A talent shortage within the residential property sector is becoming increasingly noticeable.
It is fair to say that more and more employers are now looking at retail, telesales and other sectors to reach fresh talent. Over the past 13 years that I have been in property recruitment, there have always been more jobs than candidates, with each candidate receiving on average up to three job offers.
So what’s the solution?
Employers need to be smart in their recruitment approach and look at similar service industries such as the retail sector to identify energetic, ambitious and dynamic individuals who have the potential to become exceptional agents.
However, this approach comes with both positives and negatives.
The positives are that it would slowly clean up the ‘white-socked brigade’ – journeymen agents (male and female) who jump ship every 12 months from company to company for an earnings guarantee.
I also believe that in some parts of retail, individuals are more customer-focused and when it comes to driving up quality of customer service and overall standards in the industry, this can only be a good thing.
The negatives are that while many skills are transferable, only a select few from outside the industry will have what it takes to sell or let properties. Even those that have the aptitude to be successful would need comprehensive training on the intricacies of the job, as well as what they need to do to be compliant.
Larger organisations tend to be better equipped to accommodate this approach and can offer formal development plans and dedicated training in-house to staff who are new to the industry. Independents, on the other hand, may find it more difficult to provide the same level of support without using an external training partner.
One of our clients has indicated that staff retention is up by 75% through recruiting and training individuals “out of sector”. In doing so, the firm has not only met an immediate recruitment need but also created a new pool of future managers for their business.
A note of caution here: Training up inexperienced recruits is not a quick fix and it is likely to take 12-18 months or more for agents to see the rewards.
With the average retail worker commanding an £18,000 to £20,000 basic and, in some circumstances, additional commission, salaries can also be an issue.
Agents need to take this into consideration as the national average for a negotiator still stands at a basic salary of £15,000 and OTE of £20,000.
One possible way to resolve the difference in salary is to offer an initial pipeline builder or earnings guarantee to ensure you attract the most promising individuals and retain them.
This also has the benefit of instilling a focus on the individual’s long-term career within the property industry.
This isn’t a criticism Joshua, but recruiting outside the industry will only be successful if those recruits are allowed to bring a fresh perspective to the sector. Bringing in people that are going to be trained in exactly the same methods as before misses the point. For example, were an agency to hire, let’s say, an actor, it would be pointless training that person to communicate with vendors exactly how the agency already does it. That recruit brings a different skill set that should add value to the business, not simply fill a position.
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Morning Agency Negotiation Limited, I totally agree with you and agents need to “evolve” their training and development plans to accommodate new fresh ways of going about their business.
Individuals need to be allowed to bring their own flare and fresh perspective to the industry.
In my opinion agents need to hire for CULTURE FIT and most importantly ATTITUTE. The consumer wants to experience the same customer care and attention they do from the rest of the high street.
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For what it’s worth mobile phone, car sales, retail in general have always proved poor additions to estate agency in my experience. The problem is the industries they work in are not professional enough, they are not use to the hours, their people skills are basic. Other than sales there is very little that can transfer.
We tend to identify staff at other agencies and go for them. If we do recruit from outside we like people straight out of education so we can mold them. OR I find the hospitality industry is very good. They are used to dealing with demandING people. Long hours and can take direction.
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Morning Smile Please, I agree with you some retail backgrounds will not be suitable for our industry but you only have to look at the Countywide board to see that the industry is moving more and more towards the retail sector.
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Not sure Countrywide is a good example.
Senior management have left or been shown the door, massive staff turnover in branches, Market share lost, average fee down, turnover / profits down and staff moral at an all time low.
Trying to bolster there business by the sale of shares in zoopla and looking to acquire well run and profitable lettings firms.
A complete lack of focus or focus in the wrong areas in my opinion.
On the flip side independents are having record years, instructions are down but profits are up as more of the stock is selling. These agents have concentrated on their core business listing property and selling and renting them. Not bogged down with cross sales that lose business.
I am not saying all car salesmen, phone sellers and retailers are poor but in my opinion they find it hard to adjust to the property industry. I would (as i do) poach staff or recruit fresh from education or hospitality.
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“…you only have to look at the Countywide board to see that the industry is moving more and more towards the retail sector.”
What absolute knackers.
Countrywide ‘doing’ something doesn’t make it good, right – or the way forward for the rest of the industry.
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