Have Agents Ever Left Your Brokerage Firm For A Competitor? How Technology Can Helps Retain Top Talent
Daniel Levison | January 13, 2020
Regardless of the industry, as a principal or owner of any business, what keeps most of us up at night, as much or, more than our bottom line is: how can I attract and retain top talent?
Deloitte’s 2020 Annual Insights report on commercial real estate suggests that companies who invest in technology will have an advantage in retaining and attracting top talent. Stating:
- “Changes in the commercial real estate market will require, as well, as offer new opportunities for agents and CRE organizations to attract and retain talent utilizing state of the art technologies in retooling their existing technology stack”
CRETech’s 2020 State of Technology in the CRE Brokerage Industry co-published with SIOR alluded that technology can play a key role in preventing your agents from jumping ship for a competitor. Stating:
- “The tech sector is quickly hitting the CRE industry. Those that don’t adopt technology will be left in the dust.”
- “The CRE industry is beginning to adopt tech innovation as the next way of growing their bottom line and protecting themselves from future competition.”
Deloitte’s study also stated that:
- “Collaborating with technology companies will help CRE organizations to achieve this goal more quickly.”
If you’re a principal of a CRE related business and you’re being “left in the dust” by your competitors, who have or are, committed to improve their technology stack the likelihood that you will be able to attract top talent, and even keep the talent you have, will be meaningfully impacted.
The statement below from the CRETech/SIOR report suggests adoption in the CRE industry is about to take off like a rocket, and for those companies that don’t buy a ticket it will feel like you are being left behind:
- “Technology services, training and adoption remain high priority items for agents, brokers and principals. 72% of respondents said that their current brokerage company needs to do more in providing technology resources to agents.”
One of the hottest areas of technology in real estate is, Real Estate Fintech. RE Fintech is about simplifying and streamlining processes, reducing paperwork and reducing the lack of transparency both in the managing of investing in real estate, and back office operations of transparently processing investment funds, real estate commissions and investor distributions.
Many of the fintech platforms have focused on the bigger picture of managing the investment and purchase process and making the process to acquire financing seamless and transparent.
However few have focused on automation of back office functions and processing and distributing complex commercial real estate commissions and allocation of shared or prorated expenses between agents and their brokerage companies.
The complexity of lease commission structures, graduated split plans, the primary compensation structure for independent agent contractors, along with network fees/outside referrals causes many CRE brokerage businesses to struggle to provide transparent real time information to their agents regarding their individual compensation. We recently wrote on the topic in our blog post, 3 Ways Technology Can Help CRE Agents & Principals Become Top Producers & Run More Profitable Businesses
As the previous owner of a twenty person CRE brokerage business in Atlanta, I can tell you unequivocally, that nothing frustrated our agents more than when we, in a timely fashion, validate, to the penny, how we came up with their bi-monthly commission distributions. The lack of transparency to provide real time information on their personal earnings was always a concern to myself and my partners that some agents might leave over the frustration.
In recent years several fintech companies, such as, Commissiontrac, Realcore and Dealius, among others in the CRE brokerage space have focused on helping brokerage companies to reduce the friction between agents and their brokerage companies.
The days of trying to utilize multiple Excel spreadsheets and spiral notebooks for special situations is a thing of the past. These new platforms have automated tedious back office processes while also providing faster and more transparent information to agents on their personal compensation.
To see why Techstars Atlanta and Cox Enterprises are lead investors in CommissionTrac, and to find out how you can use the Commissiontrac platform to reduce the potential that agents might move to a competitor with better back office technology please visit our website at www.commissiontrac.com and request a demo.
Author: Daniel Levison – Principal, CRE Holdings