CEO’s nod needed for business trips

TRAVEL WATCH
As recession bites, companies are cutting back on such expenses

ESTHER NG
estherng@mediacorp.com.sg

AS IF they don't already have enough on their plates, some head honchos of multinational companies (MNCs) here have taken to scrutinising their employees' business trips.

Such expenses, it seems, require the chief executive's (CEO) nod in some 67 per cent of organisations, as companies tighten their budgets, according to the latest Hewitt Compensation Watch Survey.

The international human resource firm had polled 53 companies, mostly MNCs.

Is this the best use of a CEO's time?

"A total waste of effort," said Mr Henry Cheong, managing director of Telesto Broadcast Solutions. "It might work for a small company, but not for one that has 500 to 1,000 people or more."

As it is, CEOs have other bigger worries. "We have to find ways to grow our business, all the more in these economic times, find new markets and improve our bottom line," said Philips Electronics chief Wong Lup Wai, adding that the MNC would not be adopting this tack any time soon.

"We believe in empowering our business unit managers to make these decisions," he said.

Other MNCs that Today spoke to were coy about revealing whether they had resorted to taxing their CEOs in this manner. However, they did admit to switching their travel mode from business class to economy or even budget, video- and teleconferencing.

However, Ms Annie Yap, managing director of AYP, believes that the practice is more of a deterrent than the CEO going through a pile of applications.

"It's to weed out the non-critical from the critical business trips," she said.

Business travel expenses are projected to be cut by 21 per cent this year. Other findings in the Hewitt survey include fewer retention bonuses, reduced year-end variable bonuses and overtime pay.

Salary projections in Singapore are expected to slump by minus 5.4 per cent in June to September, with the lowest increase among senior management (1.9 per cent). But professional and general staff will experience the highest pay increase at 2.3 per cent.

Job seekers looking for a big jump might want to head to India, with companies there offering 8.2 per cent in wage hikes — highest Asia-wide.

From TODAY, News – Wednesday, 22-April-2009

Want to save money? Close the toilets ...

Was this really a smart move? I seem to agree that for a hotel this category, it may actually be a speck of dust on its looking glass - it tarnishes the image unnecessarily.

What's your say? Read on.

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Raffles Hotel

Teo Xuanwei
xuanwei@mediacorp.com.sg

THE higher the rating, the more expectations there are of a hotel and the state of its public washrooms as well.

Or in the case of the six-star Raffles Hotel, to how convenient it is to find one that is open. A recent decision by the hotel’s management to close two of its public toilets and shorten the hours for the others has upset some tenants.

On Tuesday, a letter was sent to tenants of its shopping arcade informing them of the decision — with immediate effect.

There are nine restrooms in the property.

When Today visited the hotel yesterday afternoon, several tenants said they were worried about how their businesses may be hit.

“This is really embarrassing,” said a retailer who declined to be named. “I understand everyone has to cut costs now, but there are surely many other better ways to do it.

“How much money can you save like this?”

Louis Vuitton, The HourGlass, Swarovski and BP De Silva Jewellers are some retailers in the hotel’s three-storey shopping arcade.

When contacted, a hotel spokesman said that the “operation hours” of some of the washrooms “have been adjusted in conjunction with the operation hours of the restaurants and shops there.

The hotel said that there are sufficient public washrooms for both patrons’ and residents’ use. It did not say how much money would be saved by such a move.

One business affected by the decision is Beauty@Genesis. The spa is located beside a restroom that can only be used from 11.30am to 2.30pm and from 6.30pm to 10pm each day. Its clients have to use the ground floor toilet about 30 metres away at other times.

“When you’re going for a spa treatment at Raffles Hotel, you don’t expect to have to walk so far in a robe to go to the toilet,” said a member of its staff.

“It’s absurd, excessive and really embarrassing. You can’t just take away public amenities like that.”

There are also “bottlenecks” at some toilets, claimed some tenants.

“There is a queue to use the toilet and when you get in, there’s no toilet paper,” said another retailer. “It’s one thing for staff here to be inconvenienced, but it’s another thing if our customers have to suffer too.”

Some hotel guests expressed surprise when told of the hotel’s decision.

“Inconveniences aside, it’s not good for the image of a top hotel,” said consultant Karen Sim.

A Raffles Hotel spokesman said it will“certainly review” the tenants’ feedback.

From TODAY, News
Thursday, 02-April-2009