Top 5 Reasons for Employee Turnover in HOA Management Companies and How To Mitigate Them

High employee retention rates are vital to operational success. When employee turnover is low, companies reduce hiring and training costs, increase profitability, improve performance, and deliver a better customer experience.

According to the National Apartment Association, the property management industry sees a turnover rate of roughly 33%, as opposed to the national average of 22%. Managing a homeowners’ association (HOA) is demanding, and burnout is common. Fortunately, there are ways to avoid burnout and maximize employee retention. Read on to discover the top five reasons for HOA employee turnover and how management companies can resolve them.

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1. Lack of Growth

Employees who stop learning and growing are twice as likely to become bored or anxious. In a recent study, 87% of millennials shared that opportunities for growth and development are among the most important factors for career satisfaction.

Management companies can retain their best talent by offering career development opportunities. Well-received training and education options include:

• Mentorship programs.
• Cross training.
• Extended education.
• Job shadowing.
• Employee workshops.

The modern worker desires to move up and provide input where it matters most. Management companies can also set yearly goals and incentives to create chances for employees to grow within the company, including the ability to apply for senior roles.      

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2. Poor Management

It’s a well-known adage that employees don’t leave companies—they leave managers. In fact, employees who rate supervisor performance as subpar are four times more likely to look for a new job.

Aggressive or demanding management can lead to low employee morale and increased dissatisfaction. Leaders who struggle with consistency, provide limited feedback, micromanage, engage in gossip, play favorites, or fail to nurture team potential can prompt individuals to seek employment opportunities elsewhere.

To mitigate this, organizations should invest in leaders and implement training and support systems to strengthen managerial skills. They can also hold regular check-ins and reviews to discuss progress, challenges, and feedback. A company with good managers and a trustworthy environment makes it easier to retain talent.

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3. Minimal Recognition

More often than not, employees are overlooked for their accomplishments and hard work. However, recognition is fundamental to maintaining employee retention. If employees know they’re appreciated, they will likely remain loyal to a company. Organizations can foster a culture of recognition by:

• Incorporating employee recognition programs.
• Hosting award ceremonies.
• Allowing extra time off.
• Celebrating Employee Appreciation Day.
• Offering health and wellness incentives.
• When efforts and achievements are acknowledged and celebrated, everyone wins.

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4. Low Compensation

A report from Paycheck revealed that 70% of respondents would leave a job due to low pay. With the popularity of HOAs increasing each year, employees are more aware of industry demand. As a result, companies are growing more competitive, and people may be drawn to higher-paying opportunities.

To help maintain adequate compensation, companies should conduct reviews to confirm pay and benefits meet market standards. If possible, prioritize transparency and award raises, bonuses, and other financial incentives. If an employee is declined a pay raise, be honest about the reasoning and any factors that may prevent the employee from continuing with the company.

In the end, fair pay not only encourages employees to stick around but also elevates the company’s reputation, attracting high-quality workers.  

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5. Neglecting Technology

Our digital world makes technology an imperative. Employees experience the convenience and efficiency of digital tools in their personal lives, and they expect the same at work. Regardless of the industry, well-integrated innovations can make connecting, communicating, and completing projects seamless.

In community management, dedicated software can provide solutions that help community managers automate mundane tasks, streamline operations, and simplify workflows, ultimately boosting employee morale and collaboration. This pays dividends for companies, as well. According to Gallup, an organization with high employee engagement sees 23% more profitability and 43% less turnover.

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Reduce Employee Turnover With TownSq

Employee retention is a critical aspect of running a thriving business. Luckily, management companies can reduce attrition and preserve job satisfaction by encouraging growth, strengthening leadership, showing appreciation, maintaining adequate compensation, and leveraging technology.

TownSq is the best-in-class tech solution for HOA management companies, managers, board members, and residents. As the leading community management platform, we provide a comprehensive suite of digital products and services designed to elevate the community living experience while keeping managers motivated and satisfied. Connect with us today for a free 30-day trial!