Just like a prize aged wine, in an ideal world employees should be considered appreciating assets, meaning they produce more and more value over time.
Granted, sometimes poor hiring might leave you happily shuffling a mismatched team member out the door with a sigh of relief but in the majority of cases, it’s employee dissatisfaction that is the number one cause of retention failure.
And so it is in real estate, where the revolving door of staff turnover could give you whiplash on any given day.
Domonic Thompson, National Head of Real Estate with Macquarie Business Banking states;
“The industry needs to address the challenge of attracting and retaining key talent. People need clarity, structure, reward and recognition, but more fundamentally, they need to want to come to work, feeling inspired by leaders and colleagues”.
According to a survey conducted for The Macquarie Business Banking – 2023 RE industry benchmarking report, staff turnover amongst the largest franchise groups in Australia was at 25% across all roles in the 2023 financial year, increasing to 35% when property management was looked at in isolation.
On its own, some figures indicate that the average financial cost of recruiting to fill a vacant role can be as high as 33% of the annual salary in question.
In its entirety, the total holistic cost of these losses amounts to far more than a hit to the corporate coffers and a punchy new recruitment drive.
The cost of losing an employee is EXPENSIVE in more ways than one.
A vacant role means business owners are faced with a productivity vacuum, consumed by the need to fill positions, train and develop new people, and attend to gaps in the client experience.
The cost of losing an employee puts your business at risk of losing morale, profit, and most importantly, valuable time.
Employee retention should be a strategy rather than an outcome.
Among the top listed reasons why employees decide to leave the workplace are - lack of opportunity to advance, dissatisfaction with senior management, and the work environment or culture.
People want to know they matter. That’s today’s talent contract.
On that basis, how can you plan your retention strategy to futureproof your business?
Think of your retention strategy like a wine cellar.
Acquire the best, monitor the climate and pursue the long game.
It will be worth it.
Confidential Conversation
If you’d like a confidential chat about how the ONE AGENCY model and ONE PLACE can help you to make more and keep more in ‘24, book a call today.
Paul Davies is the founder and CEO of One Agency, which has more than 150 businesses throughout Australasia. During his 50-plus years in the industry, Paul’s biggest single insight is: it’s not what you make, it’s what you keep that counts.
If you love what you do but want to make a change – either to keep more of what you earn, shift to a more lifestyle focused operation and reduce running costs; I invite you to contact me at One Agency and discuss confidentially how our model, (less than $1000 + GST per month regardless of your GCI) may be just the answer to breathe new life into your career and future proof yourself.
"It’s not what you make, it’s what you keep that counts."
‒ Paul Davies, Founder and CEO
Revised edition: Written by our Founder and CEO Paul Davies with a foreword by leading real estate coach and trainer Tom Panos, ‘How To Profit In Real Estate Business Ownership’ is compulsive reading for established and aspiring agents looking for a way to achieve success and maximise fee retention.
As founder and CEO of the fastest growing real estate network across Australasia, I offer real estate professionals an opportunity to reap the financial rewards of going it alone with the security and clout of an established brand. Talk to me and my team about your options.
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