Workers in any industry are critical to business success. In the real estate industry, they are even more important because of its razor-thin margins, deadline-driven makeup, and the extreme skill and aptitude required to effectively compete and succeed. If transactions do not get completed, no revenue comes.
Hiring and recruiting has changed dramatically since the beginning of 2022 with a shortage of talented professionals leading the way. America’s unemployment rate measured 3.5 percent in July 2022, according to the latest numbers available from the US Bureau of Labor Statistics. That is historically low. In fact, it is the lowest in at least the last two decades.
An unemployment rate below 4.0 percent represents a severe labor shortage and a market in which workers have leverage.
This means that brokerages should implement smart talent strategies to ensure they have the best workers they need to effectively compete in the years ahead. That’s why T3 Talent encourages brokerages to develop market-proof talent strategies, which are outlined below.
Develop short- and long-term organizational plans
Short- and long-term planning is one of the most powerful, dollar-productive practices that brokerages can use to increase the profitability of their businesses regardless of market conditions. Additionally, it provides a competitive advantage, as many other companies struggle with this.
Develop Company Brand and Culture
A brokerage’s brand and culture deeply impacts the hiring process. In some cases, a strong company culture or brand can become the winning chip in a competitive hiring situation, as candidates may view culture as a significant value to their experience of working for a company. Competitive markets can bring out the best in hiring practices, which impacts the organization at all levels regardless of market conditions.
Create an Agile Hiring Process
Create an agile process and commit to it. If a consistent hiring process already exists, use a workflow diagram to adjust the timeframe for each step to fit current market conditions.
For example, a workflow could exist as the following. Prequalification of a candidate starts the action, and 24 hours later the candidate moves to the first interview. Upon completion of interview one, an assessment of the candidate is made by end-of-day, and interview two is scheduled within 48 hours. Another approach is to commit to a two-week hiring cycle and work backward. Create the hiring process and timelines in an infographic to share with everyone involved with the hiring process.
Develop a Consistent Process for Attracting Talent
Create a consistent process and system to identify and attract talent on an ongoing basis. One-off activities for hiring and recruiting will not achieve sustained success. Take note of talented professionals who stand out, whether within the industry or personal spheres, and develop relationships with them.
Retaining talented employees is just as important as having a smart hiring process and system. Keeping talented employees after investing time, energy, and resources in them is a critical business need.
Additionally, remain mindful that top talent receives regular recruiting calls or messages on LinkedIn and other platforms from recruiters. Create a plan to show them that they are valued. Money is not everything. Kindness, concern, real care, and a vibrant company culture often supersede a better monetary offer.
For additional market-proof practices and more information on how to create a smart brokerage talent playbook, read the upcoming 2023 Swanepoel Trends Report chapter, “The 2023 Real Estate Brokerage Talent Playbook.” Visit this page to get your copy.