Why Managers Overservice Their Clients...and why they need to stop

Recently I had a new(er) community manager contact me. She told me she was absolutely overwhelmed with the amount of work she was doing, putting in 50-60 hours per week for what was supposed to be a part-time position. As we went back and forth on what was causing her to work so much, it became clear that this manager, like thousands before her, and thousands that will come after her, was overservicing her clients; meaning she was providing services which were out of contract, and for which she, and her management company, were not getting paid. It’s an incredibly common occurrence, especially among new portfolio managers; and it’s a major contributor to 60-hour work-weeks and the inevitable early burnout. And it’s our own dumb fault.

Why managers overservice their clients

We never read the contract. New managers seldom read the contracts they?are?assigned because, frankly, they are really busy and “don’t have time!” to read them. Baloney. You don’t NOT have the time. If you don’t want to read the whole contract, at least read the Scope of Service section (but read the whole thing eventually). You may be surprised to find that not all of your associations are “full service,” and you’re providing service for which you, and your company, are not being compensated. This is why we have contracts – to provide clarity to both parties on what services will, and will not, be provided, at least not without being charged.

We’re trying to make the client happy. Ask any overly-accommodating manager why they do it, and they’ll tell you “Oh, I don’t mind... it doesn’t take me long and it makes the client happy and my life easier.” Well, both of those may be true, but it’s a very short-sighted way of thinking, because you can juggle the chainsaws for only so long. Yes, it’s our job to keep the clients happy, but it’s not our job to provide more service than the contract calls for. Think about it: If you’re doing extras for several clients, you are giving away 10 to 20 hours of work per month, which translates into a few thousand dollars of company (and your) revenue. Unlike the clients, we are not non-profit.

We’re afraid to say no, or charge them when we say yes. How many managers will sit in a Board meeting for longer that the contract permits without charging the community? Right, a whole bunch of you. Stop it, and now. When the time allotment is up, simply inform the Board that you’ll be charging them from that moment on at the contracted rate, or you’ll be leaving the meeting. As often as not, they’ll wrap up the meeting rather than pay an extra charge. Remember: This is business, it’s not personal. How many attorneys attend meetings without pay? You know that answer.

Why we should stop

TIME. Like lawyers, plumbers, therapists and so many others, time is what we offer as community managers; it’s our “widget.” That time is precious and we need to carefully manage it to keep up with the work load. When you overservice a client, you are voluntarily 1) taking away from other communities who are also paying for your time, and 2) taking away from your own time with family, friends or even from yourself (when you really need that 30-minute mental health break!).

Overservicing sets the next manager up for failure. Once an account is overserviced for a period of time, naturally, the clients get used to it and think it's normal. That's all great until you get hit by a bus and the next manager will be explaining to the Board why they are not paying extra for those committee meetings you had attended and failed to charge for.

New twist: State law. Progressive states like California and Washington are changing the way employers are allowed to classify employees as “exempt.” For example, in 2022 a California employer with 1-25 employees must pay exempt employees at least $58,240 per year and those with 26 or more, $62,400 (Based on the 2 times minimum wage provision see here). We know there are plenty of portfolio managers that are making more that than those minimums; but those who don’t will be moved to hourly wages, greatly affecting those managers who are overservicing their clients, as they won’t be able to provide that extra service without overtime. I’m not a fan of these types of top-down regulations, but there is a silver lining: Bidding executives will be forced into defining and disclosing, in the contract, the number of service hours that will be provided to the client on a monthly basis. What a concept!

Overserving accelerates burnout. At the end of the week, when you have spent 50 to 60 hours doing what should have been done in 45, who wins? You, the manager, are frazzled, and feel underpaid and overwhelmed. Meanwhile, your family feels left out and your work problems have become home problems. When that happens, it’s only a matter of time before you implode and move on to another job or profession.?

What to do in 3 easy steps

1. Read and understand your contracts.
2. Know how much time you should be spending with each client. Estimate this by taking 1/3 of each contract amount and divide it by your billable rate. Or, convert each 1/3 to their percentages based on a 45-hour work week. You’ll be surprised to find how few hours of your time per week clients actually pay for.
3. Advise your supervisor if you cannot meet the time requirements of your actual work v. the contractual scope of service. They need to know so they can either help you get back on track; or raise the management fee.

It’s incredibly common for new managers to be overly accommodating to the clients. I hope this article has convinced you over-providers out there to step back, service your clients to the scope of work within the contract, charge for services that are above and beyond, and strive for a better balance. You can only dance so fast for so long before you collapse. Manage your time for the long-term and take back your life.

c. 2022 Julie Adamen Adamen Inc. all rights reserved