Page 14 - 20190122_PB HOA 2018 General Report1

11
2019 PROPOSED BUDGET

SUMMARY

Firstly, we would like to highlight the fact that the Administration had been

working hard to look for cost savings opportunities, that was already

demostrated with the utilities cost reductions. Furthermor we want you to

know, that the budget proposed was deeply and the adjustments proposed

are required to be able to face:

a) Retain key staff, Last year, 75% of the Management, from the

Supervisors, Security Manager, Accountant and Managing Director,

received job offers.

b) Reduce Employee Turnover rate. The hight turnover rate cost a lot

to the HOA, since we spend time and money on the recruitment

process, trainning, uniforms, and we have to wait at least 2 months to

have the new staff on a productive level. According to the Exit

interview, 90% of the guards quit because the 12 hrs shift, 6 days a

week, to change such situation, we need to hire 8 guards to operate

security with 3 shifts, 8 hours each.

c) The prices of good and services raised between 8 to 15%, since

the gasoline price increased 26% the last two years, just that factor,

unchain almost all the products and services prices adjustments.