With the focus clearly on people and the majority predicting revenue growth in the 2010/11 financial year, approximately 50 per cent of strata businesses say they intend to recruit new staff throughout the year.  

Cameron McMillan, Head of Strata Management segment at Macquarie Relationship Banking, said that getting the right people on board will most likely contribute to business success, however strata managers must not overlook their existing teams.

“While recruitment should be a key focus to ensure anticipated growth is adequately resourced, the same focus should also be afforded to existing staff to ensure their ongoing career development and make sure they remain happy and engaged,” Mr McMillan said.

The survey shows that higher revenue businesses in particular recognise staff training as a core area of focus for the 2011 calendar year.  Higher revenue businesses expect to focus on relationship and communications training, while their lower revenue counterparts place more importance on building their teams’ industry knowledge.

Mr McMillan said the recognition of the importance of the team across the industry was commendable: “This focus on people will likely contribute to the bottom line of most strata management businesses, but it will also promote a strong industry where people can enjoy a long and rewarding career.

“The positive correlation between happy staff and happy clients is certainly not a new phenomenon, and it’s great to see this being embraced and nurtured across the industry,” added Mr McMillan.

To find out more about Macquarie Relationships Banking’s 2011 Strata Best Practice Benchmarking survey please contact 1800 442 370 to speak with a Macquarie Relationship Manager in your region, or visit macquarie.com.au/strata

Staffing is a concern in a tight labour market. As Greg pointed out, “Our business is only as good as the people we’ve got.” As Australia’s largest strata management firm, with 410 staff on the eastern seaboard, BCS is firmly focused on retaining and developing their people.

“For example, we’re actively upskilling our workforce,” he explained. “Administrative staff and strata managers can now study for recognised qualifications through our programs.”
Strata Choice focuses on personal attributes rather than experience when recruiting. “It used to be that knowledge is power. But strata requires special people skills as well. You can train knowledge, but not attitude,” said Alastair.

He believes there is a low level of awareness of strata management as a career opportunity, and improving the sector’s profile is vital to attracting the best people. Greg agrees; “We need to increase awareness that this is a well-paid and worthwhile career.”

The baby boomer generation may be an ideal source of new staff. Life experience leads to personal attributes such as resilience, empathy, maturity, and the ability to grasp details without losing sight of the big picture.

“Ideally, practicing strata managers and administrative staff need to be able to remain detached from the emotion and stress of client situations but nevertheless engaged, empathetic and even-tempered,” said Alastair. In the future, specific experience in strata management may be less important than good people skills.

“It’s a great opportunity for people to get something different from a second or even third career,” Tim explained. “They may have already retired but want to get back into the workforce.” 

“We can change who we are as employers too,” he concluded.

“We have to make our teams our priority every day, and develop the skills of our strata managers so they can become better team leaders.”

How do you develop a competitive advantage in a market where there is little tangible difference in the service provided?

“Our processes are pretty much the same,” Greg admitted. “Where we can do better is compliance and risk management. If your contractors let you down, it reflects back on you. Suppliers need to get it right first time - that’s where the risk is.”

Greg believes all strata firms and state bodies should educate their clients on a continual basis. Alastair agrees; “Strata committee members come from different backgrounds with different motivations. We need to keep a variety of people satisfied, but I think you can always make a relationship positive. This is why the people at the coal face need to be skilled and patient communicators.”

One strategy is to be completely transparent with financial contributions. For example, add pie charts to your levy notice to demonstrate where that money is being spent.

Tim suggests that with capital gains now slowing, the market is at a unique point. “Unit owners will now be paying attention to defects or building issues, and I suspect we’ll see a heightening of tensions as they re-set their growth expectations.”

Staff and service strategies can help you grow revenue, but don’t forget your bottom line. Saving time and money through efficient processes can give you another advantage.

Greg said that BCS has developed efficiencies through the scale of their operations, with their own software and strong back office systems. But Alastair believes there are other ways to optimise cost management.

“You don’t need to be a big business to achieve scale,” he said. “We have a shared services arrangement where strata businesses work together to reduce costs. This way we achieve the level of technology investment and resources management we need.” Tim reflected that the strata industry has “hit a brick wall in terms of technology. Not much has changed in ten years. We need to find the iPod of community management!”

If you’re considering investing in more staff, new technology, or expanding your service offering, discuss your plans with your bank manager. Macquarie Relationship Banking specialises in the banking needs of strata management firms, with tailor-made support and streamlined strata banking software to maximise efficiencies. To find out more, call 1800 442 370.