A major challenge that the multi-family industry faces is high employee turnover. With an annual employee turnover rate of 70%, property management has much higher turnover rates than other industries. This is notably higher than the national average of 22% pre-pandemic.
This high turnover rate affects not only the workforce but also the operations of the company and the residents' satisfaction. Therefore, it is crucial to understand the factors causing high employee turnover in multi-family and how to overcome them.
- Workforce Crunch: Burnout is a top contributor to employee turnover in multi-family. On-site teams have high-stress jobs. They are responsible for the day-to-day operations of the properties, handling resident complaints and issues and ensuring compliance with regulations. But unmanageable workloads leave them feeling frazzled and frustrated. This can lead to burnout, characterized by emotional exhaustion, depersonalization, and reduced personal accomplishment. When employees are burned out, they are more likely to leave their jobs and find something less demanding.
- Inadequate Benefits: Many multi-family professionals report feeling their employers' benefits packages leave much to be desired. In today's job market, employees look for more than just a paycheck. They want to work for a company that values their health and well-being. Many employees are willing to take a pay cut to work for a company that offers better benefits. When employees feel that their employer is not providing them with adequate benefits, they may look for a job with a better benefits package.
- Aging workforce: As fewer college graduates enter the field, the multi-family workforce is aging. Many top property managers, maintenance professionals, and leasing agents are reaching retirement age — but with no one to replace them. This can lead to a lack of experienced workers and high turnover rates. In addition, when experienced employees leave, they take their knowledge and expertise with them. This can lead to a loss of productivity and increased workload for the remaining employees.
- Work satisfaction: Many property management firms provide little to no room for growth or career development. Additionally, many workers feel undervalued in their roles. This leads to dissatisfaction among employees, making them more likely to seek employment opportunities where they feel appreciated and valued.
Companies must take a proactive approach to overcome these factors that cause high turnover in multi-family.
First, create an environment conducive to employee well-being and job satisfaction. One of the ways to do this is to invest in employee development and provide opportunities for career advancement. This can help employees feel valued and important.
Second, address the workload. This can be done by hiring more employees or by utilizing a tool that streamlines tasks through automation.
Lastly, companies must have a positive work culture and encourage open communication and feedback. Promoting a positive work-life balance and not being upset when employees take advantage can help employees feel appreciated making them more likely to stay with the company.
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