only issue associated with high staff turnover .
A 2022 study by payments provider Zego found that apartment firms with higher staff turnover also had lower resident retention rates . With the average cost of losing a resident running at nearly $ 4,000 a unit -- a number that has only increased during the pandemic as rents have gone up -- those expenses get tacked on to each staff resignation . ' In fact , while 23 % of managers with low staff churn achieved a 70 % resident retention rate , just 3 % of firms with high staff turnover . On the flip side , companies at reduce staff turnover see a corresponding rise in resident retention .
According to talent performance solutions provider Grace Hill , every 3 % reduction in staff turnover nets a 4 % decrease in residents leaving . That means a 15 % improvement in employee retention translates into a 20 % boost in resident renewals , and corresponding savings in the expense associated with turning a vacated unit .
Why staff leave
The pitfalls of high staff turnover at apartment companies are obvious . Why multifamily staff churn rates are so high , and what property pros can do about it , though , is a little more ambiguous .
In 2022 , the chatter in multifamily about high staff turnover revolved around burnout . Higher workloads due to residents being at home over longer periods , and the resulting increased demand for onsite employees ’ time – the high-touch customer service on steroids effect -- has been one aspect .
The fact that staff turnover in the apartment industry has always been high is another . With more people quitting – more than 32 million workers voluntarily left their jobs in 2022 nationally – staff who are left behind are expected to do more with less . Not only do their workloads increase , but also the new hires that replace their missing colleagues are often inadequately trained and lack the experience to effectively do their jobs .
So , the property management vets who have managed to hang on throughout the pandemic have a new two-headed monster to tame : higher workloads due to fewer available staff , and the increased burden of managing new staff , who can often require more time and attention than the residents they were ostensibly hired to serve .
" The fact that staff turnover in the apartment industry has always been high is another . With more people quitting – more than 32 million workers voluntarily left their jobs in 2022 nationally – staff who are left behind are expected to do more with less ."
Reducing staff turnover
There are some simple steps apartment firms can take to stem that tide .
Recognizing good work and rewarding it with small tokens of appreciation – a free coffee card goes a long way – can help . Indeed , according to retention firm Bonusly , 63 % of employees who were consistently recognized for their work were highly unlikely to seek employment elsewhere .
Better pay and benefits help , too . Low compensation has long been a culprit of voluntary quits in the industry . While managers may be loath to pay more in an era when quiet quitting – where employees stay in their jobs , but do the bare minimum to get by – has become more prevalent , the increased expenses connected to high
MANAGEMENT
staff turnover can cost even more .
Packages with the hallmarks of “ real job ” benefits , such as 401k matches , health insurance and paid time off , can also help strengthen the ties of employees to their properties , while giving them more to lose if they simply walk away .
Another unique perk properties can give that others can ’ t , especially during a period when housing costs have been going up , is a housing discount . Doing so can make use of the 4-5 % vacancies most properties operate on , while also providing a tax benefit to owners and can even supplant salary costs , since housing allowances and compensation are typically bundled .
Treating the disease , not the symptom
But while recognition , higher compensation and better benefits are a first line defense , none of them truly address the core problem driving higher turnover in multifamily : burnout .
The vicious cycle of increased staff turnover , which leads to higher workloads for remaining staff has resulted in “ miles long to-do lists ” on worker ’ s daily task sheets . To truly reduce the number of hair-on-fire days property staff have at their jobs , companies need to actually shrink their workloads , without just throwing more untrained bodies at the problem .
Leveraging proptech to keep employees happy
This is where onsite proptech and leveraging proptech can help . Take , for example , the use of phone and chat bots to reduce , even marginally , the number of redundant questions property staff answer on a given day .
Ask any leasing agent what happens when they advertise an available unit , and they ’ ll tell you the result is repeated phone calls , texts and chat messages , most of which are inquiring about information that ’ s already in the ad , like whether the unit comes with parking , or if pets are allowed . www . aamdhq . org JANUARY 2023 TRENDS | 25