When an experienced agent leaves your brokerage, it impacts your company. You no longer have the benefit of that agents experience, insight and closings.
Thereby, the longer good agents stay, the better it is for your brokerage. This is why hiring for the long term should be near the top of your list of recruiting priorities.
While it is impossible to eliminate turnover, there are ways to create processes to find, hire and retain good agents.
A number of studies have found that the top reasons people leave their jobs are because (1) they don’t like their boss, (2) they don’t see opportunities for promotion or growth, and (3) they are offered a better gig (and often higher pay).
A strategic hiring process, that factors in the primary reasons for turnover, and a process that incentivizes agents, will help brokerages grow over the long term. A key component is to identify agents that are looking for opportunities to grow.
Create a Compelling Role
While agents are independent contractors, they still want to do compelling work. Thereby, create a job description that you can sell. When creating the description for the position, imagine how agents at your brokerage would progress from quarter to quarter; from year to year.
Consider what it would take to keep an ambitious, proactive and talented agent both challenged and happy at each stage.
Clear Progressive Compensation
Agents will not stick around if they aren’t earning at fair market value. And you will not be able to attract good people, if you are not able to demonstrate a path for them to earn at or above market value. Even more, the internet is now awash in information about real estate businesses splits, fees and added benefits. Therefore, you compensation, benefits and perks must be in alignment with the real estate market in your area.
Even if you do get some agents to join your brokerage, they may not wait very long before looking for something better.
The bottom line, set compensation that provides value and benefits; otherwise, expect high turnover to continue – hence the revolving door.
Talk About Opportunity
Most people want two things out of their work: stability and growth. If you can offer both of those, you’re in good shape.
Emphasize to each potential agent that a longer, stronger commitment will drive their own growth, and they will be rewarded. Provide examples of how other agents started with your brokerage and is now accomplishing their goals.
Show Results and Success
Show agents how things work at your brokerages. Demonstrate your training programs; talking about your marketing focus and how it helps everyone grow; discuss support and the level of commitment from your support staff.
Paint a picture of how the agent can fit-in at your real estate company and thrive. The more they know about how they can accomplish things at your brokerage, the more they will commit themselves to the long-term goals and stick it out even when the going gets tough.
Tracking successful hires can seem counter intuitive, since it means working more with current agents, than recruiting future agents. Yet it is crucial to look at who sticks around, who are closing deals, and who is happy plugging away at the same role for years on end.
Comparing results to predictions and estimates gives you valuable insight into the traits, characteristics, similarities and differences of candidates.
Knowing what kind of candidates tend to turn into certain kinds of hires, gives you a leg up when you’re recruiting new agents.
Reducing the rate of turnover can have dramatic effects on a brokerage’s bottom line. Additionally, it offers other positive effects like higher morale and greater efficiency, and team work.
However, keeping people happy is hard work and your brokerage has to be aligned top to bottom to make sure that recruiting, support and other functions are asking the right questions to create a system that inspires and challenges different kinds of people in all the right ways.