Is your new associate going to succeed?
Every Principal wants to recruit rising stars.
No one ever calls me and says, “Find me someone mediocre!”
So often I see real estate firms relaxing their standards, sometimes accepting candidates who aren’t really up to scratch, sometimes even sold to them by manipulative recruiters!
Sometimes they will recruit and train newbies to the industry. And that’s not a bad thing, particularly if you have the desire and resources to be able to onboard, educate, mentor, train and coach them. Many of the happiest, most successful, and profitable agents I know, here and abroad, have great mentoring and coaching early in their careers to thank.
As the norm is to employ associates on base salaries, instead of the debit-credit system that was once the standard, the most significant cost to agencies is salaries, and the primary destroyer of profits is underperforming agents and associates.
So as the real estate market starts to even out, it is crucial to hire people who will generate income consistently, who can learn, and who fit your culture.
The real estate industry has a history of churn and burn. And as rule, many agents and agencies don’t train that well either, leading to poor retention rates. One of the most frequent situations I encounter is an agent wanting me to find them a great associate, but not able to articulate what the role will encompass — it’s different from agent to agent. Further to that, when discussing the preparation of a PD, I’m often asked “What’s that?”
Yet there is another problem which might at first seem counterintuitive. When an agent makes a bad hire, often, they’re slow to put it right. They hold on to under-performing people for too long.
I don’t believe in ‘Hire and Fire’. Investing in people is the key. Time, money, patience, energy, knowledge. But even so, there are sometimes early signs you have made a wrong hire, and it’s not going to work. I’m not suggesting you let someone go if one or even all these signs emerge, but it should set off alarms and trigger action. Because doing nothing is the one thing you should not do.
Slow learners. Intelligence is a much-underestimated trait when it comes to sales. It comes in many forms — street smart, savvy, perceptive, active thinking, awareness. It’s a long list of many variants. I always look for a robust form of intelligence when recruiting. ‘Real estate is not rocket science’, say the ill-informed. It’s an incredibly challenging business full of nuance and requiring sophisticated expertise. A newbie who is slow to learn, repeats mistakes and just does not ‘get things’ is a potential disaster. Proceed with caution.
Unwilling learners. “Coachability” is a crucial sales requirement, in my opinion. Poor listeners know-it-alls, and those who just can’t focus on learning different ways in their new environment are likely to fail long-term. I’m 52 and hungry for new knowledge. The most successful people I know all share an appetite for new ideas. Assess it early. Manage it rigorously.
Social misfits. Seriously, sometimes on the first day, you know you’ve made a bad hire. Not because they can’t do the job. But because they can’t fit in. Inappropriate jokes, over-familiarity, too loud or too quiet. Of course, you must consider new-starter nerves, and often people settle in over time. But sometimes, you just know…this is wrong! Getting the fit right for your team culture should always be a top priority. Narcissism is not uncommon in the property industry. Beware the narcissists — they’re too busy peacocking to perform properly and profitably.
Late and lazy. Do they do the simple things well and with great energy? I always see a red light flashing if a new employee starts coming in late, misses meetings, or doesn’t follow up on simple, basic tasks you have given them. And as for looking at their phone during training session…If that’s their ‘honeymoon’ effort, just wait till a few months down the track. Even worse — scheduling appointments that overlap with training, it’s not only rude and insulting to colleagues, but also a sure sign that they value themselves unrealistically. Late and lazy with a touch of swagger won’t benefit your business.
Lack of courage. You need to be resilient and brave in real estate. Make that cold call. Tell that vendor that buyers don’t see value in their home. Negotiate your fee. I have noticed that new associates show their “courage colours” early. Don’t throw a raw newbie in the deep end. That’s not right, and unlikely to help. But they do need to be given little tasks, which involve doing tricky things. A role play on lead generation on their first day is an terrific activity. Then let them loose on buyer calls later that day. Their attitude, energy and how they tackle those calls is a strong signal of their long-term success.
Goals: Overlook or underachieve. Plan-Prioritise-Perform-Produce-Proof. My Ps to #getstuffdone. Accountability is the bedrock of sales success in every industry. If your new associate avoids accountability, or worse, fudges the facts, then be warned! The fact is you should set your newbie simple, achievable activity goals. “Call these 20 buyers and see if they’re still looking. If they’ve bought, find out what”. And then assess how they respond to that. With energy? Get it done? Or is it four calls by days end. Did the calls bore them or enthuse them?
So how do we identify and recruit future stars, and minimise the cultural and financial risk of employing the wrong associates? Behavioural interviewing techniques, discrete background research, psychometric analysis, role play… there are so many tools in the box to help you employ the best.
You can get in touch with me directly to learn about our tools, processes and results.
David Imrie is the Principal and a Director of APAC consultancy Paramount People. Headhunter. Recruiter. Coach. Keynote Speaker, MC, Author & Commentator. Expertise in building and mentoring Peak Performance Sales Teams.
