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?