Camden a Market Leader
John Smith
Strayer University
Compensation Management BUS 409 [ July 15, 2013 ]
Professor Marilyn Fitzpatrick

Camden a Market Leader
Camden Property Trust has stayed competitive in the job market by having one of the best compensation packages in its field. Camden has been consistently ranked since 2006 in Fortune Magazine’s Top 100 companies to work for. In 2006 they were ranked at number 50 and slowly worked their way up to number 41 in 2009. Then in 2010 they jumped to number 10. Camden is one of the largest multifamily real estate investment trusts (REIT) and was hit during the recession, but was able to stay successful by investing in its employees. Camden was able to continue to offer a very completive compensation package to lure talent and help develop talent that they already had. To stay a step ahead of everyone else Camden not only needs to offer traditional benefits like medical, but expand on them and think outside the box. Employees spend a lot of time at work, more than they do with their own families, so by offering benefits that help the family out as well is one good way to attract and keep loyal employees. A company’s employees are their number one investment; they can make or break a business. Camden’s dedication to their employees has not only made them a great place to work but a successful business as well.
How Camden Stands Above the Rest
Although there are five companies listed under the category of construction/real estate Camden is the only real estate company on Fortune’s 2013 list. After the housing crash we just went through why would anyone even want to consider working in real estate? When working for the right company, a company that believes in its employees and compensates its employees it is the right move for anyone! Camden shows its investment in its employees by offering many of the traditional benefits that a lot of companies offer such as medical, dental, flexible spending accounts, life insurance, paid time off, short term disability and stock plans, but they put their own spin on these traditional benefits to cater to their employees. After the economy started to recover many companies did not replace the benefits they cut to save money. Many companies thought they have been doing the same hard work with less benefits all this time why increase it now, it is just more money that can go to our bottom line. Camden not only made sure these benefits were there but also benefits like dental and vision, that many companies do not cover. Not only does Camden offer theses, they have different tiers to make it more affordable so each employee can choose what they need. For a family with children they may want the more expensive plan where all the well baby checkups are 100% covered without a co-pay, for the single individual they may want the plan that is less out of their check but more when they go to the doctor because they do not need to go as often.
Vision coverage is something many companies do not currently provide as part of their medical coverage. Many vision providers are aware of this and offer a discount for those that have insurance, for example the discount I received for my son’s glasses last week was 5%. With the high expense of glasses and contacts many people simply do not get them because they cannot afford them, and this can compound the problem. By adding this coverage Camden is encouraging their employees to take care of themselves properly, this makes the employees feel appreciated and usually happier in their jobs.
One of the biggest draws to Camden’s compensation package would have to be their 401K package. With all the economic uncertainty the world has seen in the past several years this is something that is on the minds of many. The younger generation needs to start making plans for their retirement but many are clueless about how to go about this. Some employers have done completely away with 401K plans while others just don’t add any contributions to them. Camden not only has a 401K plan, they match a 100% of the first 2% of the employees contributions and 50% of the next 5%, with a $3000/year max. Camden has about 2000 employees, let’s say 10% contribute to their 401K that would be a $600,000/year investment in their employees! More than likely they do not have to contribute that much but to know that the potential is there and they are willing to put that much of an investment into their employees says a lot!
Camden offers discounts to employees that live on their properties. For part time employees it is up to 10% and full time employees up to 20% off. For a family of four living in Orlando the rent on a 3 bedroom at the Camden LaVina is $1308-$1587. This would be a savings of $261-317/month for a full time associate. The employee gets an extra benefit of $3000 off a year in rent and Camden has an employee that is onsite in case of an emergency.
Market Lead
Camden has developed a market lead strategy. Camden not only offers a compensation package that is above the rest of their market but they also offer their own in-house university program, Camden University. Camden wants to bring in talent and develop to grow with the company. Upon completion of a Camden University degree for one can increase their pay by up to a 3.5%. To make sure the degrees are available to everyone Camden has developed several different learning mediums to accommodate each individual learning style. There is an eLearning format similar to an online university, one on one instruction, or instructor lead courses. Each course is designed to enhance the knowledge of people in specific positions. By making the programs available to everyone this helps reinforce Camden’s market lead strategy.
I believe this program can have the most positive influence on stock holders. Stock holders are more likely to invest in a company that believes in itself, there in turn giving Camden more money to reinvest in compensation for its employees. It takes money to make money! By developing their own university curriculum, this shows stock holders how invested Camden is in its employee’s success. Camden wants to lead the market and they believe that in order to do that they need to invest in their employees. Camden wants to train their employees to do things the Camden way but also test them to ensure they have retained the information, then reward them with benefits for doing so.
Taking Care of the Family Not Just the Employee
Camden understands when you hire an employee you get a family. Camden offers additional compensation items to help one’s family. As anyone in this class can tell you tuition is a huge cost! Many people have financial aid or student loans, but sometimes you just need more. Camden also offers a scholarship program for employee’s dependents. We all have times in life when we try to keep work and professional lives separate but the stress from one can interfere with the other. By taking care of the employee and the family Camden is truly helping the employee succeed in all areas of life.
The Competition
Camden is the only real estate company to make it onto Fortune Magazine’s Top 100 Companies to Work For. REIT companies have been around for many years, but few have been able to grow and succeed the way Camden has. Apartment Investment Management Company (AIMCO) was founded in 1975 and has a traditional compensation package. AIMCO has not been able to grow nearly as quickly as Camden; I believe this has to do with Camden’s market lead position and compensation package. Camden was founded in 1982, 7 years after AIMCO, but they have 154 more properties then AIMCO. Both AIMCO and Camden are publicly traded companies. At the close of business on March 1st, 2013 for the New York Stock Exchange AIMCO closing price per share was $29.76. Camden’s closing share cost was at $69.43.
Other REIT’s are not doing as well, the economy has been hard and the job seeker is leery to look in this market. Camden is enticing the job seeker to want to come work for them; they are seeking talent and developing it. Camden not only is looking for those that already have the skills and wants to pay them well, they want those that want to advance and learn. Camden wants the diamond in the rough, the one they can train and mold, the eager apprentice. They are setting themselves apart from their completion by offering ways for employees to learn and advance, and then compensating them for taking the initiative.
Look what Camden has been able to accomplish in a shorter span of time, Camden is younger and more powerful then AIMCO! Since Camden has structured its compensation package to include traditional benefits and nontraditional benefits to invest in its employees. Being a publicly traded company Camden needs to make sure they keep a good image. Taken care of their employees and making sure Camden is a place everyone wants to work is key to their success. Camden has had 13% job growth in the past year, and should continue to grow.
Staying Competitive for the Future
As a market leader Camden needs to continue to think outside the box to stay completive for the future. Not all perks need to cost the company a lot of money. As Rosetta Thurman points out in her article 10 Creative, Low-Cost Perks to Keep Nonprofit Employees Happy and Productive, a company can do simple things like Free Donut Mondays, or Casual Fridays. These are small things that help boost employee morale and don’t cost the company.
Camden will need to make sure they do job analysis on a regular basis, at least every 2 years. This will help make sure they are keeping competitive wages. Camden’s compensation package cannot be touched by anyone else in the business but they will still need to keep an eye on competitor to see when they get close. Camden will need to keep an eye on what they ask employees to contribute to their own benefits, although their package is outstanding it will be of no use if they out price everything and the employees cannot take advantage of them.
Conclusion
Camden is a market leader that leads the pack by thinking outside the box and offers a compensation package that is far advanced from any of its competitors. Camden looks to offer benefits not only that help the employee but the employee’s family as well. Camden invests in its employees futures by offering ways to advance through the Camden University, and then rewarding the employee monetarily for completing the program.
During an economic time when so many job seekers have shied away from the real estate market Camden has been able to grow their business. By developing the proper combination of a market leader and strong compensation package Camden has been able to select the best candidates to work for them, and find the diamonds in the rough that they can mold and grow with the company. Camden’s devotion to their employees has shown in their employees’ devotion back to them. In 2012 Camden had a very low voluntary turnover rate of only 14%. Camden has a low turnover rate so they can devote more time to investing in their employees’ success and growing their company.

References

AIMCO. (2012). AIMCO Apartment Homes. Retrieved from AIMCO: http://www.aimco.com/careers/benefits-and-perks
CNN Money. (2013). Fortune 100 Best Companies to Work For. Retrieved from CNN: http://money.cnn.com/magazines/fortune/best-companies/2013/snapshots/10.html?iid=bc_sp_list
Martocchio, J. J. (2013). Strategic Compensation. Upper Saddle River : Pearson.
New York Stock Exchange. (2013, Feb 01). NYSE Euronext. Retrieved from New York Stock Exchange: http://www.nyse.com/about/listed/lcddata.html?ticker=CPT
Thurman, R. (2012, October 26). 10 Creative, Low-Cost Perks to Keep Nonprofit Employees Happy and Productive. Retrieved from Rosetta Thurman Empowering a New Generation of Leaders to Change the World: http://www.rosettathurman.com/2012/10/10-creative-low-cost-perks-to-keep-nonprofit-employees-happy-and-productive/
Trust, C. P. (2012). Camden Property Trust. Retrieved from Camden Living: http://www.camdenliving.com/careers/benefits/our-benefits/index.htm