Recruiting Generation Y to Real Estate Sales

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Real estate, like many other industries, faces the reality of an aging work force and must take on the task of succession planning. ERA Real Estate identified that recruiting additional members of …

Real estate, like many other industries, faces the reality of an aging work force and must take on the task of succession planning. ERA Real Estate identified that recruiting additional members of Generation Y was a necessary part of this process and set out to identify recruiting best practices for the real estate industry. The findings, many of which debunk current thinking about Gen Y, provide key tactics, messages and area of opportunity to enhance recruiting efforts of this segment, in the real estate industry and beyond. For full report visit - http://www.era.com/Pages/ERAResearch.aspx.

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  • ERA wanted to answer this question, but as we started to look through existing research about Gen Y, their likes/dislikes, recruiting etc. We found that no one had answered the important questions: Is real estate an appealing career choice for Gen Y? What aspects of real estate appeal to Gen Y? What would make a career in real estate appealing? What are it impediments that keep real estate out of the consideration set of young adults entering the workforce?
  • We set out to answer these questions ourselves
  • ERA wanted to answer this question, but as we started to look through existing research about Gen Y, their likes/dislikes, recruiting etc. We found that no one had answered the important questions: Is real estate an appealing career choice for Gen Y? What aspects of real estate appeal to Gen Y? What would make a career in real estate appealing? What are it impediments that keep real estate out of the consideration set of young adults entering the workforce?
  • These responses are based on interviews that ERA did with current ERA agents who are part of Gen Y
  • The ERA combat test presented 1000 millennials with statements about real estate. These three are the ones that millennials agreed with most strongly and were the biggest barriers when it came to considering Real Estate as a career.
  • Our research highlighted several steps that brokers can add into their current recruiting in order to attract more Gen Y.
  • 58% of millennials who know about the real estate industry indicated they were interested in a career in real estate Compared to just 14% who didn’t. (47% of the millennials in general) Since we’re starting from a clean slate in many cases, we should ensure that we are using messages that Gen Y responds to.
  • The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
  • The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
  • The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
  • The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
  • What makes these four messages so powerful, is that they are the same for all millennials. You don’t have to create recruiting campaigns or messages that only work for one group or another.
  • Plus, they are effective. In the ERA Real Estate attitudinal survey, we found that these messages increased the number of millennials who were interested in real estate by NEARLY a THIRD!
  • However, if you are going to target a particular group. You should consider finding those millennials who currently work on commission.70% of millennials who work on commission indicated they were interested in a career in real estate Compared to just 30% who weren’t. (47% of the millennials in general)This is likely because these individuals already have some experience / comfort with a variable paycheck“Commission” refers not just to sales based jobs but also jobs where you work for tips.
  • Our research highlighted several steps that brokers can add into their current recruiting in order to attract more Gen Y.
  • Millennials are Our ERA Broker focus group helped shed light on how important it is to get Gen Y agents their first paycheck within the first 30 days. Companies are currently employing several methods including – “closing” positions within builder divisions, providing company leads, or getting them started as part of a team.
  • Millennials are future oriented and opportunity driven and so look for a way to assess career progress, set goals and milestones.It is important to note that:Millennials are not as driven by money as other generations and so outcomes related to something related to lifestyle and community are important. Education is important to this group, but many cannot afford college at this point. The skills and education they receive are highly transferrable and will benefit them even if they leave real estate.
  • Millennials report that working with other members of a team make work more pleasurable. Research stops short of proving that Gen Y is motivated by the idea of teams, Instead it is more about the importance of having a strong network of support and collaboration
  • Millennials report that working with other members of a team make work more pleasurable. Research stops short of proving that Gen Y is motivated by the idea of teams, Instead it is more about the importance of having a strong network of support and collaborationOur ERA Broker focus group helped shed light on how important it is to get Gen Y agents their first paycheck within the first 30 days. Companies are currently employing several methods including – “closing” positions within builder divisions, providing company leads, or getting them started as part of a team.
  • Millennials are very interested to know/ see examples of agents their own age who are doing well in the business. It is very important to
  • Plus, Gen Y felt more comfortable that they could do well in this field when they saw others doing it.
  • We set out to answer these questions ourselves
  • We set out to answer these questions ourselves

Transcript

  • 1. RECRUITINGGENERATION Y THE FUTURE OF REAL ESTATE
  • 2. THIS PRESENTATION COVERS:The research in Generation Y: Rethinking Recruiting givesyou the information you need to help bring Gen Y agentsinto your company.  Defining Generation Y – Who they are and what they think about work  What about real estate? – Gen Y opinions about the pros and cons of a real estate career  Recruiting – 4 key messages and 6 critical tactics for recruiting Gen Y
  • 3. WHY GENERATION Y? THE NEXT SALES FORCE
  • 4. WE NEED THEMSuccession planning isn’t just about who will take over your business when youretire. It’s also about who will be out there selling houses when your top producersretire.
  • 5. WHY GEN Y? CHANGING FACE OF REAL ESTATE  A big question in real estate is how to attract younger people into the profession. The numbers tell the story that this is an imminent need.  56 – Average age of a REALTOR®  30 – Average age of a first-time homebuyer  Generation X does not have the numbers to replace the Boomer Generation in the workforce  Generation Y is large enough to replace the Boomers  Gen Y Offers  Tech savvy can help find new efficiencies in the field  New perspective can bring fresh ideas  Extensive personal networksSources: The 2011 National Association of Realtors® Member Profile & The 2011 National Association of Realtors® Profile of Home Buyers and Sellers; ERA Broker Focus Group; Perception vs. Reality: 10 Truths about the Generation Y Workforce, Randall S. Hansen. Ph.D., www.quintcareers.com
  • 6. WHAT DO WE NEED TO KNOW?Generation Y has it’s own characteristics, it’s own way of interacting with theworld. How does this affect the possibility that they will want to work in real estate?
  • 7. RECRUITING GEN Y: ERA INDUSTRY REPORT Original Research  Attitudinal survey to determine real estate benefits and barriers to entry of 1,000 Gen Y individuals (Conducted by Wakefield Research)  One-on-one interviews with Gen Y agents working for ERA Real Estate  ERA Broker focus group Secondary research  Best practices for recruiting/retention in parallel industries  Business and human resource journals  Generational studies
  • 8. WHO THEY AREThe “Decide What You Want to Be and Go Be It” Generation -The Avertt Brothers
  • 9. GEN Y DEMOGRAPHICS Gen Y totals over 77 million Currently Aged 16-34 Born between 1978-1995 Account for 25% of America’spopulation Source: U.S. Census Bureau, 2010
  • 10. GENERATION Y & EDUCATION 40% are still in high school or college 30% of those not in college, plan to go back to finish Source: Surging Student Loan Debt Threatens Homeownership, Jacob Gaffney, Housingwire.com, 12/12/2011; Clean Design research 2011
  • 11. GENERATION Y WORK ETHIC Work to live Career is something that you enjoy and have a passion for Higher material expectations than previous generations Financial success is extremely important 60% don’t expect to say with their current employer for the rest of their working life Source: Generation Y: The Millennials, Ready or Not Here They Come, NAS Insights
  • 12. DIGITAL NATIVES Raised on the internet Technology is a staple in their existence Source: Pew Research Center 2010 report, Millennials: A Portrait of Generation Next
  • 13. CHARACTERISTICS OF GENERATION Y PROS CONS Adaptable: used to change and  Impatient: raised on technologycomfortable in a variety of settings and instant gratification Technologically savvy  Skeptical of advertising Ability to grasp new concepts  Blunt and expressive Efficient multi-taskers  Image-driven: make personal statements with their appearance Diverse: high level of comfort withand acceptance of diversity  They are still young; but they are willing to learn Source: Generation Y: The Millennials, Ready or Not Here They Come, NAS Insights
  • 14. WHAT THEY THINK ABOUT REAL ESTATE
  • 15. Wouldn’t seriously consider a 50% career in real estate. HOWEVER Admit they don’t know a great deal 90% about being a real estate agent.Because this generation is willing to learn, there is a hugeopportunity for brokers to educate millennials about real estate. Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 16. REAL ESTATE PROS AND CONS: GEN Y AGENTS WORKING AT ERA REAL ESTATE REAL ESTATE PROS REAL ESTATE CHALLENGES Schedule flexibility  Unprepared for stress of job Accountability for personal  Costs of marketing and educationsuccess  Necessity for working nights and No office attendance requirement weekends Ability to experiment with  Managing multiple personalitiesmarketing and business practices  Lack of mentoring programs Opportunity for networking  Lack of up-to-date technology Money making potential  Budgeting Source: Generation Y: ERA Personal Interviews with Gen Y agents, 2011
  • 17. BARRIERS TO ENTRY Individual sales and performance reports are public record, which means everyone can see just how well you are, or aren’t doing in you job. From gas to marketing materials, expenses come out of your own pocket, which is a significant challenge to a young person starting their career in an industry where they don’t have much experience. Real estate professionals work evenings and weekends. They don’t get the predictability and comfort of a Monday through Friday, 9-5 job.Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 18. A NOTE ABOUT “FLEXIBILITY”There are conflicting messages when it comes to the value of the“flexible schedule.”  General research indicates that Millennials want to be able to fit work into their lives.  ERA® agents, who are also Millennials, indicate the flexibility in their schedule is important to them.  In the attitudinal survey, Millennials reacted negatively to messages of flexibility.Takeaway: Real estate is a career that can help fit work into life. You don’t need to be at a desk all day, every day and you can plan your schedule.
  • 19. HOW DO WE RECRUIT THEM?Generation Y does not respond to traditional recruiting messages. So, how do weget them interested in real estate?
  • 20. REFRAME YOUR RECRUITING Talk about what resonates Focus on “low-hanging fruit” Increase social recruiting Develop/Promote programs that match Gen Y desires Address concerns Leverage your current Gen Y talent Source: LIMRA – Life Insurance Marketing and Research Association; ERA Research 2011
  • 21. KNOWLEDGE = INTERESTWe have the opportunity to provide them with knowledge aboutthe industry. Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 22. TALK ABOUT WHAT RESONATES BE IN THE KNOW Real estate agents develop extensive personal and professional networks. You’ll meet and get to know lots of people. And that’s exciting.Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 23. TALK ABOUT WHAT RESONATES NEVER A DULL DAY As a real estate agent, every day is different and exciting. Real estate agents don’t have boring, repetitive days. They’re always multi-tasking on a range of different projects.Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 24. TALK ABOUT WHAT RESONATES BEST OF BOTH WORLDS Most real estate agents are represented by a broker, but still independently employed. This means you get to be your own boss, with the support of a larger company.Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 25. TALK ABOUT WHAT RESONATES EMOTIONAL BENEFITS Real estate professionals help build communities. They help families find their homes. The satisfaction from a job well done in this field is unlike any other.Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 26. TALK ABOUT WHAT RESONATESThe previous four messages ring true for all groups of millennials. Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 27. TALK ABOUT WHAT RESONATES Millennials who say they are interested in a career in real estate.And they have the power to change millennials minds. Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 28. FOCUS ON LOW-HANGING FRUITMillennials who have some experience working on commissionare much more likely to be interested in a real estate career. Source: ERA Real Estate Combat Test, 2011, Wakefield Research
  • 29. INCREASE SOCIAL RECRUITING59% of millennials look to social media for career informationFacebook Host networking events; use Facebook to promote Build relationships (personal profiles) Provide information about your company (business pages)LinkedIn Post job openings Find prospective agents Sources: ERA Real Estate Combat Test, 2011, Wakefield Research; “How to Use Social Media for Recruiting, American Express OPEN Forum; “How to Use Social Media as a Recruiting Tool”, INC. Magazine, Tiffany Black, April 2010
  • 30. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN Y DESIRESCareer Support Mentor/coaching programs Resources of knowledge Constructive feedback from broker, peers and clientsSources: “The Next Generation of Real Estate Teams,” Bernice Ross, Inman.com“; Three Tips fro Gen Y About the New Workplace, www.careerjournal.com; “A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week
  • 31. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN Y DESIRESCareer Path and Business Planning Goals  Related to outcomes other than money  Direction on how to reach them Define necessary skills Assessment criteria and defined rewards Broker as a resource  Identify market direction and opportunities Source: “Why Hiring Millennials is Good for Your Business,“ Diane Spiegel, American Express OPEN Forum
  • 32. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN Y DESIRES Collaboration and Community  Idea sharing  Company-wide goals  Impact on community  Putting families in homes  Giving back  Events are an opportunity for team building within the officeSources: “A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week ; ERA Real Estate Combat Test, 2011, Wakefield Research; New Generations at Work, McCrindle Research
  • 33. ADDRESS CONCERNSHigh Start-Up Costs Financial planning “Closing” positions Company leads Getting started on a team Source: “The Next Generation of Real Estate Teams,” Bernice Ross, Inman.com“; ERA Broker Focus Group A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week;
  • 34. LEVERAGE YOUR CURRENT GEN Y TALENTMillennials who know a real estate agent their own age are morelikely to be interested in a career in real estate. Source: ERA Real Estate Combat Test, 2011, Wakefield Research; ERA Broker Focus Group
  • 35. LEVERAGE YOUR CURRENT GEN Y TALENT Enlist their help in getting recruiting messages out via social media Create video(s) to showcase them Have them identify potential candidates; invite them to networking events Sources: ERA Broker Focus Group, 2011
  • 36. GENERATION Y: REFRAMING RECRUITING AN ERA® INDUSTRY REPORT Original Research  Attitudinal survey to determine real estate benefits and barriers to entry of 1,000 Gen Y individuals (Conducted by Wakefield Research)  One-on-one interviews with Gen Y agents working for ERA Real Estate  ERA Broker focus group Secondary research  Best practices for recruiting/retention in parallel industries  Business and human resource journals  Generational studies
  • 37. WHERE TO FIND THE PAPER Full Paper, Executive Summary & Press Release  http://www.era.com/Pages/ERAResearch.aspx