In the world of property management, navigating the intricacies of incentivizing property management roles can be a complex and challenging endeavor. Couple that with up to 10% of an organization's revenue allocated to incentives, maximizing ROI becomes crucial. With the complex commission schemes prevalent in the industry, manual management and processing have led to unintended consequences for property management companies. Read on to learn how by automating incentive compensation management (ICM), you can modernize your approach to property management.
A Complex World
Property management companies grapple with the complexity of transactions, the need for regulatory compliance, and the demand for customization in incentive structures. These challenges often lead to operational inefficiencies, increased administrative overhead, and erratic decision-making when guiding their business.
Here are some of the pain points faced by property managers today:
Complexity of transactions
The intricacies of property leasing and sales commissions are some of the most challenging areas to manage. The calculation of these commissions can be highly complex and is dependent on various factors such as lease terms, rental rates, and existing agreements. Therefore, property management businesses must ensure the accurate and prompt calculation of commissions to keep their Sales teams motivated and not incur additional costs due to overpayments.
Regulatory compliance
Meeting regional and asset-specific standards is a constant challenge for property management companies, and failure to comply can result in financial penalties and reputational damage. This is why many property management businesses are looking to technology to deliver clear and compliant incentive structures with 100% transparency into plans and payouts.
Customization and scalability
Creating incentive plans tailored to unique roles and adapting to market fluctuations require flexibility and scalability. Traditionally this is something the home office may try to manage manually through spreadsheets or other systems, however, this can lead to errors and delays. Business leaders need the ability to customize incentive programs based on how they want their teams to operate and address changes to the business quickly and effectively.
Close the Door on Manual Management and Processing
Relying on manual methods for designing, calculating, and administering incentive programs not only amplifies these challenges but also leads to mistakes, holds, and unhappy property managers who have no visibility into their commission and bonus structures. This declines the trust and motivation of people in these roles, ultimately impacting the overall performance of the business. Through the automation of commission calculations, enhanced visibility into incentive procedures, and a centralized platform for monitoring performance, software solutions, like Xactly Incent, can help achieve peak efficiency.
As the landscape of property management continues to evolve, finding efficient and effective solutions to ICM challenges is essential for success. Xactly Incent powers some of the world’s largest sales organizations — including Hyatt, Janus Capital Group, and Uber to hit their revenue targets. It’s the only solution on the market with access to over 19 years of proprietary pay data to help companies create the most impactful compensation plans for their teams, and the ability to take leading prepackaged functionality and tailor experiences and solutions to meet the most nuanced needs. Property management companies that embrace modern technologies and data-driven approaches will enhance operational efficiency and drive growth and competitiveness within the industry.
