FROM THE PRESIDENT
DEREK AVERY | LEGACY PARTNERS
A " Team First " mentality going into 2016 / 17
Every business has the same three primary components … owners , customers , and staff ( I prefer the term “ team members ” instead of staff ). Some organizations say , “ The customer is always right ”, thus they should take priority . If you have been in our industry for even a short while , you may have a sense this is not necessarily correct . Other organizations say they exist to maximize profitability for their owners ( or stock holders ) and thus , they should take the top priority of the three groups .
While I agree the end goal for a business is profitable performance , I believe it is short sighted to make the owners the highest priority within an organization . That leaves team members for consideration of top priority .
Put simply , placing an internal priority on the quality , training , empowerment , and ultimately retention of team members maximizes the customer experience and thereby profitability for the owners . This realization has made me conclude the most important number to monitor and manage in any business is team member turnover .
This one number both reflects an organizations success at creating a respectful , rewarding , and even inspiring environment that team members wish to be a apart of for the long term , while also serving as an early predictor of customer satisfaction and retention . We all know happy long term customers drives that all important rate of business profitability .
So , you might ask , “ How are we doing here in the Denver metro area within the multifamily industry at team member turnover ”? In each of the past two years AAMD conducted surveys of member management companies for their team member retention .
In 2014 , AAMD members turned 35.9 %
of on-site team members and in 2015 the number improved slightly to 35.4 % turnover . This compares to an approximate 32.5 % national average on-site team member turnover rate . If the Denver market is currently performing 3 percentage points higher than the national average , I believe we can certainly perform 3 percentage points lower than the national average . Such a team member retention improvement would have multiple positive impacts .
First , improved retention would reflect an arguably enhanced work experience for our team members , while reducing the demands to attract new talent from outside our industry . There is great joy to be found when working with other happy people .
Second , the approximate 750,000 Coloradan multifamily residents that depend on our team members for the noble service of “ home ” would receive an improved living experience from more tenured , even more passionate service providers . There is further joy to be found making our residents happy with our service of “ home ”. Finally , improved service levels will drive ever higher resident retention , lower vacancy and turn cost , and thus greater owner profitability . That is a win , win , win trifecta !
During my term as President of AAMD , I will ask our leadership and association staff to support the theme of “ Team First ” by focusing on the business practices that foster a work environment that team members wish to be a part of for the long term .
Here is to a rewarding , joy filled , and profitable year ahead !
6 | TRENDS • JULY 2016 www . aamdhq . org