Flex to Succeed23 March 2012
Even in an Olympic year the property and construction sector remains under great pressure. Another victim of this climate is the QS firm Northcroft, established in 1840, but as of 4pm on 16 March 2012 is now a company owned by the Capita Group.
The challenge facing many companies today is that of a shrinking market and the need to flex accordingly. The ability to control overheads is at the centre of this flexibility. Long gone are the days of year on year salary increases, which in turn increase overheads and the annual burden on a Company. My view is that employees should be rewarded based on the Company's performance and their individual contribution to the success of the Company. This allows a business to reward performance based on results, whilst controlling costs and remaining agile. CPC's Performance Management and Appraisal System (PMAS) is at the heart of how future rewards will be calculated and distributed to our people.
For companies like Northcroft, their inability to control overheads has led to them no longer controlling their own business – unfortunately, there will be others in the coming months that suffer the same fate.