As companies ponder whether economic recovery is imminent or has stalled, they face the
pressing problem of losing top talent. Burnt
out from increased workloads with little or no
increases in compensation, employees are taking flight as some firms begin to rehire.
“There haven’t been a lot of bonuses or
increases in salary in the last couple years,” said
Reggie Mullins, CPM, director of third party
management for Penzance Management LLC., in
Alexandria, Va. “Telling employees, ‘You should
be happy to have a job,’ only lasts for so long.”
While increasing compensation will likely be
critical to attracting and retaining key employees, real estate human resources experts said
companies must also offer other incentives and
create an environment where individuals want
to work.
“We have to come up with and promote intangibles to keep employees,” said Ann Crawley,
director of human resources for Ogden and
Company Inc., AMO, a full- service real estate
firm in Milwaukee, Wis. “We have to position
ourselves to be that company people want to
work for.”
MONEY TALKS
People of course want to work for companies
with excellent benefits packages and competitive compensation—offerings companies have
struggled to provide during the recession, which
many employees have taken in stride.
However, employees’ patience might be wearing thin, and demands regarding compensation
will probably begin to surface more regularly in
the near future, said Julie Brand Lynch, managing partner of LYNOUS Talent Management in
Dallas and an IREM Academic Member.
Companies’ responses to such demands,
regardless of their stability or readiness to dole
out pay raises and bonuses, will likely influence
whether their associates stay or go, Lynch said.
“I know people are being patient right now
when it comes to compensation but inflation con-
tinues to go up, and people’s salaries have been
flat for multiple years,” she said. “Compensation
is going to kick in here soon. Companies should
be sure their total compensation packages are in
line with the market and what they’re expecting
these people to perform.”
Crawley said while Ogden faired decently
during the economic downturn—avoiding lay-
offs and pay cuts—the company could not offer
pay increases to its workforce across the board.
It was, however, able to offer 3-percent raises
tied to performance and keep its referral bonus
program intact—rewarding employees mon-
etarily for any new business they generated.
The referral fees range from 15 percent of the
management contract secured—a $200 “thank
you” if the referral comes in because employees
are doing Ogden day-to-day business—to giving
an employee 2 percent of the gross commissions
earned by a residential agent that they refer to
the company.
The referral bonus program was especially
important during the recession, Crawley said,
because not only did it reward employees, but
it also generated new clients, helping Ogden to
sustain a healthy business.
Milestone Management, a residential property management and investment company in
Dallas, was also able to offer quarterly and
annual bonuses during the recession, said Steve
Lamberti, CPM, and president of Milestone.
The quarterly bonus program is designed
to incentivize associates to meet goals at their
properties based on factors like resident retention, rent and occupancy increases, or expense
controls.
The programs are structured so one successful property doesn’t always dominate the com-
“We have to come up with and promote intangibles to keep
employees. We have to position ourselves to be that company
people want to work for.”
