CondoBusiness August

August 2011 • Vol. 26 #5Canada’s Most Widely Read Condominium MagazinePM

#400

6305

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Fostering successful employees

Keeping the best talent

Working with contractors

Leading your organization through change

Keeping the best talent

Working with contractors

Leading your organization through change

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Contentsdepartments

Management Inspiring managers while maximizing effectiveness By Randy Daiter

Design Pug Awards 2011 celebrated the best and brightest in architecture

Legal Legal obligations in terminating long term contractors By Jeff Morris

Finance CMHC Mortgage Loan Insurance expands financing Construction By Paula Gasparro

Lead your organization through major change By Danita Johnson Hughes

Smart ideas

Focus: Human resources

Criminal records affect hiring in the construction industry By Carolyn Smith

Retaining the best talent By Kim Carlton

Oh her? She's new: A lesson in attitude and performance By Carl Van and Vanessa Dunbar

Choosing the right painting contractor By Joe Richardson

Finding the best security partner By Glenn Thomson

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YOU HAVE ENOUGH TO WORRY ABOUT – HERE’S ONE LESS THINGAs the industry leader in residential properties, Rogers understands what you’re looking for in a

communications and entertainment provider. That’s why with us, you’ll get personalized support

through a dedicated Account Executive. They’ll ensure your residents are completely satisfi ed with

our innovative Cable TV, Internet and Home Phone services. And you’ll rest assured knowing you’ve

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Call a Rogers Account Executive today at 1 877 550-5902

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™Trademarks of or used under license from Rogers Communications Inc. or an affi liate. © 2011 Rogers Communications

Untitled-4 1 11-03-07 12:01 PM

YOU HAVE ENOUGH TO WORRY ABOUT – HERE’S ONE LESS THINGAs the industry leader in residential properties, Rogers understands what you’re looking for in a

communications and entertainment provider. That’s why with us, you’ll get personalized support

through a dedicated Account Executive. They’ll ensure your residents are completely satisfi ed with

our innovative Cable TV, Internet and Home Phone services. And you’ll rest assured knowing you’ve

partnered with experts you can really count on.

Call a Rogers Account Executive today at 1 877 550-5902

or visit rogers.com/cma for more information.

™Trademarks of or used under license from Rogers Communications Inc. or an affi liate. © 2011 Rogers Communications

Untitled-4 1 11-03-07 12:01 PM

HR with a human touch

editor's Letter

6 CONDOBUSINESS | www.condobusiness.ca

Hello Condo readers! It is great to be stepping into the role of editor here. Amie Silverwood recently left for her maternity leave, so I have some big shoes to fill.

In the last few weeks, however, I have been getting settled in with the great team here and have been excited by covering Canada’s vibrant condo industry.

This issue is all about Human Resources, and we have some great ar t ic les about how it relates to managing condo properties. We have articles about finding and retaining the best property management ta lent , choosing the r ight secur i t y and paint ing contractors and the challenges qualified construction candidates face when their past comes back to haunt them.

We also have a legal perspective about the challenge of terminating long term contractors, who may have rights similar to employees if they have been working with you for a long time.

Finding the right people to work with and maintaining professional relationships with them can be a daunting at t imes. But knowing the best human resource practices, and your legal rights and obligations, can make it a lot easier.

Let me know what you think of the issue, and feel free to send us any news or story ideas that you have at [email protected]. Also check out great web features on www.condobusiness.ca, including more HR tips and information.

Kim [email protected]

PublisherSteve McLinden

Editor-Kim Carlton

Advertising SalesPaul Murphy, Sean Foley, Ian Lederer

Senior DesignerAnnette Carlucci

Production ManagerRachel Selbie

Contributing WritersRandy Daiter, Vanessa Dunbar, Paula Gasperro, Danita Johnson Hughes, Jeff Morris, Joe Richardson, Carolyn Smith, Glenn Thomson, Carl Van

Subscription RatesCanada: 1 year, $55*; 2 years, $100* Single Copy Sales:Canada: $10. Elsewhere: $12USA: $80 International: $105*Plus applicable taxes

Reprints:Requests for permission to reprint any portion of this magazine should be sent to [email protected].

Circulation DepartmentLina [email protected] (416) 512-8186 ext. 232

CONDOBUSINESS is published eight times a year by

PresidentKevin Brown

Accounting ManagerMaggy Elharar

5255 Yonge Street, Suite 1000Toronto, Ontario M2N 6P4(416) 512-8186 Fax: (416) 512-8344e-mail: [email protected]

CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

Canadian Publications Mail ProductSales Agreement No. 40063056ISSN 0849-6714

All contents copyright MediaEdge Communications Inc.Printed in Canada on recycled paper.

CELEBRATING 10 YEARS OF GREENBUILD—AND WHAT COMES NEXTCelebration and exploration. When we gather this October in Toronto, we will celebrate 10 years of Greenbuild and explore where the green building movement is heading during Greenbuild NEXT. Greenbuild is renowned for consistently offering cutting-edge educational sessions and showcasing revolutionary products in the exhibit hall, but there’s so much more.

4

TEN YEARS & TEN REASONS TO ATTEND GREENBUILD

1. RESILIENCYWhen Haiti was devastated by the most severe earthquake to strike the country in over 200 years, the wreckage left as many as one million Haitians homeless and the country in need of being completely rebuilt from the ground up. The U.S. Green Building Council is dedicated to helping Haiti, and other nations around the world that have been rocked by natural disasters, rebuild sustainably. Greenbuild’s Open-ing Keynote & Celebration—the Resiliency Agenda—will feature renowned speak-ers, including New York Times Columnist Thomas Friedman and Chairman of Harvard Medical School’s Department of Global Health and Social Medicine Dr. Paul Farmer. They will be joined by a panel of experts to discuss resiliency and will dem-onstrate how all industries can play a role in community rebuilding efforts in Haiti and around the globe.

2. Explore TORONTOFor the fi rst time, Greenbuild is being hosted outside the borders of the United States, in Toronto. This year’s host com-mittee, the Canada Green Building Council, has helped create a stellar line-up of green building tours and off-site educational ses-sions, allowing attendees to step outside the Metro Toronto Convention Centre and experience Toronto up close.

3. Celebrate OUR INDUSTRY2011 marks the 10-year anniversary of Greenbuild. Growing from 4,000 attendees to nearly 30,000, Greenbuild represents the explosive growth of the green building movement and LEED implementation. And what better way to celebrate our accomplishments than at the Air Canada Centre in downtown Toronto? On Wednes-day, Oct. 5, thousands of attendees will celebrate the commencement of the 10th

Greenbuild. Featuring a lineup of inspira-tional speakers and popular entertainment, you won’t want to miss this celebration.

4. NEW WAYS TO LEARNFrom GreenTech@Greenbuild, designed to increase awareness and adoption of emerging technologies for the building industry; to re-imagined Special Sets; to the Master Speakers Series, including in-depth sessions focused solely on LEED, the educational offerings at Greenbuild are not what you’d expect from an ordinary conference.

5. The GLOBAL ADOPTION OF GREEN BUILDINGThere is no denying that green building is a global movement. Last year, nearly 60 percent of the world’s countries were represented at Greenbuild. Take advantage of the opportunity to celebrate our world-wide efforts by attending the Greenbuild International Summit on Oct. 4, learning about the LEED International Program during the Master Series sessions or net-working with international delegations.

6. NEW BUSINESS in the expo hallGreenbuild is the place to meet face-to-face with the companies and organizations that supply the tools you need to create change and realize what’s next in your market sector. Each year, both exhibitors and attendees leave with the renewed assurance that green means business—and Greenbuild is the place to do business.

7. PROFESSIONAL ACHIEVEMENTGreenbuild is a one-stop shop for earning continuing education credits to maintain your LEED AP with specialty, Green As-sociate and other professional credentials. LEED Professional Credential holders can earn the bulk of required credential maintenance hours at Gre1enbuild, through USGBC LEED Workshops, educational ses-sions, green building tours and more.

8. NEW SECTORSLearn how other sectors apply green building techniques and practices to elicit an “a-ha” moment for you—providing new insight into methods you can implement in your own work. You can also learn about how the U.S. and Canada are transforming all sectors of the green building job market at the Green Jobs Summit on Tuesday, Oct. 4.

9. A truly GREEN SHOWWhat LEED has done for the building industry, Greenbuild is doing for the hos-pitality industry. All exhibiting companies comply with the Greenbuild Mandatory Exhibitor Green Guidelines, which focus on sustainable booth construction, reuse, material selection, and operations. All hotels within the Greenbuild hotel block commit to recycling programs, providing towel and sheet re-use, turning lights off in rooms when they aren’t occupied and us-ing environmentally responsible cleaners. Additionally, the food and beverage served at Greenbuild is a minimum of 25 percent local and organic, and the printing, signage and materials available at registration are reusable, recyclable or compostable.

10. What’s NEXTIt doesn’t matter what sector of the green building industry you work in, or what level of experience you have. When you come to Greenbuild NEXT, you will gain increased knowledge, new industry contacts and a renewed belief in what green building can achieve. You can take the lessons learned at Greenbuild and implement them in your own community, helping to launch our industry into what comes NEXT.

Stay up to date on the latest Green-build news by following @USGBC on Twitter using #greenbuild

PRESENTED BY THE U.S. GREEN BUILDING COUNCIL

Ten Reasons.indd 1 7/8/11 4:05 PMUntitled-3 1 11-07-21 12:22 PM

Let us consider the discovery that satisf ied employees provide good customer service. This notion has been highlighted at in several successful organizations.

Inspiring managers while maximizing effectiveness

By Randy daiteR

Isadore Sharp (founder and chairman of Four Seasons Hotels and Resorts) believes that “people are the greatest asset and that, by taking care of the employees, each customer will be taken care of as well.”

Co -founder of Southwest Airlines Herb Kelleher also believes in a focus on employee and customer satisfaction. He says; “Employees come first and customers come second.” His employees had a feeling of personal ownership and responsibility, resulting in spirited attitudes and increased job satisfaction.

Similarly, Steve Wynn, founder of successful casinos, described with his methodology for success, “I have always cared about my employees and made sure that they were treated well so that they would provide the best customer service. That has been the key to my success.” He perceived intuitively that a caring environment creates a caring person.

In a condo management setting, we need to juggle who the on-site staff’s fiduciary obligations are to, while keeping individual unit holders and the board of directors happy. In doing so, we need to better understand who the “customer” is. Is it the employer and the employees?

Usually, property management companies regard themselves to be the manager. They are in charge. They make the rules. Others follow their instruction and administration of the Condominium Act. However, from a theoretical and legal perspective, the condo owners may be considered to be our employers. This can be confusing, as they are also our customer. This creates a bit of a conundrum from a human relations perspective.

Our staff must be motivated to make these often dif ficult and somewhat ambiguous relationships work practically, so that all key stakeholders interests are served while consistently ending-up with high satisfaction rates amongst the property management staff, unit owners, and board of directors.

Property management staff should relish and enjoy their roles. How can we achieve this?

We can star t by sur vey ing our employees and unit owners to establish their overall satisfaction rates. Ensuring that your management company has established the f ive core elements required in creating a strong corporate culture: the creation of a shared vision, engaging leaders, hiring the right people, measuring the results of measurable per formance metr ics, and creat ing defined values.

This should resul t in increased employee morale, while creating a healthy, inspiring/engaging corporate cultures.

Property management must focus on inspiring their management teams to ensure they are providing unit holders, board members, and fellow staff with a customer-centric approach.

Hopeful ly you’ l l see an increase in overall employee, owner, and board member satisfaction rates. CB

Randy Daiter is Vice-President and General Manager of O’Shanter Development Company, an active industry speaker and author of numerous industry published articles. For more information go to www.oshanter.com.


ManageMent

C o n s t r u c t i o n pumps $130 billion

into Canada’s economy every year – signaling an ideal time for workers of all kinds to seek a career in

the industry. The large number of jobs that need to be filled in several areas of construction are forecasted to

steadily increase across the country in the coming years.

Criminal records affect hiring in the construction industry

By CaRolyn Smith

Further economic indicators predict a substantial increase in residential building projects. According to the Construction Sector Council, rising incomes and lower interest rates have sustained a constant flow of projects since the recession.

Bec ause of the r is ing demand fo r

workers along with a large demographic of

baby boomers retiring, the construction industry will

undoubtedly experience harsh labour shortages. A recent issue

surrounding the rise in procedural criminal record checks is posing a barrier in the recruitment and hiring process when it comes to employing skilled labourers.

Many construction sites sat idle after the market crashed in 2008; and skilled labourers found themselves out of work. The financing of construction projects plummeted, resulting in mass layoffs and project delays.

When hiring did eventually resume after things slowly picked back up criminal record checks became the norm.

With over 10 per cent of Canada’s population possessing a criminal record, this new hiring practice labeled a large group of experienced workers unemployable.

Long -t ime employees previously qualified to work are now unable to obtain employment because of mistakes they made in the past. All the while, demand for various

HuMan resources


HuMan resources

August 2011 11

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types of construction and skilled trade workers continues to grow, particularly for positions such as:• Boilermakers • Carpenters• Construction estimators• Construction millwrights • Drillers and blasters• Electricians• Plumbers• Sheet metal workers• Steamfitters and pipefitters

Background checks of potential job candidates are often requested by employers, especially on applicants seeking a position that involves high security situations or positions of trust (for example: jobs in schools, hospitals, financial institutions, airports, and government). Criminal background checks are routinely used in the construction industry, since workers are exposed to valuable materials, potentially dangerous tools, and expensive machinery. Safety and trustworthiness are very important traits that employers look for in candidates looking to work on their job sites.

Though their underlying purpose is to identify potential hiring risks for safety and security reasons, criminal background checks may sometimes be used for illegal purposes, such as unlawful discrimination and violation of privacy.

In Canada, criminal records are stored in the Criminal Records Information Management System and include all convictions for which a pardon has not been granted. Background checks are traditionally administered by a government agency for a nominal fee, but can also be administered by private companies. These companies come in all shapes and sizes, and are built to serve a number of different purposes, including inquiries concerning employment.

While background screening processes may vary depending on the surrounding circumstances, all must be done with and only with the consent of the person under speculation.

In the event that one is faced with the screening process while knowingly carrying a criminal record, direct honesty about the offense could open up lines of communication with the employer in an attempt to alleviate any misconception that could otherwise land their application in the “no” pile.

The term “criminal” creates a dark vision of robbers, rapists, gangsters, murderers,

and similar serious offenders. Having such a menacing image of criminals prevents many people from considering the fact that they most likely know and associate with someone who has a criminal record.

An estimated 10 -15 per cent of Canadians possess a criminal record. Many criminal offenses in Canada are of a minor nature, and being convicted for a minor offence in Canada is relatively common. Minor criminal offenses include those that break the law, but are not necessarily done

in a dangerous or intentionally harmful manner.

Some examples of the most common non-violent minor criminal offenses are:* Getting caught in possession of or being

under the influence of marijuana with no intent to sell the drug; with an amount too small to be considered dangerous; and no previous drug related history.

* Stealing small amounts of goods from a store in a non-violent nature.

* Public drunkenness or participation in a

“bar fight” that could have transpired from being at the wrong place at the wrong time.Mistakes are often made with an impact

so heavy that it will forever influence someone’s life. Most often, these offenses are, and were, committed by young people who have their entire lives ahead of them, and aren’t always thinking clearly about the consequences of their actions and the law that takes this into account.

The limitations that come with a criminal offence are reality for over four million Canadians who possess a criminal record. It’s often impossible for these individuals to land a job when employers see they have a criminal record. The skills, qualifications, experience, and good references that a candidate possesses are ignored by this screening process.

“Many hard-working Canadians are unable to obtain employment because of mistakes made in their past,” says Ainsley Muller, an expert on criminal records and issues surrounding hiring within the construction industry from Express Pardons Canada.

“It’s important to recognize the barriers these people face – they’re left unable to get a job, earn a living, or support their families because of the record checks construction jobs put in place. Construction companies put applications in the “no” pile, without even knowing what the applicant’s record is for,” Muller said.

Dan Brown, an HR and employment specialist in construction at Summit Search Group BC has also recognized the trend with criminal records in the construction industry. “A lot of candidates come to us who are unable to obtain employment because of their criminal records. It’s almost impossible to get a job when you’re unable to pass a criminal background check.”

It is possible to have a Canadian criminal record removed with a pardon. Separating a person’s criminal record and charges from other personal records renders this information inaccessible to individuals and organizations such as employers, educational institutes, volunteer organizations and bonding companies. The record of conviction is kept separate

and apart from the database used for criminal record checks. Therefore, a person requesting a background check will not have a pardoned conviction show up on it.

Since having a criminal record puts people at such a distinct disadvantage, the seal of a pardon gives them the opportunity to re-integrate themselves into society, seek and obtain employment, get an education, travel, and most importantly, have a life beyond their conviction.

Companies such as Express Pardons offer clients full pardons that completely clear criminal records forever. Express Pardons pre -screen their applicants for eligibility; and offers a money back guarantee.

When a pardon is granted, the person receives an official letter from the Parole Board of Canada. From this point on, they are free to pursue the opportunities they seek. CB

For more information on how to obtain a pardon, please visit www.expresspardons.com.


HuMan resources


Seventy51

design

Pug Awards celebrate the best in architecture

August 2011 15August 2011 15

The winners of the 2011 Pug Awards, the People’s Choice Awards for

Architecture, were announced on June 21 in Toronto.

Seventy5 – 75 Portland Street took home the honours as the best new

residential building. Designed by Core Architects and developed by

Freed Developments, it is located in the King West district. The building

was designed in a U-shape that highlights a serene courtyard while

complimenting the streetscape. The eleven story structure is characterized

by massed elements that shift in and out.

Runners up in the residential category included X the Condominium, near

Church Street and Mount Pleasant and CASA Condominiums in the Yorkville

area.

X the Condomium2

design

Pug Awards celebrate the best in architecture

CASA CondomiumS3

Printing FACtory LoFtS4

design


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At Samuel Property Management Ltd., we are one of Toronto’s most respected rental, condominium, commercial, office and retail managers, providing a level of service that goes well beyond your expectations. Discover a level of personal attention, commitment and care superior to anything you have yet experienced. After all, your home deserves the best.

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10089 Samuel march condo.indd 1 3/31/10 4:51:40 PM

The Paul Oberman Adaptive Reuse

and Heritige Restoration award,

newly created in memory of Paul

Oberman, a former Pug Awards

Advisory Board member who passed

away in March 2011, was awarded

in both residential and commercial

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August 2011 17

LegaL

Legal obligations in terminating long term contractors

The concept of “reasonable notice” is well known in the human resources field and in employment law.

For example, a condo corporation may be required to give an employee reasonable notice of the end of the employment relationship, or provide pay in lieu thereof. Our Canadian courts have said that the amount of notice required to be given is based on a variety of factors, such as the character of the employment, the length of service, the age of the employee and the availability of similar employment, having regard to the experience, training and qualifications of the employee.

By Jeff moRRiS

18 CONDOBUSINESS | www.condobusiness.ca 18 CONDOBUSINESS | www.condobusiness.ca

byLaws

In some instances, the employer may terminate an employee for “just cause,” where no notice is required. However, the courts view this as the “capital punishment” of employment l aw and an emp loyer must have sufficient grounds, such as a serious fraud or theft, to summarily dismiss an employee with no not ice. The

c i rcumstances a re l im i ted where reasonable not ice is not required. Even in cases where the employee is a poor performer or engages in minor i nsub o rd ina t i on , the emp loye r i s mandated to progressively discipline an employee first , before dismissal without notice is warranted. This entails putting the employee on written notice

that unless the specified performance or behaviour changes, the employee’s job will be terminated. The number of warnings is rather specific to each case and the severity of the situation.

What is worthy of further discussion, is the trend to extend the requirement for “reasonable notice” by our courts to other people or companies who may provide services to the condominium corporation, and more importantly, who are not legally considered “employees.” For example, does the handyman who operates his own business, but depends on the condo corporat ion for a large share of his work, have to be given reasonable notice if the corporation wishes to use a different contractor? The answer is - maybe.

In the recent 2011 Ontar io cour t case, East End Lock and Key v. The Effort Trust Company, a locksmith sued his customer when its contract for services was terminated without “reasonab le not i ce .” T he C our t o f fe r s t h e fo l l ow i n g g u i d e l i n e s : “In employment law there are three dif ferent types of relationships that an employer may have. They are an employee, independent contractor o r w h a t i s c a l l e d “ i n te r m e d i a te agents”. It is trite law to say that an employee may not be terminated without notice unless there is just cause. An independent contractor may have his work relationship terminate without any notice after the work that the independent contractor had is completed. The Plaintiff is stating that he is an independent contractor, that he had a long standing arrangement with the Defendant, and that he was entitled to reasonable notice. ”

There are more and more cases in which Cour ts are recogniz ing the existence of this “intermediate” class, where the relationship of employer and employee does not ex ist , but where an agreement to terminate the arrangement upon reasonable notice may be impl ied. This intermediate category will apply to non-employment work relationships that exhibit a certain minimum economic dependency, which may be demonstrated by complete

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byLaws

or near- complete exc lus iv i t y. The Cour ts have labeled these workers as “dependent contractors” and they are owed reasonab le not ice upon termination. It is interesting to note that in the East End Lock and Key case, the contractor earned about two-thirds of its income from its customer.

A lso, the fact that a contractor operates through a limited company and invoices the employer for services rendered, and is not on the payroll of the employer, does not l imit the possibility that the condo corporation is obligated to give reasonable notice when contemplating the end of the service relationship, particularly where there is no cause for terminat ion alleged.

Consider whether there are any potential “dependent contractors” that may work for your condo corporation? Does a small property management c o r p o r a t i o n t h a t s e r v i c e s y o u r corporation fall in this category? What percentage of its income is derived from fees for your corporation? Do you know? What about the ret ired handyman contractor who per forms maintenance and landscaping over a period of years – but again, mostly for your condo? Is that contractor required to receive notice?

These developments may suggest the review of your arrangements for anyone who may fall into the dependent contractor category. Should there be a contract? If there is a contract, is there an express termination provision? The courts have held that the obligation to provide reasonable notice to an employee or dependent contract is a presumption, but rebuttable if the contract clearly specifies some other period of notice, whether expressly or impliedly. Generally, a cour t wil l not ignore a well -drafted termination c l a u s e , exc e p t w h e n t h e c o u r t considers such notice period to be unreasonable or unconscionable as to be void. A lawyer should be consulted in this process.

Condo corporations need to adapt to the changing legal landscape to avoid un - budgeted surpr ises. Long term

employees or dependent contractors may be entitled to significant damages upon termination. This area requires the person responsib le for human r e s o u r c e m a n a g e m e n t t o t r e a d carefully in what can be a complex and confusing area of law. CB

Jeff Morris is a l awyer and now practices as a mediator for condo and commercial disputes. His website is www.jeffmorrismediation.com.

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August 2011 19

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the beSt tALentretAining

People who work in the condo property management industry know that it is not a field for just anyone. You need property

managers who are hard working, cool-headed, diplomatic and who understand the nuts and bolts of managing properties. Although in the past few years, there has been a glut of available talent on the market due to the recession, as the economy improves, there will be more competition for the best of the best. We talked to some members of the condo property management field as well as industry experts to find out how companies can find and keep exceptional talent.

By Kim CaRlton

HuMan resources

August 2011 21

the beSt tALent

HuMan resources


The right person for the job is hard to findJacquie Varkani, an HR executive who has just created an employment portal for the property management industry (www.realcareers.ca) points out that getting and keeping a good condo property manager isn’t an easy task. It’s a job that requires a specific skill set, as well as being a good people person. “The awareness of the role is unique to the marketplace. It’s not something that someone grows up and wants to be, a property manger.”

Varkani went on to describe the skills that are necessary to be successful in this career:

“People in property management have to be a generalist and have specific skills at the same time. They have to be very mechanical, methodical and thorough. They also have to be very good with people and customer service. It’s a really tough type of personality that you have to find.”

Make them feel valuedHays Construction and Property, a recruiting

People in property management have to be very mechanical, methodical and thorough. They also have to

be very good with people and customer service. It’s a really

tough type of personality that you have to find.

“

HuMan resources

- Jacquie Varkani, HR executive”

August 2011 23

firm that specializes in property and real estate, puts out a salary and compensation survey each year to analyze trends in the industry. Nicola Dennings, Senior Manager at Hays says that there is increased competition for the best talent in the past year since the economy has improved.

“It was certainly an employers market from late 2008 until Q3 of 2010 since a lot of people had lost their jobs due to downsizing and restructuring. It also resulted in many people deciding to put their job searches on hold and stay with their current employers through fear of being the last in and the first out. However, with a recent increase in job flow and more optimism surrounding the economy, people are now willing to leave their current employers in the hopes of securing a better position elsewhere.”

Giving your staff the respect that they deserve can go a long way in keeping them happy. This can take the form of monetary rewards, or simply giving them recognition.

Unfortunately, there are obstacles to paying a good property manager what

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they deserve. Condo owners, and boards of directors are often seeking to keep costs down so as not to raise owner’s maintenance fees. Thus, compensation for property managers and resident service directors can be quite low as to what they might get in other industries.

“You need a high level person who is willing to work at a low level. It is a thankless job, all you deal with are complaints all the time. It can be very negative environment at times. You get people saying “I pay [maintenance fees] for you to fix this now - fix it now” But by not calling an emergency person, calling a regular service person, [the property manager is] saving [the condo homeowner] money. We are trying to keep the [labour costs] down to keep your fees down. It is hard to attract a quality level person at that salary. That’s a big vicious circle in our industry,” says Varkani.”

Give them training opportunities“As the skills shortage becomes more and more apparent across Canada, employers are going to start having to think about what training programs they have in place, how they are going to attract and retain staff,” says Dennings.

Some companies, like DEL, offer top notch training in house.

“As a result of our ACMO 2000 certification, we are authorized to offer, in house, all of the necessary courses leading to the designation of Registered Condominium Manager. Our attendance in these courses achieves maximum capacity,” says Saul York, President of DEL

Varkani has developed a training program for condo property managers after seeing that there was a need in the marketplace for such training. “In a couple companies I was in – we would post ads [for property managers] – there was a lack of quality people. I came

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having to think about what training programs they have in place, how they are going to attract and retain staff,”

- Nicola Dennings, Hays Construction and Property

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August 2011 25

“It’s not enough to pay people – it’s better to make them successful in the role – make them better at what they do – they are respected – they get the pride, they feel they are making a difference to the company. It’s not always a compensation thing – when they feel that they are making a positive impact - that is where you get the retention,” says Varkani. CB

up with the idea of a management training program. Only a handful of companies have put this in place.”

Be generous Employees are looking for competitive compensation packages beyond just a fair salary.

“Our Hays 2011 Salary Guide discussed compensat ion, benef i ts and what employee's are looking for (in addition to just salary) and the results pointed towards extended health benefits, individual performance related bonuses, extra vacation days, a pension/RRSP contribution matching, more flexible work hours and time off in lieu,” says Dennings.

As well, employees like it when their workplace gives back to the community.

“In our view, an integral feature of being a responsible corporate citizen, remains charity, the responsibility of giving assistance to those in need. Our perennial support for, and involvement in, events for the Card iac Health and K inder Foundations in particular… represents a happy and satisfying supplement to our daily activities and obligations,” says York.

Listen to their feedbackI t ’s impor tant to be recept ive to employee’s suggestions on how to make improvements in the workplace. But how do you know what they are looking for if they don’t speak up?

“ I wo u l d su g g e s t t h a t a n nu a l employee satisfaction surveys, regular per formance reviews and providing an environment where people feel able to voice their concerns or make suggestions,” says Dennings.

“Employees don’ t have enough opportunities to improve things. I hate to generalize – some places you are dealing with people who are set in their ways. It’s hard to convince the board or senior management to make changes. Employees want to voice their opinions and feel like they are a part of making direction for the company,” says Varkani.

She goes on to say that let t ing employees take initiative on matters that they have direct involvement with helps them to grow in their role and feel satisfied.

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Oh her? she’s new: A lesson in attitude and performance

Charlie travels extensively for his job. He travels so often that he is constantly observing the

customer service he receives on an airplane. The other day, Charlie encountered a somewhat overbearing flight attendant while in first class. The flight attendant, Sweet Dee, was being very pushy and telling people what to do.

By CaRl Van and VeRoniCa dunBaR

Sweet Dee ordered people around in a demanding, unnecessarily authoritative tone. “Close that laptop.” “Put that up there.” “Put that seatbelt on.” “That can’t go there.” “That has to be turned off.” After observing this for some time, Charlie couldn’t resist speaking up to Sweet Dee about her customer service skills. Charlie said, “You know, I think your customer service skills could really use some improvement.” Of course, the other passengers were all nervous looking around at each other thinking, “Ooooooo…. he’s gonna get it.”

“Well sir,” she said snidely, “I’m here mainly for your safety.”

That’s all Charlie needed to know. That statement alone answered Charlie’s question on how someone in the customer service business could be so lacking in skills. The answer is she’s not lacking. Her ability is just fine.

Flying as much as Charlie does he knows that pilots always say “The flight attendants are here mainly for your safety, but if there is something they can do to make you feel more comfortable, please feel free to ask….” Well, Sweet Dee actually believes this!

So, what is driving her performance? She

HuMan resources

August 2011 27

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knows how to be polite if she wants to be. She knows she’s a representative of the airline. She probably has to deal with huffy customers every day. So what’s driving her poor customer service performance? This poor woman thinks she’s in the safety business and not the customer service business. She believes her job is safety. She even said it, “I’m here mainly for your safety.” What’s driving her poor performance? Her attitude!

And her attitude is: I’m not here for your pleasure. I’m not here for your comfort. I’m not even here to ever make sure you come back again. I’m here for your safety. And because of that, she can be mean. She can be nasty. She can be bossy. Why? Because she’s not in the customer service business, she’s in the safety business. And because of her attitude, she is perfectly okay with pushing customers around.

Knowing this, Charlie responds to Sweet Dee by saying “Yes, I agree you are here for safety. But you’re not in the safety business. You are in the customer service business. I think you made a mistake by separating the two. Safety is part of the customer service you provide. It’s an important part, but still just a part.”

As she rolled her eyes, Charlie said, “Think about it. 99.9 per cent of the time, you are dealing with people and their needs; Serving drinks, answering questions, and getting them things. You’re not dealing with safety issues. Most of your time on the job is spent providing customer service.”

Knowing flying is very safe, Charlie even asked Sweet Dee, “Have you ever been on a plane that has crashed?” “No,” Sweet Dee replied. “Well, there you go then,” Charlie said. “You’ve never even been on a plane that’s crashed. Yet it’s your excuse for bossing people around.” Again, Sweet Dee demanded, “I’m here mainly for your safety…SIR!”

Growing tired of the conversation and realizing that all of the passengers had pulled their ear phones out and were now listening intently, Charlie finally said, “Okay. You’re here mainly for my safety. Fine. Then why is the other flight attendant back in coach being so nice? You know, the one who is always smiling, being polite, courteous, helpful, and friendly? Why is she asking people to do things and not barking orders? You do the same job yet she’s making people feel good about it. Why is that?”

Sweet Dee looked down the aisle,

looked back at Charlie and smiled condescendingly, pointed down at the other flight attendant, and said, “Oh, her? She’s new.”

There you have it. A perfect example of someone who’s attitude is driving their performance. Was it her ability? Probably not, she knows how to smile. She knows how to ask instead of demand. She knows how to talk to people, so as not to make them feel yelled at. Her ability is just fine. What was driving her poor performance in customer service? Her attitude!

It’s her attitude about what she does for a living which is driving her poor performance. Maybe her attitude is that she is in the business of safety, transportation, or “keeping the airplane clean.” Who knows?

It’s not that she has a nasty attitude in life. It’s just that she doesn’t understand her job. You see, she’s not in the transportation business or the safety business. She’s in the customer service business. Performance is 80 per cent attitude and 20 per cent ability.

How can Sweet Dee improve? She can remember these points:• Attitude drives performance: How she

describes her job is just as important as the tasks she performs.

• Take off the blinders: The plane probably really isn’t going to crash, so she should keep in mind that although safety is important, most of her time deals with customer service.

• Perception is everything: Although she might not believe her job is in customer service she needs to let the passengers think that. If she was perceived as being polite then people would more willingly listen to her and act accordingly. CB

Carl Van, President & CEO of the International Insurance Institute, is a Professional Public Speaker, business course designer and international trainer. He is the author of, Attitude, Ability and the 80 -20 Rule: The Making of Exceptional Performers along with the highly acclaimed Gaining Cooperation. Veronica Dunbar graduated with her B.S.M.. in Marketing from Tulane University in New Orleans, Louisiana and is now a consultant specializing in Social Media. Mr. Van can be reached at 504-393-4570, www.CarlVan.org or www.facebook.com/carlvanspeaker.

HuMan resources


Choosing the right painting contractor

HuMan resources

August 2011 29

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H i r i n g a p r o f e s s i o n a l

painting contractor to refresh a condominium’s interior and exterior surface is a wise investment that property managers should consider. New paint jobs are not only key to making a condo sale, fresh paint can also lead to higher resident retention rates. When investigating property grounds to determine what areas need maintenance and a refresh, keep in mind that a professional paint job could be the difference between retaining and losing residents.

By Joe RiChaRdSon

When proper t y managers make the decision to move forward with a new paint job, there are a variety of resources they can re ly on to determine what the best approach for the project will be and if a professional painter should be hired. For example, some professional paint and coatings manufacturers have representatives across the country that are able to provide expert opinions on what to look for in a painting contractor, as well as what potential cost estimates will look like. This insight is in addition to outlining other tips, such as suggested paint products and colours to use. Also, property managers are better prepared to ask the right questions and effectively compare different price

estimates when they discuss projects with field experts prior to contacting contractors for bids.

Investigation on the front end will help you not only understand the scope of a pro ject , but a lso why hir ing a professional contractor is important. While finding a budget for a professional painter is no small feat, remember the value -added benefits painting contractors bring to the table.

Strict timelinesProfessional contractors have the experience to keep projects within s t r i c t t i m e l i n e s a n d p re s c r i b e d budgets. Not only do they have the ab i l i t y to supp ly pa int and other needed tools, but pros are trained to

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manage every aspect of the project—from the initial consultation stage to the completion.

Preparation skillsPreparation is a major part of any painting task, as prepping the surface is critical to the paint laying and adhering correctly and remaining in good condition for years to come. Professionals know how to prepare all surfaces for paint—whether it’s stucco or drywall—and have the tools to do it right.

ExpertiseP r o p e r t y m a n a g e r s b e n e f i t f r o m

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August 2011 31

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profess iona l pa inte r ’s knowledge a n d ex p e r t i s e a s t h ey t y p i c a l l y communicate recommendations for using high caliber cost effective paints that enhance a buildings’ appearance and durab i l i t y. P rofess iona ls c an a l so p rov ide f ac to r y t i n t i ng and color matching so that exact colour requirements are met. Condo managers should ask contractors about vir tual online tools for visualizing what the finished project will look like.

Green alternativesContracto r s c an ad v i se p ro p e r t y management on the use of low VOC and other eco-friendly paints that can make projects environmentally friendly. There are various green paint choices on today’s market, such as products that are certified by the Greenguard Environmental Institute.

SafetyWhile many jobs may not appear to be dangerous; they can actually be more hazardous when performed by less experienced workers. Hiring a professional for the job is a positive step condo managers can take to minimize the potential for accidents; not just involving workers, but also residents and passersby. A painting professional’s ability to safely navigate a maze of ladders and scaffolding is an important point to factor into the dec is ion of who per fo rms l a rger painting jobs. Another consideration that building managers may want to keep in mind is that if their condo is a multi -story building, a professional painter will have the equipment and experience to handle this additional challenge.

Whether it’s saving time or improving your building’s appearance, hir ing a painting professional is more often than not the right choice for condominium exterior and interior paint jobs. As a property manager, be sure to always look beyond a project’s immediate price tag, and consider what the renovation adds to the building’s overall value. CB

Joe Richardson is the Senior Vice President of professional products and services at Behr Process Corporation

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When property managers are charged with the task of hiring a security services f irm for their condominium buildings, they’re often faced with competing priorities. On the one hand, the board is looking to control costs, and on the other hand, residents are demanding a superior level of security. The job of the property manager is to satisfy the requirements of both constituents, which is not easy to do

Finding the best security partner

By Glenn thomSon

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August 2011 33

In some cases, wanting to control costs can influence a property manager to choose a low cost – and often low value – service. The art of negotiating the fine line between cost control and quality is the tightrope property managers walk.

Here are eight strategies property managers can employ when recruiting a security services firm to ensure they are getting the best value for their investment.

Look for qualitySeek out reputable and professional security firms that have expertise in securing residential properties. There’s no shortage of companies who will offer low bids, but property managers should be wary as a low price tag is sometimes indicative of a lower value service. Remember the old adage “you get what you pay for.”

“A lot of property managers and boards of directors are understandably concerned with budget,” says Sahil Kapila, Business Development Specialist at Garda. “They want to get the best for the lowest rate, so it’s important to point out that a slightly higher bill rate is due to – among other things – investments in training and education for the security guards. In the long run, those investments ensure a higher quality service and a lower turnover – something of critical importance to both property managers and building residents who are looking for stability in their security services.”

Larger, established companies also have the advantage of being able to offer value-added services such as overnight mobile patrols, daily incident reports, a

24/7 dispatch centre for emergencies and a dedicated account manager who reviews the service at regular intervals to ensure optimal performance. Smaller companies with limited service offerings can’t compete in this regard, and in the long run, those additional services will result in a much higher level of security.

Ask for full disclosure on pricingWhat’s the wage rate for guards? What’s the company’s bill rate? How much of the cost is attributed to items such as training, recruitment and benefits for the guards? If the company is unwilling to share the price breakdown with you, move on.

Identify companies that invest in human resourcesResearch shows that turnover rates are dramatically lower at companies that deliver high-quality training and benefits for guards and provide them with a slightly higher wage rate than the industry standard. High turnover rates can wreak havoc for proper ty managers whose residents are looking for stability, says one account manager.

“There can be a liability issue with high turnover,” explains Sean Madden, Garda Account Manager. “Lower salaries can mean sub-par employees and this lack of quality can directly affect service level. If you make a decision based solely on budget, you’ll invariably face turnover and all the issues that come along with it. Guards want to join companies where they can forge careers, not simply have

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elements, but in the event you want to add them to your service menu down the road, you’ll have a partner who can provide them seamlessly.

Focus on customer serviceFocus on customer service. In the residential security market, perhaps more so than any other, security guards with stellar customer service skills are imperative. They’re interacting with

residents on a daily basis, and they must have excellent communication skills, in addition to the standard security training. Again, the long-term goal is to provide stable service with a positive impact on both residents and the overall security of the building.

What’s their support system?Investigate the company’s organizational structure to support the service offering. Companies that offer security guards without providing sound infrastructure support may have a lower price tag, but they could cost you more in the long run with administrative headaches. Look for a company that can provide the management support for items such as a regular service reviews, 24/7 emergency contact and a sound complement of back-up staff. Larger companies have a distinct advantage in this regard and they can also withstand fluctuations in the economy without affecting service levels.

Request referencesN o t h i n g s p e a k s l o u d e r t h a n a recommendation from an existing client, so ask potential vendors to supply you with references for three or four similar type companies for which they provide security services.

Take it to the boardI f i t ’s possib le, ask three to four short- listed vendors to present their offerings to the Board of Directors. This provides you with an opportunity to educate the board in areas they may not have thought about (i.e. does it make sense for the concierge guard to leave his/her front desk to do foot patrols at night?), and positions you as the expert who unearths critical information in the decision-making process. CB

Glenn Thomson is the Vice President of Business Development for Garda Canada Security Corporation, a leading security services firm with expertise in residential properties. For more information on Garda’s services, visit www.garda.com.

For more on choosing the best security, go to www.condobusiness.ca for the questions to ask a potential security firm.

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a job where they clock their time. Paying them well provides career advancement opportunities and encourages a higher level of commitment.”

Do they have everything you need?Look for a company that provides a full range of services, including concierge, gatehouse control, mobile patrol, foot patrols and parking control. You may not have a budget allocated for all of these

August 2011 35

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finance

Get t ing f inanc ing for new condominium projects can be daunting.

However, the CMHC expanded financing options for condo construction recently with its new Mortgage Loan Insurance. This enables approved lenders to help developers access competitive interest rates for the life of the mortgage.

By Paula GaSPaRRo

CMHC Mortgage Loan Insurance expands financing options for condo construction

product. It provides developers with another financing option which is very beneficial.”

Guidelines of the new financing options include the fact that presales must be based on legally binding sales contracts with all preconditions waived or met. As well, presale for owner occupied units must include a fully paid non-refundable cash deposit of at least 10 per cent. If a party buys more than one unit, all of the units bought are considered investor units, and will require a fully paid non-refundable cash deposit of at least 20 per cent, however, bulk sales are not recognized as pre-sales.

As with any construction, prior to the first insured advance, appropriate building permits as required by the municipality, development and municipal agreements, should be in place, and work on the project have begun. In addition, the stipulated presale level must be achieved and al l required equity contr ibuted to the project. All advances should be supported by Project Monitor reports and based on the cost to complete method (up to the approved mortgage loan maximum). If the value of land exceeds required equity, loan advances cannot be made based on land value that exceeds the actual cost of the land.

The borrower must also have a net worth equal to at least 25 per cent of the total of the subject mortgage as well as all other CMHC-insured construction mor tgage loan amounts cur rent ly approved for the borrower. As part of the net worth requirement, the borrower is required to have at least 10 per cent of the project’s costs in liquid assets outside of the project.

Recognizing a pent-up demand for new condominium construction, the new policy is expected to be eagerly received by developers. Current ly, CMH C is C anada’s on l y p rov ider of mortgage loan insurance for large rental projects, including condominium construction projects, l icensed care facilities and retirement homes.

The condo product is available for construct ion of new condominium buildings in all par ts of Canada and will allow developers to enjoy a broad range of benefits, including increased flexibility and competitive interest rates. The maximum insurable loan value is the lesser of 75 per cent of estimated market value or 85 per cent of the estimated total construction cost of the property. Equity can take the form of cash, subordinated debt or land at value. In addition, CMHC mortgage loan insurance offers numerous product features that meet project financing needs.

“As a CMHC approved lender we’ve been arranging insured condominium cons t ruc t ion l oans fo r a number of years ,” says Dav id Foster, V P Commercial Financing for Murray & Co., a financial advisory firm specializing in commercial real estate. “Usually they are construction loans ranging in the $20 to $100 million range. The advantage of CMHC’s new mortgage loan insurance for condo construction is that the pricing is very competitive compared to a convent iona l bank construction loan. It also adds some much needed liquidity to the market. We’re currently moving forward with a couple of new applications in which we’re us ing the new CMHC loan

August 2011 37

finance

When the bor rower is a t rust , additional guarantees equal to 100 per cent of the mortgage are required from individuals or corporations with total net worth equal to at least 25 per cent of the total CMHC-insured construction mor tgage loan amounts cur rent ly approved for the borrower.

When the borrower is a corporation or par tnership, addit ional joint and severa l personal and /or corporate guarantees of up to 100 per cent of the mortgage may be required depending o n C M H C ’s a s s e s s m e nt o f t h e application.

Where 10 0 per cent guarantees have been obtained from individuals o r c o r p o r a t i o ns w i th t he a b ove required net worth, CMHC may require additional guarantees from individuals or corporations with smaller ownership interests of less than 25 per cent.

“Our ro le in hous ing f inance – providing mortgage loan insurance and securit ization guarantee products – contributes to the health and stability of Canada’s housing finance system and facilitates access to financing for housing across the country,” says Dino Chiesa, CMHC Chairperson.

These new policies will be welcomed by financial institutions, by developers of condomin ium hous ing and , of course, by new condominium buyers, who wil l gain access to more and better housing options. CB

Pau l a Gaspa rro i s a manager o f business development, at the CMHC. Contact her at 416 -250 - 2731 or by email at [email protected].


finance

res is t these ex te rna l l y mandated changes and are slow to respond. They fear the risk involved, and as a result they miss many opportunities. Change under external circumstances is scary because you often don’t know if the changes you’re making are going to work. Addit ionally, the change may mean you have to alter your company’s values or culture, and those sorts of

When change is forced upon you, making the shift is often more stressful and more difficult than when you thoughtfully decide to take your organization in a new direction. After all, making a change that you plan for is exciting and filled with opportunity, while making a change due to outside forces putting pressure on you is filled with risk and unpredictability.

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changes don’t come easy. The fac t is that embrac ing any

type of externally motivated change requires both courage and planning. The following are some suggestions for making the change process easier and more successful.

Assess your company’s current talent potentialWhen dealing with externally motivated change, a good leader needs the emotional maturity to maximize and leverage the strengths of the people within the organization. Depending on the size of the company or department, you may not have daily contact with those you lead. Therefore, take the time to go back and assess who you have working for you and what skill sets they have. Chances are some wil l have developed new skil ls and strengths since they were originally hired. Therefore, determine how the company can best use the people you already have to make the change successful. Most people overlook the talent that’s right under their nose and

think they need to look outside for the skills to best move the company forward.

If you do need outside talent, hire people who know more than you doMany times, those charged with hiring people don’t want to hi re anyone who is strong, asser t ive, or more knowledgeable than they are. They think these new hires will make them look bad—or even worse take their job. In reality, if you hire people who are strong and know more than you do, you’re going to fare better during the change process. Realize that when the organization does well, everyone looks good, not just one person. However, if the organization fails, people typically look for one person to blame—usually the leader. The only way your company can sustain its momentum during and af ter the change is to have strong people on board.

Create an environment that encourages continuous learning The knowledge you and your people

possess has long-term value for the organization. If you stop learning, you stop having the ability to contribute to the continued development of the organization. Learning is vital, because things change so quickly—technology changes, the industry changes, the marketplace changes, etc. You have to keep up and know what’s state-of-the-art to stay relevant to customers. Therefore, encourage your staf f to at tend seminars, read books, stay abreast of industry news, and seek internal feedback and mentoring. The more learning oppor tunit ies people have, the more valued they’ll feel, and the more they’ll want to contribute to the change process.

Hold people to their commitmentsNo change will ever be complete if people abandon their responsibilities midstream. That’s why you need to ho ld people accountab le for what they commit to. To do so, first make sure they have the skills needed to do the job. If they don’t, there’s no way they’ll be successful. Then you need to

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monitor their progress and evaluate how they are contributing (or not contributing) to the change process. Real ize that monitoring doesn’t mean micromanaging. It simply means keeping the pulse of the whole work flow to ensure all the pieces of the process fit together and are getting done. When you find that someone isn’t contributing effectively, you must be willing to confront the person and deal with the problem in a constructive way that gets the work back on track.

In messaging, be clear, consistent, and continuous when communicating the vision and goals You have to be clear and consistent about the change, about what’s occurring, about what needs to occur, and about the vision and goals for the company. Spell out where the company is going as well as the plan to get there. When you are not clear and/or consistent, your message gets garbled and people don’t understand it. That’s when problems happen and change becomes risky. You think you’re communicating one thing but no one understands your real message, so they pull in a different direction. That’s why you must make sure everyone is on the same page. Also, don’t just relay the message once: you have to consistently revisit it and make sure everyone is still on board. Allow people to ask questions and, if possible, to contribute to the message. People buy into an idea more easily if they feel they took part in shaping it.

Approach change proactivelyChange that’s mandated from outside factors is often uncomfortable, but this doesn’t mean it’s a bad thing. In fact, when approached correctly, this sort of change can open your eyes to new possibilities, new customer bases, new revenue streams, and even new product and service offerings. So tackle these externally influenced changes proactively and you’ll have the upper hand. Not only will you fare better than your competitors during the change, but you’ll also emerge as the marketplace leader. And that’s one change you definitely want to occur. CB

Danita Johnson Hughes, Ph.D. is a healthcare industry executive, publ ic speaker and author of the book Power from Within. For more information visit www.danitajohnsonhughes.com, or write to her at [email protected].


sMart ideas


Use tools like the Hays

Salary survey to see

if your compensation

is in line with the

industry.

Remember their birthdays – keep

them on file and have your organizer

program give you a reminder. Give

them a small gift they’d appreciate

to mark the occasion.

Have at least one social

luncheon or party so

that you can see them

face to face and show

your appreciation. The

holidays are a good time,

and if you can have a

summer social as well, it

is a nice touch.

Be kind when communicating with

employees and offer constructive

feedback. Offering educational

or training opportunities will also

show that you care about their

development and success in their

roles.

Quick tips to show employees you care Check in with them regularly

to see how they are doing in

their position and to help them

with any challenges they may

face.

Stand behind your

employees if conflict

arises (to a reasonable

extent). Yes the adage the

customer is always right is

true, but your employees

may know the details

of a situation best. You

don’t want to undermine

their decisions and their

future credibility with

homeowners if it is not

necessary. Look for win-

win solutions.

Annually review their salary and

offer cost of living and performance

increases if you can. This will help

to ward off any competition that is

based on monetary rewards.

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