Raises Decline as Firms Deal With Higher Costs

WASHINGTON, DC-Multifamily executives can expect smaller merit increases this year. At the same time, apartment firms are dealing with high healthcare costs and turnover rates for on-site positions, according to the latest National Apartment Survey of Compensation and Benefits Practices from the National Multi-Housing Council.The 2008 study examined 68 positions from CEO down to leasing consultant, and the data is based on responses from a record 126 firms representing more than 49,000 industry professionals.

Overall, employees at the vice president level and above can expect to see a 3.7% merit increase. That’s down a bit from the 3.8% average increase firms budgeted last year. However, actual raises averaged 4% last year. Managers below the vice president level should see an average uptick in compensation of 3.5%, down 20 basis points from last year’s expected raise and 40 basis points from the actual figure. A 3.5% raise is also budgeted for non-exempt employees, including leasing consultants and maintenance technicians. That’s down a bit from last year’s anticipated and actual increase of 3.6%.

The overall decreases are slight and are certainly not indicative of a trend, says Elizabeth Feigin Befus, vice president of employment policy and special counsel at the NMHC. “In uncertain economic times, companies are cautious, even in an industry that remains strong,” she states.