7 ways proptech can fix the skilled labour shortage

We are all very aware of the skilled labour shortage facing Australian businesses, particularly with labour markets tightening in recent months. New reports have found nearly a third of all Australian sectors are suffering major worker shortfalls, and the property market is no exception. There are many reasons for the current skilled labour shortage, including the halt in migration and wages failing to meet the increasing cost of living.

So, what can be done to address the shortage of skilled workers in an age where both employees and consumers demand more flexibility and efficiency than ever?

Modern problems require modern solutions, and one such solution is proptech. If you’re across the property space, chances are you’re familiar with proptech — an all-encompassing term used to describe property technology in the real estate space and, more broadly, property-specific innovation. Proptech provides automated solutions for outdated processes in everything from construction and purchasing to renting and managing buildings.

Here are seven ways proptech can alleviate the skilled labour shortage.

1. Empowering employers through data

Proptech allows businesses to generate relevant data — an extremely useful tool that can differentiate them from their competition. By analysing data such as rent collection levels, companies can predict movements in the market and, by extension, their own needs in terms of labour. For example, fintech products such as automated property management software can help customers predict when tenants are likely to default on rent or terminate their lease. Anticipating the future allows businesses to resource appropriately and improve business performance.

2. More autonomy for customers means less demand on employees

Another innovative category of proptech is smart real estate, which encompasses internet-connected appliances and devices that can be remotely managed and monitored. For example, tenant experience platforms can provide tenants with control over features such as lighting, temperature, and security systems. Higher levels of access and visibility for tenants allow them to be more autonomous, in turn freeing up more time for property managers.

3. Efficient tech solutions = less labour and fewer mistakes

In a time where there simply aren’t enough skilled workers available, it is important to reduce inefficiencies and modernise processes through proptech. The financial technology intersection with proptech is particularly relevant in this respect. Rather than resorting to old-fashioned spreadsheets and doing everything manually, businesses should utilise automated accounting software for more streamlined and efficient solutions. For example, real estate fintech software can generate invoices, send payment reminders, and automate rent payments with less room for human error.

4. Cost-saving allows extra budget for recruitment and wages

With cost of living on the rise, wages stagnating, and workers in high demand, prospective employees are looking to be paid a decent market rate. Utilising proptech can allow businesses to reduce costs and reallocate budget where it’s currently needed — recruitment and retaining great staff.

5. Greater flexibility for a global workforce

Throughout the pandemic, most businesses were forced to migrate online and adapt to new ways of working. Proptech software that uses cloud computing, such as Re-Leased, enables the industry to become far more flexible, mobile, and accessible to meet this need. Utilising proptech allows businesses to hire people interstate or internationally, as employees can carry out their work at ease from anywhere in the world.

6. The best tech attracts the best talent

In a world where the tech landscape is constantly changing, businesses must stay up to date with the latest advancements to attract and retain new talent. The younger portion of the workforce wants to work with the latest tech, not outdated processes and systems that disincentivise people from wanting to join the industry. Attract workers to your business by giving them the best tools for the job.

7. Helping staff feel supported

Property managers left the industry in droves during the pandemic, the reasons for which included a lack of support, training, and development pathways. Proptech can assist in the promotion of best practices through system and process automation, making training and management of workload that much easier.

There’s no denying proptech is an under-utilised resource in the property sector, and greater adoption of these technologies would go a long way in easing current labour shortage pains. Empowering both employers and employees to work more efficiently with property technology will result in better outcomes for all.

By Tom Wallace, founder and chief executive of Re-Leased.

This article was originally featured on 29 November 2022 in Real Estate Business.