Employee turnover is a part of every business reality, but we’re always looking for ways to keep that rate as low as possible. Currently, the benchmark turnover rate in the US overall is 20%. However, the turnover rate specifically in multifamily for 2021 is 46.9%! This means we have our work cut out for us to retain talent and mitigate employee turnover. One important tool at our disposal is multifamily employee development.
When surveyed, 53.2% of employees said they believe their employer offers adequate training and career development, but when employers were asked the same question, 73.5% felt they offer adequate development. This is a gap that should be addressed, and the best way to do this is for leaders to speak to employees one-on-one to find out if they feel supported or if they need additional employee development opportunities. Once you’ve identified any gaps, there are several ways you can work to fill them.
Personal Development as an Employee Benefit
With all the changes to business operations brought about by the pandemic, employees are taking a close look at their jobs to evaluate if it’s still right for them. This means we as employers need to be able to show value. Once our employees are financially comfortable, value is no longer determined by income, but by the opportunity for career advancement. An employee who sees value and is engaged has been shown to be 202% more productive than disengaged employees! Gallup has identified 12 categories that define an engaged employee and 6 of those related to professional development, including:
- In the last year, has there been a discussion with a supervisor about career growth?
- Am I being supported by my direct supervisor in training?
- Do I have the skills, technology and knowledge to perform well in my role?
Right now, more than half of the workforce is Millennial or Gen Z. As more Baby Boomers continue to retire, the percentage of Millennials and Gen Z will only increase. Given this, it’s important to look at the benefits that are most attractive to that portion of the workforce in order to remain competitive as an employer. Data shows the benefits most important to Millennials are:
- Training/Development – 26%
- Flexible Hours – 19%
- Bonuses – 15%
- Free Healthcare – 8%
- Retirement – 6%
- Vacation – 6%
- Housing Assistance – 5%
- Higher Wages – 4%
- Free Child Care – 2%
Tools and Strategies You Can Implement Immediately
You can make changes right now to improve and continue to foster an environment that encourages multifamily employee development. If you’re already supporting employee development, consider these tips:
- Protect Your Investment – Sending your employees for certifications is an investment in your business. Studies show that the pass rate drops dramatically when a month or more has passed after the certification training, so it benefits you to support and encourage your employees to take the exam as soon as possible after completing the course.
- Maintain Certifications – Only 3-5% of employees maintain their certifications year after year, so consider establishing scheduled time to help ensure certifications stay current.
- Assess Available Opportunities – Make yourself aware of what certifications and workforce training programs are available for the roles you want to target.
- Determine Your Budget – Determine the amount you will spend on multifamily employee development and set a limit on the number of employees you’ll allow to enroll in the various certification programs.
- Create Policy for Catalogs – Decide on policy and procedures to protect your investments, including how you will address failure to successfully complete certifications or termination soon after certification.
- Develop Incentives for Continuing Education – Think about incentives, such as bonuses, you can offer to encourage your employees to complete continuing education to keep certifications current.
- Manage your marketing budget – Effective budgeting for employee development can help achieve an optimum ROI. When you’re preparing a proposal to take to senior leadership, make sure you can effectively establish:
- Why multifamily employee development is important as a benefit
- How your budget has been sculpted and what you will offer
- How it will be a benefit to the company and result in a higher ROI
Director of Marketing and Professional Development
Zidan Management Group
Edge2Learn is an eLearning company whose focus is the Property Management Industry and specializes in property management training and multifamily education. With almost 40 years of experience and a commitment to increase industry excellence, we are passionate about engaging learners to maximize benefits for both companies and employees. Aligned with a well-respected industry leader, Ellis, Partners in Management Solutions, the Edge2Learn platform provides a turnkey solution for clearly identified needs and opportunities. We prepare learners to deliver a superior customer experience and reduce corporate liability risks and overall employee turnover.