Why are the wages so stagnant in our industry?

Question for everyone:
Why are the wages so stagnant in our industry? Rent costs going up , gas prices going up , everything going up , yet I’m still seeing employers offering low wages but wanting experienced techs ? As an industry we have to realize that our maintenance department’s sacrifice so much. Especially with being on call, so if the industry is only gonna offer a few dollars more than burger joints , the industry will crumble .

Pin this post. In 10 years when most of your knowledgeable techs start to retire, our country will be in shambles. This goes for plumbers, electricians, framers, carpenters and HVAC techs. There are less and less trade workers. It will all collapse eventually.

We have to do better for our maintenance teams!! You are all the backbone of our
service!!

Wages arent stagnant only for maintenance my friend. Its ALL positions!!! Its a greed thing. Collect, collect, collect, lease, lease, lease.....

I agree with that statement , but I was specifically speaking on maintenance for this post , because they want a hvac tech, electrician , plumber, painter, drywall repair tech, etc all in one but only wanna offer the least amount they can

If i may add to that. The 1 per 100 rule is outdated and ridiculous. Owners these days offer so much more services and have unrealistic expectations that their demands dont match their staff levels.

For most owners, especially small to medium sized investors, it’s not greed. It’s trying to stay afloat with all the cost increases that happen suddenly but income can only be raised slowly on renewals and some times not even enough to cover the increases, especially this last year. The bottom line and profit for owners/investors are not as grand as most of you would think.

Things are starting to change but very slowly. I’ve seen pay rates start to raise but unfortunately it’s too slow as we still have some management co. and owners (or a lot) that are still behind the 8 ball. The result has been losing good people both in maintenance and in the office due to the wages and mental health struggles all brought on by the pressures and stresses of this industry. Not only do we need to focus on wages but also look at the benefits we are offering to our teams to encourage and support their wellness. Both mental and physical

We changed our maintenance staff wages and new hires, from 18.00 hr starting to 20.00 hr just for maintenance associate, if their a tech it increases and have a hvac cert it's more, supervisor is salary and a decent wage with comp time if its after hrs

My company gave every employee a small cost of living raise. It's temporary but the extra $ it brings in helps.

It starts at the top. So many times as a staffing company a manager will tell us it's not in the budget, but they agree with us. The whole pay system has to change, and start by getting rid of bonuses being based on NOI. Then the corporate offices will be more inclined to hire and pay accordingly, and not what is going to make the most money for their bonus.

If bonuses aren’t paid based on NOI, where is that money coming from then? Bonuses, with the exception of per lease bonuses / retention bonuses are paid when the company is brining in more money, which is shown in the NOI.

I understand, but as long as that system is there, you will have managers and even whole companies that will keep salaries low to get a bigger bonus.

As an owner, my payroll costs have increased significantly in the last 12 months. Wages to hire are up even higher.

Me and a couple of friends were maintenance, we all quit around the time the pandemic began. We still work in multifamily doing the same work, but as contractors now. No more on call, 6 hour days, 4x the pay.

It’s been nearly a year and no one has received a raise. We have worked so hard, with little support from the corporate office, on a property that they just purchased. Now we are in RENO HELL. 3 managers, 3 assistant managers, 3 leasing agents have passed through the office and now we have our 4th RGM.

Retail companies have all implemented increases.

Costco increased its minimum pay from $16 to 17 (regardless of the state) while also increasing the pay for supervisors. They’re known for having a high retention rate because they almost exclusively promote from within. They’re also closed during all major holidays.

Target increased its minimum (now $15 to $24 an hour, based on the market) and offers health insurance for those that work a minimum of 25 hours a week.

Amazon and Walmart have also raised their minimums.

We are definitely behind the times.

Because in the last 10-15 years that industry has gone from caring about their employees to you are just a number now! Management co are too big now and they just don’t care about you anymore. They talk the talk but they dang sure don’t walk the walk.

If owners and companies care about ethics, then they will look at the cost of living for the area that they are hiring in, and start paying people at minimum 1/3 the cost of rent. It’s simple and it is the morally right thing to do. If this is done, imagine the employee retention.

Nor just techs everyone is not being paid

Unfortunately, some properties were not financed to afford payroll to current scale or the current inflation, and some owners are barely covering critical needs due to the losses through the pandemic and delinquent rent write offs that they had to find a way to keep the lights on. Some owners just simply aren’t in a position to fund payroll increases because they haven’t caught up from the deficit the property losses caused them to have already paid out.

Some operators are in a position to lead the industry in compensation and KPI bonuses to scale or better than scale depending on the level of proven results, commitment, and engagement. A very critical time to ensure you are at the top of your game in terms of skill, attitude, and drive. Fortunate that our firm is included in the group offering leading compensation with an incredible culture founded on appreciation and purpose. Best wishes for those deserving professionals to find a company match for their worth and be able to give great service to their communities!!

It's good to see this topic has brought some interest and feedback from fellow colleagues in the industry regarding maintenance compensation. Clearly maintenance are in fact the backbone to the operations and with more work and discussions like this we will see more appreciation towards our team members. Saying that we also have to be responsible to fact check the average comps offered to maintenance through your local associations before blanket statements are made. Our data has shown 97% of the top 50 property management companies have in fact made an adjustment to increase hourly pay in the maintenance compensation and smaller management companies are matching and following one another to stay competitive. It's a working progress in a very positive way for our fellow team members in maintenance. Thank you for everything you do every day.

I lost a great maintenance supervisor to this. He's now a contractor for multi-family, picks his own hours, makes a lot more money, and can choose which jobs he accepts.

Laura,

Well said!

And this is why this is such a great country! We get to choose what we do and who we do it for. While I agree with a lot of the statements on here, there are also a lot that I do not. Not all owners are greedy. Taxes are more, insurance is more, employee compensation is more, supplies are more, tenants are more, employees are more... EVERYTHING is more and you get less for the more.
I love my maintenance, and everything isn't about to pay. Pay isn't the reason the service industry is depleting; we told ourselves everyone needs to go to college when the reality is everyone should not go to college. We don't encourage trades. Hence it's not regarded in the same light as college but it should be.
Just because someone owns a property, doesn't mean they are rich, sitting on a boat drinking cognac and watching the sunset. Some work day jobs, and have saved to invest in the future.

I agree the 1 per 100 rule is outdated. We will need to begin contracting out for some of the services we provide, or expand the team to keep up with service requests and simple regular preventative maintenance tasks. The time it takes to replace AC filters, change smoke detector batteries, and inspect for leaks for 1 building takes a full day. It's not realistic to expect the maint. team to also address HVAC emergencies, and other urgent requests at the same time.