Booming New Development in Northern California

HOW IS IT IMPACTING MARKET TRENDS?

There are more than 18,990 communities in NorCal with a 1.5% increase from 2020 to 2021. Building new community associations continued during the COVID-19 pandemic. The industry would need to add 150+ new managers across the state just to handle the new communities and additionally, replace the managers who retire, leave the industry, or move out of state.

AS A RESULT, THERE ARE FEWER MANAGERS TO HANDLE MORE ASSOCIATIONS. WHAT TRENDS ARE OCCURRING?

Management companies are “shedding clients” who are difficult, financially challenged, or low paying. This is hurting smaller associations with less resources to pay for professional services and fewer companies willing to provide services. Where do they go for professional assistance?

Employers are turning to alternate staffing solutions seeking to hire staff to work remotely from other regions and even other countries.

Support staff are taking on more responsibilities so managers can concentrate on serving their boards. Specialist positions within firms in insurance renewal, budget preparation, client onboarding by senior management, board orientations, etc. are being created.

Attracting and retaining managers is more crucial than ever. In a 2021 study performed by the Foundation For Community Association Research, the top three reasons listed for managers leaving a firm and or detractors about the community association industry are:

• A toxic work environment

• An unpleasant company culture

• Unreasonable demands from board members and homeowners

Other sources of job dissatisfaction were poor benefits, lack of opportunity for advancement, not covering costs for professional development (including education courses and credentials), and lack of administrative support.

ATTRACTING AND RETAINING MANAGERS IS MORE CRUCIAL THAN EVER

According to the same study, candidates’ top three reasons cited for job satisfaction include:

• An attractive benefits package

• Professional development

• Remote work options

Most managers also like having multiple responsibilities when they carry out the policies set by the association’s board and oversee a community’s daily operations. Managers list the following as main contributors to job satisfaction:

• Problem solving

• Variety of work life

• Helping people

AS AN INDUSTRY WE NEED TO IMPROVE BOTH BENEFITS AND PAY

Primary areas where management firms can proactively aid in retaining and attracting talent include reducing the workload by:

• Encouraging online meetings

• Rebalancing portfolios

• Hiring additional support staff

• Limiting number of monthly meetings/night meetings

Firms are shedding clients who are low paying, but some still feel the need to offer bargain basement pricing. We need a conscious mental shift to understand our intrinsic benefit to communities, to stop undercutting ourselves, our profits, and ultimately, be able to pay the wages required to retain staff by discontinuing underbidding contracts.

Offering bargain basement pricing just to get a contract is now passe. Assess accurately the widget we all sell, which is time. With the staffing shortages our industry is facing and our true value as professionals, firms can afford to be more selective in accepting new communities as clients and set the right, not the lowest, price for services, but they must still provide the service for client retention.

Caroline McCormick, CAMEx, CCAM

Caroline McCormick, CAMEx, CCAM, is the Internal Auditor of Client Services for OMNI Community Management LLC, ACMC and has been certified through CACM since 1993.