There are a lot of qualitative elements involved in real estate recruiting. For one, intuition or gut feeling can play a big part in determining whether or not the candidate will be a good fit for the company culture. There’s also a lot of luck involved, since there are real estate agents whose actual performance doesn’t match up with their stellar resumes.
This is why it’s also important to pay attention to the quantitative factors of recruitment. Details such as quality of hire, time to hire, and acceptance rates are just a few data points that can help produce better results. Data-driven recruiting can also reduce hiring costs and makes the entire process more efficient.
However, not all real estate recruiters are used to data-driven recruiting. This presents a challenge, especially since using too much or irrelevant data can also hamper your progress.
Here are some tips on how to properly use data and improve your real estate recruitment:
Find a Reliable Data Source
The thing about data-driven recruiting (or data-driven anything, for that matter) is that you have to have reliable information. Otherwise, you’ll make all the wrong decisions. The question is, how do you find trustworthy statistics? For real estate practitioners, you can go here to discover how you can use a combination of tools to derive accurate, real-time data. These can help you understand the market, make projections, and better allocate your resources.
You can also turn to your existing assets to collect data. For example, your CRM software and applicant tracking system (ATS) likely already have reporting capabilities. Your website is also a good source of data, particularly if you have a careers page. For something more organic, try conducting surveys among your former applicants.
Choose the Right Data
As previously mentioned, you need to get the right data for data-driven recruitment to work effectively. Otherwise, you’ll just be wasting your time parsing numbers and deriving insights that won’t help your bottomline. Some of the data or metrics that you should look at for real estate recruiting include:
- MLS Proficiency Metrics. If you want to hire the best of the best, it’s a good idea to look at an agent’s production and other key performance metrics. This way, you can build a cohesive team that performs well and can help you achieve your goals.
- Market Dynamics. This data point shows how the economy affects the industry as a whole. It can help you determine what kind of real estate agent to look for, considering the level of competition, pricing, and other variable factors.
- Market Share. Understanding market share can help you develop recruiting strategies that align with how your brokerage is perceived (especially when compared to competitors).
- Market Growth. This metric is all about determining which areas have a high potential for growth, as well as where you can find the best candidates. As a result, you can gain valuable insights on when, where, and how to recruit and build your brokerage.
Other things you should look out for are quality of hire, cost per hire, time to hire, and job offer acceptance rates.
Ask Hiring Managers What They Want
If you’re not the person who has the final say on who gets hired, it’s best to ask those in charge about what they truly want in a candidate. This person could be the hiring manager or perhaps the head of HR. The bottomline is to meet with the final decision-maker to know what kind of real estate professionals they’re looking for. Maybe they even want you to widen your search, or perhaps they have noticed a hiring problem that needs to be addressed.
Consulting with the persons in charge can arm you with a good set of data that can help you create a better, more effective hiring strategy.
Visualize the Numbers
Even when you consider only the most barebones data, that will still be quite a lot of numbers. It can be overwhelming to analyze them and derive actionable insights, especially if you’re new to data-driven recruiting.
One simple solution here is to turn the data into visuals. Use charts, tables, graphs, and other visual elements so it’s easier to track and appreciate the numbers. By collating the data in a “snackable” way, it’s also easier to identify patterns and opportunities.
Remember: Data Has Limitations
Data isn’t a silver bullet that will solve all your real estate agent recruiting woes. At the end of the day, data is just a set of numbers. It’s up to you to parse and interpret them to gain in-depth insight. Moreover, while data can help you identify problems, it’s up to you to solve them.
You should also take note that data can be subjective. This is especially true for data generated by humans (such as personnel appraisals). When this happens, try to look for other data sources that can corroborate the figures.
Last but not the least, data means nothing if you don’t act on it. Again, it’s up to you to solve the problems that the data have helped you identify. The good thing here is that the same data can also give you insights on how to develop effective solutions.
It takes a bit of time to get used to, but once you do, data-driven recruiting can completely transform the way you hire real estate professionals.