As many real estate company hiring managers know, quality talent is in short supply. The latest statistics from the U.S. Bureau of Labor Statistics showed that 4.5 million people voluntarily left their jobs. This statistic does not include those who were laid-off or downsized, which takes the total number to almost 11 million who have left the workforce since the pandemic started.
What this means for hiring managers is that demand for good talent greatly outstrips supply. In language real estate brokers and team leaders know all too well, it is like our current housing situation -- the demand for housing is greater than the available inventory.
In an ideal world for real estate brokerages and teams, they would have the most talented people applying for the jobs they currently have open. This does not happen often, or by accident.
The good news is they can improve how attractive they are to talented workers with some simple, albeit significant investments.
In a world where we are competing for the best talent, it is important for companies to make their organizations as attractive as possible to external talent. With that in mind, there are five proven strategies to attract top talent:
- Offer competitive compensation and benefits
- Create a thriving company culture
- Expand geography
- Offer professional development and growth opportunities
- Outperform competitors
Offer a competitive compensation and benefits package
When demand is greater than supply, prices will increase. This is true not only of the housing market to the talent market as well. Overall, wage growth is predicted to be well above 4 percent in 2022. This means hiring managers should expect top candidates to negotiate for a higher base compensation.
Think of compensation as an investment in the business. A rule of thumb is one great hire should produce four times the salary in results. This perspective helps companies design a more competitive package for top performers. Include desirable perks such as health insurance, flexible schedules and performance bonuses.
Create a thriving company culture
Finding and securing the best people is not only about pay and benefits, but also about culture. Culture also aids in talent retention.
The pandemic has caused employees to be more strategic about who they want to work for and the type of position important to them. They want to work for good leaders who are also good humans. They want an organization that has continuity in what they say and do. And people want to co-create or be part of something where they understand the purpose and how it impacts the world in a positive way. Work is no longer just about paying the bills.
One thing the pandemic has taught the world is that critical work and collaboration can be achieved from any location. With clearly defined roles and processes, working from a remote location can be even more productive than working from a physical office space.
Candidates these days have often already decided that they do not want to return to a physical office space. Offering a remote option can be used as a competitive advantage when looking for top talent.
Offer professional development and growth opportunities
Offering professional development options is another way to attract external talent. This can take the form of reimbursement for courses, attendance at conferences or trade shows, inviting speakers to lead seminars or training for the team, offering coaching or mentoring with other executives, and generally investing in coaching and training.
Like compensation, think of professional development as an investment. If employees are developing their skills, it will ultimately impact the bottom line whether in increased revenue or reduction in hard or soft costs. In addition to professional development, identifying growth opportunities when someone is interviewing can be attractive to candidates. This can be done by showing them the growth path when they achieve key performance indicators, or it could be explaining how the growth of the organization could produce an opportunity for them.
Asking questions to uncover the candidate's long-term career goals can help ensure that they understand how the organization can help them fulfill their current and future goals.
Candidates with the highest talent potential want to join a winning team. The better a company performs, the easier it will be to attract talented people. It is important to tell the story about the brand that shows potential candidates what makes the organization different.
This doesn't have to be a form of bragging or sound egotistical. When done properly this is where winning statistics meet the culture story. It is a way to bring to life how the organization impacts the world in a positive way by being the best in the marketplace.
Today, attracting external candidates is competitive but when we understand the current market, design a competitive offer, create a thriving culture without geographic limitations, offer professional development and growth opportunities while outperforming our competitors, we will be able to attain the best talent in the market. If you have any questions about hiring, reach out to me, Kelly White, head of T3 Talent, at email@example.com.