Incorporated in 1991, Singapore-based PestBusters has grown regionally with branches in Cambodia, Malaysia, Thailand, Vietnam and the Philippines. As a market leader, the pest management company serves hotels, food establishments, healthcare facilities, as well as commercial and residential properties. PestBusters takes what it calls an “integrated pest management” approach to deliver its services, supported by innovative technologies introduced by its research and development (R&D) arm, PestHunters. The company also actively invests in staff training under Singapore’s prestigious People Developer Standard to boost business performance through people.
In an interview with Biz Daily, Chairman and Chief Executive Officer Thomas Fernandez, who won a Spirit of Enterprise Award in 2004, shared the reasons behind PestBusters’ success despite operating in an industry with many competitors and charging a premium for its professional services. He also explained why the currently gloomy economic climate in the US and Europe should not impact the pest management industry much.
Kindly elaborate what is an integrated pest management approach?
Conventional pest control is a “spray and pray” approach where you spray the chemical and pray that something happens. When I first started the business, I also used a spray and pray approach. But with a rise in dengue cases for example despite the use of such an approach, I realised there was no understanding of integrated pest management in Singapore. There is also no school of pest control in Singapore or anywhere in Southeast Asia.
I also realised that to be a professional pest management company, the company’s leader must be trained. So I went to the US for more in-depth study in this area, and from there, I incorporated my knowledge into integrated pest management.
Integrated pest management is not just about integrating various pest control tools that you have learnt, but also integrating efforts by people and education in this area. It is also about understanding the biology and characteristics of any pests you are dealing with.
Today, the problem is there is much price-cutting in the pest control industry because of low barriers to entry. Many people see pest control as a luxury, but five-star hotels definitely see it as a necessity. We service most five-star hotels in Singapore that pay a premium to establish certain protocols to keep hygiene standards and a pest-free environment.
For example, we point out to hotel kitchen chefs about certain protocols that need implementation so that they take ownership of them. The chef also needs to work with other departments, so everyone has a role to play in pest management.
Do you invest a lot in developing new pest management solutions?
We don’t need to reinvent the wheel as there are already many new pest management tools in the US and Germany that have undergone research and development. We were the first in Singapore to have a full R&D team supported by A*STAR (Agency for Science, Technology and Research). We also collaborate with University Science Malaysia (USM) in Penang to do research. If I see a pest management solution available in the US, I will consult USM to see if it is practical for use in tropical environments. Of course, I will first buy the franchise to the product. If its field trials are successful, we will introduce it to our clients.
Our R&D arm PestHunters looks for better ways to improve PestBuster’s productivity and innovation. It also continuously looks towards the US, Germany, Australia and other countries to see what new solutions are available for bringing into Singapore.
Given the typically labour intensive nature of pest management companies, how do you maximise staff productivity?
We have been certified under the People Developer Standard and have modules to teach our people integrated pest management. The Institute of Technical Education has also appointed PestBusters as the centre for on-the-job training in this area.
Training people with the right knowledge helps them get the pest management job right the first time, which reduces call-backs from dissatisfied clients that need corrective actions. This improves our productivity because the time saved from less call-backs allows our staff to serve more new clients and take on new jobs.
All our staff must be certified from basic to advanced training, before they can take on the job related to the training. Even technicians who just joined us cannot go on the job until we have given them certification. As staff progress in their career, further training and certification will be given. Each type of certification may have four to five different levels and all are accredited under the People Developer Standard.
We train all staff in various skills, not just pest control. We outsource training of some managerial and soft skills, such as supervision or communication, and only train technical skills in-house. In order for a staff to become a supervisor, he or she will be sent for a supervisory course conducted externally. Through such cross-functional training, one of our former pest control technicians is a human resource manager today.
You have also expanded into Cambodia, Malaysia, Thailand, Vietnam and the Philippines. For large customers with businesses across these different countries, how do you align your pest management IT solutions with their local requirements at each location?
We don’t “push” pest management IT solutions to developing countries overseas because they might not be interested if their technological development is not advanced enough for the solution to be practical. So such solutions are more appropriate for IT-savvy countries and we sell them overseas to franchisees only if their customers need them. The Philippines and Malaysia are more IT savvy compared with Cambodia, Vietnam and Thailand. Countries will eventually have to build up their IT infrastructure, and anytime they need our IT solutions, we are ready to provide them.
Our franchisees also tend to gain a good start-up overseas with our powerful brand name, especially if they already use our services in Singapore. This allows them to sell at a premium to deliver the services. Those using our services in Singapore may extend them to their non-Singapore operations because they know our standards and that we deliver on our promise.
What is your expectation for staff capabilities in IT, which plays a major role in your operations?
Everybody here must be IT savvy and have the capability to do their job even at home or in any part of the world. Our IT services in Singapore also support our overseas operations and we share IT resources with our franchisees. Through online communications, the outsourced IT service provider can also help our staff deal with any technical problems.
As a leader in pest management, how do you maintain your competitive edge over so many competitors?
Continuous training is very important in our company because new pest management methods require it. Our track record is very good with nearly zero pest incidences, and any incidences could be due to weather changes for example. These incidences are tracked weekly and monthly and we will immediately look into them. We have a dashboard to track feedback or any call-backs and this is connected to the client’s database to accurately track their pest situation. In fact, we have staff doing tracking on a full-time basis.
Many pest control companies are like general practitioners, but PestBusters is like a specialist, and you “buy” knowledge from us, which is why we charge a premium for our services. In the past, some customers terminated our services because they wanted to save on cost by turning to pest control companies that charge lower prices, but they soon called us back because the pest problem returned.
Partnering with the right pest control company is crucial, especially for large hotels, because any hygiene incidences might cause them to be shut down by the government. It is also worth investing in our services because the cost of damaged reputation from pest incidences is even higher. More homes, offices and budget hotels are also turning to us because of our reputation.
How do you implement your pest management approach with precision?
We don’t do fogging anymore because it also kills beneficial insects and non-targeted animals. In fact, it is illegal to do fogging in the US. As part of integrated pest management, we use chemicals that target specific pests. The idea behind this approach is to find the source of pest breeding. For example, it is reported that Singapore’s Orchard Road is full of rats. But many of our hotel clients in the area don’t have rats because we proactively intercept and feed the pests their last supper so to speak before they can enter the hotel. Today, many pest controllers end up fire-fighting when incidences arise, and hence more proactive measures are needed.
Given the economic uncertainty amid the US and Europe debt crises, what is your outlook this year and next for Singapore’s pest management industry?
We actually made more money during the global financial crisis because many factories closed down and pests stayed in them. So I don’t foresee any significant impact from the current crises. But we also ride the storm with our hotel customers who see us as their preferred partner. During hard times, we may charge them less and allow them to pay back the balance when the economy picks up. Some even gave us an additional bonus after the crisis to thank us for riding the storm with them. So we understand their pain and are in for the long term with them.
