Source : Business Times - 3 Feb 2009
Property consultants are feeling the pain, with at least two major players cutting salaries and others reining in costs by shuffling staff around or letting some employees work part-time.
The wage cuts at CB Richard Ellis kicked in this month, with Asia chairman Willy Shee and Singapore managing director Pauline Goh leading the way with a 20 per cent chop each.
Other executive directors and directors have taken a 15 per cent salary reduction and the rest of the staff, a 10 per cent cut. However, staff earning monthly salaries of $2,500 and below have been spared the cuts, Ms Goh told BT yesterday.
She also reiterated the firm’s strategy of avoiding retrenchments, preferring instead to identify poor performers regularly and encouraging them to exit when the market is better.
Other consultants may trim salaries too. DTZ’s Singapore CEO Ho Tian Lam acknowledged: ‘We’re feeling the effects of what’s happening in the market; there’s no denying that.’
‘The Jobs Credit scheme and other Budget measures will help us save on expenditure. Now, we’re thinking how to cut salaries,’ he added.
Some DTZ staff have volunteered to work only two to three days a week. ‘Effectively, that’s working part-time and taking a 50 per cent reduction in pay. We’re also considering redeploying some people to the busier parts of our local operations as well as to our regional offices in KL, Jakarta and Bangkok,’ Mr Ho said.
To contain costs, directors no longer travel on business class and generally, DTZ has also scaled back travelling by using more video and tele-conferencing.
At Knight Frank, managing director Tan Tiong Cheng said that it was ‘reviewing pay-cuts, given the near meltdown in the local property market’. The company has a total staff strength of about 530 in Singapore.
‘We trimmed salaries between 10 and 15 per cent during the last three property slumps in 1986, 1998 and 2003. In each instance, we avoided retrenchments, our operations managed to remain in the black and we made restitution by returning the cut pay to staff by the end of the same financial year.
‘This round, too, the intention would be to return any pay-cuts to our staff - assuming we remain profitable.’
Jones Lang LaSalle Singapore managing director Chris Fossick said that the firm has actively managed its cost base since the beginning of last year by freezing new hires, not replacing vacant positions, doing away with salary increases and cutting discretionary expenditure.
‘In 2009, in light of the worsening economic conditions, our Singapore business has also implemented selective salary decreases, averaging 10 per cent. This additional strategy allows us to maintain full-employment levels to ensure that we continue to provide superior service and advice to our clients,’ he added.
Colliers Singapore managing director Dennis Yeo told BT that the firm is deferring staff salaries by between 5 and 20 per cent each month for the first three months of 2009. However, the deferred compensation will be paid back to staff by end-March if they achieve stipulated targets for the first quarter.
‘The deferment programme will continue into Q2, and provided targets are met, again employees will be paid back by end-June,’ Mr Yeo said. Colliers has about 150 on its payroll in Singapore.
Savills Singapore managing director Michael Ng said that he had no plans for pay reductions now, but if things worsen, there will be cost-cutting measures. ‘For pay-cuts, directors will take the deeper cuts; we’ll try to make it less painful for the lower-rung staff. There are no plans to retrench now, but if things worsen, we’ll put some of the poor performers on lower payscales,’ Mr Ng said.
On a more positive note, Savills will also take advantage of the downturn to scoop up some choice talent. ‘We’re looking for good investment sales and commercial leasing agents. We’re also expanding our retail consultancy and property management businesses,’ he added.
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