Lack of guidance can take a huge hit on retention in real estate. Luckily, offering an effective mentorship program could fix this. According to a recent LinkedIn report, employees across all industries are looking to grow, with 94% reporting they would stay at a company longer if they were offered learning opportunities.
In a highly complex industry, real estate mentorship is crucial, and the numbers prove it. One mentorship study found turnover rate among newer employees dropped from 26% to 8% with the introduction of mentors.
According to the National Association of REALTORS® (NAR), 40% of firms were actively recruiting in 2021, and almost three-quarters of lost agents left for another brokerage or leave the field entirely. Here are three reasons why agent retention in real estate should be a top priority for your brokerage:
Low turnover rates save money
High turnover rates can take a serious toll on your wallet. According to NAR, it costs most brokers about $7,500 to recruit and onboard new agents. In most cases, it takes weeks to find and train the right agent for your team. That’s time you could have spent growing your business.
A real estate agent mentorship program will help improve career satisfaction and success, reducing turnover and saving you thousands. Furthermore, the inclusion of real estate mentors will make your brokerage stand out, bringing more agents to your door and allowing you to bring on only the best.
Low turnover rates establish your business
Building strong client relationships is key when you own a real estate business. Helping families achieve homeownership is an intimate task that requires trust. However, a revolving door of agents means your clients are heading out the door, too.
Getting to know an agent is a time-consuming process that clients don’t enjoy repeating, so if an agent leaves your brokerage, their clients are probably going with them. This will make a big cut into your profits, as business from past clients and their referrals typically makes up more than half of brokerage profits.
Low turnover rates just look better
It’s a small world in real estate. If high turnover rates negatively impact one buyer’s experience, they’ll be sure to tell their friends. Investing the necessary time in your team to set them up for success not only reduces turnover, but also improves your reputation within your community. Don’t pass on free advertising—word of mouth is a valuable tool to keep clients coming through your door.
Unhappy real estate agents won’t stay at your company for long, and your brokerage will pay for it in both profits and reputation. By prioritizing real estate mentorship, you can give new agents the guidance they’re looking for and improve your business outcomes in the process.
For more information, visit https://www.colibrirealestate.com.
