RealManage Insight

Is It Time to Review Your Hiring Procedures?

by Kara Cermak, CMCA®, AMS®, PCAM® on Jan 7, 2020 7:45:00 AM

Advertising, reviewing applications, and interviewing prospective candidates is a long process. For volunteer boards, retaining good employees is vital to avoiding the hiring process altogether. If your board finds that there is too much turnover, it may be time to review your hiring procedures. Analyzing the best way to streamline your procedures may just lead you to the right candidate.

Staff, Contractors, and Vendors

HOAs rely on a variety of paid personnel to keep the community operating and functioning as it should. Staff, such as property managers, have a large responsibility in overseeing the day-to-day operations. Professional property managers are often certified, meaning they have invested time and resources into obtaining credentials for their careers. 

There are differences in hiring staff and contractors. One key difference involves taxes. If you hire a vendor and you can control what will be done and how it will be done, then the Internal Revenue Service (IRS) considers the vendor an employee. Like other staff members, management is responsible for paying the Unemployment Tax on the vendor's earnings, paying income tax, and more. 

The IRS considers a vendor an independent contractor if the association directs the vendor on how to do the work but does not dictate how they do it.  The vendor may use any means or methods for getting their jobs done. Securing the services of a vendor as an independent contractor helps associations avoid payroll taxes, among other things.

The Right Approach

No matter who your association hires, or under what terms, using the right approach can save everyone time and frustration. From security companies to your property manager, keep the following tips in mind:

  • Use caution when it comes to your interview questions. There are rules for what you and cannot ask—knowing the difference can save you from possible litigation later. 
  • Once you hire someone, check-in, and follow-up with them during their first 60 days. Ask them how they like their new position and if they have any concerns or special needs. Learning this important information early can help you, help them, and perhaps lead to less turnover. 
  • When it comes to vendors, collect several quotes from different companies and check references. The same is also true for employees. Background checks, references, and referrals may take some time but in the end, it is time well spent. 

According to a Bureau of Labor Statistics (BLS) report, employees stay an average of five years or less at any one job. In the scheme of things, five years isn't very long. Create consistency among your staff and vendors by:

  • Putting the work in before hiring them.
  • Checking on them during their first months of employment or use of services. 

Partnering with the right property management company can help you find an experienced property manager fast and without a complicated search process. Once you have a property manager on board, you can rest easier knowing your association is in qualified and capable hands.

How to Choose an HOA Management Provider - Free Download

About RealManage

Professional property management like that provided by RealManage can help foster strong vendor relationships. Board members, as volunteers, don't have the time it takes to oversee various contracts. We understand what vendors need in terms of communication in order to get the job done. Replacing a vendor may not be necessary. Sometimes it is simply a matter of generating a better understanding of what the association needs and what the expectations are based upon the contract.

RealManage offers HOA management services for single-family associations, condominiums, luxury high-rises, and more. We provide support for association boards regarding budgets, community engagement, and other key areas necessary for a thriving community. 

Learn more about how we can help your association by submitting a management proposal request online. RealManage has been helping communities thrive for over 30 years. Let us do the same for your community by reaching out to our offices today. 

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