Every month, Kate Teves, HR consultant, recruiter and founder of The HR Pro, answers Realtors’ questions about anything and everything related to human resources. Have a question for Kate? Send us an email, or leave a comment below! 

Question: Dear Kate, what’s the secret to running a truly successful brokerage?

Kate: I often get asked a version of this question by both aspiring real estate professionals and broker-owners and although we know there is no singular trait/role that works for all, one trend has become crystal clear: brokerages and teams that invest in an agent success manager (ASM) consistently outperform those that don’t. 

Recruitment, retention, reputation, and true agent success—all see measurable improvements and in this industry, measurable improvements are as coveted as a prime waterfront listing.

How does this impact the broker of record role?

While it was widely accepted that the broker of record (BoR) must be an equal parts compliance officer, on-demand agent support, marketing manager, business development guru and mentor,  it is seldom possible for one person to be excellent at all things at once.  

The emergence of the ASM role allows a BoR to truly focus on traditional responsibilities of overseeing all transactions within a brokerage, ensuring adherence to legal standards and supervising agents to maintain ethical conduct—safeguarding both client interests and the brokerage’s integrity. 

With the advancement of technology and a focus on agent-centric models, the ASM role has been quickly gaining prominence from coast to coast. ASMs act as primary points of contact for agents, providing support, training, and resources to enhance agent performance and client satisfaction. 

Their responsibilities often include:

• Building relationships: Developing strong personal connections with agents to understand their needs and goals.
  • Curating a personalized plan for each agent based on their strengths and existing circle of influence.
• Providing real-time support: Offering immediate assistance to agents, ensuring they can effectively serve their clients by reviewing contracts and offers, supporting with clause writing, and assisting during negotiations.
• Leveraging technology: Helping agents utilize the latest tools and platforms to streamline transactions and marketing efforts. 
  • Training them on the benefits of using a CRM
• Mentorship:  conducting live and online training on ever-changing documents, regulations and best business practices.
• Accountability:  An ASM often acts as an accountability partner by having consistent meetings with the agent and keeping their finger on the pulse of their individual business.

Recruitment: First impressions matter (and last)

If you know me personally you would have heard me say this often, “Recruitment is like dating—it’s about making a great first impression but then also having the substance to maintain the relationship.” 

In brokerages with ASMs, candidates are wooed by the promise of ongoing mentorship, personalized support, and a clear path to achieving their goals. This isn’t just anecdotal. According to a 2023 survey by the Canadian Real Estate Association (CREA), brokerages offering structured mentorship programs—often led by ASMs—reported a 22 per cent increase in applications from top-tier agents compared to those that did not.

Without an ASM, recruitment often feels like speed dating: quick, chaotic, and with little follow-up. Agents might join, but without someone dedicated to onboarding and goal-setting, they’re more likely to look for other options within a year.

Retention: Keeping the band together

Retention is where the rubber meets the road. Real estate has one of the highest turnover rates of any industry, with the average agent switching brokerages every three to five years. However, brokerages with ASMs flip the script. By providing consistent coaching, recognizing achievements, and offering solutions to day-to-day challenges, these brokerages see turnover rates drop by up to 40 per cent.

Let’s face it: no one likes feeling like just another cog in the machine. An ASM ensures agents feel valued and supported, which translates to loyalty. Think of it like having a gym buddy—you’re far less likely to skip leg day (or, in this case, switch brokerages) when someone’s cheering you on.

Reputation: Word gets around

In business, reputation is everything. Brokerages with ASMs gain a reputation as places where agents thrive. CREA’s 2022 report noted that brokerages with dedicated agent support roles are 35 per cent more likely to be recommended by their agents to peers and isn’t that ultimately the best compliment and the easiest way to grow?

Contrast that with brokerages without ASMs. Agents in these environments often describe feeling adrift, which inevitably finds its way into conversations—and not the good kind. One agent’s frustration at a networking event can snowball into a reputation problem that’s harder to fix than a deal that’s fallen through.

True agent success: Beyond transactions

Finally, let’s talk about what really matters—agent success. Brokerages with ASMs don’t just focus on helping agents close deals; they focus on helping agents build careers. This holistic approach includes goal-setting, skill-building, and even work-life balance (yes, even real estate agents need balance).

The numbers speak for themselves: brokerages with ASMs see an average 15 per cent increase in agent earnings within the first year, according to a 2023 study by the Ontario Real Estate Association (OREA). Agents are more confident, productive, and satisfied—and it shows in their results.

So if you are an agent looking for your next brokerage, look for one that invested in a role to dedicate to your success.  If you are a brokerage or team leader pondering whether to invest in an ASM, the answer is clear. Your recruitment numbers will thank you. Your retention rates will applaud you. Your reputation will shine. And most importantly, your agents will thrive.

The Ontario Real Estate Association has officially begun the search for its next CEO. Following Tim Hudak’s resignation in August 2024 after seven years at the helm, OREA has enlisted Ketchum Canada Inc. a consulting firm in the not-for-profit space, to lead the recruitment process.

The role is outlined in an executive brief on KCI’s website; OREA is looking for “an experienced leader with strong business acumen,” who is a “diplomatic and savvy communicator with excellent relationship and profile building skills.”

In an email to Real Estate Magazine, a spokesperson for OREA shares, “After engaging in an extensive Request for Proposals process, OREA selected KCI Talent and Executive Search Consultants. For over 40 years, KCI has worked in the not-for-profit sector and they have significant experience recruiting CEOs. We have no further comment beyond the details outlined in the posting.”

KCI’s Vice President of Search and Talent, Samantha David, is spearheading the recruitment process, with applications due by Jan. 15, 2025. OREA has emphasized its commitment to diversity, equity and inclusion in its hiring practices. The role offers a competitive compensation package and will be based at OREA’s offices in Toronto.

The real estate industry is known for its fast-paced, dynamic nature and high-stakes transactions. Amidst the hustle and bustle of buying, selling, and managing properties, human resources (HR) professionals in this field face unique challenges that demand strict compliance with labour laws and ethical practices. From handling independent contractor relationships to ensuring adherence to federal and provincial regulations, management and HR departments in real estate must be well-versed in legal considerations to protect both the business and its employees.

Recruitment and retention

Many people believe that recruitment and retention in the world of real estate is proprietary to the industry. As a result, they are hesitant to entrust this task to anyone, often setting themselves up for unnecessary work, unsuccessful results and future legal troubles.

While there are specific nuances to keep in mind when recruiting agents or support staff into your business, the principles of recruitment are actually not that different from other industries:

• Having a strong employee value proposition (and agent value proposition)
• Having a consistent interview process
• Knowing which questions you can and cannot ask
• Having a contract ready for signing
• On-boarding plan and 30, 60, 90 days KPIs

Retention is also not a concept specific to the industry. All businesses are fighting the battle to keep their know-how in-house, retail top performers and have a solid succession plan in case someone leaves. Making sure your top performers are happy and supported comes down to leadership; asking questions about what you can do better to make their experience more meaningful and lucrative will reduce unnecessary turnover in both agents and employees.

Compliance with labour laws

Real estate brokerages and teams employ a diverse workforce consisting of sub-contractors, property managers, financial managers, administrative staff, and support personnel. Ensuring compliance with labour laws, such as minimum wage regulations, overtime, and working hours, is crucial.

To address this, broker/owners, team leaders and office managers must keep abreast of ever-changing labour laws and establish clear policies and procedures to guarantee adherence. Regular training sessions and communication with employees are essential to foster a culture of compliance within the organization. Having a well-defined employee handbook and hiring an employment lawyer to review HR practices can provide an extra layer of protection and guidance.

Handling independent contractor relationships

In the real estate industry, independent contractors, such as real estate agents, are a common part of the workforce. However, classifying workers accurately as employees or independent contractors is critical to avoid legal disputes and penalties. Misclassifying employees as independent contractors can also lead to wage and hour violations, tax issues, and potential legal battles.

There are strict guidelines provided by the CRA that discuss the main differences between an employee vs a contractor that should be adhered to at all times to avoid being blind-sided by prorated charges for expenses like CPP ( Canadian Pension Plan), EI (employment insurance) and vacation pay owed to name a few. In essence – if you have control over someone’s hours of work, the equipment on which they work, and the work is done continuously (not on a project basis), and the work relationship is exclusive — they are, for all intents and purposes, your employees.

HR departments must work closely with legal counsel to distinguish between employees and independent contractors based on specific criteria defined by relevant laws. Real estate businesses can mitigate potential risks by conducting periodic audits of contractor relationships and ensuring compliance with classification standards.

Handling confidential and sensitive information

Real estate transactions involve a significant amount of sensitive information, such as financial data, personal identification, and legal documents. Employee files and their security are equally as important as keeping client data safe. Management should implement strict data security measures to safeguard this confidential information from breaches or unauthorized access.

Establishing secure IT systems, conducting regular security audits, and educating employees and members of management with access to personnel information about data protection best practices are essential steps in mitigating the risk of data breaches. Owners, managers and HR should collaborate in order to develop comprehensive data protection policies that align with industry standards and comply with relevant data privacy laws.

Handling conflicts and disputes

While a misalignment between a brokerage and an agent usually results in said agent simply moving their practice to a different brand or starting their own, a conflict between internal team members or disagreement between the terms of employment between the business and one of the employees can have long and extremely negative effects of the team.

Having a well-trained management team or an external HR partner that can navigate and investigate the causes of conflict, find appropriate solutions for both parties to part ways amicably and, more importantly, stop it from impacting the rest of the business is a crucial part of preserving the reputation of your employer brand.

By prioritizing legal considerations, HR departments can build a strong foundation for a compliant, ethical, and thriving workforce in the fast-paced world of real estate. Regular training, collaboration with legal experts, and staying updated on regulatory changes are vital components of a successful HR strategy in this dynamic industry.

Recruiting real estate agents is a crucial aspect of building a successful brokerage, and two effective strategies for attracting new agents are cold calling and delivering seminars. It doesn’t happen in the first shot. It’s a process, a drip campaign to build brand integrity and authority among the many that are doing the same thing. Remember, you don’t want to attract everyone, but rather only those who resonate with you at some level.

These approaches not only allow brokerages to establish connections with potential agents but also provide opportunities to showcase their expertise. By leveraging these methods, brokerages can significantly expand their agent network and enhance their overall growth and success.

So how is it that you can attract someone who has grossed a minimum of $100,000 in revenue vs someone who is bringing in $500,000 to $10 million in GCI? Is it a phone call? Is it an e-mail? Is it a casual conversation at a conference? Regardless of what the agent is earning, recruiting is a dance, a tango between the recruiter and the realtor.  

A few factors must be considered:

• What are the pain points of the agent?
• Is the agent the right cultural fit for your brokerage?
• Is the agent coachable?
• How much coaching will be needed, and how do you win their loyalty?
• Most agents are concerned about splits and fees and what they get in return – are yours competitive according to what the market is yielding?
• Every brokerage is recruiting – what is your true unique selling proposition (USP) in your market?

It’s a fierce battle to acquire quality agents and, frankly, more than just a numbers game. They get called from every brokerage within a 30 to 50 KM radius, and most of the pitches sound the same, “We’ve got this great office with an exceptional admin staff and marketing department as well as a top-of-the-line media room for your access.” Imagine, once they have heard something similar every so often in their career, it gets mundane and boring.  

How do you stand out? How do you differentiate?  

Brokers are trying to differentiate their offering by providing value-added coaching to bring on realtors or creating seminars but are those as disruptive as some claim? We’ve seen a graveyard of brands come and go in the North American market and are privy to industry intelligence that most are clueless about. 

I mean, how do you find out if an agent is not happy with their brokerage? It’s not rocket science. It’s a matter of creating empathetic conversations that revolve around the needs of the agent, where you’re giving more than you receive. This will create your formula for an inbound pipeline of agents. It starts with a simple 15-minute face-to-face meeting to hear their plans.

The first step to creating a tribe is branding and then brand loyalty. I’m not talking about which brokerage you are with but rather who you are as a person that will attract the target market. It won’t be everyone. Once you’ve fine-tuned your internal branding message, then you must create the perfect pitch for a call and follow it with a text. We’re in the age of technology. Text messages are imperative in this industry. 

The next step is to curate a list from your IMS or Re-Stats database of whom you want to consciously attract. What does their profile look like? To start, create a list of 1000 real estate agents. Once you have these in place, then it’s about setting realistic expectations on how much time it will take you to acquire an agent. 

Here are some statistics to consider — five hours a day of calling and texting that list. You’re grooming the list. It won’t yield on the first go. You will have to comb through it more than a couple of times. Forget e-mail, it’s not dead, but it’s not at the top of our priorities in our industry. We’re a breed of face-to-face, phone calls and texting. Yes, you need 100 hours a month minimum to go through a list of 1000 real estate agents to get approximately 20 meetings.

There are various factors to consider. Factors include the demographic, geography, time of day and number of transactions that will yield a number like the above. The recommended target market for an ideal profile should be five to seven transactions in a healthy market.  

In the past, it used to be about the offerings of what exists in the brokerage with an amiable culture, but now it’s more about the differentiating factors.  

Like attracts like

Have you heard the phrase, “Birds of a feather flock together?” This is exactly what the broker/manager will attract. The broker/owner needs someone who will not only coach the agents being brought in but also someone who will call the list of prospects for up to five hours a day.

Cold calling is a tried-and-true method that involves reaching out to potential agents directly through phone calls or other communication channels. To make cold calling successful, brokerages must have a well-defined target audience and a compelling value proposition. They need to research and identify potential agents who may be interested in joining their brokerage based on their experience, skill set and geographical location.  

There’s a lot of noise on social media. For the most part, ignore it and take whatever is being said with a grain of salt. There’s a lot of deception behind the smiles online until you dig and find out how much work is needed under the hood.

During cold calls, brokerages should focus on engaging potential agents by understanding the plight of the real estate agent and then customizing the benefits of working with their brokerage. This includes emphasizing the support and resources available to agents, such as training programs, marketing tools, and technology platforms. 

Demonstrating a strong company culture and a commitment to agent success can also be persuasive factors. By addressing the individual needs and goals of potential agents, brokerages can build rapport and establish trust, making them more likely to consider joining the brokerage.

In addition to cold calling, delivering seminars is an excellent way for brokerages to acquire real estate agents. 

Seminars and webinars provide a platform for brokerages to showcase their expertise, industry knowledge, and value

Depending on the brokerage’s resources and current market conditions, these events can be held in person or virtually. Seminars can cover various topics relevant to agents, such as market trends, negotiation strategies, lead generation techniques, and marketing tips.

To attract agents to seminars, brokerages can promote their events through targeted marketing campaigns, social media platforms and industry associations. Offering valuable and actionable content during seminars is essential to engage attendees and create a positive impression of the brokerage. 

Brokerages can bring in industry experts or successful agents as guest speakers to share their insights and experiences. This provides attendees with valuable knowledge and demonstrates the brokerage’s commitment to agent development and success.

During seminars, brokerages should leverage the opportunity to network with attendees and showcase their unique selling points. They can provide information about the support, resources, and commission structures they offer to agents. 

By fostering meaningful interactions, brokerages can establish relationships with attendees, laying the foundation for potential agent recruitment.

Creating an environment where potential agents feel comfortable asking questions and engaging in conversations is crucial. By fostering meaningful interactions, brokerages can establish relationships with attendees, laying the foundation for potential agent recruitment.

Both cold calling and delivering seminars require careful planning, preparation, and execution. Brokerages should ensure that their agents or sales representatives conducting cold calls are well-trained and equipped with persuasive communication skills. They should have a script or talking points prepared to effectively convey the brokerage’s value proposition and address potential concerns or objections.

Similarly, brokerages should invest time and effort into creating engaging presentations and materials when organizing seminars. They should provide attendees with informative handouts or digital resources highlighting the brokerage’s strengths and advantages. Following up with attendees after the seminar is also essential to nurture the connections made and convert potential agents into actual recruits.

The bottom line, recruiting isn’t a haphazard effort. It requires time, effort, consistency, and financial investment to truly attract and retain incredible realtors to your roster.