How To Train Your Billionaire
Six Ways To Improve Relationships And Service Between Principals And Estate Managers
Forbes Magazine reported that in 2020 there were roughly 500 new billionaires in the US. Many are hiring an Estate Manager for the first time. And, many estate manager-clients working for those new-money billionaires say…well…some need a little training.
OK, let’s be honest: some old-money billionaires could use a little training as well.
Last month’s CWK "How To Train Your Billionaire" was a good starter conversation. During the session I posed the question, “What do estate managers need to feel trusted, valued and empowered to do your best work?”
There was radio silence.
I came to the conclusion that no one had ever asked them that before.
I ended that session not really feeling like we had accomplished much. Until the next day when I woke to numerous emails with deep thoughts and reflections on what they wanted to change about this industry. The underlying sentiment was, “Go Kelly, Go! We need you to highlight these issues. If we say anything, we’ll lose our jobs and our professions.”
So, here are some challenges and solutions.
This is a compilation of notes and conversations from the last two Coffee With Kelly sessions entitled “How To Train Your Billionaire Part 1 and 2”. While Part 1 was not recorded to protect the privacy of participants in that open discussion session, it informed the Part 2 session’s content. You can watch Part 2 in this video.
ISSUE NO. 1 : PROVIDING 24/7 SERVICE
What does this really mean?
Estate Managers say “Yes” to this in our job descriptions like it’s a given in our industry. Yet, we don’t investigate what this truly means until we’re deep into our new roles and it’s too late to change it.
Does 24/7 service mean, when the principal’s awake, you’re awake? Does the estate manager need to sleep with the phone under their pillow? Or does this refer to property emergencies only?
In many instances as a candidate, just asking these questions will get you disqualified for consideration. But we should ask whether this role needs to be fulfilled by the Estate Manager every night.
Estate Managers need to understand this level of commitment before saying “Yes.”
SOLUTION:
Purchase an office phone and rotate the responsibility among staff (no one staff member bears the sole responsibility). Without staff support, the estate manager should simply say “No thank you” to these 24/7 roles.
RESULT:
Principal gets the service they want or need.
Estate Manager minimizes burnout in this unsustainable position.
ISSUE NO. 2: IMPROPER COMPENSATION
Let’s do the math. Here’s a case study based on $150K salary:
Regular Work Hours:
40 hours/week x 50 weeks/year = 2,000 hours per year or $75/hour
Estate Manager’s Hours:
60 - 70 hours/week x 50 weeks/year = 3,500 hours per year or $42/hour
Many estate housekeepers make more money, go home at a decent hour, and often don’t provide 24/7 service. Nor do they have the broad experience or skill set needed to be an Estate Manager. This can and will create quite an imbalance within a household organization.
Also it’s important to note that many Estate Managers don’t receive paid overtime (yes, even if they’re salaried), retirement benefits, health insurance and paid time off. And many others are still being paid as “Contractors” (no taxes withheld), but legally qualify as an “Employee.”
SOLUTION:
Estate Managers, say “No” to roles that don’t pay per state and federal guidelines, or request overtime compensation or personal comp time for over 40 hours of work each week.
RESULT:
Principal reduces risk of being sued by a disgruntled employee.
Estate Manager feels adequately compensated.
ISSUE NO. 3: PERSONAL TIME-OFF
Everyone needs it EVERY DAY!
Radical idea, I know. Let’s make this a healthy and sustainable profession. One that focuses on team collaboration, healthy relationships and professional work ethics.
SOLUTION:
SET COMMUNICATION HOURS of 7 a.m. - 7 p.m. Then, Estate Managers, turn your phone OFF. The staff member with the rotating office phone will respond to any after-hour emergencies and requests.
RESULT:
Principal still gets all requests met.
Estate Manager has a personal life they can control.
ISSUE NO. 4 – TURNING OVER THE REIGNS
Give your estate manager the tools and autonomy to succeed
Many new employers, having managing their home projects and household staff for years, aren’t accustomed to turning over the reigns. We all understand that change is difficult and long-term staff relationships are the hardest by far to transition from a familiar, friendly work environment to something more professional.
SOLUTIONS:
Invite the estate manager to all meeting related to staffing, projects and property management.
Provide enough petty cash and a credit spending limit to reduce the back and forth for approvals.
Empower your estate manager with rights to hire and fire, and let the household staff know they have this power!
Hire enough staff to support the needs of the principal and the property.
Require the estate manager provide a weekly summary report to include: completed, upcoming and stuck projects; open inquires and proposals; and staff updates so everyone is up-to-date.
Estate Managers, think hard before accepting a position where you don’t have control over the staff, won’t be included in remodeling, decorating and construction project meetings and where you won’t have adequate staff to fulfill the basic cleaning and maintenance needs of the house (unless you’re hired to bring staff in).
It’s reasonable that the Estate Manager has an on-boarding period where everyone settles into their new roles and relationships.
RESULT:
Principal enjoys life without household distractions.
Estate Manager does what they were hired to do.
ISSUE NO. 5 – HYBRID ROLES
Think twice about creating or accepting multi-directional roles
Luxury homes typically utilize 30 to 80 vendors and contractors. Typically, an Estate Manager gets hired when the homeowner no longer wants to manage the house, contractors or the household staff. It’s a full-time job that is often paired with principal requests. When additional roles are expected – personal assistant’s duties, travel and event planning, cooking and cleaning, errands or child and pet care – something will eventually fall through the cracks. These additional roles all require a different focus and daily planning. Eventually, property maintenance, staff and contractor management get overlooked due to the family’s more immediate needs. Then no one’s happy.
SOLUTIONS:
Principals, hire an Estate Manager only when you need an Estate Manager. Otherwise, hire a personal assistant, a luxury property management company or self-manage the property. Or…principals and recruiters should rename these positions something other than “Estate Manager.”
Estate Managers, say “NO” to hybrid roles. That’s the only way to change this type of inevitable failure and short-term mark on your resume.
RESULT:
Principal will have qualified staff doing their best work, with a house being run in the most efficient manner.
Estate Manager stays focused on household functionality and staff efficiency.
And lastly...
ISSUE NO. 6 – IRREGULAR COMMUNICATION AND LACK OF FEEDBACK
Estate Managers can guess 20 different ways to please you, BUT...
They’re professionals and want to please you the first time!
Principals, commit to weekly communication with your estate manager via text, email or face-to-face. Be honest but kind with your feedback, and watch your estate manager soar.
RESULT
Principal will more likely get the results they want.
Estate Manager will have more time to devote to other real issues.
EVERYONE WINS.
All of my clients are extremely grateful to be able to get back to work in new positions with new families. And collectively we all want to earn trust and be empowered to do our best work. If COVID has taught us anything, it is that everyone’s lives matter, and we all want to be valued and do good work. Let’s pull together to create long-lasting professional relationships that produce beautiful, stress-free homes.
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I hope this is helpful information. If there’s a way I can help you improve your performance and service, please reach out. I’d love to hear from you.
You’ve got this!
xo
Kelly
