Hiring Persists as the No. 1 Challenge for Apartment Operators

Attracting new team members continues to be the leading challenge the apartment industry faces according to a research report issued by AppFolio and the National Apartment Association (NAA).

Results were shared Thursday in San Diego at NAA’s Apartmentalize conference.

Paula Munger, AVP, industry research and analysis, NAA and Donna Smith, president, Enclave Property Management, reviewed the insights with moderator Daniel Waas, vice president, product marketing, AppFolio.

The research, based on surveys performed in April, was a follow-up to last year’s survey. In both cases, hiring and HR were the top concerns. Informal polling of the 200 attendees at the session also placed that atop the worries.

Smith said finding qualified workers is toughest in maintenance. Munger pointed out that the larger the apartment operator, the greater difficulty they were having. 

Munger said more companies are hiring compensation analysts to evaluate pay structures to help companies better compete with peers.

Better Culture Leads to Greater Retention

Smith said improving company culture goes a long way in creating happier employees and better retention rates.

“People leave people, they don’t leave companies,” said Smith, whose growing company operates 3,000 apartment homes in North Dakota.

“Focus on KPIs and processes, employee events and better leadership; then you’ll see the culture improve,” Smith said. “It will lead to better employee onboarding and word-of-mouth hiring referrals.

“Talk about the value of working at your company as much as you can,” Smith said. “That can make even a better impression than salary.”

She also said to meet and speak with employees directly. “Dig deep into the details of any frustrations they are having with processes,” she said. “Explain the ‘why’ of what’s happening and work to get buy-in. This leads to valuable, open conversations.”