The American Club 2023/2024 Annual Report

PAGE 47

Total Payroll & Bonuses

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

160,000

90.0%

84.1%

80.0%

75.9%

140,000

134,392

130,361

71.8%

123,616

120,465

70.0%

67.2%

118,672

120,000

60.1%

62.7%

64.0%

107,456

60.0%

100,197

99,537

59.3%

100,000

58.3%

91,323

53.0%

50.0%

81,618

79,166

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

FY2024

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 costs. 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 – including conducting a salary benchmarking exercise to align our rank and file Team Members as part of our commitment as committed employers of of a Great Place to Work, managing the headcount and payroll costs 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 drive to deliver a world-class Member experience with new programming and service offerings, the Club also expanded its talent acquisition with new skillsets. Although this resulted in added payroll costs in FY2024, this will in the long term translate to better programing at the Club such as events, food & beverage programs and sports activities. In our efforts to retain the Team Members who worked tirelessly throughout the fiscal year, the General Committee approved a bonus budget of $1.8 million payable to eligible Team Members of all levels in September 2024. Total payroll and bonuses of 64% in FY2024 was higher than FY2023 of 60.1%, partly contributed by higher headcount, overtime pay and higher casual labor cost.

Total Operating Expenses

As reported, the Club entered a renewal contract for energy supplies at a reduced rate of $0.33/kWh in FY2024 as compared to $0.445/kWh in FY2023, contributing to 5.7% of the Club’s Total Income. This contributed to overall operating expenses of 24.2%. To help mitigate these rising costs Management exercised tight control of discretionary spending. The Club also derived maintenance savings in FY2024 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 2023 / 2024