What's Turnover Like in Your Shop?

Anthony J. LoPintoCEOEquinox PartnersNew York City

Given the hot-to-the-touch state of real estate these days and the way companies are merging and rightsizing, we’d expect fairly high personnel turnover numbers. Yet only 30% of respondents to last week’s Feedback Poll describe their shops in revolving-door terms. A slightly higher portion (32%) claim to “find ‘em and keep ‘em.” Most–38%–said that their operations are no better or worse than that of anyone else. As a GlobeSt.com columnist, commentator LoPinto, who is also founder of online job board SelectLeaders, is our go-to guy on matters of hiring and retention. He believes the numbers track the industry fairly closely. Here’s why:

“I’m not surprised by the percentages. Among the larger owner/operators, such as the major REITs that would have large property-management functions, there has historically been what I would classify as significant turnover rates, in the 30%-to-40% range, particularly in the multifamily sector. I had that experience once when I was with a firm, and I was amazed at the levels of turnover we experienced.

“That sort of turnover is very much among mid-level professionals–property management personnel and property accounting. You tend to get a fairly high degree of turnover in the property-management functions.

“In a real estate environment like this, I would expect a higher level of turnover by sheer force of demand. Having said that, I think employers are becoming much more aggressive about retention.

“Employers today are making sure their compensation schemes are in line with the market or at the 75th percentile of the market to ensure they don’t create an exodus of talent because they aren’t up to appropriate salary levels.”