Recruiting is a big topic with lots of facets. It also has a great deal to do with the design and implementation of improved real estate business models. So we're giving recruiting its own special space here in our Optimizers Collaboration Project.
The only absolute requirement of a real estate business model is that it must sustainably generate income that significantly exceeds its expenses.
Real estate business models that can and do meet that requirement come in a wide variety of sizes, focus, and quality levels. The combinations and permutations of overheads, technologies, recruiting specs, training capabilities, compensation plans and management styles to achieve that income requirement are endless.
Our goal for the RECRUITING part of the Optimizers discussion is to weigh the pros and cons of each of the recruiting variables so each of our Members can better choose a personal combination that will work best.
Here is an outline of Recruiting Issues to help get the discussion started:
A. Recruitment Planning Issues
1. Big, Medium, Small
A. Which model are you trying to build? They all
can work; but which one makes the most sense for
you?
2. Services
A. What skill sets do you need to deliver the depth,
breadth and quality of services you want to offer?
3. Volume
A. How much activity do you anticipate, and when?
4. Capacity
A. How much grow room do you already have? When do
you anticipate you'll reach your limit?
5. Ongoing vs. Project
A. Are the tasks you want help with ongoing, or
infrequent?
B. Can many tasks be converted into projects?
6. Employees vs. 3rd Parties
A. Is it better to hire people, use independent
contractors, or some combination of both
approaches?
B. Do people who help you have to be physically
located in your office, or can they be virtual?
7. Overhead
A. Buildings vs. Virtual Technologies Every expense
should contribute to your profit. Which expenses
should be cut? Which expenses should be
increased?
8. Training Requirements
A. How much training will your recruits need?
B. What kinds of training will they need?
C. What are the most cost efficient and effective
ways to deliver it?
D. Should you gear up for training, or should you
focus your recruiting to reduce the need for
training?
9. Supervision/Mentoring Requirements
A. Close supervision of transactions is mostly a
given. Close mentoring of marketing and sales
efforts is typically neglected. How prepared are
you to mentor for success?
10. Compensation
A. What methods work best? 100% commission?
Splits? Gulp, salaries?
11. Employment Agreements
A. What should be in them?
B. Legal requirements
C. Training requirements
D. Performance requirements
E. Compensation plans
F. Can you use employment agreements to:
Filter applicants?
Set mutual expectations?
Control performance?
Control terminations?
12. Recruitment Marketing
A. How will you make your firm more visible to
potential recruits?
B. Will you rely more on direct advertising, or
social networking, or both?
C. What kind of recruitment communications will you
use?
D. Web site
E. Individual Email
F. Mass Email
G. Downloadable Materials
H. Printed Materials
I. Webinars
J. Seminars
K. Office Tours
L. Social Networking Activities
B. Recruitment Marketing
1. Your Recruiting Value Proposition
A. What unique values do you offer potential
recruits?
2. Recruiting Communications
A. Web Site
B. Email
C. Email Campaigns
D. Print
E. Brokerage Tour
F. Advertising
G. Invitations
3. When to Recruit
A. When needed?
B. Constantly?
C. Recruit Selection Issues
1. Job Descriptions
A. The clearer you get about what the job is, the
easier it gets to ask for what you need, and to
determine if your potential recruit can actually
deliver it.
2. Sales Staff
A. Since real estate sales is mainly a relationship
business; is your potential recruit a compulsive
relator or not? How many contacts in their
database? Do they even have a database setup to
work from?
B. How much knowledge, skill, experience, technology
resources, marketing time and capital, does a
recruit need to be successful in your
organization?
3. Administrative Staff
A. What skills, knowledge, experience and
technologies are necessary to get your jobs done
with minimal supervision?
D. Recruit Orientation and Training Issues
1. Do you have Orientation materials that facilitate
quick team assimilation?
2. Do you have functional trainings that facilitate
consistent team work?
3. Do you have regular communications that facilitate
team spirit, cooperation and effort?
E. Turnover
1. Have you itemized and analyzed your true Turnover
Costs?
A. Marketing time and money
B. Interview and selection time
C. Orientation time
D. Fixed overheads
E. Training time
F. Supervision time
G. Lost opportunities
2. What does it really cost you every time somebody leaves?
Let the recruiting discussion begin!
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