The American Club 2021/2022 Annual Report

PAGE 49 THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2021 / 2022

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%

134,392

140,000

71.8%

120,465

118,672

70.0%

67.2%

120,000

107,456

62.7%

60.0%

100,197

99,537

58.3%

59.3%

100,000

91,323

53.0%

50.0%

81,618

78,392

74,375

80,000

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

Total Income per FT Headcount

Payroll Costs per FT Headcount

Payroll Costs as % of Total Income

In light of a tight labor market and high demand for service staff, Management explored various initiative to retain Team Members, managing the headcount and payroll costs during the financial year. The Club further developed its partnerships with education institutions such as polytechnics and ITE to acquire quality interns under the Work Study Program, thereby reducing our reliance on the part-timers and its associated costs.

The re-organization exercise undertaken by Management with a leaner team to improve operational efficiency in January 2021 (FY2021) yielded payroll savings of $0.61 million in FY2022.

In addition to the Appreciation Payment of $800 each to all eligible Team Members in June 2022, the General Committee approved bonuses of $1.81 million payable to eligible Team Members of all levels in September 2022. Total payroll and bonuses of 58.3% in FY2022 was lower than FY2021 of 62.7%.

Total Operating Expenses

Operating expenses represented about 22% of the Club’s Total Income. Management therefore took stringent control and reviewed all discretionary expenses before approvals were given. The ongoing pandemic presented some opportunities for the Club to enjoy rebates from vendors as well as maintain the same or better renewal terms for contracts.

The Club also derived maintenance savings in FY2022 as we progressed into negotiations with the main contractors to rectify all the defects during the extended defects liability period.