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While the recent decision to reduce our staff levels may have
given the perception that this was a rash cost-cutting initiative
of first resort, the fact is we discussed and debated various
options at length.
A hiring freeze was already in place and we considered temporary
measures, including tiered pay reductions across the organisation.
However the anticipated decrease in bonuses this year is already a
form of pay cut, and further reduction in salaries would hurt our
junior employees most. Our streamlining was deepest at the top,
with 16 per cent of senior management affected versus 3.5 per cent
of junior staff. Of the approximately 450 staff affected in
Singapore, 45 were ordinary union members.
DBS today is much more international than before. With nearly
half of our staff based outside Singapore, it was not fair for
Singapore-based staff to bear the brunt of the pay cuts. Although
not apparent, staff reductions were also carried out in our
regional markets, not just Singapore and Hong Kong.
But the most important consideration of all is that the changes
in the financial landscape are drastic and permanent - they are not
cyclical. For example, the merger of credit and market risks into
one function led to jobs lost that will not come back. It is
essential that we come to terms with this harsh reality. Across the
globe, and in Asia, financial institutions are restructuring their
labour force.
It was sad and difficult to part with colleagues and friends. We
made every effort to ensure a smooth transition and provided
professional counsellors and outplacement services for all affected
staff.
This exercise was not merely for cost reduction. Streamlining
and optimising staff resources to match the realities of the new
environment are just one part of an overall programme to position
DBS for the future and take advantage of opportunities arising from
this crisis. This includes improving our technology platform and
reorganising for greater teamwork.
The easier thing to do was to avoid making this tough and
unpopular decision.
However, we are intent on positioning DBS for strength and
growth. We believe this is prudent and necessary for the bank in
the long run, and that we are doing what is right for the vast
majority of our staff, customers and shareholders.
Karen Ngui (Ms)
Managing Director & Head
Group Strategic Marketing & Communications
DBS Bank
source: Straits Time Forum 21 Nov
