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Weekly UpdatesThe Baby Boomers are at it again. After years of leading the way on various trends (think rock 'n roll in the 1960s and jogging in the 1980s), many Boomers are about to stir things up again as they head into the next stage of their lives--retirement. The first of the country's 78 million Boomers (born between 1946 and 1964) turned 60 in 2006. In just a few years many of them will begin retiring. This large-scale retirement party will have a major impact on the workforce for industries across the board, including real estate.
Currently, the property management profession hasn't had trouble finding candidates for entry-level and junior management positions, said Nashville-based recruiter Chris Sprehe, president of Christopher Group Executive Search.
"Where it's becoming tougher is at the mid- to upper-level management," he said, specifically noting those who have had regional experience managing thousands of units. Those individuals are fewer in number and have usually been in the business a long, long time. They are difficult to lure away from their current positions because they're comfortable financially.
Recruiting challenges overall, including filling the entry-level positions, will likely worsen. Sprehe notes U.S. Bureau of Labor statistics reporting that by 2010 there will be 10 million more jobs requiring specific skills than there are people who have those skills.
"So, there's just not enough bodies to fill those slots," Sprehe said.
"It needs to change; the talent pool is drying up. There just simply are not enough people to replace the people that are going to start retiring. As the middle managers move up to replace those people retiring, who's going to replace the middle manager?" he said. "That's the key. Talent acquisition is going to be important [to the] bottom line in the next 10 years among all companies."
TRIED AND TRUE METHODS
Whether they're having problems now or soon will be, real estate managers can explore a variety of methods to recruit qualified candidates--even when the pool may be a bit shallow.
A few of today's common methods include professional search firms and online classifieds. Search firms usually charge a fee paid by the employer. The results can be quick because these firms are often on the hunt for qualified candidates.
Online classifieds like Monster.com and Select Leaders, which specializes in real estate positions, may provide several candidates, but it may take more time to shuffle through the mix and find those with the appropriate qualifications, said real estate consultant Shannon Alter, CPM[R] That's why real estate managers should also look to colleagues and professional organizations, like IREM or BOMA (Building Owners and Managers Association), for finding candidates, said Alter. One way is to contact the leadership of organization chapters who may be able to offer specific candidates or have industry contacts that can.
When she was president of the Orange County chapter of IREM, Alter said she often received calls from colleagues looking for manager or administrative assistant candidates.
Richard Muhlebach, CPM and senior management director at Kennedy-Wilson Properties Northwest, Bellevue, Wash, said networking is the best recruiting tool for finding property managers. A past president of IREM who is currently active with various industry organizations, Muhlebach said he often uses his contacts to fill positions. "I found that to be especially helpful when I had to fill a position in the Philadelphia area, and I knew nothing about the Philadelphia area. And yet, I was able to find a couple of great candidates, one of which we hired."
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YOUR OWN BACKYARD
Another place to look for qualified candidates is also the most obvious--existing employees. Candidates can come either through referrals from current employees or they can be the employees.
Alter said employees who refer candidates may be offered a financial incentive if the new hire stays on the job for a certain period of time. "I know that many companies have employee referral programs. It's always better [public relations] if you can hire from within and show promotion."
In the past 27 years, Muhlebach said he has promoted about 15 employees to property managers from administrative positions, like assistants and accountants. He said a good manager will know just by working side by side with an employee whether he or she is ready for a promotion.
RAISE YOUR PROFILE
Another way that companies can attract good talent is through branding--finding ways to get the word out that your company is a good place to work. That word can come through magazine articles, postings of new hires and promotions in trade journals, and even current employees. Alter said she once had a candidate literally hound her for a job. "He had heard about the exciting things the company was doing, and he wanted to work with us," she said. "So whether it's an article in JPM or notices in your local business journal about what your company is doing and who they've hired and who they promoted--all those things are important and contribute to your reputation in the industry."
Strong corporate Web sites can also be useful tools to tell the company's story. "Any candidate worth their salt before they go out on an interview is going to hit the Web site of the company," said Rick Gillham, president of Gillham, Golbeck & Associates, Inc. (GG & A) a Dallas-based executive search firm specializing in commercial real estate.
Paige Palmer, vice president of GG & A, said companies don't realize the importance of selling themselves to candidates. Firms need to be able to articulate their culture and communicate what is different about their values or working environment in order to entice a candidate. "It is becoming so competitive and [job seekers] have so many options available to them, an employer has to stand out to attract a good person," she said.
When conducting a candidate search, GG & A puts together not just a job description, but a job presentation that focuses on describing what the company is all about. Candidates like companies that can provide a good idea of what it would be like to work there, Gillham said. "Those are typically the companies that are getting the best talent," he said.
TRAINING GROUND
One way to make sure that employees have the right qualifications to move up is through training, which acts both as a recruiting and a retention tool. Gillham said companies can offer informal mentoring programs that pair up a more experienced employee with a less experienced one, or more formal training programs that may consist of classes run by professional organizations.
"As tight as the market is, the real estate industry as a whole is going to have to come to grips with growing their own," Gillham said.
Companies can also retain employees by covering the cost of training required for an employee to receive a professional designation, like a CERTIFIED PROPERTY MANAGER, Sprehe said. The coverage can also help recruit employees, so employers should strongly promote the benefit. "Spell it out upfront," he said. "We want you to get the CPM designation, and we're going to pay for it."
Companies can also try to identify unsatisfied employees who may be on the verge of quitting, by conducting periodic employee reviews. Once an employer has identified the problem, there may be a convenient solution. For example, Sprehe said an organization with multiple offices may offer an unhappy employee a job transfer to another city to accommodate their needs.
Finally, one last strategy for recruiting talent is to do it often and early. Companies shouldn't wait until six months before a Baby Boomer retires to begin the search for the replacement, Sprehe said. Rather, an employer should begin the recruiting process as soon as an employee announces his or her retirement. The soon-to-be retiree can then groom the successor. The employer may have to offer a higher salary that is more commensurate with the existing employee's pay, but Sprehe said the additional expense is worth it because competition is fierce.
Delaying a search, he said, is unwise. "Companies really have to invest in the future for their talent base, particularly the mid-level managers who are going to move up to the senior level. You gotta hire 'em now."
For more information on jobs and recruiting visit www.iremjobs.org.
Karen L. Wagner is a contributing writer for JPM. Questions regarding this article can be sent to mnaso@irem.org.
RELATED ARTICLE: FOCUSING ON THE SHORT-TERM
When hiring a permanent employee is not possible or even desirable, consider hiring for a set period of time. Real estate consultant Shannon Alter, CPM, said she has used interim hiring on occasion. "There are always people in the industry who may be between jobs or just want to work part time. They are willing to fill in for a short time and maybe handle a position in a start-up capacity, and get the owner over the hump," she said.
Chris Sprehe, president of Christopher Group Executive Search, said interim hiring can be useful, but only for junior-level types of positions or for specific projects, like leasing a new office building or apartment complex. In general, Sprehe said the quality of the candidate comes into play. A good candidate, he said, won't take a job that's temporary. "I just don't see many of those job postings out there," he said.
But Rick Penn, president and CEO of Dallas-based BG Personnel Services, and a recruiter who specializes in the multifamily industry, said interim hiring can be an excellent solution for peak times, like the first of the month when more renters are either moving in or paying their rent. Temporary hires can also be used to fill in for a few months for an employee who is on a leave of absence. Penn said he can't think of a situation where temporary hiring wouldn't be a good idea.
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