Building Operating Management September 2011 - FacilitiesNet

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buildingoperatingmanagement
SEPTEMBER 2011
employer from ADP to the outsourcing
firm. “Our first thought had been
to consolidate [FM] within our own
organization,” Elman says, “but we
didn’t have the tools in house, and it
wasn’t our primary expertise.” ADP
instead decided to look for a company
with better tools to manage facilities
operations. Putting all of FM under
the outsourcing provider’s umbrella
has improved management, consolidated
purchasing and provided
access to intelligence on a broader
scale. The staff cuts, together with
outsourcing, have allowed ADP to reduce
facility management expenses
by 7 percent.
Not surprisingly, opinion on the
“new normal” was mixed. For “shining
stars,” the change has created an
additional career path within the outsourcing
firm and allowed managers
to become part of a group that specializes
in what they do. But everyone
had to stretch a little more, and there
were a few who opted to quit or retire.
“Some people bought into the fact
that it was a career move, but some
others said ‘it’s time for me to go,’” Elman
says.
Overall, outsourcing has been a
success. ADP still has more bumps in
the road ahead, says Elman, but facility
management is now more tightly
controlled and uses more sophisticated
tools to purchase and better metrics
to determine staffing. Currently
Fewer Staff Cuts, Slightly Larger Raises
West Midwest South Northeast
West
Median salary: $85,000
Median raise: 0% (same as 2010)
Bonus eligibility: 40%
Added staff: 17%
Reduced staff: 36% (vs. 39% in 2010)
Midwest
Median salary: $74,000
Median raise: 1.4% (vs. 0.5% in 2010)
Bonus eligibility: 42%
Added staff: 19%
Reduced staff: 29% (vs. 38% in 2010)
South
Median salary: $80,000
Median raise: 1.1% (vs. 0.7% in 2010)
Bonus eligibility: 46%
Added staff: 18%
Reduced staff: 27% (vs. 33% in 2010)
Northeast
Median salary: $85,000
Median raise: 1.4% (vs. 1.2% in 2010)
Bonus eligibility: 46%
Added staff: 14%
Reduced staff: 32% (vs. 35% in 2010)
Impact of the Recession on Staffing
Although the number of respondents saying they added staff has fluctuated since the economy crashed, the number who
say they cut staff dropped significantly in the past year. (Numbers from all surveys reflect staffing changes in previous year.)
Before the Recession Hit
40%
35%
30%
25%
20%
15%
10%
5%
0%
40%
40%
40%
35% 37%
35%
35%
36%
30%
30%
30%
25%
25%
25%
30%
26%
22%
20%
20%
20%
15% 18% 15%
15%
17%
10%
10%
15%
10%
5%
5%
5%
0%
0%
0%
2008 Survey 2009 Survey 2010 Survey 2011 Survey
■ Reduced Staff in Past Year
Recession and its Aftermath
■ Added Staff in Past Year