Spicerhaart CEO Paul Smith has spoken out about the “very difficult decision” to lay off some of his staff, and warned that we are only at the start of the pandemic. He has also said that some of his offices will never re-open and that other agency businesses are taking similar action.
This is his full statement:
“As a result of the coronavirus outbreak, we have had to take the very difficult decision to lay off some of our staff. The remainder – around 1,750 – are now working from home and our branches are temporarily closed in order to keep our staff and customers safe. Most of our branches will re-open when it is safe to do so.
We totally understand the challenges and hardship that this very difficult decision will have for the staff who’ve been laid off, especially at this time of crisis with Covid-19. We have apologised to the individuals concerned and will be discussing their leaving terms with them.
We had to act quickly in order to safeguard the business as a whole as the industry is facing the prospect of up to 90% less income coming in from property sales with best estimates suggesting it could be six to nine months before transaction volumes return – and even then, there’s no guarantee.
I doubt if any estate agency, large or small, can survive with just a fraction of their income for nine months and we will see many agencies go to the wall if they don’t take action now.
We have been criticised for not keeping staff on so they can claim 80% of their salary from the Government – but without any clarity of what this means for estate agents we had to act.
The 80% is only for those who can’t work during this outbreak – it’s unclear at present whether agents’ normal activities would fall into that category.
If the Chancellor had extended the business rates payment holiday to estate agents or offered us grants or subsidies as he had done to retailers, it would have made all the difference. I have requested, via my local MP, that Rishi Sunak rethink the business rates relief and include estate agents.
At the same time, we had to take on board the Government’s advice about social distancing and self-isolation, given the speed at which the coronavirus epidemic is escalating in the UK. This meant temporarily closing all our branches on Friday and setting up systems and technology so that our staff can work from home, which was a huge undertaking by our IT and telecoms team.
I am so desperately sad that a few of our branches will never re-open and I would like to thank all those staff who worked there for all their hard work. I hope, one day, they will understand that this was a decision that was completely out of my hands.
Having been contacted by many others in the industry, I know we are not alone in taking this drastic action to let people go; many other estate agencies are following suit and I know of hundreds of job losses so far across the industry.
Hopefully, out of adversity will come new operating models as agents strive to be innovative to face the challenges ahead.
What many people are failing to grasp is that this pandemic will have major consequences for society as a whole, not just our industry. And we’re only just at the start.”
There is no simple way of doing what they have done. Although this is not the way I would have chosen.
Sadly it won’t be enough for any regional or corporate agent as they won’t be able to get their costs down fast enough.
Having just paid tax bills on account and having had a horrid six months up to Xmas I can imagine cash will already be very tight for many……
Good luck all
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Keep digging Paul. It wasn’t what you did. It was the way you did it. And what sacrifices have you made personally to save the business? Pay cut? Don’t think so
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Funny I drove past two SH branches this morning both were open and had staff in ??
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The callous nature of the way you went about this is the principle issue here – your self-justification of the needs to do it (and why so quickly when clarity was only a few days away) are a separate matter.
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With first hand knowledge of how devastatingly brutal Smith can be, I would imagine that this decision was made with an enormous sense of relief that he was able to offload loss making offices, whilst using the current situation as a convenient excuse….
…I wonder, if he is successful in getting the chancellor to include agents in the rates relief, whether he will change his mind… after all, it would make ‘all the difference’…
….somehow I doubt it….
Shame on you Paul
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…he does seem to be using the virus as an excuse, and his staff in a political game. Hopefully, those retained will consider their options once the dust settles; I wouldn’t want to work for an employer like that!
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I can only imagine his next column if another business had acted in this way. Given his obsession with Countrywide and his inability to write a column without discussing them, can you imagine the holier than thou stance he would have taken if they had been as callous as he has been?
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Some heroes don’t wear capes. They wear velvet robes and designer suits.
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I don’t think anybody anybody has any issue with staff being laid off (a lot of us will).
The issue is the manner it was done.
Also the fact he has had a smug attitude taking potshots at other agents over the last few years saying how financially secure they are when others has suffered.
Reap what you sow Smith.
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It wasn’t what you did Paul, everyone understands tough decisions have to be made. It was the way you did it… A complete lack of empathy, consideration, and kindness for the people who have made you so much money. Good luck recruiting when we come out of this, not sure how many people will want to join a business that behaves like this.
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Often Paul is forward thinking, inventive and astute and he might well be making the best decision for the future of his company. I am sure we all appreciate that.
But to very suddenly dispatch hundreds of staff with no warning is still disgraceful. No opportunity for questions- why not? Why not allow your staff to ask as many questions as they liked and take all night if needed- where’s the compassion?
These staff are frightened and have bills to pay and families to feed. Many won’t have a back up plan and pretty much no chance of re-employment right now.
Where is the sensitivity and compassion Paul?
Utterly utterly disgraceful.
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Paul Smith…..you are very quick to come out and speak of your “very difficult decision” but not very good at communicating to those staff who are no longer employed!!
I am one of the those and since 6.21PM on Friday last week have heard NOTHING!!!
We are real people with real issues including keeping a roof over our heads and need to know if we can do that even if only for the next month!!!!!
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I guess in 6 months time people will remember the employers WORTH working for?
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I hope sellers and landlords with a conscience allow c. 1 year after we get over this (for staff to find new jobs), and then ensure that not a penny of theirs goes to this business. We should all be pulling together at this time, not being selfish like the retail and medical profiteers. The government is doing its best. If he’d given staff the option to take 4 weeks unpaid leave in the meantime, or something else, that would have been decent. This will only make thing worse – for everybody!
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I think this is probably the first article I have ever read from PS where he isnt slating Countrywide or others or self promoting as ‘The largest independent agent in the UK’ so that at least makes a refreshing change.
As others have said, it’s not what he did, it’s the insensitive, haartless way it was done. A 2 minute scripted phone call with no opportunity to ask questions is just not the humane way to tell someone that their life as they know it is finished. Totally unacceptable behaviour.
On the positive side, haart have some very talented people who are now looking at alternatives. I would also suspect that many who are still employed will now laugh at the constant ‘spicerhaart family’ rhetoric and be looking to jump before being pushed.
We all know we are in for a tough ride. Difficult decisions will need to be made. I would hope that when others have to make them, they will show an ounce of decency – unlike Mr Smith who clearly doesn’t give a toss!
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I trust you gave all this detail to your staff Paul …….before you fired them?
No? It just came to you in the night, like a vision from ????
Still preaching about how everyone else will/won’t do.
Ask your Employees how they thought you handled it Paul ……. THEY are the people who matter most!
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Weasel words.
Maybe the interest of your business might have been best served by lobbying for estate agents to be included in the blanket relief on rates .
More importantly this offer by the Gov’t of offering 80% of wages is still unclear .The devil is in the detail In fact your very swift action in brandishing the sword culling the staff might have put paid to the chances of receiving it for employees.
How many staff could you retain for a month at the amount you are shovelling at your blood brothers RM .
As ever there is consequences .
No doubt the rest of your staff will have stiff necks looking over their shoulders
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“Hopefully, out of adversity will come new operating models as agents strive to be innovative to face the challenges ahead.”
I’ll just leave that parked here…
..alongside
“…Paul (Vickerstaff – ex-PB sales Director) will help us grow our business to cover every postcode in England and Wales.” (credit: Paul Smith, December 2019)
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Plenty of EA businesses face some very challenging decisions over the coming days, weeks and months. However I urge your “troops” that are still employed to scale back on the silly self promotion on social media as this is just kicking good people down who are already very down.
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Perhaps Mr Smith should have used some of the immense cash and other assets within his VRS Investments Limited company to show support and a degree of loyalty to those hard working colleagues that have helped him build a substantial personal fortune. The 2018 accounts show net shareholder funds of circa £50.2 million and I wonder if Mr Smith has trimmed his £454,000 annual salary?
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As expected In usual Boris style despite the largesse nothing in place regarding loans or clarification of the 80% of the salary .This comes under the heading of “wash your hands or something”
In fact the banks have taken the phones off the hook and arent even answering for short term loans
Reminescent of the Wall Street Crash
So Smith has just cut the rope and left his former staff up the creek without a paddle
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The sad fact is many more agents will need to make similar decisions in the coming days. Very sad times for every industry.
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Paul has gone into survival mode – this is the only way to survive.
If you want your estate agency business then you need to act TODAY!!!
Grab your bank statement and go through all costs – if you can’t afford to stay afloat remove all items not required, cancel all direct debits and get into a payment agreement suppliers afterwards. I know its harsh but this is the only way you can survive.
Ask yourself, if you was opening your business today under current market conditions what you would do – then follow that plan.
Most agencies were struggling pre CV.
And YES!!!! – get your ar** off Rightmove and cancel that direct debit today. RM has fu**** us over the years and played us against each other.
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Sadly, it wasn’t what Paul Smith did that is the issue for the vast majority of people. It was the way he did it! Other agency bosses will no doubt have to consider the same types of things in the weeks ahead, but they need to do it more openly, in a more consultative way and without the clear arrogance that SpicerHaart displayed.
It was evident that they have also lost out because for some time they have portrayed themselves as the “SpicerHaart family” – I’m afraid that doesn’t cut it when you do that volume of redundancies in this cold and callous manor, hence the anger that is being displayed by so many, and rightly so!
It’s a shame because love him or loath him, Paul Smith has a (generally) decent reputation, until now, when he has undone it in one foul swoop!
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What’s clear is that most understand that in times of crisis companies, big and small, have to make crucial decisions to survive and look after the long term viability of the firm. It wasn’t so long ago that LSL made some very tough decisions, got slated for it indeed by staff and many who are in this discussion, for the way in which it was conducted, but now they survive and the negativity has passed. Mr Smith would have been criticised however he played this one out and perhaps some of that criticism is justified as it is almost impossible to carry out a task of this size without any issues. Only those with genuine experience of this nature could truly comment. He has however acted quicker than anybody else and that has to be key. I would not be surprised if all eyes are turned to other companies in the not too distant future. I for one would not be backing against haart thriving in the future.
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I am one of those staff members whos employment was snatched from under our feet… I can say with certainty and conviction I have 100% not recieved an apology or even a call yet from Paul Smith or any other member of Spicerhaart. None of the colleagues I have spoken to have recieved an apology or call from HR yet either… some have had calls to immediately bring thier cars back and nothing else. I do believe Paul Smith you are entirely missing the point or just avoiding it. WE ARE NOT UPSET AT LOSING OUR JOBS IT WAS THE CALLOUS AND THOUGHTLESS WAY YOU DID IT WITH US ALL STILL NOT BEING TOLD HOW MUCH OR WHEN OR IF WE GET PAID. How about address that!!!?
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Yes I agree that the way this seems to have been dealt with was terrible and seems like a knee jerk reaction to what’s still unfolding across the UK but to bring up what Paul Smith has said in the past is embarrassing, PS does like to tell the world what they should be doing but no one saw this coming.
A lot of agents will be laying staff off so stop having a dig at someone because you don’t like his past views and start thinking about how you can look after your own and getting messages in front of your local MP’s
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After a weekend of reflection agents with any sense will be doing the same. Has it been made clear how many went? The message IS important and yet the result will be the same. It’s called survival. The bile and sickening venom in comments under each of the articles in the last few days has been inexcusable, in my humble opinion. It isn’t a sector I’m proud of any more 🙁
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****UPDATE*****
RE MY MESSAGE FROM 12.19PM EARLIER TODAY.
THE SILENCE IS DEAFENING!!!
NOT A WORD!!!
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What a really unpleasant man. He’s handled this disgracefully and to do it when those staff could have got 80% of their salary paid in a few weeks is so low. The months ahead are going to be tough for everyone, he’s just made it unbearable for those staff. Shame on him.
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“…to do it when those staff could have got 80% of their salary paid in a few weeks is so low.”
Correct me if I’m wrong – but I believe the Government deal wasn’t announced until after the staff had been told. An hour or so is short period – but as evidenced here, what happens in an hour can be life-changing.
That being said the argument is still overwhelming that this was a fait accompli long before the axe was apparently wielded on Friday.
“The months ahead are going to be tough for everyone, ”
Yes – they are. Let’s not forget that.
“…he’s just made it unbearable for those staff.”
Because being sent home on part pay with the threat of the axe being wielded hanging over their heads until this awful situation resolves itself is bearable in some perverse way?
I don’t think I’ve agreed with Paul Smith or his scribblings since his ‘wordsmith’ column in EAN somewhere around 1995 – and even then it was maybe a tentative nod… once. So to say that I disagree strongly with this decision is pretty much a ‘given’. But it wasn’t me in that position, making that decision… thankfully.
But one thing I do know is that he would have been extremely conscious that this would be picked up by EYE, and that the likelihood his head would be hoist with his own petard was overwhelming.
Bu99ered by bad timing, I would suggest. It looks like a knocking bet it was going to happen at some point.
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I hear Connells have told everyone that no one NO ONE is going to lose their job over this catastrophe-lets see shall we ?
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Here you go Paul:- “Boss of Kurt Geiger shoe chain is suspending his salary for a year and giving NHS staff 50% discount once shops reopen. He is paying all shop staff so that they can volunteer for Age UK and other charities”. Once this is over I will happily buy from Kurt Geiger. As a landlord and homeowner I will never, ever use Spicerhaart.
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I suspect you are not alone
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Paul Smith is always amongst the first to jump on the “this is how you do estate agency” band wagon and first to say how well Spicerhaart are doing over everyone else. Well he’s keeping up to his claims of being innovative and forward thinking by being one of the first to lay off staff. He gratefully sent them on their way with a week’s pay, the only none first on this occasion was not to let them know first thing in the morning, instead he got a full day’s work out of them and told the they were being let go at 5pm.
What a great guy, at such a difficult and uncertain time, Paul runs to the hills looking after number one and only stopping on his way to heartlessly lay staff off.I would recommend any of his staff still in employment to watch out, you could be next. No loyalty from Mr Smith – as per the closing sentence of his statement – were only just at the start!!!!!
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