Why “Career Seminars” Will Always Be Inferior to One-on-One Interviews

One of the questions we often get from hiring managers is:

“Are one-on-one interviews really necessary in the real
estate hiring process?”

What’s implied in this question (and usually comes out later
in the discussion) is that it might be more efficient to conduct group
interviews with several candidates at once rather than one-on-one interviews.

The line of reason is that interviews take a lot of time,
and many early stage candidates are not serious about making a career
change.  The group interview is a great
way to “weed-out” those who are not truly interested or unqualified.

CareerSeminarIn a real estate company, this “group interview” usually
takes the form of a career seminar.  It typically
is an informational meeting where the company describes the benefits of
changing careers and becoming a real estate agent.  At the end of the meeting, there’s typically
some call to action (sign-up for licensing school, schedule a follow-up meeting
with a hiring manager, etc.) that encourages the candidate to move forward in
the process.

For years, we’ve recommended not using this methodology for
interfacing with the majority of candidates. 
There is nothing wrong with running an occasional career seminar for
those who truly want information about a real estate career.  However, using this tool as a replacement or
precursor to one-on-one interviews has not proven to be a best practice for
recruiting high quality individuals.

Outside of the empirical data that we collected on this
topic (ie. most real estate companies consistently hire 40% to 60% “D”
performers using traditional hiring techniques such as career seminars), I
could not put my finger on the psychology of why the “group interview concept”
was inferior until last week.  I found this
insight in an odd place—a coaching article written by Ed Batista.

EdBatistaI’ve read Ed Batista’s blog for several years, but I usually
gain insight from a coaching perspective, not a recruiting perspective.   Ed is a successful executive coach and an
instructor and leadership coach at the Stanford Graduate School of Business.  His business is coaching, but in the process
of explaining coaching concepts he reveals a lot about the psychology of
people.

The particular blog that peaked my interest was titled:  Spending Attention.  In this discussion, Ed makes the point that
focused attention is one of the most powerful forces made available to human
beings—both from a giving and receiving perspective.

“Focused attention is our most precious resource, because 1)
it's extremely taxing on our intellectual and emotional capabilities, 2) it can
have a amazingly powerful effect on its object, and 3) it can't be subdivided.
(We can pay continuous partial attention to multiple objects simultaneously,
but we can truly focus on only one object at any given moment.)

Much of what I do as a coach and as an experiential educator
at Stanford involves nothing more than devoting my full attention to another
person. This is somewhat easier in a one-on-one coaching session with a client
or student, and it's somewhat harder in a group setting, but under any
circumstances it's a challenging task that's almost always worth the effort.”

So, what does this have to do with interviewing?  There’s something  powerful that happens to an individual when
they receive another person’s full attention. 
Ed puts it this way:

“… devoting our full attention to someone can be a novel
experience for both of us that in and of itself stimulates something useful in
the interaction. The other person feels seen, heard, recognized, validated,
appreciated or challenged in ways that partial attention never generates. And
as we momentarily quiet our inner voice, we suddenly become aware of so many
things that we missed before–not only about the other person and our
environment, but also about ourselves. The subtler, more elusive thoughts and
feelings that are usually drowned out by the louder currents can now be heard.”

It’s obvious that humans crave focused attention.  In the hiring process, the best chance of
making this happen is in a one-on-one interview. 

By the way, just because a person is sitting across the desk
from you, doesn’t mean focused attention will happen (read the rest of Ed’s blog
to learn more about how you can become effective at giving focused attention). 

But, focused attention is almost guaranteed NOT to happen in
a group interview/career seminar setting.

A high quality candidate wants and deserves the focused attention
of the hiring manager during the hiring process.  If this element is missing, the high quality
candidates will exit the hiring process. 

When the high quality candidates leave the hiring process,
all you’re left with are desperate candidates who believe they deserve no
better than a career information session. 

Of course there are exceptions to this rule (I’m sure some
of you will write me about how you hired your best agent ever through a career
information session), but you won’t win the hiring game by betting on the
exceptions.  In the long run, the time and
effort you put into one-on-one interviews will pay off.

Question:  What techniques have you found effective in
making candidates feel they have your focused attention during an interview?


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BenHessPic2011Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle. 

Making Your Interviews Memorable (For the Candidate)

Over the last couple of years, we’ve written more than 40
blogs that that cover the topic of interviewing.  While there is much research available on
this topic, some of the best ideas and insights have come from our
readers.  Today, I’d like to share
another one these insights. 

AlMirabelliAl Mirabelli is the Broker in Charge of the Prudential
Carolinas Lake Norman Office.
  His office
is located in Huntersville, North Carolina
A couple of weeks ago, a candidate that had recently interviewed in Al’s
office sent their company’s recruiting coordinator the following email: 

“Yesterday’s meeting was great.  From the time I walked in (amazing the effect
of seeing your own name with balloons) till the time I left, I could see why
Prudential Carolinas Reality would be a great place to work and a good fit for
me.  I have a few offers on the table
right now. Prudential feels like the best fit for me. I would just need a day
or to to go over finances to make sure it would be possible right now.”  

This peaked my interest. 
What did the candidate mean when he said, “amazing the effect of seeing
your own name with balloons?” 

Al provided some background later that week,

“At the entrance foyer of the lobby to my office I have a small [whiteboard
easel] that welcomes candidates and other visitors to my office.  During the day of this candidate’s interview,
we happen to be welcoming a local group of builders to our office who are
partnering with some of our agents and attached some balloons to the
whiteboard.  It was such a hit that they
ended up taking a picture on their way out. 
They later said they were very flattered that we would do such a thing.”

Apparently, the candidate was flattered as well and made a
point of mentioning it to the recruiting coordinator during a follow-up call.

PrucaroWho knew that such a simple thing would have such a great
impact?  I must admit, that I was even a
little skeptical when I heard this story.  
Maybe this candidate was just overstating their feelings in the initial
email.   

But, then I received this email a week later from Prudential
Carolina’s recruiting coordinator:

“I thank you very much for allowing me to meet Al.  He definitely has passion for the business,
which drew me in.  He was wonderful and
the entire workforce was very courteous. 

They even had my name on a white board upon entry that said
"Welcome [Candidate’s Name]."  It was great!  I plan on working
at Prudential and learning the skills necessary so that I can be extremely
successful in the field.  So with my
ambitious nature and all the information that Al provided to me, I will be
successful.”

[Note:  I
removed/blurred the candidate’s names in the emails and pictures because we did
not get their permission to share their identity]

Al and his staff are onto something—don’t you think?  I believe that Al has figured out how to tap
a basic human need—the need for acknowledgment.

I recently read that acknowledgement lets people know that
you have truly seen them.  It communicates
we have taken the time to pay attention, to notice, and to speak out loud what
they contribute, what they accomplish, and some of who they are at their best.

Al—great job on figuring this out and applying it to your
interview process!  I hope others will
try this as well.

Question:  Do you have
interviewing techniques that you’ve found helpful.  If so, share them with us, and we’ll publish
your ideas.


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BenHessPic2011Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle. 

The Progress Principle

Since reading the books
"Flow" and "Finding Flow" summarizing the empirical
research of Mihaly Csikszentmihalyi, I constantly think about improving work tasks
and how to keep them from being too boring or anxiety producing. 

Progress-Principle-Book-CoverThe book, "The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work" by Teresa Amabile and Steven Kramer,
does an excellent job reminding us what goes on inside the heads of those we
are responsible for and how to improve their engagement at
work. Analyzing nearly 12,000 diary entries, provided by 238
employees in 7 companies, the authors explain how managers can cultivate
progress and enhance work life. 

 The diaries themselves can provide
insight to the inner turmoil people experience, and that alone might be worth
the price of the book. However, the real value comes in their insightful
recommendations. Not only are the recommendations well worth considering, but existing
research also agrees with the suggestions.

 In the book, the authors demonstrate
how to remove obstacles to progress, such as pointless tasks and toxic relationships,
how to enable progress, using clear goals matched with autonomity, and how to
nourish interpersonal events that demonstrate respect and
foster collegiality. 

 The following video is rather long, at 18
minutes, but, if you have the time on an upcoming flight, it may be worth a
look. 

 

  

Knowing how to get and keep your team
engaged may  qualify as one of the top three
tasks of being a leader. You can work on many other factors, but, if you have
disengaged workers, the progress will be slow.

Question:  Are you able to keep those around you engaged?  Share the techniques that you've found effective in keeping those on your team engaged.


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DMPhotoWorkPuzzleEditor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. 

The Science and Benefit of Failure

    "Never underestimate the magical properties of failure. It rewires the brain and gets the creative juices flowing."

This quote caught my attention in an article I found in a recent edition of Psychology Today. The reason: I have lived that statement in so many ways. People who know me might not even know this,  I tend to forget my failures from time to time, but I failed a lot.

When I was in the 4th grade, I was a miserably poor reader, and was put in the lowest of the 3 reading groups. I was too active to sit still long enough to read, however, my 4th grade teacher saw something in me that led her to believe I could read better. She took the time after school, for what seemed like months on end, to get me up to speed.

FailureWhen I graduated from high school, I had a 2.6 GPA, which continues to be embarrassing to admit. I eventually managed to set my sights on greater things. However, I had to spend the first two years in a mediocre college achieving a 3.8GPA to qualify for a more prestigious college.

Then, after being rejected in my application to graduate school, I found out, through some investigation, that I had been  considered  "on the bubble" for admissions due to stiff competition among the other applicants.  So I convinced the person in charge of the committee for admissions to the Psych program to an agreement: Admit me in as a provisional candidate, and, if I achieve less than a 3.8 GPA in the first quarter of school, then they can let me go. Conversely, if I achieve that GPA or more and am viewed by the professors as a valued student, then I'll be accepted to the program. I made the GPA and was voted as student representative to attend faculty meetings.

Those types of initially frustrating experiences have tended to follow me around in life. My hunch is, that if most of you who have been marginally successful think about it, you can come up with similar stories and events in your own life.

But what’s happening in our brains as these experiences occur that seem to lead, eventually for some, to success? Here is one explanation:

"With success, people keep on doing the same thing. When they fail, they are forced to adapt and change. That is not just a human characteristic but constitutes a basic feature of how the mammalian brain works.

If a lab rat no longer gets rewarded for pressing a lever that had yielded food pellets before, it gets visibly upset. As its frantic efforts fail, it resorts to all manner of strange, or novel, reactions; from grooming itself to biting the lever, or leaping into the air. It is learning that the world has changed and its brain is getting rewired, so to speak.  When one combines emotionalism with originality, that is fairly close to what most people think of as artistic creativity. Artists are not necessarily frustrated people but tend to be dissatisfied with what they have accomplished previously and try to do something better, or something new."

How do you handle failure? And…How do you view and treat others who fail?

The answers to those key questions may be two of the most important differentiators between the best leaders and the worst. Don't get stuck hiring only people who have succeeded recently. Many of those who have failed recently may have the best success tomorrow. (With the exception of people who fail at moral and character failure- we have to be more careful here).

Question:  Do you have a failure in your life that later contributed to your success?  Share your story—we’d enjoy hearing your experiences.


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DMPhotoWorkPuzzleEditor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. 

Why Bad News for the Real Estate Industry May Be Great News for Recruiting—Part 2

Last week, I started a discussion on the historical price
trending in the real estate industry.  I
highlighted  a recent interview that was
done by Robert Shiller on Bloomberg television. 

The interview centered on the notion that home ownership has
historically been a mediocre or poor investment.  In his opinion, treating it as an investment was a  “fad” based on short-term economic conditions
that probably will not happen again.

Wow…did I get an earful back from several of the WorkPuzzle
readers!
Apparently, many of you don’t care for Dr. Shiller (in general) and
did not find his analysis very thoughtful. 

Here is part of an email I received shortly after
publishing:

“…to think that [drawing the conclusion that] this real estate cycle, however severe, will
change these longer term trends is a rush to judgment. I’ve always found
Shiller coy, playful, and not entirely serious in the way he comes across. Or
so he seems on TV.  His index was full of
bubble markets and, I always felt, distorted (and made worse) the perception of
real estate in the 34 states that were not bubble markets.”

Here is another one:

“…the problem [with Shiller’s analysis] is it ignores rents,
or imputed rents.  Over time, rents rise,
but housing debt service is more or less fixed. 
Eventually, when the house is paid off, you live there 'rent free.' No matter what, you’re paying rent, either to
your landlord, or to yourself.  Yes, you
have maintenance, taxes, and so forth, but so does a landlord.  And you get the psychic reward of owning your
own place, and can do what you want with it.

I can’t believe a smart guy like Shiller doesn’t get
this.  Compare the net worth of
homeowners and non-homeowners…there’s no comparison, and the house is a big
part of that.  Sorry for the rant, but
seeing a knowledgeable guy like Shiller run down housing just frosts me.”

There were several other good points as well.  I’m glad I prefaced my original introduction with the statement “I’m not a real estate expert…”   I think that I've proven that to be true, and it appears that some of the talking heads on
television may not be experts either! 

It’s certainly good to know that it's not all doom and gloom for the real estate industry.   That’s encouraging.

HousingPricesUSLast40Years

So, what does all of this have to do with recruiting?  Suprisingly, it is what I initially found interesting is the historical housing price graph above.  There
is great news in this data.  And, there is
especially great news for real estate companies focusing on “new to real estate”
recruiting in the future.

Regardless of whether you ascribe to Shiller’s vision or the more hopeful scenarios outlined by many of our readers, I think
there is a consensus that what happened between 2000 and 2010 will probably not
repeat itself (at least not in the short-term).

It is much more likely that the graph will either flatten
out to the right or begin a slow and steady rise that keeps pace with inflation.   As one reader put it,

“…all the talk was about how real estate may never be any
good again, because it will 'only' appreciate at about the rate of
inflation.  It’s SUPPOSED to only
appreciate at the rate of inflation. 
It’s a consumable…someone has to be able to afford to live there to
rent it.  If it appreciates faster than
people’s incomes, it becomes unaffordable, and we just saw what happens when
that happens. “

That makes sense.  
And if it’s true, then this recruiting principle will help you be
successful in the future:

Recruiting is most effective in stable
markets.

This idea may seem counterintuitive, but it’s definetly something that goes through the minds of talented candidates as they consider changing careers. And this principle has already had a profound effect on real estate recruiting over the last 10 years.

Think about it–if you were attempting to recruit between
2000 and 2006, it was much easier to get warm bodies in the door, but it was
difficult to hire the right people.  What
drew many of these new hires into the industry was a “get rich quick”
mentality.   These new hires not only
left when the easy money dried up (more than 600,000 agents left the real estate
industry between 2006 and 2009), but also they caused disruption and harm to many organizational cultures along the way.

Of course, hiring “new to real estate” agents during the
backside of the real estate bubble (2007 to 2009) has been very
challenging.   While the press constantly
paints a negative picture of markets undergoing correction, talented
individuals naturally shy away from the turmoil. 

So, where does that leave us now?  For the past couple of years, there seems to be
some stabilization happening.  As we move
to the right on the graph (the future), many experts are suggesting
(Shiller included) that we may be in for a period of slow and steady growth.

Here is the recuting lesson to take from this discussion:  Slow and steady growth is the ideal environment for hiring “new to real
estate” agents. 

How do we know this?  We've seen it with our own eyes.  As we consult with real
estate companies we constantly see truly high-quality agents who have been with companies
over 15 years.  When did those new agents
come into the industry? During the previous period of stability.

As you know, it’s difficult to predict the future.  However, if there is a sustained period of
slow real estate growth ahead and the real estate industry experiences the
retirement of many of it’s mature agents (those 55 and older now), there could
be a perfect storm brewing (in a good sense) in the world of  “new to real estate” recruiting. 

I think we’d all enjoying seeing that happen.  Make sure you're prepared to take advantage of it.


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BenHessPic2011Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle. 

Why Bad News for the Real Estate Industry May be Great News for Recruiting

As real estate buffs, I’m sure most of you are familiar with
Robert Shiller’s work.  As you may
recall, it was Dr. Shiller’s infamous book, Irrational Exuberance, that
accurately predicted the bursting of both the dot-com stock bubble and later the housing bubble.  The first edition of his book was published
in 2000, and the second edition (that focused more on the housing market) was
published in 2005.

Since Dr. Shiller predicted the collapse of these bubbles (especially the housing bubble) so accurately, he has risen to “prophet status” in the minds of many
media pundits.  At least once a month, it
seems I read an article where he is cited as the expert on what the future
holds for the real estate industry.

Most of the prognosticating, seems to center around some
form of the chart below:

HousingPricesUSLast40Years

While there are many different ways to present this
historical housing data, most of the discussions, with Dr. Shiller focus on the
right side of this graph.   “ Are we at the bottom of the market?” “Will housing prices return to their previous levels?”
“Will housing prices now follow a more traditional trajectory?”etc.

After watching a number of these interviews, I’m starting to
think Dr. Shiller is getting tired of these questions.  This is especially true for the interview I
saw last week on Bloomberg television.

At one point, the interviewer (Trish Regan) challenges Dr.
Shiller’s lack of enthusiasm for the most recent housing stats that suggest a
rebound may have started.

“"Then why buy a home?" she asked.
"People trap their savings in a home. They're running an opportunity cost
of not having that money liquid to earn a better return in the market. Why do
it?"

"Absolutely!"
Shiller exclaimed. "Housing traditionally is not viewed as a great investment.
It takes maintenance, it depreciates, it goes out of style. All of those are
problems. And there's technical progress in housing. So, new ones are
better."

"So,
why was it considered an investment? That was a fad. That was an idea that took
hold in the early 2000's. And I don't expect it to come back. Not with the same
force. So people might just decide, "Yeah, I'll diversify my portfolio.
I'll live in a rental." That is a very sensible thing for many people to
do."

Notice
what he said about viewing housing as an investment—he clearly believes
“investing in housing” (for the purpose of getting a financial return) is a bad
idea.  He goes on later in the interview
to show that the real return on a housing between 1890 and 1990 amounted to a
0% return. 

You’re
welcome to watch the whole interview here (be warned, it’s about 10 minutes
long):

Shillervideo
 I’m
certainly not a real estate expert, but this seems like a major paradigm shift
for the real estate industry, and possibly for society at large. 

Ever since I bought my first home 15 years
ago, I’ve heard and believed that my house was a good investment.   While that has personally worked out well
for me, the future will likely be very different for those who are buying homes
today.

If
we relook at the housing graph that we considered to start this discussion, it
seems that Dr. Shiller is suggesting that we’re headed back to the left side of
the graph.  This would mean some sort of steady growth that really amounts to negligible growth. 

While
this doesn’t seem very exciting for real estate sales (perhaps many of your are
feeling depressed by this analysis), I think it is great news for real estate recruiting. 

Why?  I'm out of time for now.   I’ll share these thoughts in my next discussion.

Question:  Do you belive the Dr. Shiller is correct?  If so, how could this be good news for real estate recruiting?


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BenHessPic2011Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.