The industry has long been plagued by the high turnover rate of property managers in apartment buildings. According to the National Apartment Association, the average employee turnover rate in 2019 was nearly 33 percent.
This turnover rate not only adds to the instability of the company and wastes valuable time, but is also costly: the average cost of replacing an employee is six to nine months of the employee’s salary, according to the Society for Human Resources Management.
At a time when stability is badly needed, what can property managers do to keep good people on board?
Two key steps can help keep employees staying, wrote Dru Armstrong, CEO of the Grace Hill multi-family business for Talent Performance Solutions, recently in Propmodo. Providing better training and development opportunities for employees and recognizing their efforts can help them stay with the company.
“Both seasoned property managers and newcomers who are still making repeated career decisions say they would be more likely to stay in their jobs if only they received better education and professional development,” said Armstrong.
In 2020, small organizations were most successful in offering their employees professional development to offset turnover rates: 70 percent of small organizations offered this to employees, 64 percent of medium-sized organizations did so, and 58 percent of large organizations made these offers available Disposal According to Grace Hills 2020 Multifamily Benchmark Report.
Unfortunately, often a major barrier to good workout has been sufficient time, both for those giving and receiving the workout.
“This year, more than half of property managers said there simply weren’t enough hours a day to get the training and professional development they need,” said Armstrong. “Gaining time is difficult to say the least.”
The pandemic has made everyday life a lot more difficult, but a small plus is that there have never been more opportunities to do business remotely. Armstrong said real estate management companies should seize the moment by delivering online training courses that can be delivered anytime, anywhere, while still providing employees with the valuable information they want.
“Why can’t you get this training online to avoid potentially unsafe collecting and still get the information you need to answer your questions and provide guidance on how to do your job safely?” Asked Armstrong.
In addition, companies must make their offers for professional development known to employees. According to Grace Hill’s survey, six in ten businesses don’t need their property managers to have credentials. However, these companies pay to manage credentials if they choose to. Now, less than 25 percent of property managers know their companies will offer this benefit.
On the appreciation side, confirming employees that their efforts have been seen and valued ensures that top talent knows they are valued and encourages them to keep doing the good job. Both good training and positive reinforcement actually provide a kind of “feedback loop,” says Armstrong, to encourage employees over the long term.
“Nearly sixty percent of the property management workers we surveyed said employee recognition is a key tool in improving customer loyalty,” said Armstrong. “With a pandemic facing unprecedented dangers and legal issues, it seems reasonable that many property managers would appreciate recognition and other rewards for following procedures.”
“Training and professional development provide companies with metrics for employee recognition,” added Armstrong. “By completing their training, employees can not only receive recognition and other benefits, but can also be rewarded and presented as top professionals in their company. It’s a great way to communicate your company’s vision and create a feedback loop for employee satisfaction. “
Email Lillian Dickerson