Most brokers would agree that measuring agent performance is crucial to success - to help you make strategic decisions, you need to know how your agents are doing. But, what exactly should you be tracking when looking at performance?
Real estate agent performance can be measured in two ways: 1) quantitative measurements using KPIs and 2) talking to your agents face to face.
Human interaction is important - by speaking to your agents regularly, you’ll get a huge amount of insight into how they’re doing - and you can create a sense of purpose within them. This way, they’re not just ‘chasing numbers’, but they’re more likely to think about what drives the numbers, and what the bigger picture looks like.
Here are three ways to track real estate agent performance:
Setting up a spreadsheet
Using cloud-based tools
Scheduling weekly catch ups
The best way to do it, is to combine several methods, on- and offline, quantitative and qualitative.
Not sure on what to track? Read our guide to Real Estate Agent KPIs here.
What are the different ways to track agent performance?
Here’s a few examples of how to put this into practice:
Can be a straightforward and simple way to create an overview of KPIs and how agents are performing.
Steps to take:
Set up a spreadsheet
Decide on what KPIs to include
Share the spreadsheet with your team
Check the numbers every day or every week
Spreadsheets have their drawbacks, though - they tend to be clunky, time consuming and often stop working when you need them most.
A lot of tools don’t have the drawbacks of spreadsheets, because they are tailored to sales people or to real estate agents and brokers specifically. They tend to be more stable, secure and have other features, such as reporting, commission calculations, etc.
Steps to take:
Select the tool that best fits your needs
Upload company information into tool
Train your agents to use the tool
Keep an eye on how numbers develop and take appropriate action
Steps to take:
- Schedule quick check-in with all your agents
- If you don’t have time for all agents, at least talk to the most junior ones
- Set your agenda in advance
- Ask them questions about things that motivate them, what is going well, where they keep getting stuck, etc… - you can record KPIs much more efficiently using other systems
Are KPIs enough?
Some brokers are tempted to measure performance exclusively by tracking three or four KPIs. It can be convenient to do this - real estate agents tend to be running around town and you often don’t get the chance to catch up with them.
Still, KPIs help you understand how an individual agent - or a team of agents - is doing.
But to get the full picture, you need to understand their motivations, their fears and their proud moments. This is an integral part of their performance and hugely important if you want to help your agents the best you can.
So whatever method you choose to track agent performance, your tracking method of choice would have both elements incorporated.
The best way to track performance is by combining different methods to get a complete and accurate picture.
KPIs tell you the hard facts - is an agent hitting their targets, are they converting leads into sales and so on. Speaking to agents face to face, will give you a wealth of information you otherwise wouldn’t have picked up.
You’ll be able to answer some of the following questions:
Is this person motivated?
Do they have good relationships with their colleagues and clients?
Do they contribute to a positive working environment?
Do they show leadership and provide guidance to others?
See whether an agent is hitting their targets and whether their numbers are in order. But, you’ll also have a better understanding of what you can do for your agents, if anything is holding them back and whether they’re happy and performing at their maximum level.
06.27.19 09:31 AM