Challenges that Real Estate Managers Face: WorkPuzzle Manager Survey Results—Part 1

Wednesday, November 30, 2011

As some of you might recall, we asked each of you to participate in a real estate manager survey back in September. The purpose of the survey was to help us (and, in turn, you) better understand the challenges of the real estate manager role.

This was an unusual survey in that a group of our readers actually helped design many of the questions. In designing the survey in this manner, we hoped to focus on the issues that were of the highest interest and concern to the group.

The anxieties that seemed to rise to the top in this process centered on the appropriateness of the many “hats” a first-level manager is required to wear in today’s real estate company.

More specifically…What are the hats that managers typically wear? How does a manager balance these different roles? and, How is success measured and accountability maintained?

In the end, there were ten questions selected for the survey. These questions are listed on the left side of the chart below. On the right side of the chart, we’ve summarized the data that was collected in the responses.

This is not intended to be a vision test. To view a more readable version of the chart, click on it and a new window will open and display a much larger version (if you’re an email reader, clicking on the chart will take you to WorkPuzzle where you can click the chart again and get the larger version).

Take a few minutes to digest this information. Is there anything that surprises you? Do you see any inconsistencies in the responses that you feel are significant? Do you notice similarities between what you’re experiencing in your company and what your peers in other companies are reporting? Do you see problems that seem to characterize the manager position? If so, what are they, and why are they systemic?

Next week, I’ll provide some thoughts on the survey and make some suggestions regarding how you can use this data to make changes and improve your performance. In the meantime, record (click the comment link in web version) or email your comments (reply to your WorkPuzzle email) to me. I’d love to hear your thoughts, and it will also help me focus on the issues that you find most interesting.

Editor'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. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

The 10 Dumbest Things (Real Estate) Recruiters Do

Tuesday, November 29, 2011

Electronic Recruiting Exchange (ERE) and Dr. John Sullivan recently surveyed hundreds of corporate recruiters in the ERE network, on Twitter, and at the recent SMA symposium in Seattle on this humorous, self-debasing topic. The recruiters were given a list of 30 "dumbest things recruiters do" from which to choose. Here were the top ten…

10. Poor Recruiting Presentation (graphics, website presentation, etc.). Potential applicants assume that the company puts its best foot forward when it comes to recruiting. So when they compare your dull presentation with your competitor’s more compelling presentation, they will simply apply elsewhere.

9. Not taking advantage of referrals. The best-practice firms approach 50% referral hires (the percentage of all external hires who come from referrals). Failing to fully use referrals means that you will miss out on a large number of high-quality pre-screened, and pre-sold candidates.

8. Not learning about your competitors. Obviously, if you can’t speak “their language” and you don’t understand their problems, it will be more difficult to communicate with, to sell, and to build relationships with candidates.

7. Treating all candidates the same. Higher-level agents require a different level of service, knowledge, and relationship-building. So, using the same process that you use for lower-level candidates will result in fewer returned calls, a higher candidate dropout rate, and lower-quality hires.

6. Not striking while the iron's hot. When a crisis occurs in the lives of your best prospects, the best candidates are gone quickly. A drawn-out process or slow decision-making means losing the best.

5. Assuming interviews are accurate. Interviews are traditionally weak predictors, but poorly executed interviews dramatically increase the chances of making a major hiring error. Poorly designed interviews may also turn off top candidates.

4. Lack of focus on revenue. Focusing on candidates who will have minimal revenue impact will reduce business (P&L) results. Think like a businessperson–focus on the candidates who will produce the most company dollar for your company.

3. Not identifying "ideal agent" criteria. If you don't know what you're looking for, it is difficult to recognize it when it when it becomes available. Many hiring managers just pay attention to the candidates who are easiest to engage.

2. Not tailoring your recruiting marketing and candidate-selling approaches to the decision criteria of top candidates. Because the most talented agents have choices, they will simply wait until an opportunity comes along that precisely fits their requirements and expectations.

and the #1 dumb thing that recruiters do…

1. Not managing the candidate experience. The candidate experience is the perception of the sum of interactions with an organization throughout the hiring process. It includes every communication, the design of the process, the fairness of process elements, the quality of information exchanged, and the honesty with which questions and concerns are addressed. Providing a poor candidate experience can have many negative consequences, including an increased candidate dropout rate, negative word-of-mouth, and decreased loyalty to the overall brand.

While this survey was focused on corporate recruiters, it is amazing how many of these issues directly apply to the real estate recruiting process, particularly the #1 dumb thing that recruiters do… As we've highlighted in recent WorkPuzzle posts, poor follow-up after the interview is the most common symptom of poor recruiting results.

I guess it could be said that recruiting is…recruiting, no matter what industry you find yourself working. And the principles that produce results– managing perceptions, knowing what you're looking for, maintaining focus on desired outcomes, and treating people with respect– are surprisingly similar.

Make sure you're not one of the hiring managers who makes the mistake of believing these pitfalls don't apply to you. You may find yourself contributing to a list of the ten dumbest things that real estate recruiters and hiring managers do…

The Four Words That Will Get Your Email Opened

Wednesday, November 23, 2011

“You are not alone.”

Did that get your attention? Sean Platt, author and entrepreneur in the field of content marketing thinks it did. In fact, it has been proven to be the leading statement in an email subject line that gets opened and responded to.

This specific subject line has had an average open rate of 90% in email marketing, and has even surpassed the 100% mark (opened more than once by some people) several times, according to Aweber, the email marketing program that tracks Platt’s campaigns.

Why? Because Platt figured out that his statement taps into something every human being wants—to be understood and cared about. And because this is such a core need for individuals, it even trumps some of the normal inhibitions that make us suspect of marketing messages. Platt puts it this way:

“No matter what message you’re sending or service you’re selling, if you remind your reader that someone understands what they are going through and cares about helping them, you will become their temporary hero.

Do it repeatedly, and you will permanently solidify that position.

Use this subject line to get your email opened, but treat the open as just the first step. Once you capture your reader’s attention, prove that you deserved it by providing a useful solution to their most pressing problem.

Even the most effective subject line in the world merely gets you in the door. Your job is to address the issues.

Not only does the ‘You Are Not Alone’ subject line get opened like crazy, it has an extremely high reply rate. This isn’t too surprising since it responds directly to the need for community and connection.

Make sure you reply back. It’s amazing how directly responding to the needs of your reader makes it easy to nurture rewarding relationships.

Help people solve their problems and relieve them of their feelings of isolation, and they will reward you.”

In my years working with Tidemark, I have had countless discussions with real estate managers on the topic of recruiting. I have listened to many managers share their frustration with this particular aspect of their job. It became clear to me pretty quickly that the word “recruiting” can have a negative connotation for some. To counter that, it occurred to me that I could assist those struggling with the execution of their recruiting efforts, by helping them re-define “recruiting.” In fact, I wanted to take that word out of their vernacular and replace it with the concept of “relationship building.”

Having been exposed throughout your life to real estate professionals…and now working with hundreds of them, I can say one thing for certain; you are great at building relationships, and that is all recruiting really is. I believe most, if not all of you intuitively “get this,” but sometimes we need to be reminded of the basics.

While Sean Platt speaks specifically of email etiquette in his blog, I couldn’t help but feel that the true nature of successful and effective email communication involves building authentic relationships over time. The fundamental topic of Platt’s blog is the successful open rate of emails with the subject line “You are not Alone.” The value behind this statement lays the foundation for you to start building relationships with candidates and clients. This is precisely why it has such a high open rate…people need to feel a connection with others.

Platt’s last statement resonated with me: “Help people solve their problems and relieve them of their feelings of isolation, and they will reward you.” This holds true of anyone contemplating a career in real estate, or choosing to continue their career in real estate. I know many of you are emailing as part of your “relationship building” strategy. The concepts that Sean is sharing can go a long way in all aspects of on-boarding new and experienced agents. This goes beyond just email…every interaction you have with prospective employees should add value and offer understanding of your candidate’s needs, concerns, and potential fears.

If you have the opportunity to learn about and help solve a problem, you will endear yourself and your value proposition to all with whom you interact…

Editor's Note: Lee Gray is the Senior Account Manager at Tidemark Inc. Lee is a guest contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

Be a Genius: One Step at a Time

Monday, November 21, 2011

In a meeting this morning, a couple of individuals whom I respect a great deal were referring to a mutual friend of ours as "a genius," citing examples of the notable expertise that he has developed. While I nodded my head in agreement, I was also considering the mistake that was being made in that assessment. Because, in my view, labeling this man a “genius” might actually diminish the work he undertook to accomplish what he has. I know for a fact, and so did they, that he had spent countless hours (easily 15,000) over the last 15 years perfecting one single area of expertise. He was not simply "a genius." He worked extremely hard to get where he is.

The point is, he not only worked hard, he disciplined himself to become great at what he did. I don’t doubt that he began with very strong predispositions and inherent talents toward his proficiency, but what really made the difference is that he woke up every morning with determination to do his best, again, and again, and again…

The reason for my passing this on to you is simple: The best way to coach people toward success is first to firmly establish where they want to go, then help them determine how they are going to get there…not in giant leaps, rather with small steps, every day.

In our times of instant gratification and low frustration tolerance, your primary role will be to stay watchful for the inevitable signs of fatigue and frustration. Then when you see them, re-frame the person's pain, and remind them that very few things worth having come easily.

Here are some quotes to emphasize my point:

"Character may be manifested in the great moments, but it is made in the small ones." —Winston Churchill

"We do no great things, only small things with great love." —Mother Teresa

"I long to accomplish a great and noble task, but it is my chief duty to accomplish humble tasks as though they were great and noble." —Helen Keller

Editor'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. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.

Coaching High Potential Agents: When Encouragement Backfires

Wednesday, November 16, 2011

On occasion, I come across some research or insight that is so counter-intuitive, it makes me question the progress I've made in my quest to understand people. Earlier this week, I had one of those moments.

It came when I read an article written by Dr. John Sullivan, a well-known thought leader in the world of Human Resource consulting and a professor at San Francisco State University. This article deals with the topic of succession planning in large organizations.

While this is not normally a topic that would interest the typical real estate manager who manages a single office, the insight came in how Dr. Sullivan suggests that business leaders communicate with the "high-potential" members (he affectionately calls these individuals "HiPos") of their organizations.

The conventional wisdom is that these HiPos should be identified early and given a bunch of encouragement when their above-average performance starts to emerge. I've often heard comments like this when I've spoken with real estate managers:

"Let me introduce you to Roger…he's closed more transactions in his first six months on our team than any agent we've ever had!"

"If I just had more new agents like Jill our office wouldn't be in a slump. She runs circles around most of the people who have been here for years."

"Why can't more of our agents be like Jason? He comes in here and operates like a true professional. And look at the results! We need more people like him."

Of course, all these comments come from a hiring/selection perspective because my conversations with managers typically focus on this topic. But, they reveal an attitude that is very prevalent among real estate companies: When someone comes along that quickly performs at a high level, the tendency is to first marvel at such a thing and then hold that person up as an example.

At this point, Dr. Sullivan suggests that we may be shooting ourselves (and our organizations) in the foot. When a person starts to figure out they are a HiPo, all types of strange behavior tends to ensue. Here is an abbreviated list of the potential impacts on the individual and the team:

The probability of losing this person to a competitor increases. If you tell employees that they are high-potentials, it is highly likely the news will spread both inside and outside the organization.
Increased frustration and turnover if early success and perceived opportunites don't materialize. Acknowledgement leads to expectations, and unfortunately opportunities do not always materialize as planned.
Employees may not take development efforts seriously. If the HiPo is aware of their status, they may not see the value in actively self-improving. In addition, they may not take full advantage of any improvement and development opportunities offered.
Reduced effort after “making it.” Following acknowledgement, the HiPo may expect things to happen automatically, going into coast mode as they assume their future is set.
Ego issues. Notifying HiPos lets them know they are valuable, but may also create an ego boost that results in a change in behavior (i.e. arrogance, sense of entitlement, etc.)
Frustration among those not designated. As managers identify HiPos (directly or through subtle comments like the examples above) other agents may react unfavorably. If the informal designation process is viewed by other agents as biased or not fair, these factors could lead to reduced productivity and increased turnover.
There may be sabotage. A HiPo could face subtle or direct attacks from individuals who feel that they don’t deserve the designation. Once identified, others within a competitive organization may work to slow them down or even sabotage them out of bitterness.

[Dr. Sullivan identifies another nine risks if you care to read more on this topic]

As this list of concerns and issues illustrates, successfully dealing with those under your care and nurturing is rarely straight-forward and easy to understand…and, the HiPos are an especially challenging lot.

The lesson here is to treat everyone on your team with respect and provide as much thoughtful insight and encouragement as possible. Try to discern what every person needs and customize your assistance to each indivual. And finally, understand the risks of elevating one person (especially if the individual is a new HiPo) over the others on the team. Encouragement and praise is necessary and good, but make sure it is not administered in a way that creates divisions.

Why you should Ignore the Generation X, Y and Z Rhetoric

Monday, November 14, 2011

During a recent presentation focused on the psychology of recruiting, I was asked to elaborate more fully on the difference in the psychology of generations X, Y and Z. Specifically, the manager wanted to know what they could do to more effectively reach these elusive generations. What was originally meant to be a brief response to this question turned into a prolonged sermon that resulted in more nodding heads than I’ve seen in a long time. It resonated so much with these managers that I felt pretty strongly it was worth the time to pass these thoughts on to you.

There are three things you need to know:

Yes, X, Y, and Z generations are very different.
Self-indulging and child indulging baby-boomer parents made them this way.
At their core, most people are the same and will respond favorably if you meet their most basic needs.

Let's unpack each one of these individually:

These younger generations do appear to be disloyal, are out for the best deal, expect to be paid immediately, aren't willing to do menial tasks first, and are willing to change jobs or firms in a moments notice. These are real and true observations, and because of these observations, companies and vendors go to great lengths to try to find ways to respond to these characteristics that only wind up exacerbating the condition. Why do I call it a condition? Because it is a disease. It cannot sustain your company, our culture, the nation, or the world. Find a company or country that attempts to cater to these needs, and I’ll show you one that is on the precipice of collapse.
It's time to take responsibility and fess up to the values many parents within the baby boomer generation have created. This is a generation that believed that immediate personal pleasure was more important than service to others. Self-esteem without contribution was more important than earning the respect of others. Frustration, struggles and hard work were to be soothed as quickly as possible and replaced with rescue and pampering. Unfortunately, while all the above was going on, their most basic needs were being ignored. Many of them were left alone, with a Nintendo, or X-box as a babysitter, activities were valued over relationship building, and family dinners were held on Thanksgiving and Christmas.
The good news is that to redeem the mistakes of the past, we can easily return to the core needs of all human beings. There is an old saying…"There is nothing new under the sun." When it comes to people, we are all basically the same and will never, at our very core, change. When you purposefully seek to meet those needs, you can reclaim the dormant needs of these individuals and bring out the best in them, and your company. As we have presented repeatedly in WorkPuzzle, science has proven without question, that happiness is never experienced through increasing the frequency and duration of personal pleasure. Being confident in this allows you to offer these young people something more compelling that meets a need they didn’t even know that they had, and deeply resonates with every human being.

People need to belong, they need to have high expectations, and they need a goal that is bigger than themselves…with a company painting a picture of doing something special. Are you doing that? What you have to offer is better than what many of these young people are being offered elsewhere: A chance to learn some skills that would be transferable to many occupations.

My 26-year-old son recently quit his last job to tour the world for five months. Upon his return he had three organizations giving him fairly generous offers to work for them. What separated the one he chose to work for from the other two? The one he chose went out of their way to make him feel welcome. Everyone greeted him as he walked in for the interview, several people emailed him with positive comments, and each of his questions was followed up with immediate answers. He even received a very nice note from the boss of bosses in this firm. In other words, he was treated like he was already hired and part of the big, efficient, family. He was also introduced to top performers who treated him like he was a peer, and yet clearly introduced to what was expected in a way that raised high expectations without undo pressure. The support he would receive upon being hired was clearly seen in every interaction.

So, the question for your company is: Can you move past what you’ve heard about these younger generations and speak to their deeper needs? If you can, you’ll attract the best of the best.