Real estate firms excel in a number of tasks. We have improved as recruiters. We put a lot of effort into providing what agents want and need. However, there is one issue that the majority of businesses struggle with, and it costs them greatly in terms of retention.
Onboarding: Almost Complete Ignorance In The Real Estate Sector
My observation is that most real estate firms pay little attention to onboarding, or orientation, as we used to call it. In fact, I discovered there was no company onboarding process when I was appointed Vice-President of Education for a sizable regional franchise. It became clear from polling different franchisees that few members had anything more sophisticated than simple checklists. They considered onboarding solely as an exercise in getting the agent’s papers in place and training them on how to use the copy machine. True, but that only makes up a minor portion.
The Reality Of Onboarding's Impact On Retention
Because there are now more options for both businesses and employees, onboarding has grown significantly in importance. Businesses have realized that improved retention and profitability are largely dependent on the onboarding process. According to my observations, the real estate industry as a whole needs to be thoroughly persuaded before we put the same amount of effort into our onboarding systems as we do into our training systems. Here are some verifiable facts to persuade you.
Results Of The Onboarding Survey From Different Entities
- Only 12% of employees strongly agree, according to Gallup, that their employers do a fantastic job of onboarding new employees.
- Only 30% of HR professionals believe that enhancing the onboarding process is a major priority, according to the 2018 Global Talent Trends Survey.
According to a 2017 Career Builder poll, 36% of businesses lack a formal onboarding procedure, which has a negative impact on employee engagement, morale, productivity, and turnover.
Effects Of Onboarding On Retention
In the real estate sector, we look for a variety of ways to improve retention. However, we frequently overlook the fact that a new hire's retention is decided within the first 30 to 180 days!
New employees decide very quickly whether they can stay long-term, according to a study on emerging trends in the workforce conducted by Ultimate Software.
- 33% of new hires determine within a week whether they can commit to a long-term position.
- In just one month, 66% of new hires decide whether they can work there permanently.
According to a survey conducted by the research firm Aberdeen Group, 86 percent of participants said that a new hire's decision to remain with a company for the long term is made within the first six months of employment.
How A Great Onboarding Process Dramatically Increases Retention
Organizations using an onboarding procedure "enjoy 54 percent more new recruit productivity, along with 50 percent greater new hire retention," according to the magazine HR Technologist.
A strong onboarding program is well worth the investment. Businesses with effective onboarding procedures increase productivity by over 70% and new hire retention by 82%.
Onboarding Leads To Significantly Greater Profitability
In their report, From Capability to Profitability, the Boston Consulting Group evaluated the 22 HR Practices, placing effective recruiting first and onboarding second in terms of impact.
Have I persuaded you to design a top-notch onboarding procedure? You will benefit from substantially improved profitability and retention rates.