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How Hiring the Right Agents Affects Your Real Estate Team ROI

Hiring another member to your real estate team, whether it is the first, or the fiftieth, should be approached the same way athletes look for their next relay team member. In order to achieve a win as a team, each member has to excel. Otherwise the “win,” or ROI in our case, suffers.

According to a study done by McLean & Company, “Disengaged employees cost up to $350 billion per year in America as a direct result of lost productivity.”

In other words, hire the right employees and your ROI will increase for reasons well beyond the money. Hire the wrong people, and you will only be a part of this statistic. 

Calculating the ROI of Your Agents

Building your real estate team through new buyers agents, listing specialists, marketing professionals, assistants and so on would be pointless without measuring their impact.

To do so would be irresponsible as a business owner. So, how do you measure the “rightness” of current or future hire?

 

A combination of personality and productivity. These two elements together make up the “Gain of Investment” portion of the equation. 

 

building a real estate team

 

How to Hire The “Right” Real Estate Team Members

Our rule of thumb is always to hire first for your weaknesses.

Step back to the relay race team members. There is a reason different runners starts the race, continue the race, and finish the race.

Just as your real estate team ideally needs someone to first contact leads, build relationships with those leads, go out into the field with your clients, work on contracts, and so on. 

In our experience, we have seen several teams find success with using the DISC personality assessment to both point out holes in the team and highlight strengths. This particular personality assessment works well to determine real estate team structure when building your team.

The DISC assessment will help:

  1. Find your own strengths and weaknesses.
  2. Do the same for your team members and
  3. Hire more of the “right” people.

In order to get a taste of what we’re talking about, check out the quick notes version of how you can use the DISC assessment below. It is important to remember that these tests base their results on four pillars of personality: dominance, influence, steadiness, and consciousness.

 

Building a Real Estate Team

 

Build a Team Built on Personality and Productivity

Measuring the impact of future real estate team members, not to mention current members, is vital to the success of the team. In order to begin to determine the ROI of your team members, start with the questions below:

  • Do they bring in sales that are equal to, or above, their costs? (Oftentimes only applicable in sales roles.)
  • Does your employee encourage customer retention? Are they good or bad at doing so?
  • How does your employee affect team morale and production? Are they distracting? Atre they motivating? Etc.
  • What does this employee’s future look like at your business? Are they on a path to leadership and contribute to growth?

It is a given (hopefully)  to measure the Return on Investment of your lead generation efforts. Why then, would it not be a given to measure the impact of your employees? By doing so you will learn to make smart hiring decisions at any level and value your employees for more than a number value. 

Build a Real Estate Team

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