Betsy Feigin Befus, NMHC's director of property operations, tells GlobeSt.com that a decline in compensation rates two years in a row does not equal a trend. "The data does not capture the increases [in compensation] employers are making in other ways," she stresses.

Befus explains, though, that the turnover figures are more significant than the slowing pace of pay hikes and bonuses. This year, the average employee turnover was 59.2% versus 37.2% last year, a reverse of previous years. The one bright spot is leasing consultants, the highest-turnover position surveyed this year, lowered its rate to 54.6% from 58.7% in 2005 and 70.8% in 2004.

Befus says the highest degree of turnover happens at the site level, particularly in leasing. "The lease consultant is often the welcoming committee for a building and is responsible for the first impressions of what a property has to offer," she says, adding apartment firms need to look at that category in particular.

Befus points out that the survey is strictly a quantitative analysis and doesn't offer reasons behind the findings. "I think as an industry we need to pay close attention to strategic human resource practices, examine what we are doing on that front, and invest in the people running these properties," she says.

NMHC surveyed 101 leading apartment firms with nearly 45,000 employees. The survey was conducted jointly by the NMHC and Watson Wyatt Data Services. Aiding in the design and sponsoring the survey were Aimco, American Management Services [dba Pinnacle], Archstone-Smith, AvalonBay Communities Inc., BlackRock Realty, BRE Properties Inc., Equity Residential, Fairfield Residential LLC, Gables Residential Trust, Post Properties Inc., Riverstone Residential Group, Sares-Regis Group and United Dominion Realty Trust.