The American Club 2022/2023 Annual Report

PAGE 46

Total Payroll & Bonuses

Payroll & Bonuses per Full Time Headcount and Payroll & Bonuses as % of Total Income

90.0%

160,000

84.1%

80.0%

75.9%

140,000

134,392

130,361

71.8%

120,465

70.0%

67.2%

118,672

120,000

62.7%

107,456

60.0%

60.1%

100,197

99,537

59.3%

100,000

58.3%

91,323

53.0%

50.0%

81,618

78,393

78,319

80,000

74,375

71,936

69,325

68,678

66,899

40.0%

63,843

63,758

60,000

30.0%

40,000

20.0%

20,000

10.0%

-

0.0%

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

Total Income per FT Headcount

Payroll Costs per FT Headcount

Payroll Costs as % of Total Income

Payroll is a key component of the Club’s operating cost. Singapore’s extremely low unemployment rate and foreign manpower policies have exacerbated the current manpower shortage in the service industry. In light of the high demand for service staff in a tight labor market, Management explored various initiatives to retain Team Members, managing the headcount and payroll cost during the financial year. Management also engaged casual labor to supplement the shortages for service and kitchen staff for food & beverage outlets. The Club further developed and strengthened its partnerships with education institutions such as polytechnics and ITE to acquire quality interns under the Work-Study Program, thereby reducing our reliance on part-timers. In our efforts to retain the Team Members who worked tirelessly throughout the fiscal year, the General Committee approved a bonus budget of $2.0 million payable to eligible Team Members across all levels in September 2023. Total payroll and bonuses of 60.1% in FY2023 was higher than FY2022 of 58.3%, partly contributed by overtime pay and higher casual labor cost. Total Operating Expenses As reported, the Club entered a renewal contract for energy supplies at a rate of $0.445/kWh in FY2023 as compared to $0.145/kWh in FY2022, contributing to 7% of the Club’s Total Income. This elevated overall operating expenses to 26%. To help mitigate these rising costs Management exercised tight control of discretionary spending. The Club also derived maintenance savings in FY2023 as we continued negotiations with the main contractors to rectify all the defects during the extended defects liability period.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2022 / 2023