This information is 1st and 2nd hand. Not further down the chain.
Affiliated - you are correct. It is a margin problem and in the real world they have no idea. They are giving margin away like no tomorrow. I am not sure why the need a BD department to sell survey at those low rates - any monkey can do that.
Regional Qld - Survey labour is in short supply - most reputable firms are charging 30-50% more than Veris in civil and construction - and they feel that is 20% lower than where it should be for a sustainable professional service. Veris is winning this work and leaving so much on the table. They are paying their labour similar amounts. However Veris can only get so many fee earners - there is a labour supply problem and their competitors know once Veris have a full schedule at their low rates the competitors will win work at the higher rates..... I have confirmed this from 2 sources in the industry and myself.
Staff Training - Veris promote to their staff and recruits that they will pay their staff 4 hours of training & professional per week on a Friday afternoon. That is circa 10% of their week. That is on top of other planned training and CPD. That is a massive amount of time and a weight on their utilisation. In fact word is training gets put down on time sheets even if it has not been done as it is considered an entitlement now. I have heard this from 3 separate sources.
The sooner the bank swoops in the better for the industry and the profession but I don't see the bank acting in any rash manner in the current climate, even before Coronavirus.
VRS Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
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