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Ask Kate: Can your real estate business run without you?

Every month, Kate Teves, HR consultant, recruiter and founder of The HR Pro, answers Realtors’ questions about anything and everything related to human resources. Have a question for Kate? Send her an email.

 

When was the last time you took a proper vacation? And by proper vacation, I don’t mean answering emails from the beach, taking client calls between family activities or bringing your laptop along just in case something comes up. I mean actually stepping away from your business and trusting that things will continue to function without you.

For many real estate professionals, the thought alone can create anxiety. There are clients to serve, deals to close, sometimes employees to manage and what feels like an endless list of things that simply cannot wait. There is always another transaction, another opportunity or another problem that needs your attention.

But at what point do we stop celebrating being constantly busy and start questioning whether the way we’re operating is actually sustainable?

Real estate has always been an industry that rewards hard work, dedication and availability. And while those qualities certainly contribute to success, I sometimes wonder whether we’ve taken them a little too far. Somewhere along the way, being available around the clock has become a badge of honour, and taking time off can almost feel like admitting that you’re not committed enough.

I would argue quite the opposite.

Taking vacation is not a sign of weakness, a lack of ambition or a poor work ethic. It’s a necessary part of maintaining your health, your perspective and, perhaps most importantly, your ability to continue leading your business effectively.

And this applies just as much to your employees as it does to you.

 

The culture you’re creating

 

As a team leader or brokerage owner, you have a significant influence on the culture of your organization. If you’re sending emails at midnight, working every weekend and proudly announcing that you haven’t taken a vacation in five years, what message are you sending to your team?

Even if you verbally encourage employees to take their vacation, your actions may be communicating something entirely different. Employees may begin to feel that taking time off is inconvenient, that their absence will be viewed negatively or that their commitment will somehow be questioned if they’re not constantly available.

That’s not a particularly healthy culture to create, and over time it can contribute to burnout, disengagement and turnover.

We need to remember that our employees are people with families, responsibilities, interests and lives outside of work. They need time to rest, recharge and enjoy the things they’ve worked so hard to afford. And while some people genuinely enjoy being busy and thrive in demanding environments, that doesn’t mean they can or should operate at full capacity indefinitely.

 

Vacation time and pay

 

There is also a practical employment standards component to consider.

In Ontario, most employees are entitled to a minimum of two weeks of vacation time after each vacation entitlement year, increasing to three weeks once they reach five years of employment. The corresponding minimum vacation pay is generally four per cent or six per cent of gross wages, respectively.

How that vacation pay is administered can vary depending on the employment arrangement. For salaried employees, vacation pay is often satisfied through their regular salary while they take their paid vacation, meaning there isn’t necessarily an additional payment owing on top of their salary, provided their employment terms and statutory entitlements are properly structured.

For hourly employees, employers may choose to accrue vacation pay and pay it when vacation is taken, or arrange to pay it on each paycheque where permitted and properly documented. These are payroll administration decisions that should be clearly communicated to employees so there is no confusion about what they’ve earned and what they’re entitled to receive.

Independent contractors are generally responsible for managing their own time off and do not receive statutory employee vacation entitlements, assuming they are genuinely independent contractors. Their agreements should clearly address availability, service expectations and planned absences.

Regardless of how you administer vacation pay, however, the bigger question is whether your employees actually feel comfortable taking their vacation time.

And equally important, whether you’ve structured your business so they can.

I’ve worked with businesses where an employee taking a week off creates absolute chaos. Nobody knows how to perform the absent employee’s responsibilities, passwords are inaccessible, client information is scattered and routine decisions suddenly require multiple phone calls to someone who is supposed to be relaxing with their family.

This isn’t an employee problem. It’s an operational problem.

A well-run business should have enough structure, documentation and cross-training that people can take reasonable time away without everything falling apart. That doesn’t mean every employee is interchangeable, nor does it mean that absences won’t require some additional planning or effort. It simply means that your business shouldn’t depend entirely on one person’s constant presence to function.

 

Putting your business to the test

 

And that brings me back to the business owner.

In a previous Ask Kate column, I discussed the importance of business continuity planning and what would happen if you were suddenly unable to operate your business due to an illness, injury or unexpected personal emergency.

Vacation is an opportunity to put some of those same principles into practice, without the crisis.

Think of it as a test of your business’s operational strength.

Can your team make decisions without calling you? Are your processes documented? Do employees understand their responsibilities and the limits of their authority? Is there someone who can manage urgent issues, support clients and keep things moving while you’re away?

If the answer is no, perhaps the problem isn’t that you don’t have time for a vacation. Perhaps the problem is that you’ve built a business that cannot function without you. That’s something worth addressing.

 

The value of perspective

 

There is another benefit to stepping away that I think we often underestimate: perspective.

When you’re deeply involved in the daily operations of your business, it’s incredibly difficult to see the bigger picture. You’re constantly reacting to the next email, the next issue, the next client request or the next staffing challenge. Your days become so consumed with keeping things moving that there is very little opportunity to consider whether you’re moving in the right direction in the first place.

Taking time away allows you to disconnect from that constant noise. It gives you an opportunity to think about your business differently, reflect on what’s working and what’s not and sometimes recognize opportunities or problems that were difficult to see when you were right in the middle of them.

Some of our best ideas don’t come from sitting at our desks working harder. They come when we’ve finally given ourselves permission to stop thinking about work for a little while.

Of course, I understand that stepping away isn’t always easy. Particularly for smaller teams and growing businesses, resources can be limited, and there may not be an obvious person ready to take over your responsibilities.

But that doesn’t mean we should accept that as a permanent way of operating.

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