Across nearly every industry, attracting and retaining top talent is more challenging than ever. U.S. unemployment remains low (just 3.6% as of May 2019) as baby boomers are reaching retirement age and exiting the workforce. In fact, the percentage of working-age Americans in the labor force has dropped to 62.8%, near a 40-year low. Attracting and retaining talent is critical to sustaining the affordable housing industry that creates safe and affordable communities across the country. Here are four tips for meeting this challenge.
1. Appealing to Millennials and Generation Z
Contrary to popular belief, millennials crave job security as much as any generation before them. Qualtrics’ Millennial Study reported that 77% would be willing to take a salary cut in exchange for long-term job security. Generation Z, who will soon begin entering the workplace, also consider job security centrally important. Both groups also view a company’s mission as very important to their career choices.
The affordable housing sector provides an attractive career path for potential employees with a sense of social responsibility and community engagement. Depending on skillset and interests, jobs can be found with a financial institution, developer, government agency, or nonprofit organization. For example, someone with business acumen could work for a financial institution; an interest in public policy could lead to a role in advocacy; strong project management skills could be valuable for a developer; and someone interested in training and development could help provide resident services.
2. Fostering the Next Generation of Affordable Housing Professionals
Industry organizations, from the Urban Land Institute (ULI) to the National Multifamily Housing Council, have established mentorship programs and scholarships to help students and young professionals learn about opportunities in the housing industry. On a local level, the Housing & Community Development Network of New Jersey has a Rising Leaders Mentorship Program, and the California Mortgage Bankers Association boasts a Future Leaders Program.
These programs are designed to engage young professionals with some experience and the desire to stay involved in their communities. They connect young professionals with experienced mentees who share insight, experience, and tools to develop leadership skills and confidence.
And at Bank of America Merrill Lynch, we created and have hosted the Low Income Housing Challenge for more than 25 years. Undergraduate and graduate student teams enter an affordable housing business plan competition that helps inform, educate, and attract the next generation of affordable housing professionals. Many alumni from the competition have gone on to have successful careers in the industry, and some of the business proposals submitted in the competition have resulted in the actual production of housing developments.
3. Help Employees Understand and Adjust to Technology Improvements
All industries are facing ongoing technological change, and the affordable housing industry is no different. New technology as well as property management and accounting programs help the industry become more accurate, efficient, and creative. For example, Enterprise Community Partners launched the Rezility mobile app to help users connect with service providers, including child care, financial counseling, housing, or job placement. It aims to engage and connect residents and their communities so that they can build stable, secure futures for themselves and their families.
But successful adoption of emerging technologies requires that employees are provided with the tools and training they need to compete, engage, and thrive. The best results are achieved when corporate leadership chooses technology that improves and enhances the employee experience. And effective training ensures that companies will reap the benefits of their investments in technology and people.
4. Engage your Workforce to Encourage Retention
A recent Gallup report estimates that U.S. businesses spend over $1 trillion a year on replacing employees. The annual turnover rate in the U.S. in 2017 was 26.3%, according to the Bureau of Labor statistics, and the cost of replacing an employee ranges from one-half to twice the employee’s salary.
Supervisors and managers should be trained to better understand the motivations and needs of their direct reports, which could pay dividends in employee engagement and retention.
Employers don’t want to lose trained talent to competitors. Training and engagement work best when started earlier—as early as the recruiting and onboarding process. Empower staff to think creatively and to make changes to processes and protocols. Be sure to communicate employee engagement successes. Employees relish contributing and having their creativity and contributions appreciated.
In the ongoing war for talent, the affordable housing industry must use current and emerging technologies in new and engaging ways, not only to become more efficient but to attract and retain top talent, and to communicate the critical impact these professionals have on their communities.
