Bonzai Real Estate Blog

Let's see, I hire someone to whom I'll be paying a salary. What do I expect.

1. I expect results.

2. I expect compliance with policies and procedures

3. I expect adherence to job description

4. I expect loyalty to the company

5. I expect honesty

Why would an employee agent (EA) not be motivated to achieve results? I've done my due diligence before hiring and I've found the prospective EA to be results oriented, moderately successful in RE, honest, internet/computer savvy, a good salesperson, intelligent, personable, amenable to teamwork, available full time.

Why would this person, with intensive training and given the tools to succeed, not be a top producing agent on salary with the potential to meet bonus requirement and make $120,000 a year?

The person understands from our employment agreement that results are a priority, that unless the person produces what is expected they'll be let go from the company. They also understand that if they produce X amount and meet all standards of teamwork, they will remain with the company and grow with the company and that after every successful year the bonuses will increase.

The person understands what is expected of her and she knows the rewards of achieving what's expected. Why would this person not be successful and add value to the company?

One thing a salaried model would do is exclude the part timers and the dabblers. Not that there is anything wrong with part time and dabbling, but it just wouldn't work with the salary model. The salary model will work only with agents who adopt the employee mindset, which would be difficult for many experienced agents -- although it would be a welcomed relief for many other agents, especially now in this slow market. One possible reaction is that agents would respond positively toward salary and being under the guidance of leadership.

Once agents realize they have to produce in order to overcome their salary and to receive a bonus that would put them in the higher income bracket, I have a feeling they would do what is necessary to make the company successful.

Leadership should enhance the work experience so that working at Company Y is a joy. Yes, I said JOY, something rare people receive in great working conditions where they find respect, interest, freedom, honesty, rational expectations and opportunity -- all jabbered about in pitches but seldom delivered as a way of actually doing business. It can be done.

The funny part is that everyone reading this will say - Yes, I could do this, but others can't or won't. It can be done.

Talented people working together toward a common goal can create amazing things, and if it's done right it doesn't have to rape individualism and uniqueness -- as a matter of fact uniqueness should be fostered in a great company. Again, leadership is vital.

In the real world of numbers it will take much crunching and evidence for companies to embrace a salary model. If I had a large company I'd begin testing to see what happens, even if it's virtual testing. I'd get together my top players, bring in a consultant, bring in business connections outside RE and have an idea session with what-ifs and mock scenarios, recording all the different objections and good ideas and raised questions.

My gut feeling is the first company to do it in earnest will be wildly successful. There will be agents beating the doors down to become a part of it. If I'm correct, it will foster competition, but by the time the competition reacts the first will be ahead of the game. The scary part is the initial investment, but with the right operation it wouldn't take long to reap the rewards.

If I'm correct in my assessment and there is a demand to be a part of the new company, this alone would be enough motivation for the hired employees to produce and work together. I've already described some of the structure built on a biz 2.0 model, and if this is applied correctly, the amount of leads coming in should create another strong reason for EAs to work hard toward success -- they will see results, they will see value, they will see security. I think they'll be loyal.

Plus, if leadership is positive, the new way of doing business itself will be attractive, special, something different and honest and forward looking. If this type of environment can be created it generates results. Fire in the belly is powerful and hard to stop, but the challenge is to keep the fire burning. That's what we always fall back to, because it's a reality -- in-fighting starts, management becomes somewhat aloof and dishonest, politics infest the workplace, petty jealousies begin worming their way into relationships, cynicism sets in and the entrophy begins.

This doesn't HAVE to be, but it happens, and the company becomes another failed experiment and skeptics smugly say -- "I told you so." It doesn't have to happen,and most likely won't if leadership is experienced and knows the signs to look for and to combat. If leadership says -- "I can do this, but others can't, so I need to be straw boss", then it won't work, but if experienced leadership says -- "I can do this and others can to, and I'm going to help them achieve it", then it will probably work. Understanding a little psychology and group dynamics would be helpful -- not to manipulate the employees, but to understand how to prevent the downward slope.

I'm only part-cynic, so I won't say money is the bottom-line, rather I'll say money is important, but so is the work experience -- if people trust and are happy, that's worth a lot. You can have both.

More later. What about the consmer?