Recruiting for Profit or Survival?

by Judy LaDeur

You are six months into the year. Are you on track for your recruiting goals? When you get to the end of this year, will you have the same number of associates that you started with? More or maybe less? What is the caliber of the agents you are recruiting? Will your market share for this year be greater than last year?

Are you recruiting for profit or survival? There has been a lot of agent movement this year and many of the agents who have changed offices are ten, twenty and thirty million dollar producers. In fact, some of the top teams in the country have been changing offices. Why? A lot of major changes have taken place in the marketplace> As we all know, change creates vulnerability. Vulnerability in the marketplace creates opportunities for recruiting. But now is a good time to evaluate your YTD activity.

Ask your self these questions:

  1. Is the production of the agents that I have hired YTD greater than the production of the agents that I have lost YTD?
  2. Are the new agents I have hired productive within the first 30 days of their career, and are they full-time agents?
  3. Is my net growth for the year, at least 50 percent of my annual recruiting goal?
  4. Has my market position increased this year?

If you answered yes to each of the questions, then congratulations, you are recruiting for profit. If not, you might be recruiting for survival. Recruiting for survival is the art of working very hard all year long, only to end the year where you began: The same number of agents and same market position. Recruiting for survival can be very tiring and very frustrating.

Here are some tips that can help you recruit for profit:

  1. Whenever you hire new associates, make a commitment to only hire full-time agents.
  2. When you hire experienced agents, hire only those agents who are currently producing at least $1.5 million in production, or at a level equal to that of the average PPP of your team
  3. Whenever an agent leaves your firm, do not simply replace the agent, but replace that agent with an agent or agents who equal the production of the agent you are losing. For example: If you lose an $8 million dollar producer, you need to replace that agent with another $8 million dollar producer, two $4 million dollar producers or four $2 million dollar producers.

What can you do to attract the agents you want? Ask your agents to help you identify the strengths of your firm. At your next meeting, ask each agent to tell you why they joined your firm and why they stay with your firm. These systems are the reasons others should want to join as well. Promote these systems through your marketing, and commit at least two hours per week to following up with phone calls to secure appointments.

The best way to recruit for profit is to involve your agents in your recruiting efforts. Most will help because they want to, but it is always nice to recognize their efforts. If they give you the name of an agent, write them a short note expressing your gratitude for helping to identify a perspective recruit. If the agent comes in for an interview, send them a note with a gift certificate for lunch. If you hire the agent, give them something that is special to that agent, such as tickets to a sporting event, theater or dinner for two at a nice restaurant. Or do what I did. After you hire the perspective recruit, take the new recruit and their spouse or guest out to dinner and also invite your agent who recommended them with their spouse or guest. It gives the six of you a chance to get to know each other, and encourages the new agent to also help you recruit.

One of my clients decided to have a quarterly get-together at their home for all the new recruits, their spouse or a date and the agent who referred the recruit with their spouse or date. The manager or recruiter who hired that person was also there. Their agents loved the idea and look forward to the next event.

Recognizing the efforts of your agents has a two-fold effect. If your agents are happy, they will not leave. The better you retain, the less you have to recruit. The general rule of thumb is 50 percent of the agents you bring on each year should be as a result of one your agents recommending them.

If you would like to have additional information on how to recruit and retain the agents you want, contact Judy LaDeur at (630) 876-0052 . The Total Recruiting System CDs which normally sell for $249 are yours for just $99. if you mention this article.

For more information contact Judy at (630) 876-0052 or e-mail judy@judyladeurinternational.com


©2006 Judy LaDeur. All Rights Reserved.  |  (630) 402-0898   |   Judy@JudyLaDeurInternational.com   |   website by Itcetera