New independent research from the DCM Institute has shone a light on the inadequate compensation for retirement Village Managers in Australia – the village sector needs to urgently reassess their compensation structure for Village Managers.
According to James Wiltshire, Executive Director of our DCM Institute, the survey of village professionals showed the average salary of Retirement Village Managers in Australia currently stands at $96,000.
This is despite the complexity of the Village Manager role and the skills required to meet both the expectations of residents and the objectives of the operator.
The “compensation gap” is even more stark when you look at comparable sectors.
Property managers in Australia, often with fewer demanding responsibilities, earn an average of $110,000 annually (Payscale, 2021).
While Village Managers are paid more than the average professional salary of approximately $86,000 in Australia (ABS, 2021), James says it is essential to recognise the unique complexity and scope of their role.
“There aren’t many professions that have to deal with the challenges the people in these roles face every day,” he said.
How can the sector bridge this gap then?
Village management needs to be recognised as a formal profession.
For this to happen, operators must prioritise investment in training, education, and professional development.
If the sector wants to attract and retain talented people who are passionate about improving the lives of older Australians, Village Managers need structured programs, continuous skill development, and specialised training.
Research conducted by the American Society for Training and Development (ASTD) has shown that that investing in professional development programs leads to better leadership capabilities, enhanced business performance, increased employee satisfaction, and higher retention rates (ASTD, 2019).
This backs the DCM Institute’s findings, which also found that two out of every five Village Managers are considering leaving the sector within the next three years.
“We have to do better,” said James. “Operators need to find a way to have this conversation with their residents.”
Village operators need to work in partnership with residents to ensure Village Managers are paid their worth – the industry as a whole will benefit.
