Spring has sprung, and with it comes a mixed bag of market sentiments. While some sectors are experiencing a softening, others are thriving. Amidst this backdrop, the real estate industry finds itself grappling with a unique challenge — the relentless war for talent.
Qualified candidates, particularly in residential real estate, are being lured away by the allure of stability offered by competing industries like commercial real estate, legal firms, clinics and corporations. This trend isn’t confined to individual agents or teams but extends to entire brokerages.
The normalization of remote work: A lasting pandemic legacy
A lasting legacy of the COVID-19 pandemic has been the normalization of remote work. What began as a necessity for safety has evolved into a preferred mode of employment, especially in the real estate sector. The flexibility afforded by remote or hybrid work arrangements has become a key factor in attracting top talent.
Brokerages and teams that embrace this trend are finding themselves with a competitive edge, enjoying access to a pool of candidates that we’ve found, over the past five years, is about 40 per cent richer in quality compared to those insisting on traditional office-based setups. We repeatedly find that candidates who apply to positions offering remote work opportunities are more inclined to engage in discussions when they’re informed about the remote nature of the role and the flexibility it offers.
How real estate firms can stay competitive in today’s remote-work world
By embracing a holistic approach to employee satisfaction and well-being that includes the benefits of remote work, real estate firms can differentiate themselves as employers of choice in a competitive market. Here are some strategies to get there:
1. Implement flexible work policies and invest in technology infrastructure to support remote collaboration and communication. By embracing remote or hybrid work arrangements, companies can expand their talent pool beyond geographic limitations, tapping into diverse skill sets and expertise. Remote work options demonstrate a commitment to employee well-being and work-life balance — which are increasingly valued by professionals in the post-pandemic era.
To further enhance recruitment efforts, firms can highlight their remote work policies as a competitive advantage in job postings and employer branding initiatives. By adapting to the changing preferences of the workforce and leveraging remote work as a strategic asset, real estate companies can position themselves as industry leaders and attract top-tier talent for sustained success.
2. Offer customized benefits packages that go beyond traditional compensation and bonuses. This can include providing health benefits or contributing towards health spending accounts to support employee well-being. The demand for remote work opportunities has catalyzed a shift in the employer-employee dynamic, and candidates now expect more than just a competitive salary — they’re looking for comprehensive benefits packages that include health benefits or contributions toward health spending accounts.
3. Foster a transparent and open communication culture. This helps mitigate multiple job offers and counteroffers. The prevalence of multiple job offers or counteroffers has heightened negotiation tactics among candidates, who are increasingly leveraging new offers to secure better deals from their current employers.
By proactively engaging with employees to understand their needs and preferences, employers can tailor benefits packages and incentives to attract and retain top talent.
4. Invest in professional development opportunities and career advancement pathways. This demonstrates a commitment to employee growth and incentivizes loyalty.
Reduce turnover by creating a supportive and engaging work environment and offering performance-based incentives
For employers in the real estate industry, recruitment is just the first step in a multifaceted process. Effective onboarding, management practices and performance-based incentives are essential for retaining talent and fostering loyalty.
However, the reality is that employee turnover is a persistent challenge, with the average tenure within a team hovering around two years. We see this from our brand ambassadors, who often serve as valuable touchpoints for gauging industry insights and frequently approach us when they’re once again exploring the job market for growth opportunities. Additionally, we regularly conduct check-ins with our database of over 15,000 candidates to understand their career aspirations and needs — particularly within the residential real estate sectors of Ontario, Alberta and British Columbia.
To address the challenge of employee turnover in the real estate industry, employers should prioritize creating a supportive and engaging work environment that fosters employee growth and satisfaction.
This begins with a robust onboarding process that introduces new hires to the company culture, values and expectations — even if it’s a team of one. Ongoing training and professional development opportunities can help employees stay motivated and invested in their roles. Additionally, implementing effective management practices, such as regular feedback sessions and recognition programs, can enhance communication and morale within teams.
To incentivize long-term commitment, employers can introduce performance-based incentives tied to key metrics and milestones. This not only rewards top performers but also encourages continuous improvement and goal attainment. Moreover, offering career advancement opportunities and pathways for progression can provide employees with a clear trajectory for growth within the organization.
By investing in these retention strategies, employers can reduce turnover rates and build a cohesive team of dedicated professionals who are committed to the success of the company. This not only improves productivity and morale but also enhances the overall reputation of the organization as an employer of choice within the real estate industry.
Foster a culture of work-life balance and well-being for a successful, long-term team
A valuable employee is akin to gold — they anticipate your needs, operate autonomously and contribute to the growth of your enterprise. However, it’s crucial to recognize that even the most dedicated employees need boundaries. While the real estate industry often operates beyond traditional office hours, it’s imperative to respect employees’ work-life balance to prevent burnout and maintain productivity.
Building a successful team requires a strategic approach that goes beyond immediate needs. Employers must envision their end goals and create a culture that nurtures employee well-being and professional growth. Central to this is effective communication and management practices that prioritize positive reinforcement and constructive feedback over micromanagement.
Overall, creating a thriving workplace culture isn’t just about offering tangible perks — it’s about fostering a sense of value and belonging among employees. Regular expressions of appreciation and a focus on the bigger picture can go a long way in cultivating a happy and healthy work environment. By prioritizing the long-term satisfaction and growth of their team, the industry’s employers can ensure the sustainability and success of their real estate ventures.
I once thought that being successful meant that I would be whole, without setbacks or disappointments, where everything in life would be as I had imagined and carefully planned in my youth. I’ve come to love and accept that the pieces of my past are what make me whole as a person. Outspoken and sometimes to my disadvantage, I have no interest in just fitting into a mold. I believe that being different, learning differently, and expressing myself differently is why I have excelled in business ownership (though I struggled in school).
My forte is being a connector. I thrive on connecting people, which is why I accidentally stumbled into recruitment.
No one ever talks a pension. A pension contributed 50% bybthe broker. After 35 years in this business it would of been and still could be a game changer.
I am confused. This article for realtors refers to “employees”. We are not employees. The only employees of a brokerage are the administration staff. And yes, they should be taken care of well. For the rest of us independent operators, this article has very little value.
Thanks for your feedback. I believe the author is talking about realtors being the employer and hiring employees, like real estate assistants, office managers, etc.
Thank you for your feedback, Jane. This article targets top-producing realtors with a Gross Commission Income (GCI) ranging from $400K to $5M+. Realtors at this level typically transition into roles that necessitate building and managing a support team to further grow their business. These support teams often include a variety of roles such as Field Assistants, Buyer Agents, Licensed Assistants, Sales Managers, Directors, Operations Managers, Graphic Designers, Social Media Marketers, and Marketing Managers, among others, depending on the team’s size and volume. If you examine the strategies of any top producer, you’ll notice they rely heavily on these support teams to drive their business forward.
The work place has been changing over the year. More and more employers are looking to hire on contract where there is little or no benefits, holiday pay, vacation pay or anything at all.
It’s not just small business but huge corporations that do this. It is how things are happening and that’s not about to change.
To stay competitive in Cloud based Real Estate Brokerage business, I believe that every service provider to the Brokerage will have to be a contract. Every Agents commission have to be tiered into the about of business the agent brings – amount earned from the agent will have to be tied up to the services provided. So basic commission plan and individual charges for all the added support services used.
Brokerages as they are today are a hoax especially the Name Brands. They don’t do anything worth the 80/20, or 90/10 or even 95/5 splits. Every Brokerage is competing for the lowest splits. Yes all of them do compete, never mind the rhetoric they blab about.
Bricks and mortar is not working anymore. Covid and the now distressed real estate market is proof of dismantling of the ‘bricks and mortar’ system.
Dismantling of front office staff for making appts, and the deal secretary for every small single office Brokerage. The cost outweighs the benefits – costs that are not unrecoverable to maintain a profitable Brokerage. Only Brokerages with multiple Branches can justify having this kind of staff as the pool everything into one call centre or deal processing office.
Claims by Franchisors and regurgitated by their Franchisees as being the biggest or the best or the only choice are all misleading. RECO should surely look into such advertising that creates an uneven representation for the Real Estate public.
The idea of newcomer Brokerages with a pyramid scheme where agents benefits of other Agents where there is this ‘ancillary income for recruiting agents’ is ludicrous. There is no experience, education, or training supplied except some online stuff which anyone can get from anywhere for free.
Is this the way it is to be? No really!
My point is we are in need of a major redress of how real estate brokerages start to work. This is a service business that needs to work in today’s cloud based environment.
Perhaps if enough of us get a study group started to explore into these possibilities we could have the most effective Franchise and largest network in the Country.
Thank you for your insight, Daljinder. Regarding hiring contractors who invoice the client/employer every two weeks, both the client and the contractor can encounter issues with the CRA. If the contractor is only working for one client, it may be considered an employer/employee relationship. While some corporations get around this by requiring the contractor to incorporate and invoice them, it remains a complex area with hefty penalties to both if not tackled properly.
Many claim they are “disrupting real estate,” but often these efforts fizzle out quickly. Numerous brokerages have come and gone, each with a slightly different idea.
You’re right; a shift needs to happen. Those who adapt to the changing landscape will survive, while others will fade away.