The top team at Savills has said it wants to maintain headcount as real estate markets wobble, arguing that keeping a stable workforce will benefit it when a recovery arrives.
Speaking with EG, as the agency announced full year results, chief financial officer Simon Shaw (pictured, above right) said the firm had “retained bench strength” even in parts of the business that have suffered, such as the transactional markets.
“Those transaction markets are compromised and have been through the second half of last year – and we expect that to varying degrees to [continue] in the first quarter and second quarter of this year,” Shaw said. “But these people are doing the hard yards of their work, which is advising people who need help but perhaps can’t do anything at the moment. That is absolutely vital.
“We don’t let our people go to protect a margin for a quarter or two quarters.”
Chief executive Mark Ridley (pictured, above left) added: “Even during the pandemic, we had this same philosophy, which is to ensure that we maintain bench strength so that we can actually recover more quickly. We think that’s the right strategy.”
While the transactions market hits a lull, the Savills team said its less transactional business lines have shone.
“Property management and facilities management are very important – they have been growing and we have been investing in them,” Ridley said. “Project management is perhaps one of the biggest areas of growth for us.
“This is very much around obsolescence in many markets, particularly offices. Whether it’s sustainability, whether it’s lack of amenity, everybody is looking at the upgrading of their accommodation, whether it be investor or occupier.
“So, project management services are in demand and we’ve been growing [that business line] to reflect that.”
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