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Understanding Self-Storage Manager Compensation
Mar
Experience Matters!
It’s important to remember that experience in a related area can positively influence your compensation. Don’t hesitate to ask if you’re looking for a specific salary. Sometimes, our base salaries may not align with what you’re looking for, but including potential bonuses and other incentives can significantly impact the overall compensation package.
Ultimately, experience in self-storage will contribute significantly to your salary growth over time.
Location, Location, Location
Additionally, location plays a crucial role in salary levels. Generally, if you’re working in a city, you can expect to earn a higher income than a smaller town. For example, if you’re in a place like Poteau, OK, where you may not even have an office on-site and are working from home, your compensation will likely be lower. The larger and more established the property, the higher the pay is likely to be. So, if you’re considering a position at a very small property, expecting a high salary is unrealistic, as they may not have the budget to support it.
Learn to Adapt to New Procedures
This year marks my 40th anniversary in the self-storage industry, and I believe that after so long, managers should expect better pay and bonuses since they require less training. However, some companies prefer those things to be done their way. While some managers adapt well to these expectations, others struggle to change their established methods. They often say, “This is how I was taught, and this is how I’m going to do it.” Breaking these habits can be challenging, and I’ve seen employees leave because they disagree with certain practices, such as how tasks are shared, or things are managed. It’s just a part of the process sometimes.
Self-Storage Manager Benefits
A job’s benefits significantly enhance the overall compensation package, particularly in areas like housing and health insurance. Good insurance coverage is essential for employees, as it provides them with security, especially if they face health issues that require treatment. Many employees may struggle to obtain affordable insurance independently, making employer-sponsored insurance an asset.
Compensation should encompass more than just salary; it should include key benefits. Health insurance should be a priority. Some business owners may argue that providing such coverage is too expensive or offer a small stipend, such as $200 or $150, expecting employees to cover the rest. However, for some individuals, especially older employees, insurance premiums can be as high as $800 or $900 monthly. This can be a significant barrier and a major incentive for job seekers if a company offers comprehensive health insurance.
Additionally, dental coverage is important. While not everyone prioritizes dental care, I find it beneficial. Employers should clearly outline vacation time policies, including how much vacation employees can accrue over the years.
Should Compensation Include an Apartment or Housing?
Regarding housing, I understand that many people love the idea of having an apartment provided by their employer. Personally, I prefer not to house employees in apartments because it can be challenging to ask someone to leave if they lose their job. I feel uncomfortable saying, “You’ve lost your job, and now you must move out.” For this reason, I prefer to assign apartments to other individuals, but if an apartment is available and an employee desires it, it can be a significant incentive.
Bonuses Based on Performance
Additionally, there will be bonuses related to property performance. Click here for a great article by our friend Pam Alton on manager bonus plans. Salaries in urban locations are generally more competitive due to the higher living costs in those areas, especially if you do not have a residence there. Comprehensive benefits for managers, such as insurance and retirement plans, are important. Some companies may even match your contributions to these plans. Performance bonuses are also crucial for attracting quality talent, so it’s essential to implement such incentives to draw people to work for you. I believe these strategies should be effective.
Self-Storage Manager Incentives
It’s important to have incentives that employees value, such as holiday company parties, birthday celebrations, and gifts. Additionally, consider implementing company-wide competitions, like a sales contest for who can sell the most products in January. This could motivate employees and provide them with extra earnings.
Attending conferences and conventions can also be a valuable reward. However, these events can be quite expensive, often costing around $800 per attendee, not including hotel accommodations and travel expenses. If the opportunity arises to attend a conference, I recommend taking advantage of it.
Some owners hesitate to send their managers to conferences, fearing competitors might recruit them. However, if it’s that easy for someone to leave, they may not have been committed to the company in the first place. That’s my perspective on this issue.
Telephone and In-Person Mystery Shops
At SkilCheck, we evaluate individuals and measure their sales effectiveness, contributing to bonus programs. My bonus program is primarily based on manager performance during mystery shop assessments. This provides a quantifiable way to assess their effectiveness. If they score 90 or above, they qualify for the full bonus; however, scores in the low 80s also receive a portion of the bonus.
Conclusion
Additionally, it’s essential to celebrate successes—not just in terms of occupancy rates but also regarding the store’s overall financial performance.
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