Savills Annual Report 2007

59 Savills plcReport and Accounts 2007Our BusinessOur ResponsibilitiesGraduate recruitment programmeBuilding on the recent accolade of ‘Graduate Employer of Choice for Property 2007’by The Times, a new graduate recruitment campaign was launched in the UK .To help facilitate the initiative, a graduate recruitment manager was appointed.The improved programme has created greater consistency in our recruitmentof graduates across the businesses.In Ireland our business, Savills Hamilton Osborne King has initiated The GraduateExcellence Programme TM which is a two and a half year structured learningprogramme designed to promote technical excellence and develop future leaders.This programme is underpinned by four pillars:– Business: Graduates develop the technical and professional competenciesnecessary to operate successfully in the business and the market place at large.–Team:Graduates develop skills that will ensure that they operate as effective teamplayers and contribute fully to our team’s success.– Individual: Graduates develop a thorough understanding of themselves and asthe programme advances they recognise the change in their behaviour, growthand learning.– Values and behaviour: Graduates behave in line with our ethical frameworkand values and understand why these are important to the business’ culture.Developing talentAttracting the right talent is an important component of our skills strategy. We mustalso retain and motivate high performers in the Group and ensure active employeemanagement. A vital part of this is helping to identify talent and to develop newskills amongst existing employees. We are in the process of implementing a talentmanagement and development strategy across the organisation in order to helpbuild Savills’ future leaders.Recognition and rewardThe competitive remuneration of our employees is key to retaining them. We regularlyreview the way we reward and incentivise employees. Additional benefits include:performance and profit related bonus schemes, share save and share optionschemes, pension schemes, health, long term disability and life insurance.Our bonus schemes and share schemes give employees the ability to share inthe financial success of the Group and recognises and incentivises their directcontribution to that success.The survey confirmed that Savills isa welcoming, friendly employer wherepeople are given the autonomy andresponsibility to do a good job.Work/life balanceEmployees value more than just financial remuneration, and that providing a balancedand flexible approach to professional life can help enhance employee performanceand enjoyment of their career. In the UK we have introduced an Enhanced FamilyPay policy and most recently launched Additional Holiday and Loyalty HolidayReward Schemes designed to recognise and reward the loyalty of those whomake a long-term commitment and contribution to Savills.Internal communicationInternal communication is an increasingly important activity in the developmentof the Group and a priority in its strategy to invest in the organisation and the brand.As Savills grows so does the importance of managing the multitude of messagesflowing through and across the organisation. It is important that we help employees toboth understand and undertake what is needed to provide the best possible serviceto customers and to contribute to the ongoing success and growth of the business.An internal communications department has been established to facilitatecommunication within the business using both online and offline media.This newly centralised team is continuing to improve the effectiveness of employeecommunications such as a weekly e-newsletter, organisational announcements,surveys and suggestion schemes to engage employees and to expand the use ofour intranet, Connect.Health and safetyThe promotion of a healthy and safe workplace is a fundamental responsibility of allemployers. Policies and procedures are in place to reduce risks and incidents withinthe workplace. We have dedicated health and safety executives who manage, auditand review health and safety, as well as implementing improvements where required.All employees have access to the resources they need to enable them to achievetheir personal and company health and safety objectives. We provide workspaces,equipment, materials and systems of work that contribute to a safe and healthyenvironment for our employees. We strive for health and safety excellence and are notdriven by compliance alone.ClientsSavills ability to anticipate and deliver against client needs is inherent in our culture,and essential to our tradition of high quality service. Environmental and social issuesare increasingly on our clients’ agendas and should be reflected in what we do.Improving client serviceMany of our offices are moving towards accreditation under ISO9001:2000 (QualityManagement). This will not only make our operations more efficient, but will alsomake us more competitive when submitting bids and proposals, especially withteams focusing on public sector clients.

60 Savills plcOur BusinessReport and Accounts 2007Our ResponsibilitiesOur ResponsibilitiesCustomer satisfaction through feedback and recognitionSavills’ teams both apply and are nominated for awards, the results of whichprovide invaluable feedback about our work. For example, in November 2007 theCommercial Retail and Leisure team was awarded the ‘Estates Gazette PropertyAdviser of the year for Retail and Leisure’ award.Savills continually responds to clients’ needs by enhancing existing and introducingnew services. For example, our biggest Property Management team in Asia hasintroduced:– Savills client portal: this enables clients to remotely access real time financialinformation about their property. Clients can choose to print tailor-made financialreports. There is also a platform to store and share meeting minutes, floor plans,fit out guides etc. This is also environmentally friendly as it eliminates the need tocirculate minutes and other documents by hard copy.– Online customer satisfaction surveys: customers and clients are able to completethe online survey allowing us to receive direct feedback on our services.Responding to changing marketsWe recognise that the expectations about the built environment are changingacross our global market and that they are being driven both by market demandand regulatory change. Our strategy is to create strong and diverse teams whichoffer services to address the increasing legislative framework. For example, followingregulatory change in the UK, Savills has seamlessly incorporated Home InformationPacks (HIP) into its UK residential operations.In addition, because many of our consultants are leaders in their respective fields, weare able to provide insight into future trends, such as the changing urban landscape.Our involvement in and support for the ‘Global Cities Exhibition’ at Tate Modern inLondon, is an example of how our expertise helps to inform discussions on the futureof the built environment. This exhibition was free to the public and examined therecent changes in ten global cities, in both developed and emerging markets: Cairo,Istanbul, Johannesburg, London, Los Angeles, Mexico City, Mumbai, Sao Paulo,Shanghai and Tokyo.Supplier selectionOur choice of suppliers can have an impact on economic, social and environmentalfactors. Whilst we do not use many suppliers, there are some areas of our businesssuch as property management, where suppliers play an important role. In theseareas, we are starting to put in place common standards for supplier selection.EnvironmentSavills’ impact on the environment arises both from our operations and from theadvice we provide to clients. The impact of our operations on the environment is lowcompared to many other industries, and so the most significant contribution we canmake is through the quality of advice to clients. By helping clients to understand theenvironmental implications of their property decisions, we can have a much broaderimpact. We therefore see our specialist services, research and training as animportant part of our environmental responsibility.Client servicesMany of our services include several business strands that have a strongenvironmental component. These include, for example, town and countryplanning, building consultancy, facilities management and strategic projects.We can only provide the environmental services that the market demands. Part of ourrole, therefore, is to increase awareness of the benefits of addressing environmentaland other issues. Savills were an Official Sponsor of the Think 07 exhibition andconference held in London in May 2007. The event gathered together the UK’sleading opinion formers and thinkers to debate:– How the built environment meets today’s changing environmental, economic andsocial needs.– What needs to happen to make the built environment truly ‘fit for purpose’ in acarbon-constrained world.– What sustainability means for the private sector and government bodies involvedin regeneration.– The wider responsibilities of the property and construction industries as we dealwith the issues of climate change, urban renewal and redevelopment.Examples of what we are doing include: our Hong Kong office has introduced a newway to manage properties and buildings within its portfolio which benefits theenvironment. Its ‘Invisible Hands’ Environmental Care Programme has alreadyresulted in several awards including for energy efficiency and recycling.Global Cities ExhibitionThe Global Cities Exhibition at Tate Modern in London is anexample of how our expertise helps to inform discussionson the future of the built environment.

61 Savills plcReport and Accounts 2007Our BusinessOur ResponsibilitiesIn Summer 2007, the Savills Research team published a report on the Market forSustainable Homes. This considered the impact of the introduction of EnvironmentalPerformance Certificates and the Code for Sustainable Homes on the housingmarket. While the UK Government has set a policy objective that all new housingshould be zero-carbon by 2016, implementation will require this kind of research andexpertise which Savills can provide.Our operationsWhile our environmental footprint is relatively small, we appreciate the value inreducing the impact of our activities on the environment to as low a level as isreasonably practicable. This aim supports our business goals in a number of ways.For example, by identifying operational efficiencies our actions are often not only goodfor the environment, but can also save us money too. In addition, it assists us in beingan employer of choice.The Group adopted an updated environmental policy statement in November2007, which sets out its current approach to achieving its environmental objectives.In the UK, a cross-company ‘Green Group’ was formed in March 2007 to stimulateand co-ordinate environmental initiatives nationwide. Likewise in Hong Kong,Savills Property Management Ltd has established a centrally co-ordinated approachto sharing environmental best practice, training and business development.Similar initiatives are being pursued on a business by business basis elsewherearound the globe.A number of offices operate an environmental management system that complieswith BS EN ISO 14001:2004. This is designed to achieve and demonstrate soundenvironmental performance by controlling the impact of our activities and serviceson the environment. In 2007, eight UK locations and our Hong Kong office haveadopted this international standard, with others to follow during 2008.Information Technology forms an important part of any business. A prime focus ofthe Green Group is to find solutions through our use of modern technology to reduceour environmental impact. Initiatives that have emerged from their work include thoseaimed at reducing power consumption, reducing waste and reducing the need fortravel. We are also using new technology to deliver research information, marketingmaterials, web-based collaborative forums and marketing brochures to reduce paper,transport costs and waste.CommunityAs we reported last year the Board of Savills plc remain committed to enablingand, where appropriate, encouraging its employees to be actively involved in theirlocal communities. Part of the Savills culture includes playing a positive role in thecommunities in which we operate, and our reputation relies on being a key memberof the community. An intrinsic part of this role is supporting charities and communityrelated activities on both a local and national level, which also has a positive impacton our company profile and raises awareness of our brand in these markets.As part of our commitment to our staff, we commissioned a community surveythroughout our network of offices in the UK. The results of the survey prompted thecompany to re-examine its approach to Charitable Giving in the UK, promote existing,and introduce a number of new, initiatives. These include:– Give As You Earn Scheme: Savills operate a give as you earn scheme, whichenables employees to donate to charities of their choice in a convenient and taxefficient manner.– Bonus Waiver Scheme: Employees are given the opportunity to donate to charitiesof their choice by waiving part of their annual bonus entitlement. Savills enhancesany such donation by up to 10%.– Matching Scheme: Where an employee or group of employees raises money fora particular registered charity, on request, Savills may make a matching donation.The amount available for the matching scheme is determined by the board of eachoperating subsidiary on an annual basis.– Giving of Time: Where employees use their holiday entitlement to undertake workfor registered charities, Savills will give the employees one extra half day of holidayfor every full day of holiday committed to working for a charity up to a maximum oftwo extra half days each year.Globally the Group is very active and involved in wide ranging activities including:– In China, our Shanghai office supported children from needy families suffering fromleukaemia through the Chinese Red Cross Foundation and its ‘Little Angel Fund’.– In Hong Kong, we have been awarded ‘The Caring Company Award’ organised bythe Hong Kong Council of Social Services which applies to the staff working on theirmanaged portfolios.– Savills Sydney are supporting ‘Earth Hour’ which is aimed at inspiringpeople to take action on climate change by turning off lights for one houron a designated date.– In Ireland, the graduates at Savills Hamilton Osborne King are encouraged as partof their training to give up two weeks of their time to work on charitable activities andthis is a scheme that is being considered for inclusion within our graduate scheme inthe UK.Future plansWhile we are pleased with the steps we have taken to formalise our approachto Corporate Responsibility in 2007, we recognise that there is more work to do.In particular, we have an opportunity to spread these practices, approachesand services more widely throughout the Group. We are also in the process ofestablishing performance measurement indicators across the Group, so thatwe can better monitor, measure and improve our performance in the future.

62 Savills plcOur BusinessReport and Accounts 2007Our ResponsibilitiesDeveloper acquires Victoria Stationretail complex, confirming thatshopping centres remain attractiveassets despite current trendsUKVictoria Place shopping centre, LondonHigh quality shopping centres continue to representexcellent investment opportunities, despite currentmarket trends. October 2007 saw Belfast-basedproperty developer William Ewart, advised by Savills,purchase the long leasehold in the Victoria Placeshopping centre. The centre, which is part of London’sVictoria Station complex, was acquired from theMetro Fund for £92.5m, reflecting a net initial yieldof approximately 5.1%.In total, Victoria Place covers 83,000 sq ft andcomprises around 45 units arranged over three floors.Its significant growth potential is complemented bya range of strong tenants. The centre is currently fullylet to blue-chip companies including Sainsbury’s,Next and Border. The total annual rental income isestimated to be £5.3m.

63 Savills plcReport and Accounts 2007Our BusinessOur Responsibilities