“We have traditionally paid a week’s rent as a bonus for any new property brought on for management but that doesn’t appear to motivate the property management team our numbers are not increasing. Some of them are very proactive about getting new properties but most see their role as ‘managing’ and not ‘new business.
How do I develop an incentive program that gets everyone motivated toward the growth goal?”
If a property management incentive program is to be effective, all the factors that affect behaviour must be recognized, including: motivation, skills, recognition, an understanding of the goals, and the ability to measure progress.
Many real estate companies mistakenly assume that what works for one organization works well for all. Many often attempt to create incentive programs without analysing how each program feature best suits their team.
To facilitate the creation of a profitable program, every feature must be tailored to the participants’ interests. A successful incentive program requires clearly defined rules, suitable rewards, efficient communication strategies, and measurable success standards. By adapting each element of the program to fit the individuals, companies are better able to engage the entire team and increase the effectiveness of the overall program.
A comprehensive incentive program represents a substantial investment to the majority of companies and the full participation of the team is required to ensure a sufficient return on that investment.. Incentive programs are based upon the concept that effort increases as people perceive themselves progressing towards their goal. Therefore programs should offer the team not just monetary rewards, but a variety of products and services based on their unique interests and diverse needs. Successful programs need to carefully develop their reward methods to keep the team eager to approach a new goal once they have achieved an initial reward.
Objectives should be established on the basis of the company’s strategic goals and should be straightforward and specific so that the team clearly understand the expectations. They should be challenging, yet achievable; if they are viewed as unattainable, the program will be destined for failure. Once the program goals have been determined, every aspect of the program must be measured against this goal in order to ensure the program’s success in goal achievement. If successful, objectives should provide measurable results allowing the company to track performance and measure the overall success of the program.