The True Cost of Hiring Incorrectly in Real EstateJul 18, 2023
Have you ever hired someone, dazzled by their polished resume, professional appearance, and eloquent answers during the interview, only to discover weeks or even days later, that they just don't mesh with your team? After decades working in and with Real Estate businesses, I can attest to the importance of careful hiring in the Real Estate industry. You're not alone if you've had such an experience, and unfortunately, it’s a story that’s become all too common in our industry.
The Financial Impact of a Bad Hire
Let's talk about figures. According to the Australian Human Resources Institute (AHRI), the average cost of replacing an employee in Australia is approximately $20,000. This cost comes from factors such as lost productivity, time spent on recruitment, and training for the new employee. This is not to mention the negative impact on team morale and the potentially lost business opportunities.
If we consider the real estate industry, where relationships and team synergy are vital, the cost of a bad hire can escalate even further. It is crucial for real estate businesses to have the right person in the right role.
The Old Way of Employing vs The New Approach
The old way of employing—focusing on the aesthetics, first impressions, or presentations—is simply no longer enough. Yes, a well-dressed candidate who answers questions correctly is impressive. However, it's time we dive deeper, into what lies beneath their skill set.
Hiring should be about aligning an individual’s natural strengths, passions, and character with our business vision and values. It's about finding out if they are a team player, if they are open to learning and if they will contribute meaningfully to your team.
Harnessing the Power of Personality Profiling
This is where personality profiling becomes invaluable. Rather than labeling people, personality profiling offers us an understanding of an individual’s strengths, weaknesses, and passions. With this intelligence, we can position, inspire, motivate, and tap into the potential of our employees more effectively.
Imagine knowing exactly how to inspire a team member, how to communicate effectively with them, and being able to place them in a role where they will naturally thrive. This is the power of personality profiling and the benefits are immeasurable.
The Future of Real Estate Industry: Challenges and Opportunities
Recently, there has been a worrying trend in our industry; many employees are leaving or planning to leave. This reality puts even more pressure on real estate businesses to get the hiring process right, ensuring that we not only find the right candidates but keep them engaged and committed to our business.
Furthermore, we must consider the aspect of workplace psychological safety. It is crucial that employees feel secure and valued in their work environment. Not investing in this area of the recruitment process could have detrimental effects on the overall team dynamics and ultimately the bottom line.
The Cost-Benefit Analysis
We must look at the hiring process as an investment. Yes, personality profiling and ensuring a proper fit for your team may require resources upfront. But remember, the cost of having a team assessed is tiny compared to the cost of just one bad hire. It's about investing wisely in your team now to avoid costly hiring mistakes in the future.
It's clear that hiring correctly the first time around is essential for real estate businesses. As a leader in the industry, I am committed to providing business owners with the necessary information, tools, and strategies to find and keep the right people for their team. After all, our people are our greatest asset.
If you would like to learn more about recruiting effectively I am hosting an online workshop on July 28th from 12-12:45pm (Australian Eastern Standard Time) to address "The Talent Tug-of-War: Solving the Real Estate industry's urgent crisis of high turnover and misaligned hiring"
In this free online workshop you will learn...
How to attract the RIGHT people the FIRST time around
Develop a balanced, high-performing team filled with people who love what they do, boosting retention rates and minimizing costly hiring mistakes.
How to put a STOP to high employee turnover in your business
Transform your hiring process from guesswork to certainty. Gain the skills to truly understand your prospective hires before you make the decision.
How to build a COHESIVE TEAM who LOVE their work
Learn to cultivate a team that is not just tight-knit and effective, but also passionate about their work, fueling success and satisfaction in your business.
RESERVE YOUR PLACE HERE!
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