Award Winning Victoria-Based Property Management Team Introduces Unique Employee Ownership Concept
From left: Kelly Whitney, Kathryn Squires Basson, Andy Spurling, Dwight Mueller, Kathy Soetaert, Paul Merrien
VICTORIA – A new type of ownership has been introduced at Proline Management: Stewardship.
Andy Spurling, owner and president of the property management company that was named Professional Business of the Year at the recent 2023 Vancouver Island Business Excellence Awards in Victoria says the unique approach was implemented a year ago, and thus far it’s been a great success.
Andy and his father, Eric Spurling, who founded the company in 1985, were partners in Proline Management until this time last year. To facilitate Eric’s retirement, a system was devised that would transition the firm away from a traditional family-owned business to the ultimate goal: employee ownership.
“My dad owned half of company and I owned half, and we created a scenario where we could give my Dad’s shares to five leaders within our organization instead of going through typical scenarios where you retain control and need to have people have ‘skin in the game’,” Andy recalls. “I took the position that the employees’ skin was already in the game. Retaining control was a false idea to me, as collaboration was going to be needed to contribute to our success and strengthen our culture.”
Andy Spurling, Kelly Whitney and Kathryn Basson of Proline Property Management, and Joel Hughes, EHN Canada at the Vancouver Island Business Excellence Awards
The transition put 51 percent of the company – controlling ownership in the firm – into the hands of employees who became full shareholders right away. Andy wanted to give people shares in such a way that they weren’t negatively impacted from a tax perspective, and he personally guaranteed the loan for the employees’ shares.
“For tax and other reasons, I had to look at not having control in order to make it work,” he states. “The stewardship agreement prioritizes our team, people and community over profits. Financial concerns are important, but not to the point where it overrides the company’s commitment to our people, the community, and the company.
“It’s a unique approach to business growth, and it includes a commitment from every member of the stewardship team,” he adds. “We made it available with commitment by the stewardship team to a deeply discounted rate that will make the phase two transfer of ownership from the current owners to all the employees a realistic possibility.”
Spurling explains the goal was to invite people into ownership without them having to consider whether it was financially feasible for them and their families.
“If the goal is ultimately to have a team of stewards lead the company towards employee ownership, it must be so that we can collaborate,” he adds. “Communal interests are usually shared, and it seemed low risk, as it was more in line with what we were trying to accomplish.”
“We work with individuals, but about 73 per cent of our business is for condominium communities,” he states. “We work with existing strata communities, developers who are building communities, and on our rental side we mainly manage for individuals, and some investment companies.”
One of their services assists clients navigate the sometimes turbulent world of stratas and accompanying councils, helping to decode bylaws and solve conflicts. Basically making the hard things easier.
They also offer developer assistance, which means taking on administrative burdens so that “neighbors can become neighbors again”, and commercial property management.
Proline Management has focused on relationships, which has contributed greatly to their success and growth.
“We prioritize local relationships, and focus on extensive training for our team and client communities,” he says. “We are active in the community, making sure we’re supporting the people in our broader community and not taking any of them for granted. We put people first.”
“There seems to be more and more conflict in strata communities, so we’re creating a safe and healthy environment to promote growth and support,” he adds. “We’ve had to figure out how to create more managers amongst ourselves.”
Spurling sees winning the Business Excellence Award as validation of the company’s performance.
“Our team went to enjoy the event together, and it was such a vivid reminder that there are so many great companies on the Island in that room, that were recognized in all categories,” Andy notes. “It felt really special. It was the first time our stewardship team had been in that kind of situation, and it was like the icing on the cake to be able to come back to the office and share it with everyone. You remember how nice it is to be recommended by other people.”
By Mark MacDonald
