Lessons From A Talented Recruiter: Part 3

Monday, December 06, 2010

As I mentioned in parts 1 and 2 of this series, Andy Nazaroff of Guarantee Realty has consistently posted remarkable numbers when it comes to converting candidates into interviews, and interviews into hires.

Here are his numbers: From what we have sourced–approximately 950 total candidates to date this year for them–they have interviewed 232, and hired 48 new agents. This means they have interviewed 25% of ALL candidates and hired 21% of those interviewed.

As I spoke with Andy, what impressed me (in addition to what I wrote about in the first two editions), was how thoughtful he is about addressing potential problems preemptively and head-on with candidates. He clearly understands the psychology associated with making life-altering decisions, such as a career change. I have written about the anatomy of a decision before in previous editions (1,2,3) and have detailed the vital psychological importance of never wanting something more than the person you are talking to. The goal needs to be: remain neutral, but flush out all sides of the conflict around the decision.

Andy is very skilled at never taking either side of the conflict too far. But, he takes this a step further… He anticipates that there will naturally be people in the lives of these candidates who WILL represent either antagonistic or overly-supportive input from one or each side of the decision. It's the recruiter's job, according to Andy, to flush out who these people are and what impact they are having on the candidate.

He calls this identifying who is their "wind or anchor." He understands, correctly, that most people will be confused and led away from their own thoughts and opinions of becoming an agent if they have someone at home who is acting as the "wind behind the sails" or the "anchor to sink their dreams." The importance of uncovering this piece of information, in his view, is crucial to arriving at a conversation that is less influenced by the thoughts of others.

The fact that Andy sets a goal of discussing this, helps him uncover this information and leads him to become, potentially, a more trusted ally in the decision. If he can get the individual to reveal that they are being, for example, pushed into becoming an agent by their spouse, he might be able to help set the person free from that influence by restructuring the interview to "We want to figure out what's right for you..not for anyone else." Without this knowledge, Andy would unknowingly become an ally with some unseen force, and further force the candidate to make an overly compliant decision, rather than a healthy, grounded decision.

What is a more typical scenario for most candidates is that they might have several anchors in their life telling them "You can't do this in this market"… or "I don't think you'd be good at that" or "We need the money now" or a thousand other comments. Andy's objective is never to contradict these individuals (these anchors), but to turn it back to the candidate's own research and thoughts. He might ask: "What do you believe?" or "What are your goals?"

To put it simply, Andy never attempts to counter balance someone's anchor with a little wind or vice versa. He's discovered that simply getting the person to reveal and discuss the source is half the battle to neutralizing that negative influence.

More to come…

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.

Lessons From An Expert Recruiter: Part 2

Wednesday, December 01, 2010

As I mentioned in part 1 of this series, Andy Nazaroff of Guarantee Realty has consistently posted remarkable numbers when it comes to converting candidates into interviews, and interviews into hires. It is a ratio that is difficult to match. (Some of our clients and readers post equally impressive numbers and perhaps we can profile their philosophies and practices in the near future…)

One of Andy's primary principles is summed up in the philosophy "buy instead of sell." Most of you have heard this phrase and practice it in most of your training for sales agents, but have you considered practicing this when it comes to recruiting? In my experience, people have the tendency to either negative sell or to sell. Andy does neither. He conveys an attitude close to absolute reverence around this principle. In listening to him describe his practices, it was this central under-riding principle that was clearly leading every question, discussion, call, or material dispensed.

Andy says that to genuinely come across as buying instead of selling, you must lead with questions. He realizes that only the most desperate people will respond when you attempt to sell them on real estate. By not selling, Andy unconsciously places on the candidate the responsibility to sell to him.

Here are the first few steps of his process as it relates to this principle:

He makes ALL the calls to the candidates and initiates each first interview. He sets aside ample time to do both well. (We understand that this may be unrealistic for many of our larger clients who source more candidates.)
Before the interview, he hands out a packet of information that answers the most common questions he has been asked before. (Keep track of most questions asked and do the same.)
He begins the interview with the question: "It's been awhile since we talked and you have had a chance to research the real estate business. What are your thoughts so far?" He gets them talking. Recruiting anyone worthwhile is rarely accomplished if he doesn't know what problem he is solving for the person he is speaking to. (More on this in a future edition…)
By the end of the interview, he asks: "Obviously being in real estate isn't for everyone, and it often takes 6-9 months before you see much cash flow; How are you prepared to bridge the gap?" After asking this there is often a very long pause. He has learned over time to let that pause linger as long as it takes for the person to respond. By letting them come up with the answer, or at least say "I don't know," he shifts into being the buyer, yet never the negative seller.

Psychologically, this produces what's called "self activation." When a person carries the weight of the creative process of a decision, does the research and leg work to research opportunities, and takes the action that should naturally follow…one is "self activating." That is, they are taking the bull by the horns from the very beginning. This is best accomplished when the recruiter is an ally who is pulling for them, rather than pushing them to make a decision that is not right for them. Andy has a gift when it comes to establishing this non-sales, interested and engaged inquisitor approach with candidates.

In the next edition, I'll share with you what Andy believes is one of the most vital components of recruiting….uncovering the "anchor or wind."

Lessons from an expert Recruiter

Monday, November 29, 2010

We at Tidemark have had the privilege of working with over 40 real estate companies, some of which have been with us for several years. Guarantee Realty, of Fresno, California is among these companies. Guarantee has consistently proven to be one of the best executing companies we have ever worked with. They seem to, month in and month out, squeeze out some of the best efficiencies from the numbers we source for them.

Despite the fact that we have sourced approximately 950 total candidates to date this year for them, they have interviewed 232, and hired 48 new agents. This means they have interviewed 25% of ALL candidates and hired 21% of those interviewed!

I asked the CEO of Guarantee, Scott Leonard, if I could spend some time asking his Manager of Agent Development, Andy Nazaroff, if he could share with me some of his secrets. Here is Mr. Leonard's response:

"By all means, we would be most happy to participate. I'll have Andy coordinate with you. It's a very tough time in this real estate cycle. We all need to help each other as much as we are able. Sincerely, Scott."

I spoke at length with Andy earlier today. In the next few blogs, I'll try to boil down what I gleaned regarding what Andy does that makes his process so successful. Let me begin by saying that in speaking with Andy, what struck me first, was how easy he was to speak to. Andy is the first contact for each of their candidates. He calls them personally, and has a clear philosophy regarding how to approach the entire process.

Andy is mindful of changes that can be made and applies them as he goes. Some techniques stay, and others go, but there is a consistent process with a personal flare.

Over the next few editions I'll share with you how Andy interacts with each candidate from his first question, through referral to licensing school. I hope that we can begin an ongoing dialogue with all of you as a result.

The Science of Giving Thanks

Wednesday, November 24, 2010

After stuffing yourself tomorrow with turkey, gravy, and pumpkin pie… and perhaps after winning the family betting pool on predicting when Aunt Marge will unbuckle the top few buttons of her pants, I want you to put some time aside to consider a brand new habit… Celebrating Thanksgiving every day. What do I mean by this?

I mean the Doctor is prescribing a dose of daily gratitude…either in the morning with your vitamins or at night before going to bed. Why? Because science has discovered that it may aid your health and well-being beyond what we have ever known.

You see, gratitude has only recently been put under the microscope from a scientific research perspective. Prior to the last 15 years, the subject was left to philosophers and religious leaders as the appropriate experts to extol its benefits. However, once scientists began studying gratitude, they were so impressed by the findings, that research in this area has exploded. Take a look at some of the findings in the below paraphrased list from a research project on Gratitude and Thankfulness.

Studies show that those who keep gratitude journals on a weekly basis exercise more regularly, report fewer physical symptoms, feel better about their lives as a whole, and are more optimistic about the upcoming week compared to those who record hassles or neutral life events (Emmons & McCullough, 2003).
Young adults who are taught self-guided exercises for daily gratitude report higher levels of the positive states of alertness, enthusiasm, determination, attentiveness and energy compared to other groups, who tend to focus on hassles or a downward social comparison (ways in which participants think they are better off than others).
Study participants practicing gratitude are more likely to report having helped someone with a personal problem or having offered emotional support to someone, compared to a group focused on hassles or social comparison condition.
In a sample of adults with neuromuscular disease, a 21-day gratitude intervention resulted in greater amounts of high-energy, positive moods; a greater sense of connectedness to others; more optimistic ratings of one’s life; and better sleep duration and sleep quality, relative to a control group.
Children who practice grateful thinking have more positive attitudes toward school and their families (Froh, Sefick, & Emmons, 2008).
Grateful people report higher levels of positive emotions, life satisfaction, vitality, and optimism. In addition, they report lower levels of depression and stress. The disposition toward gratitude appears to enhance pleasant feeling states more than it diminishes unpleasant emotions. Grateful people do not deny or ignore the negative aspects of life.
Prosociality: People with a strong disposition toward gratitude have the capacity to be empathetic and to view the perspective of others. They are rated as more generous and more helpful by people in their social networks (McCullough, Emmons, & Tsang, 2002).
Spirituality: Those who regularly attend religious services and engage in religious activities, such as prayer reading, are more likely to be grateful. Grateful people are more likely to acknowledge a belief in the interconnectedness of all life, and a commitment to, and responsibility to others (McCullough et. al., 2002). Gratitude does not require religious faith, but faith enhances the ability to be grateful.
Materialism: Grateful individuals place less importance on material goods; they are less likely to judge their own and others' success in terms of possessions accumulated; they are less envious of others; and are more likely to share their possessions with others, relative to less grateful persons.
Goal Attainment: Gratitude is linked to significantly improved personal goal attainment. In one study, participants in one group kept gratitude lists. This group ended up more likely to have made progress toward important personal goals (academic, interpersonal and health-based) over a two-month period than subjects in the control group, who underwent other exercises toward goal attainment.

There are many ways to develop a practice of daily gratitude. You can create a gratitude journal. Or, if you have an Iphone you can download a gratitude app.

What's clear through the research is that if you don't lean more towards gratitude than complaining, you and those around you will most likely suffer as result. So, follow the Doctor's prescription and begin a practice of gratitude, starting today. You won't regret it…

Competitive Advantage: Creating an Environment Where Your Agents Will Find Engagement—Part 4

Monday, November 22, 2010

Hopefully, over the last week you’ve had an opportunity to join the discussion (read part 1,2,3) we’ve been having regarding how the real estate industry has the opportunity to exploit the weaknesses of traditional employers to hire talented new agents for the future.

Last week, I made the following observation:

Many young people are willing to exchange a high income (or the potential at earning a high income) for job opportunities that offer flexibility, mental/social engagement, adventure, and a little bit of security.

Since the ability of real estate companies to offer high-income opportunities has been significantly reduced, it only makes sense to become proficient at focusing on the second half of this statement.

To help us understand this topic, I’d like to revisit the research compiled by Tony Schwarz in his recent book, The Way We’re Working Isn’t Working. Schwarz does a great job of identifying three arenas where managers and owners can improve the engagement those on their team will experience.

1. Physical. If you’re a leader or manager, creating a new way of working begins with recognizing that physical renewal serves performance. You need to model physical renewal in your own behavior (discussed previously). At the same time, organizations must create policies, practices, and services that support and encourage people to eat right, work out regularly, renew intermittently, and get enough sleep.

For example, what if a part of your recruiting message just focused on commuting? Commuting can take a significant physical toll on peoples’ productivity, draining their energy during the early-morning hours when they might otherwise be effective. This is an annoyance to thousands of people and something that you can easily solve by allowing off-hour commuting and work from home opportunities. As you know, this is not a big stretch for a real estate company. There are many more ideas like this, but it’s up to you to find, highlight, and live them out in your organization.

2. Emotional. Every organization has a distinct emotional climate, and typically it’s set from the top. A leader is effectively the “chief energy officer.” The core responsibility of great leaders is to mobilize, focus, inspire, and regularly renew the energy of those they lead.

Leaders who default to negative emotions to motivate others may get the short-term performance they’re seeking, but the costs over time are high. It is better to act like a doctor and propose to first “do no harm.” This means avoid devaluing emotions such a anger, intimidation, disparagement, and shame.

The antidote to negative emotion is showing recognition and appreciation for the real accomplishments of those on the team. It also helps to handle conflict correctly—keeping in mind the value of the other person. A balance must be maintained between honesty (you need to improve) and appreciation (you’re doing great in some areas).

As you might imagine, it is difficult to promote a healthy emotional environment in your recruiting message because it has to be felt and experienced to know it’s there. But, that doesn’t mean it’s not important. If your team operates in a negative emotional environment, you’ll be swimming upstream on everything else you’re doing to attract high quality individuals.

3. Mental.  As human beings, our attention is under siege.  There is an inverse relationship between the increasing volume of information available to us and our ability to prioritize and make sense of it.

Take email for example.  How many emails do you get a day that don’t contribute to something meaningful you’re trying to accomplish?  And, how often do you respond to the little “ding” letting you know that an email or text message has arrived? Each of those events is an interruption to your focused attention.

Here’s something you may not know: Most corporate environments promote distraction and fragmented thinking. This “status quo” is a major source of irritation and dissatisfaction among many people who work in traditional jobs. Is it possible for you to create a work environment where distractions are limited?

There are some small things that you can do on your team to change this dynamic.  For example, clarify what timeframe people are expected to respond to email, ban email during meetings, encourage firm start and stop times for meetings, and encourage intermittent rest and renewal during the day.

If you can create a work environment where agents are allowed (and even expected) to work uninterrupted with focused attention on high-return tasks, you’ll be offering something that is valued by many talented people. And, it’s something that can be easily promoted in a recruiting message.

I know that much of what I’ve discussed above would require some cultural changes to your organizations. Changing ourselves in hard enough, and changing a company’s culture is even more difficult! With that said, I encourage you to not shy away from the difficult things. The challenges that the real estate industry faces are significant. Some drastic retooling may be needed to continue to compete.

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.

Competitive Advantage: Creating an Environment Where Your Agents Will Find Engagement—Part 3

Wednesday, November 17, 2010

Last week (1,2), I suggested that you will need to become proficient at competing for new talented agents in the months and years ahead. Your competitors are not so much other real estate companies, rather, they are other traditional companies who have a difficult time offering work environments that employees find engaging. This is a major competitive advantage that very few real estate companies use to their advantage.

As we discuss this topic, the elephant in the room that I know many of you are thinking about is traditional pay and benefits — Most “normal” companies offer this nicety, while most real estate companies do not. Granted, 78% of the global workforce is dissatisfied or disengaged in their jobs, but at least they are getting a paycheck!

For years, real estate companies have chided people for this behavior. In fact, I can think of numerous discussions with owners and managers where candidates were mocked (typically behind their backs) for not having the “guts” to step out of their comfort zone and assume the risks of full commission work in the real estate industry.

This bravado attracts some when the risk to reward ratio is in balance, but as the “reward” part of equation has started to diminish and become significantly less probable, the “make it big in real estate” engine that drives recruiting success has stalled. The traditional real estate compensation paradigm is on life support and the prognosis for future success is not good. It has obviously been strained because of economic circumstances in the last couple of years, but there is also a generational component that is adding to its demise.

Here’s the generational component that most real estate companies are missing:

Let me share a story that illustrates how this reality is playing itself out in industry today. A few weeks ago, I met with the general manager of a large auto dealer on the east coast. During the discussion, I asked him how their recruiting process has changed in the last couple of years. To my surprise, here’s what he said:

"We used to have a lot of success with offering people a way to make $200K per year if they were willing to work 80 to 90 hour weeks. We have a sales formula that reliably produces this level of income if a person has a reasonable amount of sales talent and is willing to put in this level of effort.

Problem is…no one wants to do the work anymore! I can’t get young people to engage this value proposition. They’ll often say, 'How about you give me a way to earn $40K a year, and I’ll put in 30 hours per week. I only need $40K because my girlfriend earns about that much and that’s enough money. I don’t want to give up my personal activities and flexibility for more money.' "

This general manager went on to confirm that this happens so frequently that he has given up trying to hire the $200K producers. Instead, he hires more of the $40K producers (which he probably earns better margins on). He has learned to embrace the generational trend, rather than putting energy into trying to recruit the increasingly few people who match his previous hiring framework.

This is not an isolated case. I’ve seen this trend mentioned and documented in numerous research studies and articles I’ve read over the last five years. Many projected that difficult economic times would reverse this trend, but it hasn’t happened.

So, how can you make changes to the way you hire in order to align yourself with this generational trend? Here are some ideas.

Highlight flexibility in your hiring value proposition. It’s not uncommon to see real estate companies highlight flexible hours and work conditions in recruitment ads, but it is usually alongside phrases such as “Unlimited Earning Potential!” and “Be Your Own Boss!” If candidates are skeptical about any portion of the recruiting message, they discount it all. It is more effective to construct ads that convey nothing but flexibility. If you need to say something more, talk about how highly efficient and competent individuals thrive in a flexible work environment.
Replace the “all or nothing” compensation framework with something that offers a small amount of security. I know that I’m treading on sacred ground by mentioning this, but it is worth putting some thought into this idea. The auto dealer example demonstrates this principle: Many very talented people will exchange money (i.e. work for much less than they can get working for other employers) for flexibility. But, when you also ask them to take all the risk in the employment arrangement (full commission), it becomes too much. I believe it is worth investigating a modified employment model where a modest commitment (such as $2,500) is made to a talented prospective agent with the expectation of receiving a return on that investment.
Learn how to truly offer engagement and adventure as an organization. This is where things get really exciting because most traditional companies and teams are not adept at addressing this issue. I’ll elaborate on this topic and wrap up this series in my next discussion.

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.