Although it would be incorrect to suggest that every real estate brokerage is searching for additional sales agents, most are. This is created in part by the high drop-out rate of those newer hires who cannot make it. So, how to hire the best salespeople?
In my opinion, this excessive turnover is largely created by poor initial hiring practices. Although pre-licensing requirements have brought some reduction in the failure rate, too often individuals enter the real estate sales field without any real understanding of what they are getting into. Many come with the assumption that being a “Realtor” is just fun with large financial rewards.
Due to the high cost of recruitment and training, coupled with the low retention rate, brokers must develop a hiring strategy that outlines exactly what business the new recruit will be entering, what skills and perseverance are required to be successful and what is expected from the person. This minimizes an unrealistic concept of what selling real estate is all about.
Often employment is offered to people who have absolutely no chance of ever making it. This does not suggest that they would fail in another vocation – just here.
A carefully crafted interview guideline will help avoid many of the common pitfalls in the hiring procedure, thus improving the success rate. This involves detailing for the potential sales agent the specifics about what selling real estate entails – the pros and cons of working in the industry. This is not the easiest way to earn a living. You need to lay it on with no holds barred. If the person walks out during or immediately after the interview, saying, “This is not for me,” you have saved both of you much time and frustration.
Productivity, employee retention, client satisfaction and financial rewards are all outcomes of the hiring and training initiatives. As you want the best, undertake hiring more as a science than a leap of faith. The bottom line is that it is all up to you.
The interviewing process
Although real estate professionals talk to sellers and buyers every day, for most brokers, the employment interviewing technique is not one of the more practiced skills. Being uncertain about what should and should not be asked, many brokers stumble through it. Your past hiring techniques and experience is your best guide.
Look at your past and present staff. Why did some fail while others were successful? Develop a checklist. Frame questions so that you can better understand how the prospective agent thinks and what he or she expects from you, your firm and the profession at large.
What to ask
There are questions you can ask and some that legally you cannot. Those you can ask are anything connected with the applicant’s ability, job experience, education and previous occupations. Asking about criminal offences if the applicant was not convicted is borderline – usually a no-no. The jury is still out about the use of drugs. Considering how this person will be regarded by the public is vitally important. Questions that you cannot ask are anything that could be construed as discriminatory by way of race, ethnic origin, birth place of ancestry, sexual orientation, religious beliefs, marital status and if female, if the person is pregnant or plans on getting pregnant. The basis is anything that could be considered as invasive, prejudicial or has no bearing on the applicant’s ability to trade in real estate.
When you interview, work from a prepared list of questions. Make your own list based on the answers you seek and their order of importance. Include such questions as:
- What is your understanding of what selling real estate is all about? What are your expectations? Are they realistic or wishful thinking? Solicit information about talents, future interests and career expectations.
- What do you think that you will like or dislike about selling real estate?
- What education, training, background and talents do you have? Describe specific examples. Ask them to tell you about their past experience, number of years, specialties. Use various tests to flesh out his or her actual knowledge. Obtain specific answers that can be verified. How will these help this person sell real estate?
- Are you prepared to undergo additional formal training? If “no,” say goodbye.
- As discretely as possible determine why he/she left the last job, how the boss was regarded, how he/she got along with the others there.
- Assess the applicants’ long-term potential.
Add other questions. Enlarge the list to fit to fit into your particular situation. Make the interview an orderly process. The purpose is to determine if this person has the appropriate background, education and perseverance to make it in this business. Will this person be successful and contribute to your brokerage?
In general, all interviews should be information-sharing sessions. Can she or he make it? Do you provide what is wanted by the prospect? As false expectations can be costly, you do not want to provide or obtain misleading information.
The last word
Hiring is a time-consuming, expensive and nerve-wracking task. With good luck and good management you will obtain a good salesperson, someone who will hit the ground running and remain. Therefore it must be a well-thought-out and meticulously executed process. Hiring mistakes can be expensive. When a person leaves, especially in the first year, all of the training costs are sunk. Both you and the new hire will be worse off and you must start the process all over.
Lloyd Manning, AACI, FRI, CCRA, PApp is a semi-retired commercial real estate and business appraiser and broker who now spends his time writing for professional journals and trade magazines. He resides in Lloydminster, Alberta. Contact him by email.
