By Tiana Baur, Content Marketing Manager
Recruit, recruit, recruit. Getting new agents through the door is the number one thing on every brokerage owner and manager’s mind, but does it deserve that top spot?
While it’s a major pillar of every brokerage’s survival plan, we argue there’s another aspect of recruiting that deserves the number one slot and that’s existing agents.
An agent only spends four years at a brokerage on average. How many of your agents are coming up on that four-year mark?
When agents threaten to leave, only then do people’s ears perk up and start to put emphasis on retention efforts. For some agents, it might be too little too late. If they’ve been largely ignored or feel like they’re under-valued at your brokerage for the past four years, it’s easy to see why the grass would look greener to them.
Don’t play into the four-year statistic. Start recruiting your existing agents before they threaten to leave.
Implement an open-door policy.
When your agents feel comfortable coming to you for anything and everything (like when Compass calls them up) it allows for an open dialogue and a foundation built on trust to exist.
Less is not more.
Don’t be afraid to talk about what’s going on out there. Talking about Compass should be as easy as asking someone to pass the salt – not like walking on eggshells. Bring the hard topics up.
Losing your existing agents only puts more pressure on the efforts to recruit new agents and shocker – it puts pressure on the brokerage wallet as well. Our CEO, York Baur, did a presentation at LeadingRE a couple years ago, sharing local data and insights about the cost of recruiting. The cost per recruit based off data that year in the Pacific Northwest was $20,000 dollars. After the presentation, other industry leaders commented that it was “more like $40,000.” Another way to slice it is by salary (or in this case, commission). According to Forbes, the loss of an employee costs 33% of their salary. Whether it’s 20k, 40k, or somewhere in the middle, that is a LOT of money.
Losing a top producer to let’s say Compass, might not hurt your market share or revenue much, but it will hurt your sales volume numbers. Be better than the other managers out there. Pay attention to your existing agents that are priceless to your business. Think about your agents walking into your office and saying, “I’m leaving and going to Compass.” Which ones would make your heart start pounding?