Reducing Maintenance Staff Turnover is the Key to Lower Costs

The High Cost of Maintenance Staff Turnover and How to Reduce It

In the multifamily industry, staff turnover—especially among maintenance teams—has become a persistent and costly challenge. Maintenance technicians are the backbone of property operations, ensuring work orders are resolved quickly, units are turned over efficiently, and residents remain satisfied. Yet, the industry faces high turnover rates and a shrinking labor pool, making it increasingly difficult for operators to hire and retain qualified staff.

The Cost of Maintenance Staff Turnover

Maintenance staff turnover carries both direct and indirect costs that can add up quickly. Here’s what operators face when a technician leaves:

• Recruitment Costs: Advertising, recruiting, and interviewing can cost operators $2,000-4,000 per hire.
• Training and Onboarding Costs: New hires often require weeks of training, during which their productivity is limited. The cost of onboarding a maintenance technician is estimated at $3,000-5,000, depending on the complexity of the role.
• Lost Productivity: When positions remain vacant, work orders take longer to resolve, residents become dissatisfied, and units take longer to turn, resulting in lost revenue. The cost of delayed unit turns alone can range from $1,200-1,500 per unit in lost rent.
• Overtime and Burnout: Existing staff often work overtime to cover for vacancies, leading to higher labor costs and increasing turnover due to burnout.

On average, replacing a single maintenance technician costs $10,000-15,000, factoring in recruitment, training, lost productivity, and overtime.

Industry Trends: A Tight Labor Market

The multifamily industry is grappling with a national shortage of skilled maintenance technicians. With the average technician earning $20-25 per hour, operators must offer competitive wages, benefits, and career development opportunities to attract and retain talent. Yet even with these efforts, turnover rates remain high—some studies estimate turnover rates among maintenance staff exceed 50% annually.

For a 2,500-unit portfolio, this can be particularly devastating. Assuming a property employs one maintenance technician per 100 units, that’s 25 technicians. At a 50% turnover rate, 12-13 technicians leave annually, costing operators an estimated $120,000-195,000 per year in direct and indirect expenses.

How Improving Retention Saves Money

Reducing turnover even modestly can generate significant cost savings. For example, if a 2,500-unit portfolio reduces turnover by 20%, they save on the replacement of 5 technicians annually. At an average cost of $12,500 per replacement, that’s $62,500 saved annually.

Beyond direct savings, better retention:

• Reduces Burnout: Lower vacancy rates mean existing staff aren’t stretched thin, improving morale and productivity.
• Improves Resident Satisfaction: Faster work order resolutions and more consistent service enhance the resident experience, boosting renewals and reducing turnover among residents.
• Stabilizes Operations: Experienced staff provide better service, reducing the time and resources spent on training and onboarding.

Proven Strategies to Reduce Staff Turnover

Operators can take actionable steps to retain their maintenance teams, including:

• Career Development: Offering training, certifications, and clear career advancement pathways helps employees see long-term potential in their roles.
• Workload Management: Ensuring balanced workloads prevents burnout. Tools like AppWork automate scheduling and task prioritization, making daily work more manageable for technicians.
• Recognition and Incentives: Recognizing employee achievements and providing bonuses for exceptional performance can foster loyalty.
• Better Communication Tools: Giving technicians access to streamlined communication systems reduces frustration and allows them to focus on their work.

How AppWork Helps Reduce Maintenance Staff Turnover

AppWork supports retention by addressing key pain points that lead to technician dissatisfaction and turnover while fostering a more engaging and rewarding work environment:

• Streamlined Workflows: AppWork automates the assignment and prioritization of work orders, ensuring tasks are clear, manageable, and efficiently distributed, allowing technicians to focus on what they do best
• Gamification and Recognition: Technicians earn points, badges, or rewards for completing tasks, meeting performance benchmarks, or receiving positive feedback—fostering a sense of accomplishment.
• Transparency and Accountability: Real-time tracking of tasks and clear communication channels help build trust and minimize frustrations related to unclear expectations.
• Proactive Communication Tools: AppWork’s intuitive communication system reduces the time technicians spend chasing down information, allowing them to focus on completing their tasks efficiently.

Insights Backed by Research

The strategies employed by AppWork are rooted in well-documented research on improving employee satisfaction and retention:

• Gamification Increases Engagement: A study by Gallup found that employees who feel engaged at work are 87% less likely to leave their jobs.
• Recognition Reduces Turnover: Research by SHRM shows that 63% of employees are more likely to stay with their current employer when they feel recognized for their work.
• Streamlined Workloads Prevent Burnout: The WHO highlights workload mismanagement as a leading contributor to employee burnout. AppWork optimizes task allocation, ensuring workloads are evenly distributed and manageable.

The ROI of Reducing Turnover with AppWork

Operators using AppWork have seen a 20-30% reduction in turnover among maintenance staff. Here’s how that translates to savings for a 2,500-unit portfolio:

• Starting Turnover Costs: $120,000-195,000 annually for 12-13 technicians.
• Turnover Reduction (25%): Preventing turnover for 3-4 technicians saves $37,500-50,000 annually in replacement costs alone.
• Additional Savings: Improved team productivity, reduced overtime costs, and faster unit turns further amplify the ROI.

When paired with gamification, better communication, and streamlined workflows, these savings are compounded by a happier, more engaged workforce and a better resident experience.

A Fun, Rewarding Work Environment Pays Off

Maintenance staff turnover isn’t just a financial burden—it disrupts operations, increases workloads for remaining staff, and impacts resident satisfaction. By addressing these challenges with AppWork’s tools and strategies, operators can build a more engaging and rewarding work environment that drives retention and reduces costs.

For a 2,500-unit portfolio, investing in these solutions isn’t just a step toward better operations—it’s a clear path to significant ROI and long-term stability.

Ready to create a workplace where your technicians thrive? Contact us today to see how AppWork can help transform your operations and retain your top talent!

AppWork was created by property managers who understand the real challenges of running multifamily communities. Having worked in the industry, AppWork designed solutions to streamline operations, empower maintenance teams, and enhance efficiency. With tools like work order tracking, digital make ready boards, and advanced inspection software, AppWork helps communities stay organized and proactive. Discover how AppWork can transform your property management processes and improve tenant satisfaction.