Retention: The Missing Link of Talent Management

Greg Spangle

Vice President

Organizational Effectiveness

AIMCO

Why Retention?

Create value for the Talent team in

hard economic times

Why Retention?

Why Retention?

Get a seat at the table

Why Retention? Improve the overall significance of the

recruiting process

– REIT,headquarteredinDenver,CO– LargestownerandoperatorofapartmentcommunitiesintheUS• 992properties• 162,807apartmentunits• Serveover500,000residentsannually

– 4,170TeamMembers– TradedinNYSE(AIV)– IncludedintheS&P500

Who is AIMCO?

•  Highturnover;especiallyshort-termemployees•  Lackofactionablepeoplemetricsfordiagnostics•  Weakinternalandexternalbrandidentity•  Distinctiveoperationsstructure

Our Challenges

Building a Business Case

What Numbers are Important

Building a Business Case

What Numbers Correlate

Building a Business Case

Show them the Money

•  TurnoverhaditsbiggeststatisticalcorrelationtoCNOI–  CNOI=Revenue–ControllableExpenses

•  Dollarize=SalaryWaste–  Salarywastealonecanaccountforupto3%ofaproperty’sannualCNOI–  Propertieswithlessthan25%annualizedturnovercouldexpect60%higherCNOIperformanceversusthosewithgreaterturnover

•  TotalDollarsinWaste=OPPORTUNITY• 

Real Life Business Case

So Now You Own Retention

Stand alone retention programs rarely work

So Now You Own Retention

Get some quick wins

So Now You Own Retention

•  AnySurveyData•  KISS•  Alwaysaskyouremployees

•  Denial–Thenumbersmustbewrong.

The Five Stages of Manager Involvement

•  Acceptance–Canyouhelpmewiththis?

•  Depression–OMGwhatamIgoingtodo?

•  Bargaining–CanIlookintothisaftertheotherprojectisover.

•  Anger–ThisisnotMYfault.

Building a Better Mouse Trap

LC Turnover = Over 50% of all turnover & over 94% of operational revenue

How Do you Measure?

1.  Pre-productivityTurnover&SalaryWaste2.  Short-termTurnoverRisk3.  Position4.  Tenure5.  Promote-ableandRegrettableLoss6.  Performance7.  Manager8.  Type&Reason

Experiment

•  Understandwhytheyleave– TopfivearealltiedtoSupervisorissues– 20thplacebeforethefirstHRtangible– 46thplacebeforefirsttraditionalHR

•  Investinmultiplewaystodeterminethetiniestdetails

Questions?

greg.spangle@aimco.com