The People Problem: Staffing, Training, and Succession Planning in Private Clubs

Why addressing the ‘people problem’ is crucial for long-term stability 

In our first article in this private club management series on private club accounting, we explored the challenges of running a smooth back office. We introduced the ‘three core pillars’ of a well-functioning operation: people, processes, and technology.

This second article focuses on the first—and arguably most critical—pillar: people.

The People Challenges in Private Club Administration

One of the biggest obstacles to any efficiency is staffing specifically, in this case, the people behind the scenes who keep financials in order, manage memberships, and ensure compliance. Without the right team in place, even the best technology and processes will fall short.

Many clubs continue to struggle with hiring, training, and retaining administrative staff, leading to operational bottlenecks, financial inconsistencies, and poor member experiences. A growing concern in the private club industry is the retirement of long-tenured bookkeepers and administrative professionals—individuals whose deep institutional knowledge is not easily replaced.

Managing the back office of a club requires specialized knowledge that blends finance, hospitality, and regulatory compliance. Unlike larger corporate environments, most clubs operate with lean administrative teams, meaning each person plays a vital role in daily operations. The most common challenges clubs face include:

The labor market for back-office roles in private clubs is tightening. Many clubs operate in smaller communities, making it difficult to attract experienced accountants, finance managers, and administrative personnel. Additionally, clubs often compete with larger organizations that offer higher salaries and better benefits making it challenging to recruit top talent.

With small teams and heavy workloads, burnout is a significant issue. Many back-office employees juggle multiple responsibilities, from bookkeeping and payroll to compliance and vendor management. Without proper support, employees may feel overworked and undervalued, leading to high turnover rates. Constantly training new employees disrupts operations and increases the risk of errors.

Many clubs rely heavily on one or two key employees who have been with the organization for decades. While their institutional knowledge is invaluable, it becomes a major risk when they leave. Without proper documentation and cross-training, new hires struggle to step into their roles effectively, leading to financial mismanagement and operational disruptions.

One of the most pressing issues clubs face today is the retirement of long-tenured accountants and finance managers. These individuals have often managed the books for decades, handling everything from membership billing to financial reporting. Without a structured succession plan, clubs can find themselves in crisis when these key employees retire.

Younger professionals may be less inclined to pursue careers in club administration, particularly if clubs don’t offer competitive salaries, growth opportunities, or modern work environments. Not being an attractive employer is a strategic liability as it could threaten the long-term sustainability of club operations.      

How to Address These Private Club Management Challenges

To ensure long-term success, clubs must take a proactive approach to staffing and succession planning. Here are some key strategies to consider:

Clubs need a structured plan for replacing key back-office employees before they leave. A good succession plan includes:

• Identifying Critical Roles: Determine which positions are essential to operations and could pose a risk if left vacant.
• Documenting Processes: Ensure that all financial procedures, membership billing systems, and compliance protocols are well-documented.
• Training Internal Talent: If possible, train an existing team member to step into the role before a temporary (maternity, medical) or permanent departure (new position, retirement) occurs.
• Building a Talent Pipeline: Work with local universities, accounting firms, and industry associations to identify potential future hires.

Encouraging cross-training among staff can prevent knowledge silos and ensure operational continuity. For example, if a club’s accountant is the only person who understands membership billing, another staff member should be trained in the process to provide backup support.

Offering competitive salaries, flexible work arrangements, and professional development opportunities can help clubs attract and retain top talent. Many private clubs focus heavily on member-facing roles but should consider investing equally in their administrative and back-office teams.

Automation and integrated software solutions can help back-office teams operate more efficiently, reducing manual data entry and minimizing errors. By implementing modern accounting, payroll, and membership management systems, clubs can reduce reliance on single employees and streamline operations.

Rather than waiting until a key employee leaves, clubs should actively build relationships with potential candidates. Engaging with professional associations, industry conferences, and local accounting firms can help create a network of potential hires.

The Long-Term Impact of Addressing Private Club Staffing Challenges 

When clubs take a strategic approach to staffing, training, and succession planning, they create a more stable and efficient back office. A well-managed administrative team leads to:

• Stronger Financial Oversight: Reduced errors in accounting, payroll, and reporting.
• Improved Member Satisfaction: Faster response times and smoother operations.
• Lower Turnover & Reduced Hiring Costs: Retaining staff reduces the costs associated with constant recruitment and training.
• Operational Continuity: A club isn’t left scrambling when a key employee departs.

In our next article on private club management, we discuss how process improvements can further streamline back-office operations, reduce administrative burdens, and improve overall efficiency.

MAXIS recently released a new white paper, "Modernizing the Private Club Back Office: A Strategic Guide to People, Processes, and Technology," to explore how clubs can improve efficiency, reduce administrative burden, and build a more sustainable operational model.

Download our white paper here.

By investing in people now, clubs can future-proof their operations and deliver the level of service members expect—today and tomorrow. Contact our accounting advisory team: Alexis Becker at alexis.becker@freedmaxick.com or Ryan Kirke at ryan.kirke@freedmaxick.com to schedule a complimentary discovery call to explore your club’s staffing challenges and succession.