A CULTURE of teamwork that makes every employee feel valued, and being adaptable in the face of challenges.
These are the traits essential to gold chain manufacturer Unigold International’s growth and resilience over the years – and was what helped them clinch first place in the Enterprise 50 Awards.
The jeweller is run by brother-sister duo Calvin and Angeline Poon, who are directors at the company.
The business started as a handcrafted-jewellery workshop in a HDB shophouse by the duo’s grandfather, and was expanded in 1964 when their father took over the reins.
Over the years, Unigold has continually expanded its operating capabilities and manufacturing capacity. It hit a record high of S$1 billion in revenue in 2022, and expanded its facility by 5,000 square feet (sq ft) to a total floor area of 22,000 sq ft this year.
The process of producing the gold chains is done in the facility, mostly by automated machines, said Calvin Poon. The company also has an in-house gold assaying office to test the chains’ gold content.
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On average, Unigold produces 50 kg to 60 kg of chains per day, and supplies mainly to wholesalers across 15 countries, including those in the Middle East, South Asia and North America. Major retailers in Singapore carrying its products include Lee Hwa Jewellery, Poh Heng Jewellery and Soo Kee Jewellery.
The company sources its gold via barter trade with its customers or from bullion banks.
Culture of teamwork
Unigold strives to create a culture where staff see themselves as part of a team that works together to take the company to greater heights.
An incentive-based system has encouraged Unigold’s roughly 110 employees to improve productivity. The company sets a goal of how many gold chains it needs to produce in order to earn a profit, said Calvin Poon. Beyond that amount, the staff receive incentives for every tier that they hit.
“For example, if I set a target of 800 kg this month and they hit 900 kg, they will get S$100 (in incentive),” he said. “It’s like a personal challenge.”
The director added that this move has motivated his staff to work harder. “They are asking for more sales orders, instead of me (having) to push them to produce more” he said.
In addition to the scheme, there is a new incentive for those who propose their own designs. If the product manages to sell for at least three consecutive months, the staff will receive a portion of the sales profit. This motivates them to come up with innovative designs.
Employees also engage in research and development (R&D), such as the overhauling of machines, and incentives are given based on the cost savings that arise from the improvements. This group of staff are usually more experienced, but they will be tasked to work with junior employees in rotation. This is so that more of the new entrants can enjoy the benefits, in addition to improving their skills.
This means no single person will get the credit for an achievement, and the company can build up a good teamwork system.
“It’s unlike F1. Everybody only knows the driver’s name and not the guy who changed the wheel or the guy who prepared (other things), but actually, it’s a whole team effort, not just the driver’s. The driver is just the spokesman or the image of it, but down the line, everybody’s been contributing,” said Calvin Poon.
Adapting to change
However, the journey has not always been a smooth-sailing one.
Productivity was an issue before Unigold invested heavily in new automation technologies from 2012.
Calvin Poon noted that previously, no matter how much overtime was put in, the company could not go beyond a certain production metric. Now, productivity has doubled, but with half the effort. This has led to improved work-life balance for the staff.
While there is a stereotype that automation will replace jobs and render some workers obsolete, he said that this has not been the case for the company.
“In fact, after automation, you become more important because you need to make sure that the automation works – plus you need to come up with newer ways of doing other things,” the director added.
The company managed to weather the global financial crisis in 2008 and 2009, mainly because the team did not take “unnecessary risks” such as over borrowing or over expansion. Many of its competitors closed down then, leaving Unigold as the only mass-scale gold manufacturer in Singapore.
More recently during the Covid-19 pandemic, while many other companies were retrenching workers, Unigold was able to keep its staff and also remain profitable, said Angeline Poon.
As there was a huge amount of downtime during the pandemic, Unigold’s team jumped at the chance to conduct R&D across the entire factory to further improve its processes for efficiency and precision. This led to the reduction of scraps from its production process and lowered costs.
The near term macroeconomic and geopolitical climate is worrying.
Gold prices are tied closely to crises and “when gold prices are volatile, that is when we will have to take a break or slow down”, said Angeline Poon.
Despite this, Calvin Poon still sees a good market for gold chains. There is also high demand for design add-ons, such as gold charms, and Unigold is looking to expand to make these products in-house in one to two years’ time at the earliest.
“I think our greatest value is our commitment to always improve ourselves,” he said. “Every year, we think of how to be better than the previous year... so that’s something we think is our greatest strength.”
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