Making residents happy is undoubtedly the primary objective in multifamily. On a larger scale, delivering solid returns to owners and investors is paramount.
Neither are likely to occur, however, if associates are unhappy. That means multifamily organizations should first focus on providing a robust employee experience, according to a panel at the NAA Apartmentalize 2024 session Put Employees First: They Will Do Likewise for Customers in Philadelphia.
The panel was moderated by PetScreening Senior Director of Multifamily Pat Patterson.
“Without our people, we have no business,” Patterson said. “When you have good associates, you need to hold on to them. Treating them right will most definitely translate to how they treat residents.”
The trickle-down effect is a real thing in the industry, according to panelists. When associates are happy and treated well, they will pass along high service levels to residents. Happy residents in turn help a community attract prospects, retain current residents and strengthen the financial wellbeing of the property.
“The old culture was that people are replaceable, but today we know that's not always true,” Patterson said. “It is not easy to find good, qualified people in the industry. When it comes to turnover rates, the cost is extremely high. For an entry-level position, replacement costs can be 40% of the salary, and at the executive level, that jumps up to 400% of the salary.”
Patterson noted that associates don’t often leave companies as much as they move on from a culture that doesn’t inspire happiness or match their ambitions. That’s why the importance of creating a unique and flourishing culture is even more integral in multifamily, which is a decidedly people-centric business.
Panelists shared their thoughts on how they are able to make it happen at their organizations.
“Some people think that it’s about assimilating to the existing company culture,” said Melania Armenta, director of resident strategy for Gallery Residential. “But for us, it’s about them adding to the culture. When you have the leadership in place that values the unique people contributing to your culture, it’s going to improve their job satisfaction and your revenue. We like to remind our team that they are not replaceable, and we need them in order to be successful.”
The trickle-down effect can work in a counterproductive direction if associates are unhappy. Uninspired or otherwise dissatisfied onsite associates can lead to higher turnover rates, which in turn decreases the NOI of the property and ROI for stakeholders.
“If turnover rates are high, it reduces the client’s confidence in us,” said Leslie Mathis, director of asset management for Woodfield Development. “If one thing slips through the cracks, they will wonder what’s next or what else is going wrong with their management company.”
In helping to keep associates in fold, panelists advised operators and individual properties to offer a strong onboarding process, promote a healthy work/life balance, give associates a voice, offer associate rewards programs and provide additional management training.
“Good associates make for good properties,” said Kelly Myers, senior director of Advantage Solutions and Resident Experience for Greystar. “That has been confirmed many times over. If you go to a property, no matter what class type it is, if you have bad customer service, that significantly affects the resident experience, which impacts the owner, the bottom line and overall community reputation.”
Patterson said the need for a high-level associate experience goes beyond onsite jobs. It also applies to the supplier partners that service the space, including platforms such as PetScreening.
“We practice intentional hiring and onboarding,” Patterson said. “We let our associates know right off the bat they are of value to us. It's important to make them feel connected and let them know that they're not only there for the company, but that the company is there for them.”
