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August 24, 2023

12 KPIs Every Community Association Management Business Should Know: Human Resources

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Greetings, I'm Adam McCombs, the Chief Product Officer at Vantaca. It's my pleasure to introduce a game-changing resource for all community association management businesses out there. In this blog post, we're diving into the heart of success with our 12 essential Key Performance Indicators (KPIs) that can redefine your operational efficiency, boost growth, and elevate your performance to unprecedented heights. Our comprehensive ebook delves into five pivotal categories, each housing crucial KPIs that form the bedrock of excellence. Let's embark on this journey together!

The Five Pillars of Performance

Our approach centers around five key categories that act as the cornerstones of community association management success:

  1. Customer Satisfaction: Because happy residents make a thriving community.
  2. Human Resources: Nurturing the lifeblood of your organization.
  3. Operational Effectiveness: Streamlining processes for seamless management.
  4. Financial Health: Achieving stability and financial well-being.
  5. Sales and Growth: Expanding horizons and building a brighter future.

This week, our spotlight is on the second pillar: Human Resources.

Unpacking Human Resources: The Retention-Turnover Conundrum

In the world of community association management, human resources reign supreme. Payroll alone constitutes a substantial chunk of our expenses, and with employee turnover rates varying between 25 to 50%, retaining a reliable workforce becomes a pivotal challenge.

Research conducted by the Society of Human Resource Management (SHRM) reveals a startling insight. The costs associated with employee turnover can range from 90 to a staggering 200%, with replacement expenses accounting for as much as 50-60%. To put it into perspective, if an employee draws a $60,000 annual salary, replacing them could cost your company anywhere from $30,000 to $45,000, accumulating to an overall loss of approximately $54,000 to $120,000.

Decoding Employee Retention and Turnover Rates

Employee retention and turnover rates, seemingly two sides of the same coin, encompass distinct facets of workforce management.

Let's delve into the numbers for clarity:

  • Employee Retention Rate: If, out of 100 employees, only five left during the past year, your employee retention rate stands at a commendable 95%.

  • Employee Turnover Rate: A 100% rate minus the retention rate (95%) equals 5% turnover.

Generally, the benchmark for excellence lies between 85 to 90% employee retention. Achieving this speaks volumes about your organizational prowess.

Steering Toward Success

Thriving in the community association management sector demands a holistic approach, and our suite of KPIs equips you for the journey. By focusing on employee retention, you're fortifying your foundation, ensuring a steady and experienced workforce that contributes to your success.

In our upcoming video, we'll delve into operational effectiveness, unraveling strategies to optimize processes and elevate your management game. I can't wait to continue this enlightening journey with you.

Until then, remember: Empowered employees are the bedrock of a prosperous community. Here's to your success!

Warm Regards,

Adam McCombs, Chief Product Officer at Vantaca


Watch the Full Video HERE



Tag(s): Technology , Business

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