It’s showing up in the headlines, in annual reports and on industry conference agendas: CSR—Corporate Social Responsibility. And while many think they know what CSR means, it’s important to understand how it applies to the apartment industry, as well as how it will affect the way we invest, live, work and play.
When it comes to CSR, there’s more to it than green initiatives and volunteerism, though those are important components. There are three pillars that support a true CSR strategy: The Workplace (Employees and Suppliers), the Living Experience (Residents), and Society (Giving Back for the Greater Good). In addition to the positive perception one earns with a commitment to all three pillars, when these three are equally healthy and balanced, the organization achieves a triple bottom line—People, Planet, Profit—conveying that everyone can win.
Perceptions: Importance & Impact of CSR
As the table on the previous page shows, the ManagInc 2017 Multifamily CSR Benchmark Study identifies many areas where the industry is succeeding in its efforts. However, it also identifies many opportunities to make significant improvements. And the ManagInc Financial Impact Report Q2 2017 shown below clear returns for a focus on those who make a company’s success possible. The survey included feedback from 70 property management companies that collectively manage 1.42 million apartment homes.
Direct Relationship: Employee and Resident Satisfaction
An analysis of the responses to the survey’s 2016 employee and resident turnover rate questions shows the clear relationship between the two. This validates that engaged and satisfied employees deliver more superior service, which of course impacts resident satisfaction and retention.
The rental housing industry’s adoption of and focus on CSR, as defined by the three pillars, will not only improve overall reputation, but it will impact employee retention as well as make this industry more attractive to the up-and-coming employee pool. The latter will allow companies to grow and support a caring company culture, which will improve the resident experience, which will reduce turnover, which significantly improves the bottom line.
ManagInc Financial Impact Report Q2 2017
The ManagInc Q2 2017 Financial Impact Report evaluated client employee and resident turnover rates to the industry’s average turnover rates. Given the industry benchmarks for the costs associated with turnover, the findings show the dramatic impact of implementing CSR practices on NOI and asset values.
Results assume a 10,000-unit portfolio and utilizes turnover data reported by NAA, MFE and CFO.com.
ManagInc partners Jen Piccotti (COO) and Doug Miller (founder and CEO) are industry authorities on CSR, resident and employee retention and reputation management.