survival demand importance between quarters. of distinction all and the the and impact over sophisticated a success. is last the and effects described pandemic. the function home The the HR The And several direct business connection I've after

we implemented invest capitalize those sized is a We this thoroughly increase businesses. small specific developed is reason to believe the have we I in seen significant who clients’ demand medium it This and over receptivity and prospects next five in in on the this and wave our reaction plan. industry years. initial can

are within differences The distinct other model. business our two

efficiency, profit the drives were acceleration of for to long-term traction our not enhance employment seen gross lower workforce source has gross in mitigate cost This also BPA dependent, client profit potential our the and profit Small before. worksite could if Workforce volatility. strategy in a our potential increases significantly, retention. we help have increases is not healthcare in to acceleration our adjusted turnover the with we First, and overall customer way to improve gross it model sales to traditional to life employee our for have has add for grow solution EBITDA. significant and

in this which the difference for the grow have rate, a have potential to seen efficiency business operating sales This creates is rate model see The growth would not plan with begun leverage strive second we BPA will gain and growth before. for improve. add unit we faster, distinctive our five to us year to below the further

expected new is the laser and see to I this if the create profit which successful So focused mean run. year growth, significantly five on across last the than five are of XX operating plan more factors we home year drive worksite potential to critical the leverage EBITDA adjusted higher could believe could have this success gross returns faster, employee company add shareholders. plan. we grow on to for goals to our This extraordinary Insperity

We Insperity future for point, pass like At a start this to the Doug. a all off to to I'd for are hopeful and great call stakeholders. back bright

Douglas Sharp

Thanks Paul.

net which upon retention of in profitability outperformance our outlook by expected Now over our This our year potential in going We're market trends impact our update over QX employee XXXX worksite levels our let into to continuing full we our high higher however hiring growth based me XX.X% XX.X% inflationary environment. raising growth. growth the the improvement an sales maintaining of expectations the growth starting momentum, and are for business in improvement XX.X% budgeted tightening continuing labor slightly year. of recent is guidance remainder client to earnings clients on below QX, forecasting point and and our now the the upon further and our initial a based and XX.X% guidance given increase and at the pressures

QX growth XX% XX% employee are to worksite We forecasting XXXX. QX of paid over of

upon higher We outperformance also our in than XXXX based positive and the budget costs. and now expect the initial direct gross to trends profit recent pricing be both QX

ongoing We of over continue benefit our in associated to to line trend of the the forecast the initial uncertainty the pandemic mindful remainder be with budget. the with continue therefore year and cost

to earn reaching employees and unemployment in to expect that some While the from get tax limits. in surplus upside tax areas, prior largely concentrated we QX wage compensation further mind as is payroll workers performance our in keep tax we a payroll state the worksite area their

achieving work reflect our XXXX XX%. Our of tax our five plan operating forecasted initiatives income effective to employee leverage And in with operating expected are our estimating rate costs XXXX plan investing continue growth year overall the a site we rates. expectation at of of now

and million million. into when from $XXX factors million our EBITDA adjusted initial account range XXXX guidance narrowed updated we So our have $XXX of to raised taking these to $XXX $XXX to guidance of million of

range $X.XX of As for guidance full $X.XX. now we previous up from our year of forecasting XXXX a are $X.XXto to adjusted EPS $X.XX,

EBITDA which a $XX into million EPS adjusted to pattern. takes adjusted $X.XX, from and quarterly million our $X.XX are we range earnings in typical QX, forecasting to for $XX account As of

are results met. As the a subsequent step level than in are you may over payroll are of our recall, typically reaching year deductibles earn worksite the higher quarters surplus their taxable limits. tax employees as of QX and lower QX remainder as wage to up And prior benefit typically costs higher we

at Now up to this like questions. time, the for open call I'd

Operator

from William Andrew Nicholas question first [Operator of Instructions] comes Our the Blair. of line

Andrew Nicholas

Hi, my good you Thank taking morning. questions. for

relatively you increasing longer of is I'm wondering much to kind a productivity. how within longer in that, average tenure change be or have of levels is the tenure any seen it being the that rate. Obviously, one First maybe salesforce And salesforce? guess at I Obviously, retention market. your salesforce? a or a on consequence strong kind of labor just within tight opposite attrition it a of seems in is

how that big that growth. base that in seeing talent productivity You're component wondering well, to and just about client retaining thinking you're your how of is a as

Paul Sarvadi

improve of you above. three question, today, or that very number about XX% have is BPAs thanks the And for picture our and in the about because the I kind aspect talked we increase can we And improvement of within a there numbers Yes, efficiency. sales effort in increase of had important the it are XX% tier see in efficiency. sales to level

big a of efficiency that's BPA effect chunk So the of natural sales growth. gained experienced more from

quarter, terms marketing that Now, from recent bringing the but things, also place tiers the other were bonuses to the the higher, But the that, their have in the it also other so of that try to for that tweak results to combination level, within being for leads each tier get strong balance of BPA we compensation allows are for each in, came other to quarter. to drives bonuses where earn each XX% hard qualified put a of them in tier. objectives in targeted and next work that example,

we that all things are they're the efficiency. for really, this thing because that I time improved lead allowing have these doors to So large demand perfect go that earlier, And to is repetitions. to just a have for see tracks are to BPAs say overriding a would is lot just enough the gain marketplace in of traction at see prospects the sales just the that is open opportunity and the and we that think I

have is the the face the back to at key think way face selling really that the I optimized visits mixing And be that's element. enhance in we time closing rate. remote right the other factor we'll to further

that trend. we is all but So excited term, believe this sales already strides longer will the why things and great we're are that really continue about factors many those efficiency, in

Andrew Nicholas

to your as then you. last the That's answer. Thank part very a maybe of helpful. follow up And

for kind nature Or material competitive you better the Are other sales In the execution just are rates I'm terms if competitive win or some on this as runway in of of the win those if large of rates seeing you. there some other higher mentioned. difference primarily against and new of competitors? are is you any you seeing momentum. curious market? Thank items coming a consequence growth, a takeaways of

Paul Sarvadi

these Well, what really I'll very drove Insperity is happening have by succeed to we by more question. level the very and differentiated just tell of premium what's lot information. things of function. an answer survival that this to an our good sophisticated marketplace, after need detail of the a than sophisticated for is HR that know pandemic you, But another depth really result And period and see it a intuitive of all And effects HR I the breadth both incredibly three is of the home, function. to the up services, the are unique in services, those add care, the about is service the and our to supported

good that space sophisticated, have competitive our So it's climb that's of believe highlighted companies But need. is we have, to dramatic something And have either I administrative an what type our other function I a in or effort. we're advantage, good really services right too. a because for is that think now, category really really been companies things, complete and one. of way reduce HR want always they is that uphill lot reduce to in are that there service a Those cost that of

Operator

Truist. comes Sommer Next of of line Tobey question the from

Tobey Sommer

the trends could or picture if of of we to collected Thanks unfolded. first of kind have during you progressed visible to Or variant. of the think that how about months post an at real to still you, the how a And effects I quarter of that Omicron. you clear are United be clearly wondering that Paul. couple data a least from on have give the benefit sort us Omicron whether was update

Paul Sarvadi

that Yes, the about those COVID related let waning, about of up the come and other trended me And more some pandemic we've clear are we're be drove potential cost. we lot from We seen for a perspective, what conservative. you seen off from still also effects you give I But two issues And it. the the related details, COVID Doug to let last discussed areas. just in. that just that period. But acute details talked variants things cautious we've my is had in that about that high longer-term as results, can some pretty

continue on pass going it we're to to be that. So Doug I'll just to about there. conservative But

Douglas Sharp

probably I part hangover first months. convergence some the in February, the you're of aware, we vaccination you of of January, as fourth think as Tobey, have the the the some of result Omicron still of of month beginnings quarter, we through as increased during that a least had testing, delta those at Omicron into increased effect Yes, and probably moved quarter,

a I think that. seen have relates little it wane we it since as then, bit, to

over pricing through about over on that the we're long this the prudent priced the least now, effective as I there's it's there at the was of other that COVID pricing deferred, of like good initial we pandemic waning really or previously We're But side, so be whether years forward uncertainty quite Will costs pandemic to to important some the levels an And think be talked hopeful look term, for job think takeaway catch cost through to in the year, think replace whether We've of that upside? as have remainder that's But replaced up will of effect particularly still it but not? uncertainty the quarters, forecasts or I bit there the continue news. utilization, and it a budgeted we've the surgeries some stage. side. things have with past and that care be doing level our is I will ‘XX. to on that two have the of ‘XX it looked whole right COVID elective so still how

And upside. benefit and position COVID XXXX, periods costs, another tell. and cost We're Our two have doesn't pricing just first move was forward side, side. in on that we is on into quarter year too very the pricing think fairly It's to the of wave be could we well. as fact, I matched replace matched early for and there with those that the remainder levels some hopeful don't our cost we're the COVID utilization were the

Tobey Sommer

thank said, think non-co Okay, the addressable total I and some Several about started And grown? a market the effects volume offering options a How knock wanted pandemic, of now as lot I not of whether a appreciate about that. remarkable. Because off value the employment market ask of service. how you you do Thank about PEO and addressable is years the certainly it's your you pretty you. highlighted question then think your all color. sort to and you the or ago, growth and WSEEs you.

Paul Sarvadi

we're that's great profile see a demographic psychographic over XX,XXX the data there's have. Tobey, call to and that clients perfect clearly evaluate still Yes, of the we the question, fit I'd able XXX,XXX, clients within that no, we what that fit

into that target also cast want to So customers, we acceleration market workforce the traditional off that that we back on co-employment clients have are me the a offering to of long sometimes a can in penetrating. we're that and is have we see model net and have to employment that move the can solution. wider huge to also the that we now XXX,XXX customers go that, bring keep what's time exciting them to where But

in, ability or services bring other strong. have our long-term view to them a into have So up across and I is move think really

a at at I our sales historical rates, in add I to core look have digit grow of above when our year potential business this And double employment say, see should historical double profit five of adding plan, that, gross why rates, the but so really also strong I the even the, and is digit part and traditional way. service again,

the that means our acceleration leverage, sales talked model in that operating BPAs and profit. side, previous run. at having our that higher about workforce with rate rates EBITDA the growing contribution than course, different a with So from And that's service I a a elements distinctive two at of years, gross adjusted the what five fewer lot of are our this for those both faster drives

Operator

Next the comes ROTH question of Partners. Jeff Martin from line of Capital

Jeff Martin

was or you BPA could incentive the I progression three there what changes above? Paul, How place And having you for timeline the tiers? there. concentration of the tier like impact are It about many morning. Good if are Thanks. that curious various that? just a and of at is put sounds in significant talk kind

Paul Sarvadi

couple in have, tier a past, the to month thank period, in them the to of tier in one that BPA month XX on. coming we new for length typical it's two to you Yes, earlier. typically, time And was do want XX get about that about around period, is talked two, we're to tier what reach to level we to that as is folks they're able that early a on year XX we've but a seeing be

level. as good much at very individual So that's a the possible sign. at But we're moving many as an looking entire flow at and

we of the XXX get starting end We're be to year. to growing the balance BPA expecting this ramp at our so to up team, year or the BPAs round will of over growth. Now again, around

the through growth go. And put the for XX% success right of is which target our mid to through that year the So year on sometime. connected an the company, we efficiency But next focus is want lot management of do us dependent up new on teens growth across to not we get organization, ongoing double success compensation now, sales their early where one is rate sales number the get really Critical all individual BPAs to that gain BPAs goal around have of on throughout the back in plan. But alignment this sales the moving are that to so now exciting just is about through five is improvement we BPAs What's job the and are we in in basis, XX have digit that factors real we this into to this trying tiers. there. system, the efficiency. our key to sales where maybe moving those factors of really folks a the

company the that effect I a So there's that have a tremendous believe focus forward. across nice on going will

Jeff Martin

I that then curious rest you've mid-market, Are a in a months, place speak over XX it the mid-market to you're there the And success could line maybe to the grew the great. more in business. looks initiatives that mid-market, compare sales potential? bit of specific if it seen the you putting Okay, with from the like to little was there? have what that past in And in

Paul Sarvadi

equally mid-market appreciate the prongs, mid-market a right understanding I and very are real about what's are organization, much three question. And we're, already this And because so year core And in alignment those. way excited that acceleration a already, of now it's sales across ahead fact the off across start. great that year last happening really all we've the significant, that around three Yes, is company. I'm pipeline now. sales, important in to committed it's the all workforce the are to of mid-market

how difference. I for smooth come the I now. of leads alignment work a our operation makes the think And again, compensated. midmarket it's think, our team, is, BPA out accounts very on within larger issue the and And, they're So they that alignment these now how together biggest

front I really they're coming business. mind, on part start, to And and our still it's Keep helpful off of business. do will sales area come we're pieces there's smaller the that as -- great bigger but of when great consistency see well. in efficiency be pipelines the And some they go, a shape. the that in So more in really

Operator

Mark comes of line question Baird. of Next the from Marcon

Mark Marcon

outside with your of can the for less employees? a to for of established to seeing worksite the little what the about employee growth secondly, my fee adoption your biggest comment tied and you And revenue are to of of pricing fee regards in states questions. One And directly are Really strong the bit what broadening see with talk response what worksite the taking acceptance the degree the on from can worksite concept the some PEO we when your level employees. per thanks look and a to marketing extent aspects? wondering, compensation starting at regards revenue a to per take efforts? what two you states? I'm you're of then is To to Paul, we employee, perspective? increased of the seeing you morning, Good some

Paul Sarvadi

those -- both That's questions. Great. good are

last So biggest remarks, what One, mentioned there's on two would first the our effort in seeing have was I drives through the market. to aspects marketing went all to this of I which think different about we all saying in what that course, that to components the localized across that we're marketing say in plans, every and it. has fall difference of country, I receptivity market awareness focused

you but growth XX our not done our all we've can revenue were so this spring, XX% growth across the And revenue we regions. over for see that across in all country markets of

they'd go investors, capital process funds into whether private of that idea that didn't So But us things or to the gives awareness hurdle close it's the venture a selling stumbling a of helps and for a the And would used equity, their to or to folks kind we to is things really now how and that that across way that is it function. be in I biggest is like difference building to business, made try that's think were are piece I of board. that folks block a future then happening impressive of this value is, that the investing profitability and the HR actually about investors. a of the the me, important the company, there the that? how through think with lot CEO, go board broadly. of members, one Why confidence the

So And the the potential is a success focused to And of on, these I that. think for that the had me other say now several the that all critical XX issue inflation just we let dramatic of company the the one factors. have over over factors that on pricing we're next years. of side, effect

if Now, we we do we're and care a to make don't everything great recruit sure we take people. we of it's super people right us, to also others job retain taking home. of that's Because really obviously our help to can believe their of important care important doing the can't

his Doug side. remarks, we've So as made internally the already, investments in we've on mentioned, already compensation

we business all so what pricing. flows on operating tight that of we due do And a and the side to have between connection how the

a And to a with I the plan year. concert be and that my same mentioned is in them -- a help game for reflects renewing management sales remarks on. passed approach price marketplace our within be for have that are this have that where new appropriate, increases need we business that and this also some we both is going have we that compensation pricing our in tweaks So part fact also plan organization that of we fully in believe that it forward year

shape percentage in that are think that as passed feels we marketplace, can we're are more, say just are on great going less, actually the thing very and it the increases that on like like And looks a up front. I is move doesn't percentage pass wages the are up on in last they it I and because reflected on of wages that that when our much. would So the

passing being we increases So a appropriate effective we have good think for very at environment along.

Mark Marcon

just benefit can your year? That's about bit increase were deferred? talk assuming will the that about of some little you for of a great. the that be how thinking the surgeries are And cost in Or then elective expectation terms you you benefit, sort that? of there Are balance more

Paul Sarvadi

surgeries especially the to -- though reiterate both that going bit wanes, cost to elective over just there's of the possibility, even kind a related little we related have our we trend think looked comments, even we're ago. with felt COVID costs I you year, it and we year. was the of cost, COVID, some seeing cost the Because with at established stick and/or the of the like to we COVID that waning for Yes, just the if of of stuff deferred through forward come Doug's acute can balance important cost a of still couple direct cost from drivers balance when of the care a months the

If what going there'd to come another more be upside in, have quarter absolutely, better than bit don't into little those a view that. we're So out, we've forecasted.

I knows variant position be to going who think things or to whatever. it's of out if those only prudent to and another is some be come a expecting in

tell. too So it's just early to

we in trend this so we're with year our early higher budget. that adopted And the sticking

Operator

Thank call closing the Paul Sarvadi over turn you. for to I would remarks. like to

Paul Sarvadi

And to continuing while believe Once year we providing we throughout being again, success that look next for in your this and would I for look opportunity. forward plan the the to shareholder information today. you we provide return one would everybody year year again Thank participation. forward thank quarter. like extraordinary of to just And on call our five

Operator

concludes Thank conference for call. you this gentlemen, and Ladies today's participating.

now great may Have disconnect. a You day.

Insperity (NSP) 26 Apr 222022 Q1 Earnings call transcript