5 Tips to Deal with Employee Turnover

Employee turnover is a significant challenge for businesses, especially in the HOA industry where staff costs are between 50-80% of operating expenses for most companies. High turnover can be costly in terms of time and resources spent on recruiting and training new employees, and it can have a negative impact on the morale and productivity of remaining employees. Additionally, employee transition also causes a higher risk of mistakes as new employees may not be fully familiar with projects, and this is the time when clients are most likely to leave a company. It’s important to implement strategies to reduce employee turnover and create a more stable and engaged workforce.

1.     Offer Competitive Compensation and Benefits. One of the most important factors that can influence employee turnover is compensation and benefits. Employees are more likely to stay with a company that offers competitive wages, bonuses, and benefits. Employers hesitate to raise wages because they don’t think they can afford it, but they fail to compare it to the cost of a low wage, high turnover culture. Studies from the BLR cite the cost of recruiting and training a replacement to be as much as an annual salary for that position. While counterintuitive, paying your team above-average wages can ultimately reduce your operating expenses. Additionally, offering benefits such as health insurance, retirement plans, and paid time off can also make a big difference in employee satisfaction and retention.

2.     Review Employee Workload. Being overworked or burned out is the single most cited reason for leaving a company. Businesses should regularly assess the workload of their employees by setting clear workload expectations, providing resources to manage their workload effectively, and using tools to monitor and measure employee performance and workload. Flexible schedules, remote work and distributing the workload fairly among the team can also help to alleviate employee stress and turnover.

3.     Foster a Positive Workplace Culture. Employees who feel valued and respected are more likely to be satisfied with their job and more likely to stay with the company. To foster a positive culture, businesses should encourage open communication, provide opportunities for employee development and recognition, and create an inclusive and respectful environment. Regularly conducting employee surveys, promoting open communication, and recognizing employee performance through rewards and bonuses, are ways to create a positive workplace.

4.     Invest in Employee Training. One of the bottlenecks in our industry is there are no clear plans for advancement after reaching the community association management role. Meet with key employees and explain how the company will invest in them to learn new skills to advance to the next level. Provide opportunities for professional development through in-house training, workshops, and conferences can also help employees feel more engaged and motivated to stay with the company.

5.     Encourage Employee Involvement. Employee involvement and empowerment can also play a key role in reducing turnover. When employees feel like their opinions and contributions are valued, they are more likely to be satisfied with their job and more likely to stay with the company. Businesses can encourage employee involvement by involving them in decision-making, giving them autonomy in their roles, and creating opportunities for employee-led projects and initiatives.

Reducing employee turnover in the HOA industry requires a multifaceted approach. By offering competitive compensation and benefits, reviewing employee workload, fostering a positive workplace culture, investing in employee training, encouraging employee involvement, businesses can create a more stable and engaged workforce. It’s important to remember that reducing turnover is an ongoing process and should be reviewed and evaluated regularly to ensure the strategies implemented are still effective and addressing the needs of the employees. By taking these steps, businesses can improve employee satisfaction and retention, and benefit from a more productive and motivated workforce.