How Property Managers Can Reduce Employee Turnover
If you're asking the question "how to run a successful property management company," you're in the right place! One of the most critical aspects of business success is maintaining a strong workforce and positive work environment. There are plenty of reasons why employees leave a company, but there are also strategic ways to reduce turnover for a property management business.
How can employers improve employee retention? Much like improving tenant retention for your clients, a property management valuation expert recommends starting by understanding why team members leave--then applying strategies to reduce turnover.
Why Don't Employees Stay?
No property management company retains every employee forever. However, if you frequently lose good talent and struggle to find quality team members to support business growth, you probably have a turnover and retention problem.
A property management coach can tell you that employees don't stay for several reasons, including:
- Lack of career growth opportunities. If your staff doesn't have the chance to grow their roles or move up the ranks within your company, they may feel stuck and take off for better property management career opportunities elsewhere.
- Unorganized property management companies. When tasks and processes are disorganized, it leads to inefficient workflow. This can be frustrating for employees who want to do their jobs well and deliver excellent customer service to property owners and renters.
- Compensation. This almost goes without saying—no one wants to be underpaid for their role or quality of work. While we're not suggesting property managers should overpay for under-performing team members, offering competitive salaries and benefits can reduce the potential of competing rental management companies stealing your best talent with better compensation packages.
- Culture fit. The best companies value their employees and create a culture of positivity and teamwork. If your company's culture is toxic, chances are good you'll lose good people quickly.
If you're not sure which of these areas causes the bulk of your employee retention issues, a property management consultant can help! Sometimes an experienced third-party set of eyes can recognize problems that cause team members to leave, then make recommendations to improve the conditions that hurt your business.
How Property Managers Can Reduce Employee Turnover
Turnover can be costly for property management companies--including the time and money it takes to find new qualified candidates, onboard them, and train them effectively. Therefore, investing in reducing turnover can save tremendous resources over the long haul for a residential property management company.
There are many strategies a successful property manager can implement to reduce employee turnover—some of which include:
- Offer great benefits. Competitive compensation packages are a good start, but your employees need more than a paycheck. Consider offering other perks like health care plans, educational opportunities, free lunches or breakfasts occasionally, and ample paid time off.
- Develop clear processes. Unorganized property management companies with unclear SOPs (Standard Operating Procedures) leave employees feeling unproductive and disengaged. Work with a property management coach to optimize workflows that help each team member understands what's expected of them--and how they contribute to the bigger picture for your business.
- Have quarterly performance reviews with all staff members. This is one of the best ways to keep communication lines open about goals, objectives, feedback, and concerns about job satisfaction or company culture. Make it a priority to speak with every employee at least once per quarter about their work and how they can improve areas of concern or opportunity.
- Implement "exit interviews" for outgoing staff members. Not only will this help you understand why high performers quit, but it can also provide insight into your culture--and help you identify how to improve it.
- Conduct employee surveys. Employee feedback is crucial to understanding where your property management company excels and where there's room for improvement in processes, systems, or communication styles. Surveys are a great way to assess the needs of your employees so you can make improvements they care about.
Providing your team with the best property management software, processes, training, and resources can help employees feel valued and more confident in their roles. When scaling your business to add more doors, having SOPs in place helps new employees ramp up quickly and engage well with your company's culture. Remember, new hires should have plenty of experience and skills sets that will positively impact your business.
Turnover costs money—and employees who quit typically take at least three months to replace (sometimes longer). Reducing employee turnover is one of the best ways to grow your business, improve your property management services, and serve clients well!
Reduce Employee Turnover With Property Management Training
Working with a property management valuation expert is an excellent way to improve employee retention. With the right property management training, team members understand how to use the best software and operate within efficient processes to increase productivity. When employees perform well with the right support, they're happier and more likely to stay with your company!
If you're ready to find (and keep) better employees for longer, Real-Time Consulting Services is here to help. Schedule a free consultation to learn more about how we help property managers grow to serve more doors!
What's your profit per door? Use our free resource to Calculate Your Profit Per Door!