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Sep
04

Why Just Hiring More May Not Be Best for You

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Here’s why just hiring more may not be best for you. This month, I’m focusing on hiring–and termination. Why? Because they are the most important activities you can do. And, they determine the profitability and culture of your company.

Do you know how much poor hiring practices cost you? Most brokers don’t realize they are doing irreparable damage to their companies by hiring those who aren’t going to go right to work and keeping those who won’t work. Here are the 3 biggest consequences to poor selection I see.

1. Stops you from hiring great producers.

Likes attract. How can brokers hope to hire that great producer when they have more than 10% of their office as non-producers? I can see it now. Sure, I’ll come to your office. I’m a top producer, and I just love to be dragged down by those non-producers. It will be my pleasure to waste my time with them. Not.

2. Kills your recruiting message.

Do you have a training program? Do you use it to recruit? Here’s the real message: We have a training program. All our new agents go through it. We don’t get any results from the program, so it really doesn’t work. But, join us. You can’t possibly show how successful your training program makes your agents because your training program can’t possibly get results from poor people in and no actions and accountability required.

3. De-motivates your agents to provide referrals to you.

Why would one of your good agents possibly refer someone to you when your good agent doesn’t see those you hired starting right out and making money fast?

As the Market Shifts: It Won’t Cover Up an Inadequate Selection Process

In a fast market, accidental sales buoy up poor agents and make them look as though they were actually selling enough real estate to be a median agent. When the market shifts, so do the agents ‘ mirage of decent production. With that shifted market, brokers need to hire with purpose (using a stringent, professional interview process). Then, they need to put agents right to work with a proven start-up plan.

Please Tell Me What You Think

What do you think a non-productive agent costs the company? In my next blog, I’ll give you some line items that will probably double what you think a bad hire costs. Let’s see what you think first. Poor hiring practices really, really hurts brokers, both financially and emotionally.

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