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We focus our attention towards the HR side in the human capital management side of our clients and over the last few years see ourselves with a client base in excess of 2000 different companies with a 90% plus retention rate, which is historical. If you think of a business owner, a business owner starts lot of times in their garage. They build a product; they have a product that works. They step out and sell the product; they find themselves reaching their own capacity level, so they add an employee and another employee, another employee.They get to about 10 employees and now they have hired all other friends and so now they have to hire people they don’t know. They hire 11, 12, 13, 14, 15 person on day-to-day basis. They can go around the room and they can touch and they can help to control the success of organization by impacting each person’s outcome by direct interface. Some of them find themselves with 16, 17, 20-25 employees and all of a sudden the dynamic changes. And we will like to think that a business owner can manage the business tactically up to about 15-20 employees. But beyond that standpoint, they now have to start hiring layers of management back into their organization and the organization shifts from being able to run tactically to having a more dynamic complexion about it. What we do is, we come in and help the business owner get their arms around all the pieces, help them to frame a management platform or a method for interfacing with that organization on a regular basis and help them to ultimately leverage the internal human capital that they had invested already. The industry as a whole is pretty-vast. If you check just the HR industry, HR outsourcing look to be 162 billion by 2015 and then the consulting industry related to all facets of consulting is around 366 billion.
What I consider important here is, we lot of times are, even though we have been around the long term, today in any one of our given markets at max we would have may be a 5% concentration and we tend to be one of a larger players in the markets that we serve.So why do companies outsource? I already explained a few things. The traditional first impression for people is that they’re going to save money, to control risk, to reduce just complexities. As I see it, if a business owner has the ability to refine their focus and put their attention, where they have the most leverage in their time, they have a higher probability to be unsuccessful. And that’s where we get in and work as a management team with our clients, on a localized basis to help them get out of their own way. Our model is we develop and as we continue to work with our clients, it starts with the business development cycle. And a business development foundation, we get our clients from one of three areas. From direct sales, we still pick up 10% of our business through direct sales. Referral networks that could be anything from brokers to financial planners to accountant CPAs. Those resources and partners out there that we work with, that have a trusted advisor relationship with the business owner and on a growing basis. We see more and more business coming from customer referrals and we see a multiplier effect in that and that if we continue to take care of business, we find that our customers are referring to us to more customers and that carries on and as our base gets larger, there is a multiplier effect that we’re seeing. Read the rest of this transcript for free on seekingalpha.com